Arla Foods Consolidated Annual Report 2021
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Arla Foods Consolidated Annual Report 2021 Our brands and commercial segments / Arla foods ingredients
ARLA FOODS INGREDIENTS
In spite of the continuing Covid-19 pandemic, AFI managed to grow their value-add ingredient business by
14.5 per cent compared to 2020, primarily driven by strong demand for specialised ingredients across our key
markets. Growth was supported by the conversion of additional raw materials, recently secured through new
strategic sourcing arrangements, to value-add sales. Significant increases in raw material and energy prices
challenged margins in our ingredients business.
Contents
Aid
Growth of the
value-add segment
14.5%
2020: 5.3%
Revenue,
EURM
794
2020: 716
Share of total
Arla revenue
7%
2020: 7%
Value-add
share
74.0%
2020: 73.7%
Our ingredients business
Arla Foods Ingredients' (AFI) mission is to discover and deliver all
the wonders whey can bring to people's lives. AFI is a global leader
in whey-based ingredients and we bring unique protein and
lactose solutions with added value to our customers. Our
ingredients are used in a wide range of categories from infant,
clinical and sports nutrition to dairy and bakery. In addition, we
manufacture child nutrition products for third parties. AFI is a
100 per cent owned subsidiary of Arla.
Key drivers of performance in 2021
AFI's performance was largely driven by their strong innova-
tions, such as the newly launched innovative ingredient,
Beta-lactoglobulin (BLG), which has a unique nutritional profile
targeted for muscle growth, and is produced using a patented
new separation technology. In the meantime, our Child
Nutrition Manufacturing business performed slightly below
2020 levels, following difficult market conditions in China. Our
strategic outlook for this business remains positive.
Focus areas in 2022
In 2022, AFI will focus on the priorities outlined in the newly launched
AFI strategy 2026, such as growing whey intake and implementing
comprehensive sustainability programmes. The AFI Innovation Centre
opened in 2021 will further support the innovation agenda by giving
home to AFI's leading scientists, and bridging the gap between world
class research, clinical trials and collaboration across the globe.
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