Arla Foods is expanding cream cheese production capacity at its Holstebro Dairy site in Denmark, with a €59.4m ($70.1m) investment.
In a statement issued yesterday (30 June), the Danish dairy major said the move responds to the “rapidly” increasing global demand for cream cheese.
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The site, located in western Denmark, already produces 119,000 tonnes of cream cheese annually, as well as 155,000 tonnes of butter and spreadable goods.
Following the expansion, it will see production capacity increase by 16,000 tonnes of cream cheese per year, which it said will supply global markets.
The investment follows the completion of another expansion project at Holstebro earlier this year, which added 27,000 tonnes of cream cheese capacity.
With the latest cash injection, two new filling lines for retail and foodservice will also be installed, the statement said, which will “unlock the full process capacity”.
The latest expansion at the Hostebro site is scheduled to be completed by January 2028.
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By GlobalDataDavid Boulanger, chief supply chain officer at Arla Foods, said: “We have very strong positions in many markets in the cream cheese category, thanks to naturality and the uniqueness of our cream cheese products.
“As a result, we experience significant demand acceleration in this category in the various markets we operate. With this investment in Holstebro, we will be in a position to meet consumers’ appetite for our products and grow further the cream cheese category.”
Last month, Arla Foods also committed €34.5m to kick off skyr production in Sweden for the first time at its dairy site in Jönköping in Småland province.
The site will focus on supplying the Swedish market, primarily producing 1kg “buckets” of skyr alongside other formats, with the new production line expected to be operational in the first quarter of 2028.
The Jönköping dairy produces more than 280 products, including yogurt, sour cream, crème fraîche and various lactose-free and organic items.
It is Sweden’s “largest specialist dairy” and has approximately 290 employees.
