Arla Foods, Denmark-based dairy group to invest in coffee

Arla Foods, Denmark-based dairy group to invest in coffee

June 22 - 2022

Coffee Geography Magazine

Arla Foods, Denmark-based dairy group, which makes and markets drinks for Starbucks, plans to increase the production capacity at a plant making on-the-go, chilled coffee. “The expansion will increase our capacity by around 20%. We are investing EUR41m in the dairy to expand production, packaging lines and cooling areas as the demand has outgrown the dairy’s capacity,” an Arla spokesperson said. The expansion work at the factory in Esbjerg, will be completed by the end of next year. Arla Foods is a Danish-Swedish multinational cooperative based in Viby, Denmark, and the largest producer of dairy products in Scandinavia, and the largest dairy in the United Kingdom. Arla Foods was formed as the result of a merger between the Swedish dairy cooperative Arla and the Danish dairy company MD Foods in 2000.

According to the company’s statement the ready-to-drink coffee beverage category has grown with an average of 20% every year and with a record growth of almost 34% in 2021”. It is remembered that Arla struck a production and distribution deal with Starbucks in 2010 which was extended for 21 years in 2018.

Arla Foods is the fourth largest dairy company in the world with respect to milk volume, seventh with respect to turnover. It has three minor brands: Arla, Lurpak and Castello cheeses that are sold worldwide. 

The Arla Brand is both a co operative brand and a brand across all product categories. The Lurpak brand of butter and spreads is owned by the Danish Dairy Board, and Castello is a cheese brand including blue cheese and yellow cheeses. 

Arla Foods incorporated Arla Foods Ingredients, a former division, as an independent subsidiary nine yeas ago. The company develops and manufactures milk based ingredients, primarily functional and nutritional milk proteins, bioactive phospholipids, minerals, permeate and lactose for the food industry.