Danish dairy firm Arla is injecting DKK10m to create a new “innovation lab” in Beijing, committed to developing flavours to suit the Chinese market.

Arla’s business in China currently is based on the export of high-quality dairy products from Europe, including milk powder, UHT-milk, and cheese. The new lab will see Arla launch products “which are exclusively developed and produced for Chinese consumers”.

“It’s all about developing the next blockbuster product for the Chinese dairy market. Our first focus will be to create the right kind of cheese products that will make more Chinese consumers love cheese in new and different ways. But it must be done in a way that respects and contributes to the food trends developing in China, and therefore we are placing this innovation lab in Beijing,” said senior vice president Frede Juulsen, who is responsible for Arla’s business in China.

The new lab will be based in the China-Denmark Milk Technology Cooperation Centre in Beijing where Arla is working together with Chinese dairy giant Mengniu to strengthen the industry in terms of milk quality, food safety, and quality control in dairy farms.

“These years more and more Chinese consumers are experimenting with food, wine and tastes, and that creates new opportunities for a food company like Arla. We are striving to be as close to the Chinese consumer as possible in order to create taste experiences that suit their diets and taste profiles, thereby bringing health and inspiration to China. We aim to take the lead in the cheese category in China, and building a cheese lab is a key step in creating long-term collaborations with our customers and consumers – a place where we can co-create and innovate in an agile and dynamic manner,” added Juulsen.

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