DENMARK – Danish dairy giant Arla Foods has introduced a new range of meal-replacement milk-based drinks in Denmark, with plans to expand the Protein Food to Go range to England and the Netherlands.
The drinks, which come in chocolate caramel and vanilla hazelnut flavors, are designed to provide a convenient, nutritious option for consumers on the go. Each serving contains 30 grams of protein, 12 grams of fiber, and added vitamins and minerals.
Henrik Lilballe, Managing Director of Arla’s Danish operations, expressed the company’s ambition to develop the “beverage meal” segment alongside their customers, acknowledging that while this concept is relatively new to Danish consumers, there is significant potential for growth.
Lilballe emphasized that the success of these products will require substantial effort in educating consumers on how and when to use them.
Despite anticipating a gradual market introduction, Arla has high hopes for the product’s future in Denmark.
The “beverage meal” sector is reportedly growing in countries like England and Germany, where Arla sees additional opportunities for its Protein Food to Go range.
Arla’s commitment to expanding its portfolio is evident in its recent investment of DKr20m ($2.9m) to support the growth of its Starbucks and Cocio milk drinks in Denmark.
Additionally, the company has entered a licensing agreement with US confectionery giant Mondelez International to produce and distribute Milka chocolate milk in Germany, Austria, and Poland.
However, Arla is also facing challenges. The company recently warned that a global milk production shortage could drive up retail prices in the coming months.
Despite this, Arla posted strong financial results for the first half of 2024, with revenues of €6.6 billion, down from €7.1 billion in the same period in 2023 due to price adjustments.
Nevertheless, Arla’s EBIT surged by 65% to €266 million, and net profit increased by 56% to €173 million. The company has adjusted its full-year revenue guidance to a range of €13.4 billion to €13.9 billion.
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