SWEDEN: Arla to create own distribution network
Arla has said that it is going to cancel distribution agreements with Swedish dairies and create its own distribution network throughout Sweden.
Currently Arla has agreements with a number of Swedish dairies to cooperate in the distribution of long-life dairy goods.
A spokesperson for the company told just-food that the move to end such cooperation was a consequence of growing demand for products with a short shelf life.
"Increased demand for products with a shorter shelf life meant we had to create our own parallel distribution network. This is not very efficient or customer friendly," Arla spokesperson Tobias Wahlen explained. "We now have enough demand on a national level to convince us to create one solution."
Arla told just-food that the move would allow it to offer a wider variety of products to the market, insisting that it was motivated by the interests of its customers rather than any benefit the company might see in its margins.
"Margin improvements were not really a key driver. We came to this decision in response to customer need," Wahlen said.
Arla declined to comment on the level of savings it might make.
The dairies affected include Gefleortens Mejeri, Milko, Norrmejerier and Skånemejerier.
- It won't just be Unilever to push for Brexit hikes
- Price an underlying tension across European FMCG
- Interview: UK trade body on Brexit's policy impact
- Danone's Q3 sales - what the analysts say
- Interview: UK trade body on the impact of Brexit
- PepsiCo sets 2025 nutrition, sustainability goals
- Nestle lowers outlook on "softer environment"
- China "transition" drags on Danone Q3
- UK announces "action plan" to drive food exports
- Farmers' groups slam Danone over non-GMO stance
- The Big 15: Strategies and Priorities of Top Packaged Food Players in Comparison
- Omega-3 in Food and Beverage:Time for a Reboot?
- Constellation Brands, Inc. (STZ) - Financial and Strategic SWOT Analysis Review
- Packaged Food: Quarterly Statement Q3 2016
- Global Food Packaging: Innovating for Greater Convenience and Quality Image