Arla Foods Consolidated Annual Report 2021
41
Arla Foods Consolidated Annual Report 2021 / Performance Review / Performance overview
PERFORMANCE IN EUROPE
Contents
Denmark
In Denmark, revenue remained stable compared to
2020, with strong underlying branded volume
growth of 2.2 per cent, increasing market shares and
revenue of EUR 1,004 million. 2021 was a turbulent
year impacted by both Covid-19 lockdowns and fast
increasing inflation, which led to significant price
increases. During 2021, Arla® re-launched CulturaⓇ
to strengthen our gut health focused proposition,
asand extended the plant-based JördⓇ assortment.
The journey to become more sustainable continued.
This included launching the three hearts symbol for
good animal welfare on Arla® Organic, purchasing
new climate-friendly distribution trucks and investing
in more sustainable production.
Strategic branded volume driven revenue growth
2.2%
2020: 5.1%
Sweden
During 2021, Arla Sweden grew revenue by 5 per
cent to EUR 1,431 million, with growth primarily
driven by a rebound in the foodservice channel as
society opened up post-Covid. Market shares
developed positively across all customers,
categories and brands. Particularly, Starbucks™
CastelloⓇ and Arla® Pro brands performed well.
Overall branded volume growth was 0.8 per cent.
In the latter part of 2021, commodity inflation led
to significant price increases. In support of the
sustainability agenda, we opened an innovation
farm centre of excellence, Finngarne Gård.
Strategic branded volume driven revenue growth
0.8%
2020: 2.5%
UK
ArtS
SKYR
MATU
CLIMATE
CASTELLO
Brie
FRIENDLIER
FACKAGING
(Arla)
Lacto
FREE
VANILLE YOGHURT
2021 was a year where our UK business navigated
successfully through several external challenges to
deliver much-needed returns for farmer owners.
Despite the cumulative effects of driver and labour
shortages, accelerating inflationary cost pressures
dampening the performance somewhat, we managed
to deliver overall branded growth of 3.8 per cent and
revenue of EUR 2,526 million. In the first half of the
year performance was under-pinned by continued
heightened in-home consumption as a result of the
extension of Covid-19 lockdown. We recorded strong
branded volume growth, with notably Arla®, LurpakⓇ
and StarbucksTM continuing to consolidate their
market share positions. The latter half of 2021
welcomed the reopening of foodservice, which
achieved 18.8 per cent branded volume growth. We
also finalized Climate Checks on our owner farms,
which is a clear differentiator for the Arla® brand.
Strategic branded volume driven revenue growth
3.8%
2020: 13.1%
Germany
Our branded business delivered another year of growth
in 2021, with volumes increasing by 1.7 per cent.
The pandemic led to slightly declining dairy
consumption in retail after the lockdown was lifted,
while the foodservice sector only partly recovered. As
a result of this, revenue decreased slightly, to EUR 991
million from EUR 1,024 million last year. We landed
strong innovations, for example Arla® Kærgarden Bio,
successfully launched an Arla® master brand campaign
and took clear market leadership on the Starbucks™
brand. Unprecedented inflation in the second half of
the year resulted in a decline of milk production on
farm. This triggered major price increases, in line with
the market trend
Strategic branded volume driven revenue growth
1.7%
2020: 7.1%
The Netherlands,
Belgium and France
In our cluster, the Netherlands, Belgium and France,
2021 was yet another strong year with branded volume
growth of 8.4 per cent, bringing the total revenue to
EUR 360 million. We continued to build our core brands
and delivered impressive double-digit growth for
Lactofree, Arla® Skyr, MelkunieⓇ Protein, MelkunieⓇ
Breaker, StarbucksTM and LurpakⓇ. The first climate
neutral dairy products, Arla® Organic climate neutral,
were introduced on the Dutch market in 2021 - a next
big step in our sustainability journey, which also put our
brand in a stronger position by gaining market share.
Strategic branded volume driven revenue growth
8.4%
2020: 9.8%
田 Finland
Covid-19 continued to impact the Finnish business in
2021, which meant that our total revenue in Finland
declined slightly and landed at EUR 309 million,
compared to EUR 315 million last year. Despite the
challenging market environment including restrictions
hitting the sizeable foodservice channel, we managed
to offset some of the headwinds by winning new
customers and growing branded volumes by 0.8 per
cent. In the retail channel, our main brands such as
Arla® Lempi delivered solid growth. Innovation is a
continuous strong focus for the Finnish business and
some of the succesful innovations in 2021 were the
Arla® Protein puddings, Arla® Keso flavoured cottage
cheese and Ingman quark. Sustainability is another key
focus for our Finnish business. In 2021, we launched
free-range grazing milk combined with an augmented
reality experience.
Strategic branded volume driven revenue growth
0.2%
2020: -7.3%
(Arla
PROTEIN
STRAWBERRY
.&RASPBERRY
FLAVOURED MILK
25 G
PROTEIN
organic
NATURA
T
LURPAK
DANISH BUTTER
BUIGHTLY TES
200g
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