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October 30, 2008

DENMARK: Arla shakes up global strategy

Dairy giant Arla Foods has today (30 October) set out what it describes as an “ambitious and challenging” global strategy for the business.

Dairy giant Arla Foods has today (30 October) set out what it describes as an “ambitious and challenging” global strategy for the business.

The Denmark-based group said its five-year strategy would aim to deliver “the best milk price” to its co-operative farmer owners.

Arla plans to double its investment in product innovation, while consolidating its brands into three “strong, global brands” – Castello, Lurpak and a new namesake brand.

In a shake-up of its international markets, the US, China and Russia have been designated as “special growth markets” and will win more share of Arla’s spending.

Elsewhere, Germany and Poland will join Arla’s group of “core” markets – Sweden, Denmark, the UK and Finland.

The company is also looking to double its worldwide sales of whey protein.

CEO Peder Tuborgh said: “We cannot do everything in all markets. We must be extremely strong in some international markets – but not everywhere and not in all categories.

“The strategy focuses on what we excel at and on markets where we are, or can, be leaders. It is focused, ambitious and demanding.

“The next five years will be an enormous challenge for us all, but it’s not impossible for us to achieve our objectives and it is important for us to give our all and gain ground.”

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