Competition forces Arla into European activity

SCANDINAVIA – Competition from foreign dairy groups in Scandinavia has convinced Arla that it has to increase its European activities, with the takeover of Campina a possible consequence.

Chairman Jens Bigum told the Arla board that the group expects tougher competition in Denmark and Sweden over the coming years as other large dairy companies move into the market.

Pointing to Sweden as an example of growing competition, Bigum drew attention to German discount chain Lidl’s arrival in the country, where it now operates 22 outlets and sells dairy goods from Germany and Holland.

Rumours have been circulating that Arla intends to make merge with Campina, and this signal that it wants to expand suggests it may happen sooner rather than later.