Arla Foods ready with new global strategy

An ambitious and challenging global strategy has been announced.

The five-year strategy sets out clear global aspirations for the company and builds on our strong positions in Scandinavia and the UK and our 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.

• Germany and Poland will join Sweden, Denmark, the UK and Finland as Arla Foods’ core markets, resulting in increased activity in those countries.
• Investment in product innovation will increase by 100 per cent with a focus on health and taste to support Arla Foods’ growth and create new and better products for the consumers.
• Arla will consolidate its brands into three strong global brands: Castello, Lurpak and a new Arla brand, investing in their strength.
• A new target has been set to double sales of whey protein globally.
• 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 says: “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,” adds Peder Tuborgh.