Arla Foods facts for kids
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| Co-operative with limited liability (Danish: Andelsselskab med begrænset ansvar) | |
| Industry | Dairy |
| Predecessor | Arla (Sweden) Arla Foods A.m.b.A (Denmark) Arla Oy (Finland) MD Foods (UK) |
| Founded | 17 April 2000, 1881 (original Arla company), 1970 (MD Foods) |
| Headquarters |
Viby
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Denmark
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Area served
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Worldwide |
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Key people
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Peder Tuborgh (CEO) Jan Toft Nørgaard (chairman) Jonathan Evans (UK milk) |
| Revenue | 13.8 billion EUR (2022) |
| 400 million EUR (2022) | |
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Number of employees
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20,907 (2022) |
| Subsidiaries | Arla Foods Finland Arla Foods UK |
Arla Foods is a large company that makes dairy products like milk, cheese, and butter. It is a co-operative, which means it is owned by the farmers who supply the milk. Arla Foods is based in Viby, Denmark. It is one of the biggest dairy companies in the world. It is also the largest producer of dairy products in places like Scandinavia and the United Kingdom.
Arla Foods was created on April 17, 2000. This happened when two dairy companies merged: Arla from Sweden and MD Foods from Denmark. The name Arla comes from an old Swedish word that means 'early in the morning'.
Contents
History of Arla Foods
How Arla Foods Started
In the 1880s, dairy farmers in Sweden and Denmark decided to work together. They formed small groups called co-operatives. These groups helped them invest in shared facilities to produce dairy products.
The very first dairy co-operative in Sweden was set up in 1881. It was called Arla Mejeriförening and was located at Stora Arla Gård. In Denmark, the first co-operative dairy started in 1882 in Hjedding.
On April 26, 1915, farmers near Stockholm in Sweden created a large co-operative dairy group. It was called Lantmännens mjölkförsäljningsförening. This group ran dairies and also had shops that sold dairy products.
In 1927, this company registered the name Mjölkcentralen, or MC for short. From the 1950s, more co-operative dairies across Sweden joined MC. In 1975, MC changed its name to Arla. This name had been used before by Sweden's first co-operative dairy. By the end of the 1900s, Arla sold 65% of all dairy products in Sweden.
Meanwhile, in Denmark, Mejeriselskabet Danmark (MD) was formed on October 1, 1970. It was started by four dairy companies and three individual dairies. In 1988, the company changed its name to MD Foods. In 1999, MD Foods merged with another large Danish dairy company, Kløver Mælk. This merger meant MD Foods handled 90% of Denmark's milk production.
In April 2000, MD Foods and the Swedish Arla merged. This created Arla Foods A.m.b.A, which is the Arla Foods we know today. Its main office is in Aarhus, Denmark. In 2012, Milk Link, a leading dairy farmer co-operative in the UK, also joined Arla Foods. This made Arla one of the biggest dairy co-operatives in Europe.
Arla Foods Today
Arla Foods is currently the fourth largest dairy company in the world based on the amount of milk it handles. It is also the seventh largest by how much money it earns. As of early 2022, about 8,492 farmers owned the co-operative. These farmers are from countries like Denmark, Sweden, Germany, the UK, Belgium, the Netherlands, and Luxembourg.
Arla Foods has many different brands. It has several smaller brands and four main ones. The main brands are Arla, Lurpak, Puck, and Castello cheeses. These brands are sold all over the world. The Arla brand is used for many different products. Puck is like the Arla brand but for the MENA region (Middle East and North Africa). Castello is a cheese brand that includes blue cheese and yellow cheeses.
Arla also works with Starbucks. They make, sell, and market Starbucks' ready-to-drink coffee products. These are sold in Europe, the Middle East, and Africa.
In 2011, Arla Foods created a separate company called Arla Foods Ingredients (AFI). This company makes ingredients from milk. These ingredients are used in the food industry. They include milk proteins, bioactive phospholipids, minerals, and lactose.
