:Arla Foods

{{Infobox company

| name = Arla Foods

| logo = Arla_Foods_logo.svg

| image = Arlaflag ved Arla Friskvareterminal Ishøj.JPG

| type = Co-operative with limited liability {{small|({{langx|da|Andelsselskab med begrænset ansvar}})}}

| industry = Dairy

| predecessor = Arla (Sweden)
Arla Foods A.m.b.A (Denmark)
Arla Oy (Finland)
MD Foods (UK)

| founded = {{Start date|df=yes|2000|4|17}}, 1881 (original Arla company), 1970 (MD Foods)

| location_city = Viby

| location_country = Denmark

| area_served = Worldwide

| key_people = Peder Tuborgh (CEO)
Jan Toft Nørgaard (chairman)
Jonathan Evans (UK milk){{citation needed|date=January 2023}}

| revenue = 13.8 billion EUR (2022)

| net_income = 400 million EUR (2022)

| num_employees = 20,907 (2022)

| subsid = Arla Foods Finland
Arla Foods UK

| website = {{URL|http://arla.com}}

}}

Arla Foods Group is a Swedish-Danish{{Cite web|title=Arla – a household name in the Nordic countries|url=https://www.arla.com/company/news-and-press/2002/pressrelease/arla-a-household-name-in-the-nordic-countries-760332/|access-date=2022-03-23|website=www.arla.com|language=en}}{{Citation|last1=Box|first1=Marcus|title=Both a Co-operative and Multinational – International Market Strategies of Danish-Swedish Arla MD|date=2021|url=http://urn.kb.se/resolve?urn=urn:nbn:se:sh:diva-44934|pages=323–344|publisher=Södertörns högskola|access-date=2022-03-23|last2=Lönnborg|first2=Mikael|last3=Rytkönen|first3=Paulina}} multinational co-operative based in Viby, Denmark. It is the fifth biggest dairy company in the world and the largest producer of dairy products in Scandinavia and United Kingdom.{{cite web|date=13 April 2022|title=Tesco vows to rein in prices as profits treble|url=https://www.bbc.com/news/business-61091688|access-date=13 April 2022|website=BBC News|quote=However, the UK's largest dairy Arla recently warned that with cost increases of some 36%, farmers faced tough cost challenges.}}{{Cite news |date=2022-03-25 |title=Dairy giant Arla warns of supply issues unless farmers paid more |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-60825516 |access-date=2023-10-25}}

Arla Foods was formed as the result of a merger between the Swedish dairy co-operative Arla and the Danish dairy company MD Foods on 17 April 2000. The name Arla derives from the same word as the English word 'early' and is an archaic Swedish term for 'early (in the morning)'.

History

=Origins=

In the 1880s, dairy farmers in Sweden and Denmark formed small co-operatives to invest in common dairy production facilities. The first dairy co-operative was established in Sweden at Stora Arla Gård in Västmanland in 1881 under the name of Arla Mejeriförening,{{Cite web|last=Qviberg|first=Lisa|title=Arla: ett namn med anor|url=https://www.arla.se/om-arla/arlas-historia/foretaget/arla---ett-namn-med-anor/|access-date=17 January 2018|website=Arla|language=sv}} and the first Danish cooperative dairy was established in Hjedding, outside Ølgod, Southern Jutland in 1882.{{cite web|url=http://uwcc.wisc.edu/info/intl/chloupkova.pdf|author=Jarka Chloupková|title=European Cooperative Movement – Background and common denominators|publisher=Department of Economics and Natural Resources, Unit of Economics, The Royal Veterinary and Agricultural University|access-date=21 August 2017|archive-url=https://web.archive.org/web/20180127094359/http://uwcc.wisc.edu/info/intl/chloupkova.pdf|archive-date=27 January 2018|url-status=dead }}

On 26 April 1915, dairy farmers in Stockholm and adjoining counties created Sweden's largest co-operative dairy organisation, Lantmännens mjölkförsäljningsförening (the Farmers' Milk Retail Association), which operated dairies as well as a chain of shops selling dairy products.{{Cite web|last=Qviberg|first=Lisa|title=Från mjölkbolaget till mjölkcentralen|url=https://www.arla.se/om-arla/arlas-historia/foretaget/mjolkbolaget-blir-mjolkcentralen/|access-date=17 January 2018|website=Arla|language=sv}}

