Arla UK’s business plan
Arla Foods, the country’s largest dairy company, has unveiled its most ambitious business strategy to date to make Arla a household brand by 2020 and grow its revenue by nearly a third, the company says. Spearheaded by new country head, Tomas Pietrangeli, Arla’s new strategy will include much greater investment in its Arla and Lurpak brands with the aim of creating them into top ten FMCG brands by 20202. It also plans to grow Castello to become the best known premium cheddar and speciality cheese brand.
Following the launch of the Arla brand to UK consumers last year, the company has already launched a range of dairy products including Arla Best of Both skimmed milk, Arla skyr and Arla Protein into categories including drinks, yogurts and cottage cheese. The company will build on these with a programme of activity as part of its 2020 strategy:
At least 10 per cent of its net revenue will come from new product development across its branded portfolio. It will invest a minimum of 25 per cent of its marketing spend in digital as well.
The plan is to increase the availability of dairy products for breakfast, snacking on the go, convenience and hospitality with an overall ambition to increase dairy consumption and to extend its pipeline of healthier dairy products with at least 30 new dairy concepts and 50 new range extensions. Over £100 million (€119m) will be invested in promoting a series of new healthier dairy products and campaigns to encourage more nutritious eating habits and challenge some of the current myths about dairy.
Pietrangeli, Arla Foods UK MD says, “We want Arla to be the name that people know, love and trust for dairy. We have developed a strategy that delivers clear consumer benefits by re-engaging them in the most innovative, unexpected, responsible and efficient way. Our overall objective will be to add value to our milk and in turn allow us to return the best possible price to our farmer owners,” he continues.
The company will also publish a set of health and nutrition commitments on Arla products and the development of an enhanced foodservice offering.