Arla Foods' main office is in Denmark. Arla Foods Ingredients has a production plant in Denmark. It also has joint production sites in Argentina and Germany. In March 2011, Arla Foods and DMK formed a joint company called ArNoCo GmbH & Co. KG. This company makes whey proteins for the food industry.
In February 2018, Arla Foods announced plans to invest £70 million in the UK. This was part of their plan to help their farmers in Europe for a long time. In October 2019, Arla Foods invested about €50 million (US$55 million) in a cheese factory in Bahrain. Arla expects this factory to produce over 100,000 tons of cheese each year by 2025. This cheese will be sold under brands like Puck, Arla, Dano, Kraft, and Private Label.
Boycott in 2006
Arla's sales were greatly affected by a two-month boycott in the Middle East in 2006. This happened because of anger over satirical cartoons published in Denmark. These cartoons showed Prophet Muhammad.
When the Danish government did not criticize the cartoons, a boycott of Danish products began. It started in Saudi Arabia and spread across the Middle East. The Middle East was Arla's biggest market outside of Europe.
On February 3, 2006, Arla said that sales in the Middle East had completely stopped. This was costing the company US$2 million every day. Soon after, the Danish government met with ambassadors from Muslim nations. The newspaper that published the cartoons also apologized. However, the boycott continued for two months.
In March 2006, Arla placed full-page advertisements in Saudi Arabia. They apologized for the cartoons and showed respect for Islam. This caused some debate in Denmark. Some groups criticized Arla and asked Danish women to boycott Arla's products in Denmark. In April 2006, Arla announced that its products were being put back in shops in the Middle East.
Before the boycott, Arla supplied 50,000 shops in the area. Many of its biggest customers in Saudi Arabia started selling its butter and cheese again on April 8, 2006. At that time, Arla also began supporting good causes in the Middle East. This helped to improve its public image in the region.
"Don't Cancel the Cow" Campaign
In 2022, Arla started an advertising campaign called "Don't Cancel the Cow." The campaign suggested that more young people becoming vegan was making the future of the dairy industry uncertain. This campaign was aimed at young people who worry about how cow's milk affects the environment.
Bovaer Feed Additive
In November 2024, in the UK, there were calls on social media for people to stop buying Arla products, including Lurpak butter. This happened because Arla Foods announced that 30 of its farms would test a feed additive called Bovaer. This additive can reduce cow methane emissions by 30 to 45%.
Bovaer is approved for use by UK regulators. However, some people online raised concerns about its safety. The company that makes Bovaer, DSM-Firmenich, said that "mistruths and misinformation" were being spread about the product. They stated that it was "totally safe" and had been "tested over many years in many countries." Arla had already tested this supplement in Sweden during 2023 on five farms.
International Distribution
Arla Foods products are sold in many countries around the world. Here are some of the places where Arla products are distributed:
Indonesia
In Indonesia, Arla products are distributed by companies like Indofood, Pandurasa Kharisma, and Prambanan Kencana.
Malaysia
In Malaysia, Arla products are distributed by Lamsoon. This company also distributes products from Lion Corporation.
Bangladesh
In Bangladesh, Arla sells its milk powder and milk products under the Dano brand. Dano has been a very popular milk brand in Bangladesh for over 60 years.
China
In China, Arla products are distributed by Mengniu.
Japan
In Japan, Arla products were once distributed by Morinaga Milk Industry. Now, various smaller companies distribute them.
South Korea
In South Korea, Arla products are distributed by Maeil Dairies.
Egypt
In Egypt, Arla products are distributed by Juhayna.
West Africa
In West Africa, Arla products are distributed by Tolaram Group. This group also distributes products from Indomie, Nestle, and Colgate.
United States
In the US, Arla products are distributed by Dairy Farmers of America. This company also distributes products from Fromageries Bel.
Germany
In Germany, Arla products are distributed by DMK Group.
United Kingdom
In the United Kingdom, Arla products are distributed by Volac. This company also distributes products from Nestle, First Milk, and Wilmar.
See also
In Spanish: Arla Foods para niños
- First Milk (company)
- List of companies of Sweden
- List of companies of Denmark
