The US chain Starbucks is entering the European ready-to-drink (RTD) coffee market, with Danish dairy giant Arla Foods as its strategic partner.
US coffee and coffeehouse chain Starbucks has launched a major marketing offensive to sell its iced coffee products on the lucrative European ready-to-drink (RTD) coffee market, with Danish dairy giant Arla Foods as its strategic partner, reports national daily newspaper Berlingske Tidende.
Arla Foods will manufacture, distribute and market Starbucks milk-based RTD coffee beverages under license for the European market, through its subsidiary Cocio Chokolademælk.
The products will be distributed to supermarkets, convenience stores as well as Starbucks’ own coffee shops across Europe.
In a news release on Arla Foods' website, Cocio Chokolademælk CEO Peter Giørtz-Carlsen says: "We are delighted to be entering into this partnership, which in many ways is a breakthrough for Cocio on the European market. Starbucks is one of the world’s largest coffee brands, and we will be working in a growing RTD category with premium, value-added products."
Arla Foods' well-developed distribution network for RTD products on key markets in Europe is clearly of value to Starbucks as it aims to repeat its successes in North America and Asia, in the European RTD coffee market which according to Arla's news release is worth a tasty EUR 368m (USD 519m).
Cocio is expected to start licensed production within the next few months at its production site in Esbjerg. The company has recently increased its manufacturing capacity, so it is ready to take on additional production without further investment.
Cecilia Helland