Availability of good quality ingredients is a major market concern, says Arla

By Caroline SCOTT-THOMAS contact

- Last updated on GMT

Andersen said the company plans to double its revenues by 2017, tracking market growth for whey and lactose
Andersen said the company plans to double its revenues by 2017, tracking market growth for whey and lactose

Related tags: Arla food ingredients, Denmark, Arla foods

The quality of raw materials is set to become a more prevalent subject in the coming years, according to Arla Food Ingredients.

The whey protein, lactose and milk-based ingredient specialist has developed a new marketing platform, dubbed ‘Quality starts here’, which it says will build communication on quality into its service, after a customer survey identified quality of supply as a top concern.

CEO Henrik Andersen told FoodNavigator: “What they expressed was a concern about the availability of products of the right quality…It is a consistent message that we have had from customers. Quality is not just one thing we do. It is the sum of many things …The quality of raw materials will become much more a subject of conversation in the future.”

The strategy is centred on better communication about traceability, environmental commitment and security of supply, backed by adequate capacity, logistics and documentation, the company said.

“What is new is this idea that it will become much more an integral part of how we communicate with consumers and with the market,”​ said Andersen.  “We see increased demands for documentation of our products and traceability…It is an internal effort, and a signal to investors that we will invest in our plants.”

In January this year, Arla Foods unveiled a five-year plan​, in which it said it aimed to double the revenue of Arla Food Ingredients by 2017, from about 2.5bn DKK to 5bn DKK.

“This is why it is so important for us to put our money in places where the market is willing to pay,”​ said Andersen.

Speaking about the whey and lactose industry in particular, he said: “The industry is growing at 13 or 14% a year, and if you want to follow the market, you have to grow at the same rate, which means we will double [by 2017].”

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