Arla Foods to invest €41m to support on-the-go coffee production

Arla Foods is investing €41 million to expand the production capacity of its Esbjerg, Denmark, dairy to meet “increased global demand” for on-the-go, chilled coffee drinks.

Arla manufactures and distributes Starbucks ready-to-drink coffee beverages under license. 

The expansion of the Esbjerg dairy is expected to start in the coming months and be completed by the end of 2023.

In an emailed statement, Arla said: “We are investing €41 million in the dairy to expand production, packaging lines and cooling areas as the demand has outgrown the dairy’s capacity”.

In 2010, the company signed a production and distribution agreement with Starbucks. The agreement was extended for 21 years in 2018, giving Arla license to manufacture, distribute and market ready-to-drink Starbucks products in Europe, the Middle East and Africa (EMEA) for a further 21 years.