Arla launching major strategic plan – The Post

Arla launching major strategic plan

Hoping to increase profits by 20 billion kroner over the next five years

(photo: John Carver)
December 9th, 2015 4:07 pm| by Lucie Rychla

The dairy giant Arla has unveiled its new ‘Strategy 2020’ plan that aims to increase profits for both the company and its 12,700 farmer owners, reports Finans.

The five-year strategy focuses on further acceleration of sales in eight global dairy categories and six market regions around the world.

“Over the past years we have prepared for this moment by expanding our size and our competencies,” stated Peder Tuborgh, the CEO of Arla Foods.

“In Strategy 2020, we will focus even more on organic growth and growing our brands through innovation that focuses on what consumers and customers want and need.”

New trends
Last year, Arla had a turnover of 79 billion kroner and Tuborgh hopes it will top 100 billion in 2020, although this is not the official goal.

“The global dairy industry has developed by a speed seldom seen before, with millions of consumers changing their daily habits and preferences,” explained Tuborgh.

“We have analysed consumer needs and trends across dairy categories worldwide and have matched this with our own biggest strengths. This has led us to pursue eight specific categories where we feel Arla can grow a leading position globally or regionally.”

More milk
Thanks to several mergers and removed EU milk quotas, the volume of Arla’s milk production has grown from eight to 14 billion kilos since 2007.

“Going forward, our entire supply chain will be more efficient as we will establish one European milk pool to ensure a more holistic use of our milk across the Arla group,” noted Tuborgh.

In recent years, Arla has built up a strong market position in Northern Europe and the Middle East, and is now aiming to expand its market share in China, Russia, Nigeria and the USA.