Arla Foods Ramps Up Investment in Milk-Drink Production for Starbucks and Cocio Brands in Denmark
Source: The DairyNews
Arla Foods, the Danish dairy conglomerate, is set to bolster the production of its Starbucks and Cocio branded milk drinks with a significant capital investment in Denmark. The company has announced plans to inject DKr20 million ($2.9 million) into its Esbjerg factory to support the expansion and growth of these popular beverage lines across the Europe, Middle East, and Africa (EMEA) regions.
This strategic investment will be allocated towards constructing new facilities, upgrading processing equipment, and conducting essential maintenance to enhance production capabilities. A spokesperson for Arla indicated that this move is aimed at accommodating increasing consumer demand for these products in the EMEA markets.
Since 2010, Arla has held the license to manufacture and distribute Starbucks ready-to-drink (RTD) coffee products in the EMEA region. This relationship was further solidified in 2018 through a renewed 21-year licensing agreement, underscoring a long-term commitment between the two companies.
Additionally, Arla has been involved with the Cocio brand since 2002 when it initially acquired a 50% stake in Cocio Chokolademælk. The dairy group took full ownership of the business in 2008, integrating it into its extensive portfolio of dairy and drink products.
According to Arla's 2023 annual report, the company witnessed a 15.7% increase in sales volumes of Starbucks RTD beverages last year, accompanied by a 13.7% rise in revenue from these products. While specific figures were not disclosed, the growth indicators highlight the successful integration and consumer appeal of these offerings under Arla's stewardship.
Since 2010, Arla has held the license to manufacture and distribute Starbucks ready-to-drink (RTD) coffee products in the EMEA region. This relationship was further solidified in 2018 through a renewed 21-year licensing agreement, underscoring a long-term commitment between the two companies.
Additionally, Arla has been involved with the Cocio brand since 2002 when it initially acquired a 50% stake in Cocio Chokolademælk. The dairy group took full ownership of the business in 2008, integrating it into its extensive portfolio of dairy and drink products.
According to Arla's 2023 annual report, the company witnessed a 15.7% increase in sales volumes of Starbucks RTD beverages last year, accompanied by a 13.7% rise in revenue from these products. While specific figures were not disclosed, the growth indicators highlight the successful integration and consumer appeal of these offerings under Arla's stewardship.
