Date 2022-06-25 00:00:00

Arla invests DKK 300 million in Esbjerg

Sales of Starbucks products are booming; therefore, Esbjerg Mejeri must now increase capacity by 20 percent, as per FødevareWatch.

Arla Foods has great success with sweet milk drinks from the Group’s dairy at Esbjerg. With the Cocio and Matilde brands growing in the domestic market, skyrocketing effects are noted from the coffee drinks from Starbucks, which Arla Foods entered into a licensing agreement with in 2018. As these products yield high earnings, Arla Foods is now again pressing the investment trigger.

- We are expanding capacity by 20 percent on top of what we already have. We are expanding with two packaging lines, fully automatic storage for refrigeration, and staff facilities, Claus Nielsen, Site Director, Arla Foods Esbjerg, underscores to the FødevareWatch (food media). The investment will amount to DKK 305 million and is expected to be ready by the end of 2023. However, Arla Foods is ready for further growth in the production of the successful American brand at other locations.

- The idea is to start production elsewhere. From Esbjerg, we deliver to approximately 50 countries. If this continues, we will consider other areas where we can produce and from where we can distribute, says Claus Nielsen, pointing at the Group’s dairy in Saudi Arabia as a possible location for further expansion of the Starbucks activities.