Arla Foods Expands Cheese Production in America
Arla Foods is expanding its dairy in Hollandtown, Wisconsin, in the US to match American consumers’ growing interest in ‘premium’ class quality cheese. The expansion will be completed in early summer 2011 and is set to boost sales.
Despite the financial crisis, Arla’s American sales continue to rise. Last year, Arla’s sales in the US rose by 10%, and midway into 2010 volumes sold are showing a 20% year-on-year increase. The progress is remarkable in that the niche market for quality cheese, Arla’s speciality in the US, saw a general decline during the crisis.
In American supermarkets, Arla products belong in the delicatessen departments.
About 70% of Arla’s products for the US are manufactured at the Scandinavian group’s two US dairies in Muskegon, Michigan and Hollandtown, while 30% is imported from Denmark
Arla sells around 16,000 tonnes to American consumers per year. This is only a fraction of total cheese sales in a market that is generally regarded as huge in terms of cheddar and processed cheese for burgers, pizzas and many other fast food products.
In American supermarkets, Arla products belong in the delicatessen departments. As Havarti and blue cheese are regarded as niche categories, this is an area with significant potential for boosting sales.