In 1927, the company registered the name Mjölkcentralen (The Milk Centre, shortened MC) and from the 1950s a growing number of cooperative dairies in other parts of Sweden began joining MC.{{Cite web|last=Leidenborg|first=David|title=Arlas mjölkpaket: Arlas historia|url=https://www.arla.se/om-arla/arlas-historia/produkterna/arlas-mjolkpaket/|access-date=17 January 2018|website=Arla|language=sv}} In 1975, MC changed its name to Arla, a name previously used not only by Sweden's first co-operative dairy, but also by the largest dairy retailer in Gothenburg between 1909 and 1965.

By the end of the 20th century, Arla had a 65% market share in Sweden.

On 1 October 1970, Mejeriselskabet Danmark (MD) was established by four dairy companies and three individual dairies.{{cite web|last=Christensen|first=Jens|date=8 October 2012|title=Fra andelsmejerier til Arla Foods 1882-2012|url=http://danmarkshistorien.dk/leksikon-og-kilder/vis/materiale/fra-andelsmejerier-til-arla-foods-1882-2012/|access-date=17 July 2017|website=Danmarks Historien|publisher=Aarhus University, Institut for Kultur og Samfund|language=da}} In 1988, the company changed name to MD Foods. In 1992, MD Foods and Denmark's second largest dairy company, Kløver Mælk, signed a financially binding co-operation agreement, and in 1999, the two companies merged to become MD Foods, gaining 90% of the Danish milk production.

In April 2000, MD Foods merged with Swedish Arla and formed Arla Foods A.m.b.A with headquarters in Aarhus, Denmark,{{cite web|date=31 January 2000|title=MD Foods/Arla Merger Speeds Dairy Globalisation|url=https://www.just-food.com/analysis/md-foodsarla-merger-speeds-dairy-globalisation_id94049.aspx|url-status=dead|archive-url=https://web.archive.org/web/20180801125039/https://www.just-food.com/analysis/md-foodsarla-merger-speeds-dairy-globalisation_id94049.aspx|archive-date=1 August 2018|access-date=21 August 2017|publisher=Just Food}} and became Arla Foods as it is known today.

In 2012 the UK's leading dairy farmer co-operative Milk Link joined Arla Foods Amba, to become one of the largest and most successful European Dairy Co-operatives.

=Current operations=

Arla Foods is the fourth largest dairy company in the world with respect to milk volume, seventh with respect to turnover.{{Citation|last=Groholt-Pedersen|first=Jacob|title=Arla CEO says rising milk supply to keep prices in check|work=Reuters|date=22 February 2017|url=https://www.reuters.com/article/dairy-milk-arla-idUSL8N1G74TR|access-date=20 March 2017 }} At the start of 2022, 8,492 farmers across Denmark, Sweden, Germany, the UK, Belgium, the Netherlands and Luxembourg owned the cooperative.{{Citation|last=Arla Foods|title=Annual Report 2022|date=2023|url=https://www.arla.com/492f23/globalassets/arla-global/company---overview/investor/annual-reports/2022/arla-annual-report-2022_uk3.pdf|work=Arla Foods|access-date=4 September 2023}}

Arla Foods has many brands;{{cite web|title=Arla Brands|url=https://www.arla.com/all-our-brands/|url-status=|work=Arla|language=en}} several minor brands and four strategic brands. The major and strategic brands are: Arla, Lurpak, Puck and Castello cheeses that are sold worldwide. The Arla Brand is both a co-operative brand and a brand across all product categories.{{cite book|last1=Brandt|first1=Charlotte|title=Advances in Enterprise Information Systems II|last2=Carugati|first2=Andrea|chapter=Deliberately by design, or? Enterprise Architecture transformation at Arla Foods|pages=91–104|doi=10.1201/b12295-12|language=en|year=2012|doi-broken-date=11 November 2024 |isbn=978-0-415-63131-0}} The Lurpak brand of butter and spreads is owned by the Danish Dairy Board, Puck is Arla brand equivalent in the MENA region, and Castello is a cheese brand including blue cheese and yellow cheeses.

