View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
January 12, 2021

Arla Foods lays down target to double online sales in Europe

Arla Foods has set out a target for its online sales as demand through the channel has surged during the coronavirus pandemic. 

By Dean Best

Arla Foods has set a target to double its online sales in Europe by 2025 on the back of a surge in demand the Denmark-headquartered dairy giant has seen during the coronavirus pandemic.

Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

The Lurpak butter brand owner aims to increase sales to DKK600m (US$98m) from DKK300m over the period, with plans to invest in its online capabilities and increase the number of dedicated workers in sales and marketing in the UK, Denmark, Sweden, Germany, the Netherlands and Finland.

Arla said in a statement today (12 January) that the cooperative’s online sales have doubled “in many key markets” during the Covid-19 crisis.

The co-op was ahead of the pack somewhat in launching a direct-to-consumer platform in the UK before other food manufacturers embraced the channel as an alternative means to get products to consumers during the crisis, and also for data insights. It rolled out the D2C service in 2018 for infant formula and baby foods such as porridge.

Peter Giørtz Carlsen, Arla's executive vice president and CCO for Europe, said: "We have a clear goal of becoming a leader in online dairy sales in Europe and continue to be our customers' preferred partner. The global Covid-19 crisis has significantly changed our buying behaviour in the direction of online channels, and this shift makes it possible to accelerate our e-commerce ambitions and innovation pipeline."

The expanded online team will focus on data analysis, online campaigns and visual content to promote the Arla brands.

Arla said online sales have seen a resurgence amid new lockdowns in Europe linked to a second coronavirus wave and are "evolving into a lasting change in consumer behaviour". It aims to achieve 10% of total group sales through e-commerce under a new target across "core" European markets.

In the UK, Arla's largest online market in Europe, 17% of retail sales are generated through the channel, while in Sweden, Denmark and the Netherlands the figure is about 4-5%. Online sales in those latter three countries reached between 5-7% in 2020, it said.

"With our new ambitious strategy and increased investment, we increase our online presence and will be able to deliver well-known dairy products to European consumers via many different platforms," Carlsen said.  

Related Companies

Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

Topics in this article: ,
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every other month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Food