Arla Foods is strategically expanding cream cheese production capacity at its Holstebro Dairy site in Denmark. This initiative comes with a significant investment of €59.4 million ($70.1 million).
In a recent statement issued on June 30, the Danish dairy leader emphasized that this expansion addresses the “rapidly” increasing global demand for cream cheese.
Located in western Denmark, Holstebro Dairy currently manufactures 119,000 tonnes of cream cheese annually, in addition to producing 155,000 tonnes of butter and spreadable goods. After the expansion, the dairy will boost cream cheese production capacity by 16,000 tonnes per year to meet growing global market needs.
This investment follows an earlier expansion project completed this year, which added 27,000 tonnes of cream cheese capacity.
With this latest cash infusion, two new filling lines for retail and foodservice will be installed, enabling the facility to “unlock the full process capacity.”
The Holstebro expansion is expected to conclude by January 2028.
David Boulanger, Arla Foods’ Chief Supply Chain Officer, stated, “We have very strong positions in many markets in the cream cheese category, thanks to the naturality and uniqueness of our cream cheese products.” He added, “As a result, we experience significant demand acceleration in this category across various markets. With this investment in Holstebro, we will be positioned to meet consumers’ appetite for our products and further grow the cream cheese category.”
Last month, Arla Foods also committed €34.5 million to initiate skyr production in Sweden for the first time at its dairy site in Jönköping, located in Småland province.
The Jönköping facility will primarily focus on supplying the Swedish market, producing 1kg “buckets” of skyr alongside other formats. The new production line is slated to commence operations in the first quarter of 2028.
Currently, the Jönköping dairy produces over 280 products, including yogurt, sour cream, crème fraîche, as well as various lactose-free and organic items.
As Sweden’s largest specialist dairy, it employs approximately 290 staff members.
