Arla Foods, Starbucks sign 21-year agreement

14 Jun 2018

After seven years of what is said to be a successful business partnership, Starbucks has a new strategic licensing agreement with the farmer-owned dairy cooperative Arla Foods.

Arla Foods, Starbucks sign 21-year agreement

After seven years of what is said to be a successful business partnership, Starbucks has a new strategic licensing agreement with the farmer-owned dairy cooperative Arla Foods. The two companies have signed a long-term 21-year strategic agreement, giving Arla Foods license to continue to manufacture, distribute and market Starbucks premium milk-based ready-to-drink (RTD) coffee beverages for the EMEA region (Europe, Middle East and Africa.)

Duncan Moir, vice president channel development and foodservice, Starbucks EMEA, said: “The strength of our relationship with Arla Foods over the past seven years has seen our RTD 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.”

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.”

Opportunities within milk-based beverages is an important focus area in Arla’s Good Growth 2020 strategy, the company says.

“It is our ambition to be a leading provider of milk-based beverages in Northern Europe, The Middle East, Asia and Northern Africa in 2020 and the new strategic licensing agreement makes the Starbucks partnership a vital part of delivering on this target and we believe that innovation is the key to future success. Our recent launches of new Starbucks Double Shot products are a great example of our joint commitment to innovation and to consumers,” Søndergaard said.

In 2010 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 said it expects to continue to further extend its reach to meet consumer needs. Since Starbucks chose Arla Foods as its licensed partner in 2010 the business has grown by an average of 40% each year.

By 2018 Arla 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.

Find out more about Arla Foods

Related categories

Related tags

Beverage Dairy

Related news

Gen Z consumers are thirsty for variety in beverages

Gen Z consumers are thirsty for variety in beverages

31 May 2022

As Gen Z consumers gain disposable income, they are looking to quench their thirst with beverage brands that are clean, sustainable and socially responsible, according to a report from the global consumer trend forecaster WGSN.

Read more 
Tea flavour innovation in China unites tradition with modernity

Tea flavour innovation in China unites tradition with modernity

13 Apr 2022

Chinese tea brands are innovating with new flavours, blends and formats, and even making a foray into food with tea-flavoured food and drink launches.

Read more 
Low- and no-alcohol beverages see significant growth globally

Low- and no-alcohol beverages see significant growth globally

11 Apr 2022

Alcohol-free and low-alcohol beverages are helping drive growth for many alcohol manufacturers that have been struggling to adapt to the changing tastes of the market in recent years.

Read more 
Baby formula brands innovate with clean label launches

Baby formula brands innovate with clean label launches

7 Apr 2022

Clean label baby food is receiving a significant amount of development, with two recent brands ByHeart and Bobbi launching formulations certified by the Clean Label Project with a Purity Award.

Read more 
Consumers seek ashwagandha-fueled relaxation in beverages

Consumers seek ashwagandha-fueled relaxation in beverages

28 Mar 2022

Ashwagandha has been used in India for centuries, and it is only in recent years that consumers in the US and now Europe are realising its health benefits, with manufacturers starting to add this adaptogen to beverage formulations.

Read more 
A new brew: Ayurvedic coffee in India, adaptogenic coffee from Finland

A new brew: Ayurvedic coffee in India, adaptogenic coffee from Finland

10 Mar 2022

Coffee is probably one of the world’s most popular functional beverages, providing millions with their daily caffeine hit. However, some brands are taking its functional benefits further by adding in botanicals, vitamins, and other nutrients.

Read more 
Coca-Cola is spreading itself outside beverages to expand its market

Coca-Cola is spreading itself outside beverages to expand its market

28 Feb 2022

With 130 years of experience behind the brand Coca-Cola, it would be easy to imagine that the brand would be comfortably reliant on one of its 15 billion-dollar brands that make up the portfolio of one of the largest beverage companies in the world.

Read more 
Microdrink startup Waterdrop expands in US, looks to move global

Microdrink startup Waterdrop expands in US, looks to move global

24 Feb 2022

Australian beverage startup Waterdrop has raised €60 million ($70 million) in a Series B funding round led by Singapore-based investment firm Temasek. The startup, which makes microdrinks — water-soluble, sugar-free cubes packed with plant-b...

Read more 
Synthesising volatile aroma compounds to make alcohol-free beer taste better

Synthesising volatile aroma compounds to make alcohol-free beer taste better

18 Feb 2022

A Danish startup is using synthetic biology to produce the volatile aroma compounds that are lost when brewers make low- and no-alcohol beer.

Read more 
Can sugar-reducing tech revive falling fruit juice sales?

Can sugar-reducing tech revive falling fruit juice sales?

12 Feb 2022

Better Juice’s naturally sugar-reduced fruit juice will hit US supermarket shelves in spring 2022 thanks to a partnership with GEA. Could this turn around the long-term decline in fruit juice sales?

Read more