Denmark: Arla invests $70 million to expand cream cheese production

Arla Foods, the Denmark-based dairy cooperative, has announced an investment of €59.4 million ($70million) to expand cream cheese production at its dairy facility in Holstebro, Denmark.

Arla Foods manufactures around 155,000 tonnes of butter and spreads and 119,000 tonnes of cream cheese per year. An earlier expansion at its Holstebro processing facilities, completed in early 2025, added an additional 27,000 tonnes of cream cheese capacity.

This new investment will add two new filling lines for retail and food service, increasing annual cream cheese capacity by 16,000 tonnes.

Commenting on the move, Arla Foods executive vice president & Chief Supply Chain Officer David Boulanger said: “We have very strong positions in many markets in the cream cheese category, thanks to naturality and the uniqueness of our cream cheese products. As a result, we experience significant demand acceleration in this category in the various markets we operate. With this investment in Holstebro, we will be in a position to meet consumers’ appetite for our products and grow further the cream cheese category”.

Holstebro Dairy site director Mette Møller added: “We are looking forward to continue to deliver our great Arla quality, which among retailers is perceived as the benchmark”.

The expansion is expected to be fully operational by January 2028.

Source: Arla