Dairies closer to nature
For Arla Foods, one of the leading dairies in the world, the EXPO 2010 theme ‘Better City, Better Life’ fits perfectly with the company’s strategy of making natural products available to everybody.
Creating a better life for people living in cities is a main theme of next year’s EXPO in Shanghai. The same theme is of great importance to the Danish dairy company Arla Foods, which is one of the three companies under the auspices of the Agricultural & Food Council, a national partner in the Danish EXPO-project. Arla is also one of the largest dairies in the world, with exports to more than 100 countries, explains Marianne Kristensen, project manager in charge of for Arla’s contribution to EXPO 2010 in Shanghai.
What are Arla's motives for joining the Danish EXPO 2010 project?
- One of Arla’s major export markets is China, and as we also work closely with a business partner in China, it was only natural for us to participate in EXPO 2010. We hope that our participation will increase Chinese awareness of Arla, our products and our Chinese partner since 2005, Mengniu Dairy Company.
The theme of EXPO is’ Better City, Better Life’. What is Arla's connection with this theme?
- The theme of next year’s EXPO fits amazingly well with Arla’s new global programme “Closer to Nature™”. It is about making natural products available to everyone. We want our products to be purely natural and free of any unnatural additives. Most of our products already belong in this category, and we are working hard to improve the ones that do not. Furthermore, we do our best to minimise the effect that our production has on the environment. We make extensive reuse of water, for instance, for cleaning our machines. We work hard to develop new packaging to minimise the amount of material used for packaging. When it comes to transporting our products, we are testing the use of bio-fuel and training our drivers in environmentally friendly driving.
How does ‘Closer to Nature™’ fit with ‘Better City, Better Life’?
- We believe that natural products improve the quality of life for people who live in cities. Before we launched our ‘Closer to Nature™’ programme, we conducted surveys in seven different countries. We asked the consumers and reviewed various trends, and our conclusion was that the consumers really want natural food products. Some consumers also want local food products that have not gone through hours or days of transportation. In some countries it is also important for the consumers that the milk they drink comes from an environment as close to home as possible.
Did you also pick up this trend in China?
- We have not yet conducted such surveys in China. I think they are very upfront on many things, but in this case, perhaps, they do not have the same awareness as in the West where we have seen how heavy production can harm nature. However, I definitely think it will attract the attention of the Chinese consumer. We can already now see how the Chinese have started caring more for the environment. As an example, I have noticed that more and more have started to use recycled materials in a variety of different products, such as baskets made from recycled plastic bottles. .
What is Arla’s current situation on the Chinese market?
- We have been working with our Chinese partner, Mengniu Dairy Company, since 2005 and our cooperation is quite successful. China is Arla’s largest market for the sale of milk powder. Despite the financial crisis, sales have increased by 10-15 per cent on last year’s sales. Therefore, it is possible to trace a certain amount of optimism on the market. Our other brands Lurpak (butter) and Castello (cheese) are well-known products in Shanghai, and here sales remain at a stable level.
What are your expectations of the Chinese market within the next few years?
- China is a very large market with great potential, and we expect continued growth in the future.
What is your personal opinion about Denmark’s EXPO 2010 pavilion and exhibition?
- I think the Danish pavilion is a fantastic and beautiful construction, and the exhibition with pictures from Denmark is going to be beautiful in an artistic way. In addition, the whole idea of using city bikes in the exhibition is very clever when you consider the protection of the environment and people’s health.
How do you think the Danish EXPO pavilion and exhibition will be received in China?
- That is hard to predict, but of course I hope that both the Chinese and the international visitors will find the pavilion, the exhibition and Arla’s contribution to EXPO 2010 very exciting.
