Arla Foods: A global dairy giant

 Published On: Aug, 2014 |    No of Pages: 22 |  Published By: MarketLine | Format: PDF
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Introduction

Arla Foods amba is a leading producer of dairy products and is headquartered in Viby, Denmark. The company operates in North America, Europe, Asia and the Middle East. Arla Foods has gone from strength to strength, which is demonstrated by the company's growing revenues.

Features and benefits

* Analyzes key strategies used by Arla Foods and assesses how the company has established its position as a market leader.
* Assesses opportunities for Arla such as expansion in emerging markets and how this can help drive the company's revenues further.
* Explores opportunities in the private label sector and how this will increase the company's consumer base and market shares.
* Looks out how Arla's Lactofree brand has enabled the group to carve a niche for itself.
* Assesses the potential threats facing the company following weak economic conditions in Europe.

Highlights

According to Datamonitor Consumer research, the global dairy industry had total revenues of $312.4bn in 2012; representing a compound annual growth rate of 3.6% between 2008 and 2012. Despite only moderate growth within the industry and a faltering global economy, Arla Foods has outperformed the dairy industry.
The private labels market has grown following the global economic downturn; which in turn has caused price consciousness amongst consumers. By entering the private label industry, Arla is targeting a new consumer base in a bid to increase its market share.
Sales of lactose free dairy products are expected to grow rapidly over the next few years following increasing self-diagnosis of lactose intolerance. Arla's Lactofree brand allows the company to widen its consumer base to those that are lactose intolerant.

Your key questions answered

* What key strategies are driving Arla's revenues?
* Why is Arla entering the private label market and how will this increase the company's revenues?
* What potential threats is Arla facing?
* What factors are fuelling growth in the dairy industry and how can Arla enhance its position?
* How does Arla's Lactofree brand give the company a competitive edge over its rivals?

OVERVIEW
Catalyst
Summary
ARLA FOODS: TRANSFORMATION INTO A GLOBAL GIANT
Arla: A brief history
Performance of the dairy market compared to revenues of Arla
Arla: Product diversification
Arla's increased presence in geographical markets
GROWTH OPPORTUNITIES FOR ARLA FOODS
Expansion in emerging markets
Growing private labels
Arla widens its offerings to lactose intolerant consumers
THREATS TO ARLA FOODS
Weak economic conditions in Europe, can adversely affect Arla's revenues
Poor consumer spending gives rise to supermarket own brands
Product recalls negatively impact Arla's brand
CONCLUSIONS
Arla: Proactive approach to opportunities and threats
APPENDIX
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