Arla invests 59.4 mEUR in expanding cream cheese capacities

Arla Foods is pleased to announce a new investment of 59.4 mEUR in expanding the cream cheese capacity in Holstebro Dairy, Denmark to address global cream cheese growth.

The world demand for cream cheese is growing rapidly. Thanks to a unique process and product, Arla brands have a strong market share position in many markets, and that is why Arla Foods has decided to invest 59.4 mEUR in expanding the cooperative’s cream cheese capacity.

The investment will be carried out in the Holstebro Dairy, Denmark, where Arla Foods already has a huge production of butter, spreadable and cream cheese with around 155.000 tonnes of butter/spread per year and 119.000 tonnes cream cheese per year. The investment will unlock an additional production capacity of cream cheese by 16,000 tonnes yearly to be sold all over the world.

“We have very strong positions in many markets in the cream cheese category, thanks to naturality and the uniqueness of our cream cheese products. As a result, we experience significant demand acceleration in this category in the various markets we operate. With this investment in Holstebro, we will be in a position to meet consumers’ appetite for our products and grow further the cream cheese category,” says David Boulanger, Executive Vice President & Chief Supply Chain Officer at Arla Foods.

A new production line and format for food service

Earlier in 2025, a previous expansion in the process facilities in Holstebro were completed already adding 27,000 tonnes of additional cream cheese capacity. This new investment will unlock the full process capacity by adding two new filling lines for retail and food service.

Furthermore, the investment also includes an upgrade of the facilities for the employees at the dairy with a new office building and new changing rooms.

“We are looking forward to continue to deliver our great Arla quality, which among retailers is perceived as the benchmark,” says Mette Møller, Site Director at Holstebro Dairy.

The expansion is expected to be ready for use in January 2028.