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
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.