Plant-based drinks have long been a loss-making venture for Arla, which has now decided to phase out its plant-based drinks in supermarkets across Denmark and the rest of Northern Europe.

Jyllands-Posten reported on Tuesday, January 7, that disappointing retail sales figures have led Arla to discontinue the plant-based drinks under the Jörd brand.

“We must acknowledge that sales have not developed as we had expected and hoped. In Denmark, both our sales of plant-based drinks and the total market for plant-based drinks remained relatively stable in 2024. Sales are still at a very low level, and we had anticipated significant growth,” said Henrik Lilballe Hansen, Managing Director of Arla Denmark, in an interview with Jyllands-Posten.

According to the article, two trends have contributed to consumers turning away from plant-based drinks. Firstly, inflation has caused consumers to prioritize price and adopt more conservative shopping habits, which has negatively impacted the slightly more expensive and newer plant-based drinks. Secondly, many consumers have become more focused on health and nutrition, realizing that many plant-based drinks have lower nutritional value compared to, for example, cow’s milk.

Going forward, Arla will focus its plant-based drink sales on restaurants and hotels rather than retail. Jyllands-Posten reports that Arla’s plant-based drinks company, Jörd International, has accumulated losses of DKK 158.2 million since its establishment in 2019.

Photo: Arla