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Arla plans to triple its business outside standard liquid milk in the global beverage market, in an attempt to challenge soft drinks with healthier milk-based alternatives.
One important focus in Arlas Good Growth 2020 strategy is to capture the opportunities within beverages with a portfolio that includes healthier alternatives based on milk and natural ingredients. The goal towards 2020 is to triple the revenue of milk-based beverages from €230 million in 2015.
Hanne Søndergaard, executive vice president for global marketing and innovation at Arla, says, "By addressing the beverage market more strategically, we can double the size of our playing field for liquid milk products and capture significant growth opportunities for Arla. Through branded milk-based beverages we can create more value for farmers."
Modern urban lifestyle has led to people across the world increasingly snacking and getting their nourishment out of home. Mealtimes are blurring and more people are living in bigger cities, according to Arla.
"We have a big opportunity to provide people with nourishment when they need it, based on the natural goodness of Arla milk. Our milk should not only be enjoyed from litre sized packages bought in supermarkets, it should also be available as a tasty beverage on the go," says Søndergaard.
"We will expand our portfolio to include products that will nourish, fuel or refresh you, whenever and wherver you need it. This will create new sales opportunities for us in places such as convenience stores, petrol and train stations, gyms, workplaces, cafes and bars, wher we have little presence today."
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