Arla Foods is committing €50.9m ($59.4m) to enhance the production of spreadable cheese in glass jars at its Bahrain manufacturing facility.
In a recent statement, the Danish cooperative emphasized that its Puck brand spreadable cheese is a vital part of households across the Middle East and North Africa (MENA) region.
During key periods such as Ramadan and back-to-school, demand for Puck cheese peaks, with production levels at the Bahrain facility nearing full capacity. Arla Foods highlighted this surge in demand.
To address this growth, the company anticipates that its investment will increase the Bahrain site’s production capacity by approximately 30%. This strategic move aims to future-proof the brand’s offerings in light of the overlapping Ramadan and back-to-school seasons anticipated in two years.
Lillie Li Valeur, Executive Vice President of International at Arla Foods, stated that the group possesses “one of the most well-known and loved dairy products in the region.”
Valeur further noted, “To accommodate the increased demand and maintain the favourability, we are now investing significantly in expanding our production.”
Arla Foods, which acquired its Bahrain site in 2019, recognizes MENA as its “biggest commercial region” within its international business segment.
Construction for this expansion is slated to commence by the end of 2025.
Valeur remarked, “The MENA region is important to us not just on a commercial level. As a food company, we aim to inspire better food habits and assist consumers in making informed nutritional choices.”
She added, “We have that connection with consumers in the MENA region, but we understand the need to work diligently to maintain their trust. This investment is a natural part of that commitment.”
Additionally, Arla Foods is expanding its cream cheese production at the Holstebro Dairy site in Denmark with a €59.4m investment and has committed €34.5m to initiate skyr production at its Swedish dairy site in Jönköping in Småland province.
