NEWS: Swedish dairy, Arla, searches for shops to enter UK market

Arla, Sweden’s largest dairy group, is sounding out agencies about advertising to support its entry into the UK market.

Arla, Sweden’s largest dairy group, is sounding out agencies about

advertising to support its entry into the UK market.



A small group of British managers who set up the company’s British

headquarters in Knutsford, Cheshire, last July, are currently assessing

credentials information provided by a number of UK shops.



Arla launched quietly into British supermarkets last summer with a range

of frozen gateaux and cheeses in Safeway, Tesco and Sainsbury’s.



But Vicky Titmuss, Arla’s UK marketing manager, stressed that the agency

search was at a very early stage. Its main purpose was to give Arla’s

Swedish bosses an insight into the UK advertising scene and to check out

suitable agencies with no conflicting business, she said.



At the beginning of this year Arla announced a joint venture with MD

Foods, the manufacturer of Lurpak butter and Gaio yoghurt. The new

company, Scandairy, is to be responsible for the development and

marketing of branded products in Europe, competing directly with large

established players such as Nestle and Danone.



Until now, neither company has been large enough to compete at a

European level.



However, Titmuss said the UK initiative was purely on behalf of Arla and

had nothing to do with the MD joint venture.



MD’s Lurpak and Gaio business in the UK, worth pounds 3.3 million, is

currently split between BMP DDB Needham, which produces creative work,

and TMD Carat, which handles the media planning and buying.



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