FDBusiness.com

Arla Foods’ business in the UK, which is the international dairy co-operative’s largest market, has reported net revenue up four per cent overall year-on-year for the first half of 2017. Underpinning the UK growth was a 10 per cent increase in net revenue from its category-leading brands including Lurpak and Castello, with the Arla brand seeing particularly strong revenue growth of 15 per cent. This was driven by high performance in the yogurt category, with consumer-favourites Arla Protein and Arla skyr seeing revenue rises of 59 per cent and 82 per cent respectively.

These results reflect an exciting year so far for Arla in the UK where it has pursued its plan to invest £37.5 million in sites during the year, launched Arla Organic Free Range Milk, extended its popular Arla Protein range with the launch of Arla Protein Pouches and, in the milk aisle, enjoyed success in its grocery retailer own-label business, agreeing a new three-year exclusive contract with Morrisons, set to begin in March 2018.

A combination of investment and innovation helped to ensure Arla branded products recorded the largest growth of any UK brand on a list of 100 compiled by The Grocer in March.

Volume driven revenue has decreased in the UK by four-and-a-half per cent as the company took significant steps to drive its profitable growth, partnering with its customers to drive long term strategic plans and optimise its product portfolio.

Tomas Pietrangeli, managing director of Arla Foods UK.

Tomas Pietrangeli, managing director of Arla Foods UK, says: “We’ve seen a significant increase in our milk price over the last 12 months – a welcome boost for our farmer owners – and our mission remains to secure the highest possible value for their milk, predominantly through the development of our branded portfolio. The strong growth of the Arla, Lurpak and Castello brands shows that we were right to focus on these as part of our UK Strategy 2020.”

He continues: “This success is likely to be welcomed given the wider turbulence of the last six months. We are entering a defining time for British dairy as the UK finds its place outside the EU. Arla will continue to work in the coming months and years on generating greater returns for our farmer owners and being a champion of British dairy at a time when it needs one the most.”

Arla Foods UK is the largest dairy company in the country. As well as being a leading supplier of fresh milk, number one in butter, spreads and cream, Arla is the UK’s largest cheese manufacturer. It has also built the world’s largest fresh milk facility located at Aylesbury that later this year will become the first net zero carbon site of its kind.