Dairy cooperative Arla Foods announced on Thursday that it will be raising its sales outlook for the year due to increased demand for dairy products, particularly lines such as Starbucks ready-to-drink coffee beverages. The cooperative did warn, however, that doing so could result in slimmer margins due to the impact of cost inflation.
According to the Danish dairy company, first-half sales for Starbucks’ pre-packed products such as canned coffee in Asia, Europe, and the Middle East grew by 43%. This came after Arla Foods secured a long-term contract for the production and distribution of Starbucks’ products for these regions.
Arla Foods CEO Peder Tuborgh has cited the easing of coronavirus restrictions as a major driver for the rise in sales, in addition to the launch of a range of new product lines. These factors have been particularly effective in boosting on-the-go consumption of dairy beverages.
Formed as a merger between Swedish dairy cooperative Arla and the Danish dairy company MD Foods, Arla Foods is a conglomerate that is currently owned by more than 9,400 farmers in Belgium, Denmark, Germany, Sweden, and the UK. Arla also happens to be a supplier to McDonald’s.
