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02/05/2015

DLG and French Group Agrial in Joint Venture

DLG has entered into a joint venture with French Cooperative Group Agrial. The DLG Food company Lammefjords Grønt and the French counterpart Florette are combining forces to strengthen the activities of both companies within fresh convenience greens. The joint company will be established in the first quarter of 2015.

DLG's purpose with the new joint venture is to fulfil the ambition of continuous growth in the convenience market.

Lammefjords Grønt is growing and has developed a range of mainly Danish-based convenience products and the access and supply of French produce in a broader assortment will strengthen the company. Florette is an international company with skills in growing vegetables in many areas and in producing top quality ready to use vegetables in large volumes.

- In the end, the joint venture will have a three-pronged strategy with the strong, international Florette brand, our own brand and store labels. This will strengthen our activities, says Cees Kuypers, Group Vice President, in charge of DLG Food, who looks forward to work with the French experts.

The management of Florette is optimistic about the cooperation.

- It is a unique cooperation. We combine the French love of food with the Nordic focus on health and commodity quality. In addition to this, we gain access to the Scandinavian market where we haven't been previously, says General Manager Bertrand Totel from Vegetable Division in Agrial.

The joint venture will be marketing and selling the strong Florette brand. This brand allows for synergies with Lammefjords Grønt in a number of ways as the range in the two companies are greatly complementary. Lammefjords Grønt has a strong position in the food service and retail market and generally has an extensive knowledge of the market, distribution network and consumers. Florette has strong competences within production, processing, quality assurance and product development.

- The market for convenience greens is in rapid growth and by combining the French love for food and the Danish knowledge of the market we strengthen the possibilities for DLG Food in this market. By combining the international aspect with Danish quality we add value and gain flexibility. We get the best from both worlds, says Cees Kuypers.

Further perspective between DLG and Agrial

Agrial CEO Ludovic Spiers and DLG Group CEO Kristian Hundebøll see additional possibilities of cooperation between the two companies - both strong players in the international agriculture market. They believe that added value can be created by closer cooperation by the two companies.

Additional information

Cees Kuypers, Group Vice President in charge of DLG Food, +45 6010 5002
Bertrand Totel, General Manager of Vegetable Division in Agrial, +33 (0)2 3347 4849
Kristian Hundebøll, Group CEO, DLG, +45 2968 1950.

About Agrial and Florette

Agrial is one of the major cooperatives within farm supplies and food in France and the company had a turnover of 29 billion DKK in 2013. The vegetable division is a part of Agrial and is one of the European leaders in fresh vegetables with Primeale and fresh ready to use vegetables with Florette. Florette produces 1.8 million bags of cut greens on a daily basis. Florette has 16 factories and operates in 10 different countries in Europe within food service, catering and retail, with a turnover of approx. 4 bln DKK in 2013.

About Lammefjords Grønt

The DLG Group is one of the biggest agricultural companies in Europe with 40 subsidiaries in more than 20 countries and a turnover of 60 billion DKK in 2013. DLG's food division called DLG Food produces healthy, tasty vegetable food products of high quality. DLG Food achieved a turnover of more than 2 billion DKK in 2014. Lammefjords Grønt products are characterized by a focus on product quality and raw material management resulting in in tasty convenience greens. Lammefjords Grønt produces 45,000 bags of cuts greens and meal solutions every day and had a turnover more than 150 million DKK in 2014.