FDBusiness.com

Arla Foods to Triple its Business in Beverage Market

 Breaking News
  • Mondelēz International Invests $200 Million in Czech Biscuit Plant to Accelerate Growth in Europe Mondelēz International has invested $200 million since 2014 in its Czech Republic-based Opava biscuit manufacturing facility, which employs nearly 1,000 people and produces Power Brands like Oreo, belVita, Milka and Cadbury, for the European market. The investment builds on Opava’s proud heritage of more than a century as a biscuit-making centre and supports the company’s [...]...
  • European Soft Drinks Industry Generates Revenue of €185 Billion A recent study illustrates how the European soft drinks industry is rooted in the European economy and boosts progress throughout its value chain. The sector generates €185 billion revenue – equivalent to 1.24% of EU GDP – indirectly supports 1.7 million jobs and delivers almost €30 billion in tax contributions to EU member states. The industry [...]...
  • Packaging Automation Help Seal in Freshness When Funky Nut Company, a small business manufacturing creative, healthier alternative peanut butters, were looking at developing their product range and tapping into the snack packs market, they needed a solution to seal in the freshness. Wanting a British manufacturer with reliable products and great service, Packaging Automation ticked the box from day one. Being new [...]...
  • GEA Develops a Large Rotary Lobe Pump For Sensitive Products GEA is expanding its NOVALOBE pump range with the large-volume GEA Hilge NOVALOBE 60. The robust rotary lobe pump is specifically designed for pumping and dosing highly viscous media, also with large particles. This new development meets the hygiene standards of the EHEDG guidelines for applications in the pharmaceutical, chemical and food industries. GEA Product Manager Ulla Främke [...]...
  • Barilla to Invest €1 Billion Over 5 Years Barilla, the world’s largest pasta company, expects to invest about €1 billion over five years on its industrial assets. About 60% of the investments will be aimed at boosting competitiveness and sustainability by improving processes and technologies, while over 40% will support innovation and geographic expansion. The expansion of the plant near Parma in Italy [...]...

Arla Foods to Triple its Business in Beverage Market

Arla Foods to Triple its Business in Beverage Market
August 31
12:06 2016

A sparkling milk & fruit drink, a milk & tea drink and an energy drink rich in protein are all part of Arla Foods’ new ambition to triple its business outside standard white milk in the global beverage market. Arla wants to challenge soft drinks with healthier milk-based alternatives.

One important bet in Arla’s ‘Good Growth 2020’ strategy is to capture the opportunities within beverages with a portfolio that includes healthier alternatives based on milk and natural ingredients. The goal towards 2020 is to triple the revenue of milk-based beverages from Eur230 million in 2015.

The global market for milk-based beverages is approximately Eur100 billion in annual retail sales value, which is the size of the global standard white milk market. However, it is growing much faster, especially outside Europe.

“By addressing the beverage market more strategically, we can double the size of our playing field for liquid milk products and capture significant growth opportunities for Arla. Through branded milk-based beverages we can create more value for our farmers,” says Hanne Søndergaard, executive vice president for global Marketing & Innovation in Arla.

Modern urban lifestyle has led to people across the world increasingly snacking and getting their nourishment out of their homes. Mealtimes are blurring, more women are working and more people are living in bigger cities.

ArlaFoodsBeveragesGraphic“We have a big opportunity to provide people with nourishment when they need it, based on the natural goodness of Arla milk. Our milk should not only be enjoyed from litre-sized packages bought in supermarkets, it should also be available as a tasty beverage on the go. We will expand our portfolio to include products that will nourish you, fuel you or refresh you – whenever and wherever you need it. This will create new sales opportunities for us in places such as convenience stores, petrol and train stations, gyms, workplaces, cafes, bars etc., where we are hardly even present today,” says Hanne Søndergaard.

Within beverages, Arla has had success through its Cocio® subsidiary and its cooperation with Starbucks® coffee drinks. Recently, beverages such as Arla® Protein and Arla® Move with natural ingredients have been introduced.

Arla’s development areas for the new Milk-Based Beverages unit are:

* PRODUCTS & PACKAGING: The current innovation focus includes developing ambient beverages, in which milk, yogurt or whey is the main content. They can be flavoured, carbonated or with added specific benefits such as protein, fibres or grains, etc. However, the team will also have to think beyond dairy, for example by using milk, yogurt or whey as an ingredient in other popular beverages such as sports drinks, water, coffee, tea etc.

* CHANNELS & DISTRIBUTION: This strategic bet requires further extension of Arla’s existing sales and distribution outside traditional retail to make milk-based beverages a natural option in convenience stores, petrol and train stations, gyms, workplaces, cafes, bars etc

* MARKETS: The 2020 ambition is to be the leading provider of milk-based beverage in Northern Europe and one of the leading European players in Asia, the Middle East and Northern Africa. The UK, UAE and Singapore have been selected as test markets that will receive further dedicated focus to develop a winning model for distribution, sales and marketing that can be rolled out in their respective regions.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • June 17, 2018The Excellence of Italian Food and Wine (Bellavita Expo)
  • June 25, 2018Packaged., The 7th Global Summit
  • September 5, 2018Int'l Food Products and Processing Technologies Exhibition (WorldFood Istanbul)
  • September 15, 2018iba
AEC v1.0.4

Jobs: New Product Development

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements