Arla Foods has invested around DKK 200 million (approx. $29 million) in its Esbjerg Dairy Center in Denmark, to support the growth of its milk-based beverage segment.

The funding will be used to construct new buildings, to install new processing equipment and for general maintenance.

Christian Fisher, Arla Foods’ SVP for milk-based beverages, told FoodBev: "We are expecting growth for both brands across markets in EMEA and the investment is to ensure that our production facilities are able to accommodate that growth. The RTD coffee category continues to grow but protein drinks have now become the fastest growing subcategory within milk-based beverages."

Fisher explained that Arla Foods’ three biggest products in the milk-based beverage segment are its RTD coffee with Starbucks, chocolate milk with Cocio and Matilde and protein drinks with Arla Protein.

"Starbucks and Cocio are both strategic brands for Arla Foods and we will continue to drive growth here,” Fisher added. “For Starbucks, we have just launched protein drinks with coffee in the UK and initial results are very strong. We intend to roll these products out into more markets. For Cocio, we have launched Cocio Delight, a product without added sugar – we see strong consumer demand here and will continue to drive this proposition forward."

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