Arla’s Added Value Milk Products Boost Milk Category by $116m in 2016

026290d0-24c4-49d0-b60b-abc42c1b8069articleimage.jpg

16 Mar 2017 --- Added value milk products by Arla Foods UK have successfully boosted the milk category by £95m ($116m) in 2016, with 1.5 million shoppers trading up from standard fresh milk to an Arla branded product offering additional benefits.

Extra benefits such as vitamin-enriched milks and fat-free skimmed milk that tastes as good as semi-skimmed, have heavily contributed to the success of Arla’s growing range of innovative products, and points to a change in consumers attitudes to milk.

Arla says that thanks to its new range of added value milk products, consumers are now able to choose a drink that matches different lifestyles, occasions and needs.

This trend is consistent across the total milk category, as 5 million consumers traded up to added value milk options in 2016 and is having a direct impact on performance.

In 2015, the category declined £148m ($175m) but only £23m ($28m) in 2016 with improvement on pricing and retailers supporting new and existing add-value milk.

The change has been most noticeable with Arla’s portfolio – without it, the overall category would have declined £118m ($144m) in 2016.

The £95m ($116m) is the value of all the sales of Arla’s value-added milk in 2016, minus the value sales figure if they were sold at the price of standard fresh.

Arla branded milk grew 12% in 2016 with successful launches of the award-winning Arla B.O.B3, Arla Farmers Milk, Arla Organic Farm Milk and Arla Cravendale 250ml.

In addition, Arla has worked closely with its retailer customers to provide greater choice for consumers, with products such as ASDA Vitamin D Milk and launched in 2015, Morrisons Milk for Farmers.

Tomas Pietrangeli, managing director, Arla Foods UK, said: “Innovation is at the core of everything we do and it is fantastic to see consumers respond so well to it and change their attitudes to milk.”

“Milk has always been a nutritious staple for British consumers, but it is exciting to see people increasingly view it as more than that - a desirable, versatile drink suitable for different occasions and with different benefits.”

“This is reinvigorating the category and driving value for our farmer owners.”

This focus on innovation is an important part Arla’s most ambitious business strategy to date.

The UK Strategy 2020 plan aims to make Arla a household brand by 2020, grow its revenue by nearly a third and position Arla as the champion of British dairy.

Related Articles

Business News

BASF: “considerable” Q2 earnings growth, but Nutrition & Health sales stall

27 Jul 2017 --- BASF Group has announced that its second quarter sales rose by 12 percent to €16.3 billion (US$19.11 billion) compared with the same period in 2016. The group states that this was largely attributable to higher prices and volumes. Amid higher raw material costs, the company raised sales prices by 7 percent; this was mainly driven by higher prices in the Chemicals segment. Sales volumes increased by 3 percent. Currency effects had a positive impact on sales and, like portfolio effects, accounted for a 1 percent increase.

Regulatory News

Cargill’s erythritol dental health claim rejected by EFSA

27 Jul 2017 --- Cargill cannot prove its EU Article 14 claim submission [disease risk reduction claim] that there is a cause-and-effect relationship between sugar-free hard confectionery with at least 90 percent erythritol and the reduction of dental plaque, according to the European Food Safety Authority (EFSA).

Business News

Algatech eyes Brazil market following Anvisa approval for astaxanthin line

27 Jul 2017 --- Algatechnologies has received Brazilian Health Regulatory Agency (Anvisa) approval for its all-natural astaxanthin AstaPure to be used as a food ingredient. This approval makes Algatech the first astaxanthin supplier to start marketing its clean-label astaxanthin under the AstaPure brand in Brazil. 

Nutrition & Health News

Binge drinking among young US adults not in college increased

27 July 2017 --- Binge drinking rates are finally down among US college students aged 18 to 24, after years of increases, but they are up among those in the same age group who are not in college, according to a study in the July issue of the Journal of Studies on Alcohol and Drugs. The same study also found that alcohol-related hospitalizations and overdose deaths have increased generally among 18- to 24-year-olds.

Business News

Food and health startups get chance to impress in Innovation Challenge

27 Jul 2017 --- Innovative ingredient projects, carried out by startups that have brought something completely new and unexpected to the food and health markets, will be rewarded as part of the Startup Innovation Challenge during the next Fi Europe & Ni show from November 28 to 30 this year.

More Articles
URL : http://www.nutritioninsight.com:80/news/arlas-added-value-milk-products-boost-milk-category-by-116m-in-2016.html