Danish dairy leader Arla Foods has officially introduced a new line of meal-replacement, milk-based drinks in its home market of Denmark. The launch of the Protein Food to Go range is set to extend to England and the Netherlands after its domestic debut.
These innovative beverages come in chocolate caramel and vanilla hazelnut flavors and are fortified with essential vitamins, minerals, and fiber. Each drink offers a significant 30g of protein and 12g of fiber, catering to the growing consumer demand for convenience and nutrition in the food and beverage industry.
Henrik Lilballe, managing director of Arla’s Danish operations, emphasized the company’s vision to collaboratively enhance the meal beverage sector. “We would like to help develop the beverage meal area together with our customers. Our expectation is that we can grow the relatively new subcategory within milk-based drinks,” he noted.
However, Lilballe acknowledged that “drinking meals are relatively unknown to the Danes,” indicating that substantial efforts will be required to educate consumers on the uses and benefits of these products.
Arla also pointed out that the “beverage meal” market is experiencing growth in England and Germany, aligning with broader consumer trends towards meal replacement solutions within the food and drink business.
“We expect a soft start because this is a completely new category that speaks to a very concrete consumption situation. And it’s going to take some time. But we have great expectations, and we believe that Arla Protein Food to Go can become big in Denmark in the future,” Lilballe added.
In a strategic move, Arla announced an investment of DKr20m ($2.9m) in July to bolster the growth of its Starbucks and Cocio milk drinks in Denmark. Alongside this, the company recently forged a licensing agreement with US confectionery giant Mondelez International to produce and distribute Milka-branded chocolate milk in Germany, Austria, and Poland.
Despite these advancements, Arla has also warned that ongoing milk production shortages and rising commodity prices could lead to increased retail prices this year. According to CEO Peder Tuborgh, “supply and demand is slightly out of balance globally,” as reflected in the company’s first-half results.
For the first half of 2024, Arla reported revenues of €6.6bn ($7.35bn), a decrease from €7.1bn during the same period in 2023, primarily driven by pricing dynamics. Nevertheless, EBIT surged 65% to €266m, with a profit of €173m—56% higher than in the first half of 2023.
Looking ahead, Arla’s revenue guidance for the full year has been adjusted to between €13.4bn and €13.9bn, an increase from the previous estimate of €13.2bn to €13.7bn.
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