Food and Beverage Business
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Arla Foods to expand mozzarella production in the UK

Arla Foods to expand mozzarella production in the UK Arla Foods Food and Beverage Business

Arla Foods, a dairy cooperative, is making its “largest ever investment into the UK” by investing €210m ($227.6m) in mozzarella cheese production at its Taw Valley creamery in Devon, south-west England. The investment will introduce new technology to meet specific customer demands, including browning, melting, and stretching capabilities. This technology, which reduces the maturing process from 14 days to one, includes several patents.

Executive vice-president and COO Peter Giørtz-Carlsen highlighted the significance of this investment, stating, “Our mozzarella business has seen double-digit growth over the past five years, and we have strong relationships with key customers, particularly in global foodservice.” He emphasized the importance of maintaining a leading position in the category, delivering on strategies, and improving profitability for farmer owners.

The majority of mozzarella produced at the Taw Valley site will be exported to global foodservice customers. Executive vice president and head of supply chain David Boulanger expressed confidence in this investment, stating that it will strengthen the company’s business by transforming Taw Valley into a state-of-the-art cheese production site.

Construction at the site is set to be completed by 2026, with the first products from the new facility ready the following year. Despite this investment, Arla Foods confirmed that it will not impact its two other mozzarella production sites in Denmark. In January, the company announced the sale of its Melton Mowbray creamery, known as Tuxford and Tebbutt, to focus on strategic growth opportunities.

Arla recently reported flat sales for the year 2023 but saw a boost in its brands due to returning consumers in the second half of the year. CEO Peder Tuborgh mentioned that consumer sentiment improved throughout the year and expects positive momentum to continue in 2024, emphasizing growth opportunities in the food and beverage industry.

As Arla continues to innovate and drive product superiority, this investment demonstrates the company’s commitment to delivering strategic ambitions, creating growth, and securing value for its farmer owners. By leveraging cutting-edge technology and understanding global market demands, Arla is positioning itself as a leader in the food and drink industry.

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