FDBusiness.com

Despite challenging market conditions, Arla Foods UK has strengthened its like-for-like business performance during the first half of 2016 compared to the same period in 2015. Volume driven revenue in the UK increased by 1.5% year-on-year, as a result of a strong focus on its branded portfolio and the launch of a range of innovative products dialling-up the goodness of dairy.

For instance, the Lurpak brand increased by 5% in volume growth; Castello grew by 24% in volume terms; Arla Lactofree continues its double digit volume growth, up 20.9%; and having entered the UK yogurt category in 2015, Arla has significantly grown its Arla skyr (+42.9%) and Arla Protein (+72.8%) brands.

The first half of 2016 continued to see product innovation within the Arla brand portfolio underpinning its focus on healthy and natural. This included Arla Best of Both in January, quickly followed by further innovations including Arla skyr yogurt drinks and Arla Protein Snack Pots, Arla Protein Cottage Cheese, Lactofree Natural Yogurt and Arla Cravendale 250ml bottle in the on-the-go aisle.

Tomas Pietrangeli, managing director of Arla Foods UK.

Tomas Pietrangeli, managing director of Arla Foods UK, says: “In the UK, we have driven growth through our portfolio of branded products which include our three key global brands Lurpak, Arla and Castello. We also launched a range of products which are performing well and which we are confident will positively impact our full year performance.For the rest of the year, we will focus on implementing the key principles of our newly launched UK Strategy 2020, where we will continue to champion British dairy. This, in turn, will help generate greater returns for our farmer owners.”

He adds: “Despite the potential challenges of Brexit, the UK remains a hugely important market for Arla and the outcome has not changed this. While we are uncertain of the implications, I hope to see our products continue to move freely to and from the UK across the markets in which we operate. We are in a strong position to not only weather any storms that may arise, but also take advantage of any opportunities.”