Arla Foods

Arla Foods Overview

Company Headquarters: Viby, Denmark

Founded: 2000

Workforce: ~ 10,000

Company Working: Dairy product production and marketing are activities that Arla Foods engages in. It provides a range of goods for the food sector, including lactose, minerals, bioactive phospholipids, functional and nutritious milk proteins, permeate, and milk-based additives. It sells goods under numerous names, including Apetina, Lurpak, Arla & More, Castello, Arla Kargarden, Arla Cream Cheese, Arla Buko, and Arla Cheesy. It has one owned production facility in Denmark and produces jointly with partners at facilities in Germany and Argentina. Products from Arla Foods are offered in 153 different nations. Moreover, A long-term strategic license deal grants Arla the right to produce, distribute and sell Starbucks premium ready-to-drink coffee products. In addition, Arla is the holder of a long-term license arrangement for the production, distribution, and marketing of cheese products under the Kraft brand throughout the MENA region. These license agreements do not have any accepted values.

Strategy

Arla Foods is focused on continuous new product development. The company primarily focuses on investment which is identified to be the company's key strategy. For instance, recently Arla Foods increased its investments by more than 40% to 4.9+ billion USD focused on sustainability, digitalization, new production technologies, and product development. Moreover, the company is actively involved in strategies such as expansion to strengthen its business portfolio and expand its regional presence. Additionally, Arla Foods, with its significant expertise in dairy ingredients and with tested effective goods and solutions, the company seeks to contribute to the future growth of the sector. Their continual investments in cutting-edge technology and R&D, global research presence and network, and tight client relationships help them to comprehend and meet the demands of the animal feed industry. Digital technology aids firms in expanding their product lines.

Company Snapshot

$11,569M

Revenue

10,000

Employees

2000

Founded

Viby, Denmark

Headquarters

SWOT Analysis

Strengths

Strong manufacturing capabilities
Firm procurement and sales markets
Heavy investment on R&D along with , Continuous development in the existing products
Extensive geographical presence in more than thirty countries

Weaknesses

Competitive pricing range of the product
High operational cost
Multiple Business Verticals may affect the primary focus

Opportunities

Business strength in the Middle East region
Growth advantages in parts of the European region

Threats

Raw material procurement risks
Stiff competition rivalry in the global market
Competitive pricing of the major players in the market

Key Developments

Date	Approach	Development
May 2022	Product Launch	Arla Foods has launched a new production plant at Pronsfeld Dairy in Germany. This has been Arla Foods’s biggest dairy investment to upgrade international demand for the products
June 2019	Expansion	Arla announced that some of its production at three locations would be moved to the recently acquired Middle East property. With this, the business hoped to increase the effectiveness of its supply chain while also providing clients with new commercial options.
February 2018	Acquisition	Yeo Valley Dairies Limited, a division of Yeo Valley Group Limited, the top organic dairy company in Britain, was purchased by Arla. Arla was granted the license to market its organic dairy products under the Yeo Valley brand in the UK as a result.

Product Offering

Arla Foods
- Whey Protein

Financial Performance

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