©Arla Foods
Arla Foods has outlined an “ambitious” strategy to grow its group-wide revenue by almost one-third and make its Arla brand a household name by 2020.
The dairy company will seek to increase its revenue in the UK from £2 billion to £2.6 billion during the next four years, with the Arla brand set to be worth £400 million.
Spearheaded by new country head Tomas Pietrangeli, who joined the business earlier this year, the ambition is part of the company’s global strategy for growth and will position Arla as a champion of British dairy.
Arla’s new strategy will include greater investment in its Arla and Lurpak brands with the aim of pushing them into the list of top ten FMCG brands by 2020. It also plans to grow Castello to become the best-known premium cheddar and speciality cheese brand.
Since its launch to UK consumers last year, the Arla brand has already been significantly bolstered with the addition of new products such as Arla Best of Both milk, Arla skyr and Arla Protein.
The company has made a number of further commitments as part of its 2020 strategy, including raising the proportion of net revenue obtained from new product development across its branded portfolio to “at least 10%”; investing a minimum of 25% of its marketing spend on digital; increasing the availability of dairy products for the breakfast, snacking on the go, convenience and hospitality channels with an overall ambition to increase dairy consumption; and extending its pipeline of healthier dairy products with at least 30 new dairy concepts and 50 new range extensions.
The move will be led by Tomas Pietrangeli, who took over as head of Arla UK in February.
Importantly, it will also invest over £100 million in promoting a series of new healthier dairy products and campaigns to encourage more nutritious eating habits, and challenge some of the current myths surrounding British dairy.
Tomas Pietrangeli, Arla Foods UK managing director, said: “We want Arla to be the name that people know, love and trust for dairy. We have developed a strategy that delivers clear consumer benefits by re-engaging them in the most innovative, unexpected, responsible and efficient way.
“Our overall objective will be to add value to our milk and in turn allow us to return the best possible price to our farmer owners.”
© FoodBev Media Ltd 2024