Arla amba is to take its eye off acquisitions in Europe and instead focus on increasing profitability and innovation, it has announced in its new global corporate strategy.
Arla had, in recent years, strengthened its positions in its core markets in the UK, Sweden, Germany, Denmark, Finland and the Netherlands, the dairy giant said. These markets now had to continue to be developed, but with more focus on “refining activities” as opposed to expansion via mergers and acquisitions.
Over the next five years, Arla intended to increase its strategic focus outside of the EU, specifically on Russia, China and the Middle East & Africa regions, according to the company’s new Strategy 2017 global corporate plan. The overall revenue generated from Arla’s business in those markets was set to increase from approximately 3.5 billion DKK (£389.4m), to 10 billion DKK (£1.1 billion) by 2017.
Without EU quotas, it was anticipated that Arla’s milk farmers would produce at least one billion kilogrammes of milk more each year than today, the company added. “The extra milk cannot be sold as profitable products in the EU due to growth stagnating.”
Arla Foods amba CEO Peter Tuborgh said Arla wanted to be the best possible partner to its retail customers and would focus on developing its own brands as well as its customers’. “We also want to improve the development of successful products and sharing ideas across business units and national borders,” he added.