Arla Foods UK business group delivers strong 2015 as full year results are announced

Arla Foods, the farmer-owned dairy company, has today released its Group 2015 results, outlining a robust performance across its organisation. Arla’s largest business group, the UK market, played a significant role in delivering a strong year of improved performance.

Arla Foods UK delivered its ambitions of growing the business by increasing its market share across most categories and through cost savings. It grew volumes sold by approximately 200 million kg and delivered its highest rate of branded sales ever including:

• Record sales in butter and spreads with Lurpak and Anchor (up 4.6%);

• Strong liquid milk category performance with Cravendale (up 2.1%);

• Increased sales of Castello cheese (up 6.7%); and

• Double digit growth with on Arla Lactofree product range (up 23%).

The UK business also grew through the launch of product innovation within its new Arla brand which underpins its focus on healthy and natural. Arla branded products have outperformed expectations by achieving volume driven growth of 5.2%. This included Arla Big Milk, award-winning Arla skyr and Arla Protein – the latter two marking the business’s entry into the UK yogurt category. It also recently launched Arla BOB – a fat-free milk that tastes like semi-skimmed. Arla is also launching an exciting new health strategy in the coming months to take advantage of the growing consumer demand for healthier products.

Peter Giørtz-Carlsen, Executive Vice President, Arla Foods UK, said: “A relentless focus on supporting our farmer owners, product innovation and continually delivering efficiencies and cost savings will ensure that we stay ahead of the game. Our performance success means that we will continue to invest in branded growth, and increase our marketing spend as well as our presence in the yogurt category in 2016.

“To further underpin our position as industry leader, and take advantage of the increasing supply of milk available, we will soon be making an announcement in the UK as part of the business’ Good Growth 2020 strategy, with the aim of supporting the growth of dairy categories in the UK as well as the development of Arla into a top 10 consumer grocery brand.”

Overall revenue in the UK increased from 2.8 billion euros in 2014 to 2.9 billion euros in 2015. Despite the strong performance, the UK business isn’t immune to the headwinds facing the broader business including the increasing supply of milk. While Arla delivered a strong cost control programme and increased its competitiveness in 2015, improved efficiencies will continue throughout 2016 to maintain a strong performance in a challenging market.

This year will also see more support for Arla’s farmer-owned marque, underpinning its commitment to its farmer owners. The initiative is helping consumers better understand Arla’s cooperative model, by promoting the fact that buying its products directly supports farmers.

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