Arla Foods, one of the world's biggest dairy companies, has announced that it has entered a new long-term 21-year strategic licensing agreement with Starbucks.
The new agreement expands on the pair’s seven-year partnership, and will see Arla Foods continue to manufacture, distribute and market Starbucks premium milk-based ready-to-drink coffee beverages for the EMEA region (Europe, Middle East and Africa).
Duncan Moir, vice president of Channel Development and Foodservice, Starbucks EMEA, said, “The strength of our relationship with Arla Foods over the past seven years has seen our ready-to-drink business grow by an average of 40% per year across EMEA.
“This new licensing agreement signals our commitment to continue to work together to grow the business within the ready-to-drink sector, and we are proud to be working alongside Arla Foods.”
Ready To Go
Starbucks chose Arla Foods as its license partner to manufacture, distribute and market its milk-based ready-to-drink coffee beverages for supermarkets and convenience stores across the EMEA region.
Arla has launched Starbucks beverages in 38 countries across EMEA and expects to sell over 110 million units per year.
The products are produced at Arla Foods’ sites in Esbjerg, Denmark and are made from milk from Arla Foods’ 11,200 farmer-owners and 100% arabica, ethically sourced coffee from Starbucks Coffee Company.
Commenting on the agreement, Hanne Søndergaard, executive vice president and CMO at Arla Foods, said, “We are proud to take another step in our partnership with Starbucks, bringing great tasting Starbucks ready-to-drink coffee beverages to consumers across Europe and the Middle East while adding value to our farmers’ milk.
“The partnership combines Arla’s extensive experience in manufacturing dairy beverages and our widespread distribution network with Starbucks unique coffee expertise. Consumers in the EMEA region have welcomed the great taste and premium nature of the beverages, and we remain committed to working closely with Starbucks on developing and growing the category in the future.”
Arla recently announced that its group revenues increased by 8.1% to €10.3 billion in 2017, driven by higher sales prices, increased branded sales, and a better geographical and product mix.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Aidan O'Sullivan. Click subscribe to sign up to ESM: European Supermarket Magazine.
