Arla Foods plans to spend more than €63 million, or about $71 million, to expand capacity at its skyr and cottage cheese production sites in Germany and Sweden, aiming to capture booming consumer demand for protein-rich dairy items.
Chief Executive Officer Peder Tuborgh said the investment targets a 15% to 20% increase in output for both products. Skyr sales volumes grew by a third over the past three years in core European markets, while cottage cheese sales rose by a quarter, partly driven by social media influencers promoting its versatility in recipes.
Arla will invest €35 million in skyr production in Upahl, Germany, and more than €28 million on cottage cheese production in Falkenberg, Sweden. The Denmark dairy giant recently merged with Germany's DMK to form a mega European dairy cooperative, reporting €7.6 billion in revenue and €213 million in net profit in the first half of 2026.
Like other industry players, Arla is capitalizing on the global protein trend. Since 2023, it has invested around €51 million to boost skyr capacity across its German, Swedish, and Danish facilities, and acquired Volac's Whey Nutrition business to strengthen its whey protein ingredients division.
Source: Wall Street Journal US Business · Summarized by HeadlinesBriefing