DENMARK: Arla Looking To Challenge Soft Drinks And Triple Its Business In Global Beverage Market

Arla has revealed that it is aiming to triple its business outside standard liquid milk in the global beverage market.  The Danish dairy cooperative said it wants to challenge soft drinks with healthier milk-based alternatives.

The company is expanding its portfolio of products to support its strategy including new flavours of its Arla Protein milkshakes, a new Pucko chocolate milk from its Cocio joint venture, Matilde fruit-flavoured milkshakes in on-the-go plastic cups, and a Matilde sport energy drink with 40% extra protein.

Arla said that an important focus of its ‘Good Growth 2020’ Strategy is to capture the opportunities within beverages with a portfolio that includes healthier alternatives based on milk and natural ingredients. Its goal towards 2020 is to triple the revenue of milk-based beverages from €230m in 2015.

The global market for milk-based beverages is around €100bn in annual retail sales value, which is the size of the global standard liquid 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,” said Hanne Søndergaard, executive vice president for global Marketing & Innovation in Arla.

Arla highlighted that modern urban lifestyle has led to people across the world increasingly snacking and getting their nourishment out of home. Mealtimes are blurring it said, with  more women working and more people living in bigger cities.

Søndergaard added: “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, fuel 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, and bars, where we have little presence today.”