French consumers can look forward to enjoying two new brands when shopping for dairy with Arla® Skyr and Arla® Protein launched in French retail as a result of a partnership between Arla Foods and Solinest. The move into one of Europe’s biggest dairy markets comes on the back of increased consumer interest for 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 in the country. 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.
Commenting on the partnership, Bertrand Jacoberger, Solinest’s CEO, says:
“We are proud to have been selected as a partner by Arla Foods and to build new success stories in France. 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 per cent of retail.
Protein category on the rise
The dairy protein category is growing fast as consumers are looking for a nutritional boost in line with an active lifestyle. Across markets and sub-categories, the category is in exceptionally high growth increasing by 15-20 per cent per year. And it’s the same story in France where the demand for dairy products supporting functional health is growing by 20 per cent 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 to grow”, says Peter Giørtz-Carlsen.
Arla® Protein has seen a growth rate of more than 50 per cent compared to last year and total revenue is expected to be more than EUR 100 million for 2023.
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 EUR 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 for 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 – especially now that we can work together with Solinest and benefit from their experience and strong position in the market”, says Peter Giørtz-Carlsen.
