Arla Sets Out Ambitious Budget for 2010

Following a tough year caused by the global economic situation, Arla Foods is now adopting proactive measures to reinforce its leading position in a market which, in 2009, was characterised by strong price competition.

15 Jan 2010 --- In 2009, the economic situation forced Arla Foods to make cuts across the business. A new and increased budget for 2010 focuses on marketing, an increase in capacity, as well as efficiency measures.

Following a tough year caused by the global economic situation, Arla Foods is now adopting proactive measures to reinforce its leading position in a market which, in 2009, was characterised by strong price competition.

Arla Foods’ board of directors has approved the new budget this week, which is in line with the company’s corporate strategy.

”The objective is to achieve the highest possible milk price for our farmers in a very price conscious market with substantial and rapid fluctuations. During the past year, we have put considerable effort into the savings programme and have been dealing with the implications of the global economic situation. During 2010, we will again show our customers, and consumers, across the world what Arla stands for and what we can and want to achieve,” says Arla Foods’ CEO Peder Tuborgh.

In 2010, the investment behind Lurpak and Castello will proceed at full speed. These global brands will help move more of Arla’s raw milk from industrial to value added products.

The Arla brand and the concept ‘Closer to Nature’ will also be highly visible in 2010. This, however, will require a huge marketing effort which is reflected in an increase in the 2010 marketing budget by circa 30 per cent, compared with 2009.