I DAIRY
Revamped Arla Foods Pursues New Growth Strategy Now focused on organic growth rather than expansion by M&A activity, Arla Foods has restructured its business in line with its new ‘Good Growth 2020’ development strategy, which has identified eight global dairy categories and six market regions for delivering the best returns for the dairy co-operative’s 12,700 farmer owners from its expanding milk pool. he eight dairy categories in which Arla Foods is now concentrating its efforts are: butter & spreads, spreadable cheese, speciality cheese, milk-based beverages, yogurt, milk & powder, mozzarella, and ingredients. Growth in these priority areas will be pursued through market-focused innovation and primarily by leveraging its three global brands - Arla (natural goodness), Lurpak (good food deserves Lurpak) and Castello (creatively crafted). “The global dairy industry has developed by a speed seldom seen before, with millions of consumers changing their daily habits and preferences. We have analysed consumer needs and trends across dairy categories worldwide and have matched this with our own biggest strengths. This has
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Africa and Russia. Going forward, Arla Foods will focus on six market regions Europe, the Middle East, China, Russia, Nigeria and the USA. “We have identified the markets in which Arla has the biggest potential to grow a long-term profitable business for our
farmer owners. We are stepping up our efforts in the United States and Nigeria, while continuing to build on our positions in Europe, the Middle East and China. We also remain hopeful that Russia will reopen for business, at which point it will still be a very attractive market for Arla,” says
Peder Tuborgh, chief executive of Arla Foods.
led us to pursue eight specific categories where we feel Arla can grow a leading position globally or regionally. Our strategic innovation and best resources will be poured into these categories,” explains Peder Tuborgh, chief executive of Arla Foods. Six Market Regions In terms of geographical expansion, Arla Foods has already established strong market positions in Northern Europe and the Middle East while also growing in emerging regions such as China, sub-Saharan
The world’s largest fresh milk facility located at Aylesbury in the UK.
FOOD & DRINK BUSINESS EUROPE, DECEMBER/JANUARY 2017
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