European dairy cooperative Arla Foods and Solinest have joined forces to unveil Arla Skyr and Arla Protein in a bid to scale up in the French market. They have signed a long-term partnership agreement to launch the two dairy brands in French retail, with the products now available in stores across the country.
The move into one of Europe’s biggest dairy markets is driven by increased consumer interest in the functional health dairy category.
“We have seen great success with Arla Skyr and Arla Protein in other European markets, so it only makes sense to build our branded business in France and accelerate our strategic presence there. And collaborating with a partner as respected as Solinest is key to achieving this, and I look forward to a successful partnership,” says executive vice president and head of Arla’s European business, Peter Giørtz-Carlsen.
Bertrand Jacoberger, Solinest’s CEO, adds: “Adding two new and strong brands to our portfolio in a category that we know consumers are interested in will only increase our relevance and ability to meet the consumers’ needs.”
The deal entails Arla Foods producing the products at its dairies in Northern Europe and Solinest using its extensive sales force to distribute them in France, where they cover 99% of retail.
Rise in the protein category
Arla points out how the dairy protein category is growing fast as consumers seek a nutritional boost in line with an active lifestyle. Across markets and sub-categories, the category is experiencing exceptionally high growth, increasing by 15% to 20% per year.
The dairy protein category is growing fast as consumers seek a nutritional boost amid hectic schedules and an active lifestyle.This is also the case in France, where the demand for dairy products supporting functional health is growing by 20% annually.
“We see retailers across markets giving more focus to the high protein category with dedicated ‘Protein Bays’ and more shelf space. And we know that the category caters to a wide group of consumers and different need-states so we expect the growth and consumer interest to continue growing,” says Giørtz-Carlsen.
Arla Protein has seen a growth rate of more than 50% compared to last year and total revenue is expected to be more than €100 million for 2023, highlights the company.
Strong potential in a highly competitive market Arla Foods has been active in France for more than 20 years and even with it being the home country of giants such as Lactalis and Danone, the dairy cooperative has been performing well.
Revenue in 2022 was €42 million and with the new partnership in place, the business is on an ambitious growth trajectory.
“We have two great and proven brands that are relevant to the consumer trend we are seeing in France and many other markets in Europe. Yes, the competition within the dairy category is fierce in France, but I believe we have the production expertise and the consumer insights needed to succeed.”
