The strategy in Brasil involves stronger focus on the brand Danubio.
Following a reorganisation of Arla Foods’ Brazilian operations with greater focus on the Arla Foods’ range, sales of Arla cheese and butter reached 480 tons in May. This is the strongest result since the formation of Dan Vigor, a joint venture between Arla Foods and the Brazilian dairy company Vigor, sixteen years ago.
Previously, imports of Arla Foods’ Lurpak butter and Rosenborg cheeses were handled by an Arla owned import company. In a separate operation, Arla Foods was responsible for Dan Vigor’s cheese production at a local dairy with the local partner handling sales and distribution. From February 2002, however, all activities were gathered within a new set-up in which Arla Foods has taken responsibility for import and production as well as sales and marketing.
”We expect considerable growth in Brazil, especially because there are excellent opportunities for expanding the market,” said Managing Director Peter Bjerrring Lauritsen, Dan Vigor. ”This is particularly the case with regard to innovation and new product launches.”
With an annual cheese consumption of 450,000 tons Brazil is the world’s sixth largest market. However, as per capita consumption remains low, the potential for sales growth is significant.