The owners of Lurpak, JÖRÐ and Cravendale, who also has the license for Starbucks ready-to-drink chilled range saw revenue increase in the UK by 2.6% to £2.17bn.
Sales across Arla’s strategic brands grew by 9.6% in 2021. Cravendale grew by 6.7%, Skyr by 12.5%, yogurt brand Arla Protein by 38% and Starbucks by 30%. However, revenue for Lurpak decreased by 4.1% and Anchor’s dipped by 6.3% that same year.
Last year, Arla appointed a new global brand manager for Lurpak who will be looking for a new creative direction for the brand to help increase sales. Arla hasn’t called a review of its creative agency since 2018 and works with 19 specialist agencies across its portfolio. We expect to see a review of some of these agencies as the company consolidates multiple disciplines into one agency partner.
Arla’s CEO Peder Tuborgh said: “Our strategic brands performed exceptionally well in 2021 as consumer appetite for high quality, natural nutritious dairy products remained strong around the world. Month on Month, we managed sales and operations firmly to maintain product availability amidst fluctuating demand between in-home consumption, dining out and on-the-go as lockdown eased and we return to the workplace”.
At group level, Arla’s 2022 revenue is expected to be €11.8bn-€12.4bn. To help achieve this, the company recently appointed a new commercial marketing manager and we would expect Arla’s advertising budget to remain above £4m in the upcoming quarters, and the company will be looking for new channels to reach more in-home and on-the-go consumption consumers.