{{cite web

|url=http://www.arlafoods.se/templates/PlainPage2.aspx?id=6530

|title=Arla genom åren

|access-date=19 July 2007

|publisher=Arla Foods

|language=sv

|archive-url=https://web.archive.org/web/20070702073632/http://www.arlafoods.se/templates/PlainPage2.aspx?id=6530

|archive-date=2 July 2007

|url-status=dead

}}

{{cite web

|url=http://www.arlafoods.se/templates/PlainPage2.aspx?id=6528

|title=Historien bakom namnet Arla Foods

|access-date=19 July 2007

|publisher=Arla Foods

|language=sv

|archive-url=https://web.archive.org/web/20070702073708/http://www.arlafoods.se/templates/PlainPage2.aspx?id=6528

|archive-date=2 July 2007

|url-status=live

}}

Next to the four major brands, Arla also has a long-term strategic partnership with Starbucks to manufacture, distribute and market their RTD (ready to drink) coffee products for the EMEA region (Europe, the Middle East and Africa).{{Cite web|date=7 June 2018|title=Starbucks extends strategic partnership with Arla Foods to grow ready-to-drink across EMEA|url=https://www.arla.com/company/news-and-press/2018/pressrelease/starbucks-extends-strategic-partnership-with-arla-foods-to-grow-ready-to-drink-across-emea-2531742/|website=Arla|language=en}}

In 2011 Arla Foods incorporated Arla Foods Ingredients (AFI), a former division, as an independent subsidiary. The company develops and manufactures milk based ingredients, primarily functional and nutritional milk proteins, bioactive phospholipids, minerals, permeate and lactose for the food industry.

The head office is located in Denmark. Arla Foods Ingredients has one wholly owned production plant in Denmark, with joint venture production at facilities in Argentina and Germany. In March 2011, Arla Foods and DMK formed the joint venture company ArNoCo GmbH & Co. KG, to produce whey proteins for the food industry. In February 2018, Arla Foods announced its plans to invest £70 million in the UK, as part of its strategy to secure long-term opportunities for its farmers across Europe.{{Cite web|url=https://www.themanufacturer.com/articles/arla-foods-to-pour-72m-in-uk-dairy-sites-in-2018/|title=Arla to pour £72m in UK dairy sites in 2018|last=Williamson|first=Johnny|date=2018-02-01|website=The Manufacturer|language=en-GB|access-date=2020-02-24}} In October 2019, Arla Foods has invested an estimated €50 million (US$55 million) in a cheese production site in Bahrain. By 2025, Arla expects to increase annual production in Bahrain to more than 100,000 tons under its Puck, Arla, Dano, Kraft and Private Label brands.{{cite web|last=Ferrer|first=Benjamin|date=28 October 2019|title=Arla inaugurates US$55m cheese production site in Bahrain as dairy demand jumps in MENA region|url=https://www.foodingredientsfirst.com/news/Arla-inaugurates-US55m-cheese-production-site-in-Bahrain-as-dairy-demand-jumps-in-MENA-region.html|website=foodingredientsfirst.com}}

== 2006 boycott ==

Arla's sales were seriously affected by a two-month long boycott of Danish products in the Middle East in 2006.{{cite journal|last1=Abosag|first1=Ibrahim|title=Dancing with macro-boycotters: the case of Arla Foods|journal=Marketing Intelligence & Planning|date=11 May 2010|volume=28|issue=3|pages=365–373|doi=10.1108/02634501011041471|issn=0263-4503|url=https://eprints.soas.ac.uk/21190/1/MIP%20Paper%20-%20Case%20Study%20-%20The%20Boycott%20of%20Arla%20Foods%2008%20-%20Revision.pdf}} Anger among Muslims over satirical cartoons of Prophet Muhammad published in Denmark was the initial cause.

When the Danish government refused to condemn the cartoons or meet with eleven ambassadors from Muslim nations, a boycott of Danish products was organised, starting in Saudi Arabia and spreading across the Middle East. The Middle East is Arla's largest market outside of Europe.

