FDBusiness.com

New Strategic Targets to Take Arla Foods to 2017

 Breaking News
  • Another Year of Progress For Nestlé Nestlé has reported a 2.1% increase in sales to SFr91.4 billion (€80.6 billion) for 2018 with organic growth of 3% and group RIG of 2.5%, which was at the high end of the food and beverage industry, helped by faster innovation and successful new product launches. 2018 organic growth was supported by stronger momentum in [...]...
  • Fast-growing Asia Maternal Nutrition Market to Boost Demand For Dairy ingredients and Formula Maternal nutrition is a hot new opportunity in emerging markets, according to the latest report from food and drink experts, Zenith Global. In many parts of Asia, the concept of optimal nutrition during the first 1,000 days of a baby’s life (from conception to two years old) is capturing the attention of mothers and their [...]...
  • Innovation in the Spotlight at UK’s Largest Packaging Show Packaging Innovations, Empack and Label&Print 2019 returns to Birmingham’s NEC later this month with its most innovative show to date. The show, which also includes Contract Pack, Ecopack and Industrial Pack, will showcase more product launches and innovation from across the industry than ever before as it welcomes over 300 suppliers. As always, Innovation is the [...]...
  • £100 Million Müller Programme to Transform UK Fresh Milk Business Müller Milk & Ingredients, Britain’s largest producer of branded and private label fresh and flavoured milk, cream, butter and ingredients, has launched a £100 milliion cost and margin improvement programme which aims to secure a vibrant and sustainable future for the business, to the benefit of consumers, customers, employees and farmers. Project Darwin includes a comprehensive [...]...
  • Coca-Cola European Partners Continues to Focus on Driving Profitable Revenue Growth Coca-Cola European Partners has reported its fifth consecutive quarter of revenue growth and announced plans to trade on the London Stock Exchange. Revenue grew by 4.0% to €11.5 billion and comparable operating profit grew by 7.0% to €1.6 billion in 2018. Earnings per share were €2.30, an increase of 8.5%. Coca-Cola Zero Sugar led growth in [...]...

New Strategic Targets to Take Arla Foods to 2017

New Strategic Targets to Take Arla Foods to 2017
January 11
12:14 2013

Arla Foods has unveiled a revised strategy designed to adapt its business to the abolition of EU milk quotas in 2015. A significant new aspect of the revised strategy is that Arla is increasing its focus on markets outside of the EU.

Over the next five years Arla Foods plans to increase its focus on Russia, China and the Middle East & Africa region and aims to double sales of ingredients to the food industry. Regarding Arla’s core markets in Northern Europe the main focus will move from expansion to increased profitability and innovation.

”We now increase our focus on Russia, China and the Middle East & Africa region. Our export to these markets is growing rapidly, and we will work hard over the next five years to build on the massive potential that these markets hold for Arla’s products,” says Peder Tuborgh, chief executive of Arla Foods.

Defining Russia, China, Middle East & Africa as strategic growth markets will see Arla increase investment in marketing, distribution networks and co-operation with local partners in these markets between now and 2017. By 2017 the overall revenue from Arla’s strategic business generated in these markets is set to increase from approximately DKr3.5 billion to DKr10 billion (Eur1.34 billion).

The abolition of EU milk quotas in 2015 is the main driver behind Arla’s decision to revise and extend the global strategy despite there being three years remaining for the current strategy. Without EU quotas it is anticipated that Arla’s milk farmers will produce at least one billion kilos of milk more each year than today. The extra milk cannot be sold as profitable products in the EU due to growth stagnating.

In recent years, Arla has strengthened its positions in its core markets in the UK, Sweden, Germany, Denmark, Finland, and the Netherlands. According to Strategy 2017, these markets must continue to be developed, but with more focus on refining activities, not primarily through expansion via mergers and acquisitions.

Arla Foods will continue to focus on the three global brands of Arla®, Lurpak® og Castello® while striving to strengthen its ‘Closer to Nature’ position.

One of the most profitable areas within the Arla Group is Arla Foods Ingredients (AFI), which is responsible for the production and sale of whey protein and lactose- and milk-based ingredients to the food industry. The target for AFI in Strategy 2017 is to double its revenue globally from approximately DKr2.5 billion to over DKr5 billion.

Another focus area in the revised strategy is to continue to operate a sound and effective business where everyone is focused on cost and new ways of working. ”We have launched a large number of programmes that will enable us to work faster, leaner and more simply. Our overall objective is to save DKr2.5 billion by the end of 2015. This is essential in order to be able to invest in new growth and remain competitive,” says Peder Tuborgh.

The revised strategy which takes Arla to 2017 builds on the previous strategy and is a further development of Arla’s strategic direction, rather than a fundamental change. In the revised Strategy 2017 there is no overall revenue objective, which was one of the focal points in Strategy 2015.

”We are four years into the 2015 strategy period and have achieved many of the strategy’s objectives, and are close to the revenue target of DKr75 billion. Our recent growth must deliver an even higher return to our co-operative owners, and releasing Arla’s new potential is a major task. This is one of the main elements in Strategy 2017. Even though revenue will naturally increase during the next five years, the main goal is profitability,” explains Peder Tuborgh

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • June 18, 2019Multimodal 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements