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.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“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.