On 3 February 2006, the company said that sales in the Middle East dried up completely, costing the company US$2 million a day.{{cite news|work=The Daily Telegraph|location=London|title=Arla cheesed off over Middle East boycott|date=4 February 2006|url=https://www.telegraph.co.uk/money/main.jhtml?xml=/money/2006/02/04/cnarla04.xml&menuId=242&sSheet=/money/2006/02/04/ixcity.html|archive-url=https://web.archive.org/web/20060427060011/http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2006/02/04/cnarla04.xml&menuId=242&sSheet=/money/2006/02/04/ixcity.html|url-status=dead|archive-date=27 April 2006 }} Soon after the boycott hit Arla's sales, the Danish government met with Muslim ambassadors and the newspaper issued an apology. Despite this, the boycott continued unabated for two months.

In March 2006, Arla took out full page advertising in Saudi Arabia, apologising for the cartoons and indicating Arla's respect for Islam in the country. This caused controversy in Denmark, where women's organisations and some politicians criticised Arla, and called on Danish women to boycott Arla's products in Denmark. In April 2006, the company said that its products were being placed back in shops in the Middle East.{{citation needed|date=August 2018}}

Before the boycott, it supplied {{FORMATNUM:50000}} shops in the area. It announced that many of its largest clients in Saudi Arabia would start selling its butter and cheese on 8 April 2006. At that time, Arla began sponsoring humanitarian causes in the Middle East to foster good public relations with the region.{{cite news|work=BBC News|title=Arla returns to the Middle East|date=7 April 2006|url=http://news.bbc.co.uk/2/hi/business/4884798.stm}}

== Don't Cancel the Cow campaign ==

In 2022, Arla launched an advertising campaign called Don't Cancel the Cow claiming the rise of veganism among young people was the reason the dairy industry's future is uncertain.{{Cite web|last=Jani-Friend|first=Isabelle|date=29 June 2022|title=Has vegan culture cancelled the cow?|url=https://www.bigissue.com/news/environment/has-vegan-culture-cancelled-the-cow/|access-date=2022-07-04|website=The Big Issue|language=en}} The campaign targets young people over their concern about the environmental impact of cows milk.{{Cite news|last=Rees|first=Tom|date=2022-04-25|title=Vegan 'cancel culture' hits dairy farmers|language=en-GB|work=The Telegraph|url=https://www.telegraph.co.uk/business/2022/04/25/uks-largest-dairy-producer-fights-back-against-youth-turning/|access-date=2022-08-17|issn=0307-1235}}

== Bovaer ==

In November 2024 in the UK, the use of Bovaer led to calls on social media for a consumer boycott of Arla products, including Lurpak butter. Arla Foods had announced that 30 of its farms across the country would test the additive, which can reduce cow methane emissions by between 30 and 45%. Bovaer is approved for use by UK regulators, however SVT reported that conspiracy theories were being spread that the feed supplement was poisonous,{{Cite web |last=Nyheter |first=S. V. T. |date=2024-12-10 |title=Arla bojkottas i Storbritannien – efter test av klimatvänliga fodertillskottet Bovaer |url=https://www.svt.se/nyheter/lokalt/vast/arla-bojkottas-i-storbritannien-efter-test-av-klimatvanliga-fodertillskottet-bovaer |access-date=2024-12-11 |website=SVT Nyheter |language=sv}} with some online users raising concerns, citing issues around the safety of certain compounds used in it. The manufacturer, DSM-Firmenich, said "mistruths and misinformation, external" had been spread about the product, that it was "totally safe" for use, and that it had been "tested over many years in many countries."{{Cite web|url=https://www.bbc.co.uk/news/articles/c8rjdgre3vpo|title=Why misinformation about cow feed additive Bovaer prompted people to throw Arla milk away|date=3 December 2024|website=BBC News}} The supplement had already been tested by Arla in Sweden during 2023 on five farms.

