Arla Foods is considering increasing production at a plant that manufactures refrigerated coffee to go. The Denmark-based dairy group, which manufactures and sells beverages for Starbucks, said it is meeting “increased global demand,” or more than 2.5 billion people.
“The expansion will increase our capacity by about 20%. We are investing €41 million (US$43.1 million) in the dairy to expand production, packaging lines and cooling areas, as demand has outstripped the dairy’s capacity,” says an Arla spokesperson. Just Drinks has asked Arla to quantify the capacity increase more precisely.
The spokesperson also points out that the “ready-to-drink” category has grown by only 20% each year, but this was the first year in which it has grown by more than 34%. Starbucks signed a production and distribution contract with Arla, covering all of Europe, in 2010. The contract was extended for 21 years in 2018, covering the broader EMEA region. Last year, Arla generated 5.6% more money than in the previous year.
