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Denmark’s Arla Food will raise output from its Saudi Arabian plants by 10 percent to manufacture more Starbucks ready-to-drink beverages and Puck products.
Starbucks signed a 21-year agreement in 2018 with Arla Foods, the largest dairy producer in Scandinavia, giving the latter license to manufacture, distribute and market Starbucks premium milk-based ready-to-drink coffee beverages for the European, Middle Eastern, and African markets.
The Danish producer, known for its Lurpak butter, also started new production lines for its brands in September.
Arla invested $17 million in the new Saudi production lines to manufacture more products for other countries in the region.
The new production facilities are adding more Saudi jobs, including a line fully operated by females.
The size of the Saudi dairy market is expected to increase from $5.72 billion in 2020 to $7.94 billion by end of 2026, according to TechSci Research firm.
