Arla Foods invests EUR 50m in Bahrain site to grow market leading position in cheese glass jars

Arla Foods is already the market leader in the important cheese glass jar category across the MENA (Middle East and North Africa) region with the popular spreadable cheese sold under the Puck® brand. But in order to further improve this position and keep up with growing demand - especially in peak seasons – the dairy cooperative is now placing a major investment in its Bahrain production site. 

The glass jar with the deep blue Puck® logo on the front is an iconic staple in countless homes across the MENA region where the product is a clear market leader in the category. Demand is especially high during Ramadan and back-to-school seasons and during these peaks, production at the site in Bahrain is almost at capacity. And in just a few years, the two occasions will take place at the same time due to the date change of Ramadan. 

In order to safeguard the leading position and future-proof for expected growth in demand, the farmer-owned cooperative is investing EUR 50.9m to increase production capacity of the spreadable cheese jars. 

“We have one of the most well-known and loved dairy products in the region and we are proud to be part of families’ cooking whether it’s during the everyday rush or for special occasions. We know that demand peaks at certain times during the year and in order to accommodate that and maintain the favourability we have with customers and consumers, we are now investing significantly in expanding our production”, says Lillie Li Valeur, Executive Vice President of International at Arla Foods.  

The investment will add approx. 30% to the current production capacity.  

Building on a strong foundation

Since Arla Foods acquired the production site in Bahrain in 2019, the dairy cooperative has invested in updating and expanding the site making it a cornerstone in the important MENA region which is the biggest commercial region in Arla Foods’ International business segment.  

“We have a great production setup already in place and we have a popular product expected to grow in demand. Combined with our ambitious company strategy and solid financial situation, that makes for a logical investment to make and I am very pleased to announce it today. It will benefit consumers, strengthen the great collaboration we have with customers in the region and of course create value for our farmer owners”, says Lillie Li Valeur and continues:  

“The MENA region is important to us not just on a commercial level. As a food company, we want to inspire great food habits and help consumers make smart choices when it comes to nutrition and cooking. We have that connection with consumers in the MENA region but we know we need to work hard to keep their trust and this investment is a natural part of that commitment.” 

The EUR 50.9m includes both production facilities and warehouse and will result in the creation of approx. 20 new jobs. And by utilising the roof of added building structures for solar panels as well as changing the cooling setup, the investment will also reduce the carbon emissions per ton of product produced.

Construction is set to begin end of 2025.  

Arla Foods is an international dairy company owned by more than 7,600 farmers from Denmark, Sweden, the UK, Germany, Belgium, Luxembourg and the Netherlands. Arla Foods is one of the leading players in the international dairy arena with well-known brands like Arla®, Lurpak®, Puck® and Castello®. Arla Foods is focused on providing good dairy nourishment from sustainable farming and operations and is also the world’s largest manufacturer of organic dairy products.