Arla extends its drinks deal with Starbucks

The two companies have signed a long-term 21-year strategic agreement, giving Arla Foods license to continue the deal.

In 2010 Starbucks chose Arla Foods, which has its UK headquarters in Leeds, as its license partner to manufacture, distribute and market its beverages for supermarkets and convenience stores across the EMEA region.

Ever since Starbucks chose Arla Foods as its licensed partner in 2010 the business has grown by an average of 40 per cent each year.

By 2018 Arla launched Starbucks beverages in 38 countries across EMEA and expects to sell over 110 million units per year.

Duncan Moir, vice president of Channel Development and Foodservice, Starbucks EMEA, said: “The strength of our relationship with Arla Foods over the past seven years has seen our ready-to-drink business grow by an average of 40 per cent per year across EMEA.

“This new licensing agreement signals our commitment to continue to work together to grow the business within the ready-to-drink sector, and we are proud to be working alongside Arla Foods.”

Hanne Søndergaard, executive vice president at Arla Foods, said: “We are proud to take another step in our partnership with Starbucks, bringing great tasting Starbucks ready-to-drink coffee beverages to consumers across Europe and the Middle East while adding value to our farmers’ milk.

“The partnership combines Arla’s extensive experience in manufacturing dairy beverages and our widespread distribution network with Starbucks unique coffee expertise.

“Consumers in the EMEA region have welcomed the great taste and premium nature of the beverages, and we remain committed to working closely with Starbucks on developing and growing the category in the future.”

Further details on the value of the agreement were not disclosed by the firms.