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Arla Foods Boosts Capacity with $29 Million Investment in Milk-Based Beverage Production

Denmark 11.07.2024
Source: The DairyNews
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Arla Foods is ramping up its production capabilities with a significant DKK 200 million (approximately $29 million) investment in its Esbjerg Dairy Center in Denmark. This strategic move is aimed at supporting the burgeoning growth of its milk-based beverage segment across the EMEA markets.
Arla Foods Boosts Capacity with $29 Million Investment in Milk-Based Beverage Production
The investment will facilitate the construction of new buildings and the installation of advanced processing equipment at the Esbjerg facility, as well as general maintenance upgrades to enhance production efficiency. This expansion is essential for Arla to keep pace with the increasing demand for ready-to-drink (RTD) coffee and protein drinks, which represent the fastest-growing subcategories within the milk-based beverage sector.

Christian Fisher, Arla Foods’ Senior Vice President for milk-based beverages, highlighted the company's focus on scaling operations to support growth. "The RTD coffee category continues to grow, but protein drinks have now become the fastest-growing subcategory within milk-based beverages," said Fisher. He noted that Arla's partnership with Starbucks on RTD coffee and its own brands like Cocio and Matilde for chocolate milk and Arla Protein for protein drinks are pivotal to their strategy.

Particularly, Arla has seen robust initial results from its new Starbucks protein drinks with coffee in the UK, prompting plans for further rollouts across other markets. Additionally, the launch of Cocio Delight, a sugar-free variant of its popular chocolate milk, responds to the growing consumer demand for healthier beverage options.

This investment not only underscores Arla Foods' commitment to innovation within its product lines but also positions the company to lead in the competitive RTD beverage market by enhancing its production capacity and product offerings.
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