Arla Foods invests US$69.63M to expand its cream cheese capacity in Holstebro Dairy  

DENMARK – Viby J-based Arla Foods has announced a new investment of 59.4 million EUR (US$69.63 million) in expanding the cream cheese capacity at Holstebro Dairy, Denmark, to address global growth in cream cheese demand.

The investment will be carried out in the Holstebro Dairy, Denmark, where Arla Foods already has a huge production of butter, spreadable and cream cheese with around 155.000 tonnes of butter/spread per year and 119.000 tonnes cream cheese per year.

According to the company, the investment will unlock an additional 16,000 tonnes of cream cheese production capacity per year, to be sold worldwide.  

David Boulanger, Executive Vice President & Chief Supply Chain Officer at Arla Foods, said, “We have very strong positions in many markets in the cream cheese category, thanks to naturality and the uniqueness of our cream cheese products. As a result, we experience significant demand acceleration in this category in the various markets we operate.

“With this investment in Holstebro, we will be in a position to meet consumers’ appetite for our products and grow further the cream cheese category.” 

Earlier this year, a previous expansion in the process facilities in Holstebro was completed, adding 27,000 tonnes of additional cream cheese capacity. This new investment will unlock the full process capacity by adding two new filling lines for retail and food service. 

Furthermore, the investment also includes an upgrade of the facilities for employees at the dairy, featuring a new office building and new changing rooms. The expansion is expected to be ready for use in January 2028.   

“We are looking forward to delivering our great Arla quality, which among retailers is perceived as the benchmark,” said Mette Møller, Site Director at Holstebro Dairy.

Arla Foods invests US$227.6M in UK mozzarella production

This news follows the group’s announcement of a €210 million (US$227.6 million) investment in enhancing mozzarella cheese production at one of its UK dairy facilities.

The Taw Valley creamery, situated in Devon, southwest England, will undergo technological advancements to cater to customer requirements, particularly regarding the browning, melting, and stretching characteristics of mozzarella cheese.

In addition, Arla plans to introduce cutting-edge technology, including patented processes that will significantly reduce the maturing period from 14 days to just one.

Peter Giørtz-Carlsen, Executive Vice President and COO of Arla Foods, highlighted the cooperative’s robust growth in the mozzarella segment over the past five years and emphasized the importance of maintaining leadership in the category.

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