Arla Foods Consolidated Annual Report 2021
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Arla Foods Consolidated Annual Report 2021 / Our brands and commercial segments / Europe
EUROPE
Our European commercial zone gained market share and delivered overall strong branded volume growth of
2.3 per cent in 2021, on top of the exceptionally strong growth of 5.7 per cent in 2020, despite a challenging
set of circumstances including significant disruption from Covid-19, consumers shifting from foodservice to
retail and price increases due to inflation. All markets contributed to the growth. From a brand perspective,
Starbucks at 33.7 per cent, CastelloⓇ at 1.7 per cent and the Arla® brand at 2.3 per cent were the key drivers.
Foodservice also delivered branded growth of 7.8 per cent.
Contents
III
Our European business unit
Our European commercial zone encompasses nine countries in
Northern and Western Europe, and represents 59 per cent of
the total Arla revenue. We are in mature markets, yet we are
delivering market share gains and solid branded growth year on
year, driven by strong brands such as LurpakⓇ, the Arla® brand
and Starbucks™
Key drivers of performance in 2021
The key drivers of branded volume growth were successful
StarbuckTM's launches of the Grande Cup and Triple Shot, the
14.7 per cent growth of the Arla sub-brand Fill N' Fuel driven by
Cream Skyr, Protein yogurts, pouches & puddings, and Arla
LactofreeⓇ with 11.2 per cent growth. The key markets driving
growth were NL/FR/BE, UK and Denmark with 8.4, 3.8 and 2.2
per cent branded volume growth, respectively. Revenue in the
e-commerce channel increased by 17 per cent.
Our preparation to Brexit helped us navigate the new trading
environment and we only experienced minor disruption, but
were impacted by the shortage of truck drivers.
Strategic branded volume
driven revenue growth
2.3%
2020: 5.9%
Share of total
Arla revenue
59%
2020: 60%
Arla
Lacto
FREE
0
NATUREL
YOGHURT
Focus points for 2022
The volatility seen in 2021 is expected to continue into 2022. Inflation
will continue to be a major factor in the market, likely making dairy
products more expensive and slowing growth outlook for 2022. As we
deliver the first year of our new global strategy, Future26, our focus will
be on managing our market share through our brands across the
Europe zone. Sustainability will be front and center with the Arla® brand
leading the agenda driven by innovation and development of products
that inspire consumers to live and eat sustainably.
Revenue,
EURM
Brand share
6,621 55.5%
2020:6,413
2020:54.1%
Click here for more information about the
performance in particular countries and regions.
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