​Arla Foods UK business group delivers strong 2015 as full year results are announced

• Largest market delivered a year of improved performance
• Delivered market share growth across most categories
• Launched Arla brand, stepped-up innovation and continues to increase marketing spend in 2016

Arla Foods, the farmer-owned dairy company, has today released its Group 2015 results, outlining a robust performance across its organisation. Arla’s largest business group, the UK market, played a significant role in delivering a strong year of improved performance.

Arla Foods UK delivered its ambitions of growing the business by increasing its market share across most categories and through cost savings. It grew volumes sold by approximately 200 million kg and delivered its highest rate of branded sales¹ ever including:

• Record sales in butter and spreads with Lurpak® and Anchor® (up 4.6%);
• Strong liquid milk category performance with Cravendale® (up 2.1%);
• Increased sales of Castello® cheese (up 6.7%); and
• Double digit growth with on Arla Lactofree® product range (up 23%).

The UK business also grew through the launch of product innovation within its new Arla® brand which underpins its focus on healthy and natural. Arla® branded products have outperformed expectations by achieving volume driven growth of 5.2%. This included Arla® Big Milk, award-winning Arla® skyr and Arla® Protein – the latter two marking the business’s entry into the UK yogurt category. It also recently launched Arla® BOB – a fat-free milk that tastes like semi-skimmed. Arla is also launching an exciting new health strategy in the coming months to take advantage of the growing consumer demand for healthier products.

Peter Giørtz-Carlsen, Executive Vice President, Arla Foods UK, said: “A relentless focus on supporting our farmer owners, product innovation and continually delivering efficiencies and cost savings will ensure that we stay ahead of the game. Our performance success means that we will continue to invest in branded growth, and increase our marketing spend as well as our presence in the yogurt category in 2016.

“To further underpin our position as industry leader, and take advantage of the increasing supply of milk available, we will soon be making an announcement in the UK as part of the business’ Good Growth 2020 strategy, with the aim of supporting the growth of dairy categories in the UK as well as the development of Arla into a top 10 consumer grocery brand.”

Overall revenue in the UK increased from 2.8 billion euros in 2014 to 2.9 billion euros in 2015. Despite the strong performance, the UK business isn’t immune to the headwinds facing the broader business including the increasing supply of milk. While Arla delivered a strong cost control programme and increased its competitiveness in 2015, improved efficiencies will continue throughout 2016 to maintain a strong performance in a challenging market.

This year will also see more support for Arla’s farmer-owned marque, underpinning its commitment to its farmer owners. The initiative is helping consumers better understand Arla’s cooperative model, by promoting the fact that buying its products directly supports farmers.

For the 2015 financial results for Arla Foods amba, click http://www.arla.com/company/news-and-press/2016/pressrelease/arla-foods-annual-results-2015-1318826/

Notes to editors:

¹ Volume driven growth 1 Jan-31 Dec, 2015. Source: Arla Foods UK business group

2 Arla® skyr was voted Product of the Year, yogurt category, Consumer Survey of Products 2016 - http://productoftheyear.co.uk/

Arla Foods is a global dairy company and co-operative owned by 12,700 dairy farmers with circa 3,000 of whom are British.

Dating back to 1881, Arla’s purpose is to secure the highest value for its farmers’ milk, while creating opportunities for their growth. With production facilities in 11 countries and sales offices in a further 30, Arla is the world’s fifth largest dairy company and largest supplier of organic dairy products. Arla has a total of more than 18,000 colleagues and its products are sold under the well-known brands Arla®, Lurpak® and Castello® in more than 100 countries.

Arla Foods UK is the largest dairy company in the country and is home to leading dairy brands Anchor, Cravendale, and Lactofree. It has a turnover of £2.3 billion. As well as being number one in fresh liquid milk, butter, spreads and cream, Arla is the UK’s largest cheese manufacturer. It has also built the world’s largest fresh milk facility located at Aylesbury and has plans for it to be the first zero carbon site of its kind. The UK business has a team of approximately 3,500 colleagues located at its dairies, distribution centres and head office.