Arla Foods has announced it will close its Gefleortens dairy business in Sweden due to the financial challenges that the unit faces.
Gefleortens merged with Arla in 2017. The business has 45 permanent employees.
Arla drew attention to increased competition in the dairy market and demands for new types of food.
It added that the market requires specialised dairy products, such as lactose-free products, which Gefleortens cannot offer.
According to Patrik Hansson, Arla’s Sweden manager, Gefleortens management has carried out an efficiency programme to reduce the number of products and employees.
“But unfortunately, we have not been able to increase sales from Gefleortens,” he said.
The Gefleortens brand will remain, although the milk will be packaged in another dairy together with milk from other farms.
Last year, Arla Foods started a transformation programme that aims to save more than €400 million by the end of 2020 through improved efficiency.
Called Calcium, the initiative is creating efficiencies in order to improve returns to Arla farmer-owners and to reinvest into business areas that fuel growth.
By Jules Scully
Upon FoodBev Media’s return from Vitafoods 2022 – which took place from 10-12 May in Geneva, Switzerland – the team reflects on the event’s aim to bring together international nutraceutical suppliers and experts from across the globe.
Following a strategic review last year, Mondelēz International is planning to sell its developed chewing gum business, which includes brands Trident and Dentyne. This is in addition to offloading its Halls cough drop brand, as the food giant focuses on generating 90% of revenue in its chocolates and biscuits businesses, including baked snacks.
Givaudan has unveiled NaNino+, a patent-pending combination of plant-based ingredients and natural flavorings that can replace nitrite in processed meat. Designed with natural ingredients, it provides a lasting multi-sensorial food experience with a good taste, color and freshness.