Arla has been reviewing its spending, since it merged with MD Foods, to find synergies across markets. Carat will take full responsibility for the account starting October 2003.
The work is based out of Carat Nordic, headquartered in Sweden, and overseen by CEO Patrick Stahle.
Lothar Laufer, who oversaw the review for Arla, said: "Until now we have had strong national focus on business as well as handling media, but with changes in both media markets and in our approach to several European markets, going for a European partner was obvious."
Arla is also reviewing its £4m UK advertising account, shortlisting Clemmow Hornby Inge, BMP DDB and M&C Saatchi for the work. It was previously held by WCRS.
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