Arla Foods Sets Out for Russia The Danish-Russian joint venture Arla Foods Artis Ltd. in St. Petersburg is now established, and the Danish dairy company is ready to conquer a substantial share of the Russian market, states Arla Foods Business Unit Director, Max Sørensen. Strategy: In five years, the Arla brand will be placed in the upper half of the Top-10 list of best-known dairy products. Target group: Middleclass consumers in large cities.
ment. We have developed an ambitious business plan aimed at strong growth in Russia over the next few years, says Max Sørensen, and stresses: - Within the next five years, the Arla Foods brand will be placed at the upper half of the Top-10 list of best-known dairy products.
By Anna Marie Thøgersen
Danish dairy products in Russia Arla Foods has been exporting dairy products to Russia for many years, during the past decade in partnership with Artis of St. Petersburg as distributor. In October last year, the Russian competition authorities approved a new joint venture between the two partners Arla Foods and Mr. Mikhail Lyasko. The distribution company Arla Foods Artis Ltd. is now established, and the new joint company is responsible for marketing, selling and distributing dairy products under Arla Foods brands. Thus, Arla Foods products within the category of yellow cheese, white cheese, cream cheese, blue cheese and Lurpak butter will be available through all Russian retailers. - Russia is an exciting market, which is experiencing very rapid economic development, says Max Sørensen, who is responsible for Arla Foods’ business affairs in Eastern Europe. We see longterm potential in our joint company and will now expand the business and get an even better insight into our customers and the Russian consumers’ requirements.
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Middleclass consumers
Max Sørensen, Business Unit Director, Arla Foods.
Strategy Our joint venture partner has a strong and proven record in sales and distribution of dairy products, particularly in the St. Petersburg region. The next step is to expand into Moscow and other Russian cities with more than one million inhabitants. More than 100 out of a total 142 million Russians live in large cities, which are enjoying impressive economic develop-
International dairy companies as Valio, Danone and Campina are present at the market and show turnovers up to 10 times the actual Arla Foods sale. How will you get to the top of Top-10 in just five years? Max Sørensen explains: - Arla Foods Artis shared competences enable us to create the distribution required to initiate stronger marketing campaigns and thereby establish and expand Arla Foods within key dairy categories. We do utmost respect our competitors. However, mind you, Arla Foods is no. 5 on the World Top-10 list of largest international dairy companies. For years, we have focused on refining and adding value to our dairy products. Russian consumers have a solid tra dition for dairy products, especially cheese and butter. The yellow cheese market covers 100,000 tons of which 40% are premium products. Special butter brands cover 25% of the total retail sale of 200,000 tons. Furthermo-
MÆLKERITIDENDE 2008