Press release

​Extra £95m spent in the milk aisle as consumers choose milk that delivers benefits

Modules.WebCore.Models.ViewModels.Layout.MultilineHeadingViewModel

Added value milk products by Arla Foods UK successfully added £95m1 in value to the category in 2016, with 1.5 million shoppers trading up from standard fresh milk to an Arla branded product offering additional benefits.

From vitamin-enriched milks, to fat-free skimmed milk that tastes as good as semi-skimmed, the success of Arla’s growing range of innovative products points to changes in attitudes to milk, as consumers are now able to choose a drink that matches different lifestyles, occasions and needs.

This trend is consistent across the total milk category, as 5 million consumers traded up to added value milk options in 2016 and is having a direct impact on performance. In 2015, the category declined £148m but only £23m in 20162 with improvement on pricing and retailers supporting new and existing add-value milk.

The change has been most noticeable with Arla’s portfolio – without it, the overall category would have declined £118m in 2016. The £95m is the value of all the sales of Arla’s value-added milk in 2016, minus the value sales figure if they were sold at the price of standard fresh.

Arla branded milk grew 12% in 2016 with successful launches of the award-winning Arla B.O.B3, Arla Farmers Milk, Arla Organic Farm Milk and Arla Cravendale 250ml. In addition, Arla has worked closely with its retailer customers to provide greater choice for consumers, with products such as ASDA Vitamin D Milk and launched in 2015, Morrisons Milk for Farmers.

Tomas Pietrangeli, managing director, Arla Foods UK, said: “Innovation is at the core of everything we do and it is fantastic to see consumers respond so well to it and change their attitudes to milk.

“Milk has always been a nutritious staple for British consumers, but it is exciting to see people increasingly view it as more than that - a desirable, versatile drink suitable for different occasions and with different benefits. This is reinvigorating the category and driving value for our farmer owners.”

This focus on innovation is an important part Arla’s most ambitious business strategy to date. The UK Strategy 2020 plan aims to make Arla a household brand by 2020, grow its revenue by nearly a third and position Arla as the champion of British dairy.


Notes to editors:

Arla Branded Milk Highlights:

  • Arla has added 1.5m new shoppers into the branded Added Value Milk sector during 20164;
  • Arla is now the UK’s biggest branded milk portfolio and the only manufacturer in growth;
  • Arla has increased its share of milk from 7.3% to 8.5% in the last 12 months5; and
  • Arla milk brands contributed £95m in value to the milk category, that is £7m every four weeks.

Individual 2016 product highlights:

  • In 2016, Cravendale has grown 1% year on year – a strong performance in a challenging category5;
  • Lactofree has grown 18% in the same year, breaking through the £50m brand value;
  • Arla B.O.B is already worth £9m and Arla farmers milk reached 5.5% share of standard fresh milk in Asda5;
  • Arla Farmers milk has highlighted Arla’s farmer owned nature of our business, one that shoppers care about and are happy to pay slightly more for.
  • In addition to the 2016 launches, Arla works closely with its retailer customers to provide greater own-label choice for consumers within the milk aisle. Developed by Arla in 2016 and launched in January this year, ASDA Vitamin D milk, fortified fresh milk, helps customers obtain their recommended daily allowance.

1Source: Nielsen 52 w/e 2/1/16 and 52 w/e 31st Dec 16. 52w/e value sales of the category, subtracting what the value of sales would be if all of Arla’s branded volume was sold at standard fresh pricing.

2Source: Nielsen 52 w/e 2/1/16 and 52 w/e 31st Dec 16. 52w/e

3 Arla® B.O.B was voted Product of the Year, milk category, Consumer Survey of Products 2017 - http://productoftheyear.co.uk/. At the same awards, Arla skyr was voted Campaign of the Year. The Grocer magazine awarded Arla Protein Cottage Cheese Top Launch within its Top Products supplement in December 2016.

4 Kantar - 52w/e 1st Jan 17

5 Volume driven growth 1 Jan-31 Dec, 2016. Source: Arla Foods UK.

The trademarks Arla, Lactofree, Castello are registered trademarks of Arla Foods.

Arla Foods is a global dairy company and co-operative owned by 12,000 dairy farmers with circa 2,500 of whom are British.

Dating back to 1881, Arla’s purpose is to secure the highest value for its farmers’ milk, while creating opportunities for their growth. With production facilities in 11 countries and sales offices in a further 30, Arla is the world’s fifth largest dairy company and largest supplier of organic dairy products. Arla has a total of more than 18,000 colleagues and its products are sold under the well-known brands Arla®, Lurpak® and Castello® in more than 100 countries.

Arla Foods UK is the largest dairy company in the country and is home to leading dairy brands Anchor®, Arla Cravendale®, and Arla Lactofree® with a turnover of €2.2 billion. The UK is largest market within the Europe Zone, contributing 35% of the zone’s turnover and also comprises 25% of the Group revenue.

As well as being a leading supplier of fresh milk, number one in butter, spreads and cream, Arla is the UK’s largest cheese manufacturer. It has also built the world’s largest fresh milk facility located at Aylesbury that later this year will become the first net zero carbon site of its kind. The UK business has a team of approximately 3,500 colleagues located at its dairies, creameries, distribution centres and head office.

Press contact

Primary

Arla Foods UK Press Office

Arla UK (media queries only, no new business or sponsorship requests)