UK to play fundamental role in global strategy

An ambitious and challenging global strategy has today (30 October) been announced by Arla Foods amba in which the UK will continue to play a fundamental role.

The five-year strategy sets out clear global aspirations for the company and builds on Arla’s strong positions in Scandinavia and the UK, and its strong brands.

There are five main elements to the strategy, which aims to deliver the best milk price to Arla Foods’ co-operative farmer owners.

1. Germany and Poland will join Sweden, Denmark, the UK and Finland as Arla Foods’ core markets, resulting in increased activity in those countries
2. Investment in product innovation will increase by 100 per cent with a focus on health and taste to support Arla Foods’ growth
3. Arla will consolidate its brands into three strong global brands: Castello, Lurpak and a new Arla brand, investing in their strength. Anchor, Cravendale, Apetina and Lactofree continue to be priority brands for Arla Foods UK and will continue to have strong levels of marketing support
4. A new target has been set to double sales of whey protein globally
5. Arla Foods’ presence in more than 80 markets worldwide will be better prioritised. As part of this, the US, Russian and Chinese markets have been designated as special growth markets and will account for a larger share of Arla’s investment budget. Certain other markets have been defined as tactical markets where current business levels will be maintained.

Commenting on the new strategic plans, CEO of Arla Foods amba, Peder Tuborgh said: "The strategy focuses on what we excel at and on markets where we are, or can, be leaders.

"It is focused, ambitious and demanding. The next five years will be an enormous challenge for us all, but it’s not impossible for us to achieve our objectives and it is important for us to give our all and gain ground.

"We cannot do everything in all markets. We must be extremely strong in some international markets - but not everywhere and not in all categories," added Peder.

Arla Foods UK plc is home to some of the UK’s leading dairy brands including Cravendale, Lurpak and Anchor. Processing approximately two billion litres of milk a year Arla continues to be one of the UK’s leading dairy companies and a supplier of fresh liquid milk and cream to the top seven retailers.

Over 2,500 daily deliveries are made directly to stores nationwide and Arla brands can be found across the dairy category. As well as the leader of the butter, spreads and margarine sector, and a major supplier of other added value products including flavoured milk and cheese, Arla continues to build working relationships with Arla Foods Milk Partnership, a unique group of dairy farmers, which supplies around 90 per cent of Arla's total milk requirements.

Behind this leading business is a team of circa 2,800 people across the UK located at our dairies, distribution centres and head office.