FARMER co-operative Arla has shown ‘resilient’ results as consumers looked to the brands they trusted in lockdown in 2020.

Total UK revenue increased to £2.12bn in 2020, despite 50 per cent of Arla’s products being impacted by the consequences of the pandemic with global Arla Group revenue reaching €10.6 billion (£9.25bn).

With more people eating at home and Arla having the number one brand in butter and cheese in the UK, they ‘naturally’ felt the benefit as well as a boost for its added value milk brands such as Cravendale.

Arla Foods UK MD Ash Amirahmadi said their branded business increased significantly in branded butter, but it was the volume growth when lockdown drove a significant increase in retail demand, particularly for their own label milk and cheese.

He added when consumers were asked why they had bought more branded milk the ‘fresher for longer’ had been a big appeal.“People were saying they were more conscious of health, so milk is an important part of the diet,” he said.

Arla’s Board of Directors has proposed that the share of profits paid out to farmer owners, (a number farm in Cumbria), in the 13th payment, should be 1.75 eurocent per kg milk (1.58ppl).“It really reflects the performance of the year,” said Arla Foods UK Finance Director Simon Ho, adding looking back at the course of 2020 there had been a huge amount of volatility but they had managed to maintain a relatively stable price. It has culminated with the proposal to adjust the 13th payment upwards.”

Going forward, Mr Amirahmadi expected in home consumption would remain high even when restrictions ease, although not as high as in the first months.“They are not going to return to work in the same way,” he said.

He added the way people shopped had changed with ecommerce more popular, but also neighbourhood shops.“It is making sure our plans are fit for the way that shoppers are consuming.”

He said despite Arla being such a big brand not every consumer was aware of it.“The mission is to make Arla a household brand, to be in every single household fridge,”adding it was important to build association of the brand as farmer owned producing a ‘natural sustainable’ product. He emphasised a consumer facing agenda which talked more about what happens on farm.