Food and Beverage Business
Supply Chain

Arla makes strategic investment in milk-based beverages manufacturing

Arla makes strategic investment in milk-based beverages manufacturing Arla Foods Food and Beverage Business

In order to support the growth of Starbucks and Cocio milk drinks, Arla Foods is investing DKr20m ($2.9m) in projects at its factory in Esbjerg, Denmark.

The capital investment aims to accommodate the growth of these brands in Europe, the Middle East, and Africa, according to a spokesperson from Arla.

This investment will cover new buildings, processing equipment, and maintenance to enhance production capabilities for the popular Starbucks Ready-to-Drink coffee products and Cocio Chokolademælk.

Arla has been licensed to produce and distribute Starbucks RTD coffee products in the EMEA region since 2010. A new 21-year agreement was signed in 2018 between the two companies.

After acquiring Cocio Chokolademælk in 2002, Arla became the sole owner of the business six years later.

According to Arla’s 2023 annual report, sales volumes of Starbucks RTDs grew by 15.7% last year, with revenue increasing by 13.7%.

Arla attributed this growth mainly to its European business and currently sells RTDs in over 50 markets across EMEA.

Revenue generated by Cocio Chokolademælk subsidiary amounted to DKr645.9m in 2023, marking a 19.5% increase from the previous year.

The Danish market remains the largest for the Cocio brand, but a niche market in China showed promising results, ranking as the second-largest market for Cocio in 2023.

Arla also announced plans to invest further in its UK manufacturing sites, while closing down its Melton Mowbray creamery in the UK after failing to find a suitable buyer.

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