Issue 40

New strategic ambition to double the business by 2017

Quality stays in focus as Arla Foods Ingredients embarks on a major growth journey to meet market demands

Solid demand for high-quality whey proteins and lactose is top of the agenda in the new Arla Foods Ingredients strategy, launched this month.

The company has announced an ambitious aim to double the size of its business by 2017. At the same time, the strategy will build on an already strong commitment to quality leadership and innovation.Achieving the goals of the strategy is about proving Arla Foods Ingredients the most attractive partner for global nutrition and food customers, says Henrik Andersen, CEO. “Right now growth in our industry is very strong. When the market eventually matures, customers will select the suppliers that consistently deliver the highest quality. We want them to choose Arla Foods Ingredients,” he states.

Investments in production and partnerships
Major investments have laid many of the foundations for reaching the growth objectives. An EUR 60 million expansion of the company’s whey processing facility in Denmark was completed at the end of 2012, and an EUR 120 million plant for the production of new-generation lactose is underway – scheduled for completion in 2014. Additional investments are in the pipeline.
In recent years, Arla Foods Ingredients has established several new partnerships that secure the additional whey necessary to make use of the extended production capacity and grow the business. The search to establish further successful partnerships is a key element of the new strategy.“Our objective is not just to gain access to new raw materials but to establish cooperative partnerships that meet our customers’ expectations,” Andersen adds.

Quality beyond legal requirements
While the market is demanding increasing volumes of dairy proteins and lactose, individual manufacturers are stepping up their quality requirements.In the infant nutrition segment, there is a clear trend towards stricter quality demands, with a new regulation in China, for example, indicating a need for quality standards similar to pharmaceutical requirements. Suppliers from other segments, such as sports and clinical nutrition, show signs of following suit.

Products, processes, people
Feedback from numerous customer satisfaction surveys confirms that Arla Foods Ingredients already has a name for meeting quality expectations. Positive scores highlight outstanding people performance, efficient processes and strong, innovative products.“The new growth strategy will ensure our continuing ability to support the growth of our customers and match their quality demands,” Andersen says.