International distribution

=Indonesia=

In Indonesia, Arla is distributed by Indofood, Pandurasa Kharisma, & Prambanan Kencana as joint venture and import company.{{cite news|date=26 December 2017|title=Gandeng Produsen Denmark, Indofood Perkuat Bisnis Susu|language=id|work=Agrifood|url=https://agrifood.id/gandeng-produsen-denmark-indofood-perkuat-bisnis-susu/}}

=Malaysia=

In Malaysia, Arla is distributed by Lamsoon{{cite news|date=1 November 2016|title=Arla Foods|language=en|work=Lam Soon|url=http://www.lamsoon.com.my/news_Nov2017_ArlaFood.asp}} who also distribute Lion Corporation products.

=Bangladesh=

In Bangladesh, Arla sells its milk powder and milk products under the Dano brand. For over 60 years, Dano has been the most popular milk brand in Bangladesh.

=China=

In China, Arla is distributed by Mengniu.{{cite news|date=28 March 2014|title=Arla's Investment In Chinese Dairy Delivers Huge Gains|language=en|work=Scandasia|url=https://scandasia.com/arlas-investment-in-chinese-dairy-delivers-huge-gains/}}

=Japan=

In Japan, Arla was once distributed by Morinaga Milk Industry. However, it is now distributed by various small companies.{{cite book|title=Competitive Strategy Analysis In The Food System|date=13 March 2019|isbn=9780429723087|url=https://books.google.com/books?id=122PDwAAQBAJ&dq=pokka+ocean+spray&pg=PA316|last=Cotterill|first=Ronald W. |publisher=CRC Press }}

=South Korea=

In South Korea, Arla is distributed by Maeil Dairies.{{cite news|work=Maeil|title=Brands|url=https://www.maeil.com/brand/list_brand1.jsp}}

=Egypt=

In Egypt, Arla is distributed by Juhayna.{{cite news|work=Just Food|title=BRICs and beyond: Why Arla's Egyptian JV with Juhayna is shrewd|date=28 May 2015|url=https://www.just-food.com/analysis/brics-and-beyond-why-arlas-egyptian-jv-with-juhayna-is-shrewd/|access-date=26 June 2022|archive-date=16 June 2023|archive-url=https://web.archive.org/web/20230616153549/https://www.just-food.com/analysis/brics-and-beyond-why-arlas-egyptian-jv-with-juhayna-is-shrewd/|url-status=dead}}

=West Africa=

In West Africa, Arla is distributed by Tolaram Group who also distribute Indomie, Nestle, and Colgate.{{cite news|work=Premium Times|title=Arla Signs Construction Agreement With Tolaram On Kaduna Commercial dairy Farm|date=7 April 2006|url=https://www.premiumtimesng.com/promoted/510077-arla-signs-construction-agreement-with-tolaram-on-kaduna-commercial-dairy-farm.html}}

=United States=

In the US, Arla is distributed by Dairy Farmers of America who also distribute Fromageries Bel.{{cite news|work=Arla|title=New Cheddar Cheese Joint Venture With Dairy Farmers Of America|date=23 March 2016|url=https://www.arla.com/company/news-and-press/2016/pressrelease/new-cheddar-cheese-joint-venture-with-dairy-farmers-of-america-1351577/}}{{cite news|work=Dairy Reporter|title=Bel Brands USA Partners With DFA On Sustainable Milk Cooling Program|date=5 August 2021|url=https://www.dairyreporter.com/Article/2021/08/05/Bel-Brands-USA-partners-with-DFA-on-sustainable-milk-cooling-program}}

=Germany=

In Germany, Arla is distributed by DMK Group.{{cite news|work=Arla|title=DMK Group & Arla Foods Sign Mozzarella Contract Manufacturing Agreement|date=20 December 2017|url=https://www.arla.com/company/news-and-press/2017/pressrelease/dmk-group-and-arla-foods-sign-mozzarella-contract-manufacturing-agreement-2341911/}}

=United Kingdom=

In the United Kingdom, Arla is distributed by Volac, which also distributes Nestle, First Milk and Wilmar.{{cite news|work=Volac|title=Partnerships|url=https://www.volac.com/who-we-are/partnerships.htm}}{{cite news|work=First Milk|title=Our Partners|url=https://www.firstmilk.co.uk/about-us/our-partners/}}