Arla Foods Annual Report 2020
Management Review
Our Strategy Our Brands and Commercial Segments Our Responsibility Our Governance
Our Performance Review Our Consolidated Financial Statements
Our Consolidated Environmental, Social and Governance Data
BRANDS
Our brands are at the heart of our business and drove overall strong growth in 2020. Given the challenging
conditions due to Covid-19, our brand teams quickly adapted to the new reality and changing consumer
behaviour. Strong digital mindsets and creative campaigning were imperative to embracing the changes and
turning them into commercial opportunities.
Arla
Arla
еко в еко&
SVENS
CAFFE LATTE
STARBUCKS
GENLONNE
BOK
LURPAK
DANSK SMØR
200ge
LURPAK
2008
MELLANMJÖLK
FILMJÖLK
GRY.
NETTO
NOLL
еко
NOLL
KLIMAT-
ANTRYCK
KLIMAT
AVTRYCK
NETTO
NOLL
KLIMAT
AVTRYCK
eko
FITT
TUITER FETT
1000 GETRICS DL
FOX CLIMAT
FARK VISPERADO
HOLL
STRONG ARLA SUPPLY CHAIN SUPPORTED
LURPAKⓇ GROWTH OF 15 PER CENT
2020 was another record-breaking year for LurpakⓇ, breaking last
year's record of 300 million packs of butter and spreads sold by an
additional 45 million packs. The growth can primarily be explained by
high consumer loyalty to trusted brands and increased in-home
lunching and cooking due to Covid-19 restrictions. To satisfy this
massively increased demand the entire Arla supply chain did a
remarkable job. The global planning team needed to find more Danish
cream than ever before, procurement needed to source 15 per cent
more packaging materials without notice, and our Holstebro Dairy
needed to step up production and shipments to unprecedented
numbers. 2020 was a true example of the fantastic team efforts we
have seen all over Arla in this unusual year.
ARLA® BRAND GREW AND FURTHER
STRENGTHENED SUSTAINABILITY TRAIT
Overall, the Arla® brand had a strong year with branded growth of 3.0
per cent, driven by increasing retail sales, which more than offset the drop
in foodservice. The continued strong focus on animal welfare earned
the Arla® brand 2 out of 3 hearts on Arla 24 milk in the Danish
governmental animal welfare label 'Better animal welfare'. As part of
Arla's commitment to become carbon net zero by 2050, the Arla®
brand launched carbon reduced and recyclable packaging solutions,
and introduced carbon compensated milk in Denmark. Furthermore,
the Arla® brand continued to build a premium organic position in
overseas markets like China and the Middle East, while gaining market
shares for affordable nutrition in emerging markets like Nigeria, Senegal,
Ghana and Bangladesh.
CELEBRATING TEN YEAR ANNIVERSARY
WITH STARBUCKS™
In 2020, we celebrated 10 years of cooperation with the American
coffee brand StarbucksTM where Arla manufactures, distributes and
markets StarbucksTM branded premium ready-to-drink coffee beverages
in Europe, the Middle East and North Africa. A highly successful
journey starting with 7 million units sold in 2010 and ending 2020
with close to 150 million units sold. Despite early concerns that less
on-the-go coffee occasions due to Covid-19 would reduce Starbucks'™
performance, we have witnessed very strong double-digit growth
mainly driven by our core markets in Europe and the UK. We constantly
follow the changing consumer trends, and in 2020, we launched two
additions to our plant-based range; Starbucks' Chilled Classics oat
and coconut iced coffee.
23 ARLA FOODS ANNUAL REPORT 2020View entire presentation