Arla Foods, the company behind Lurpak and Cravendale, plans to cut up to €110 million (£91.1 million) in 2025 as it faces rising costs and slowing branded revenue growth. The dairy cooperative, which has UK headquarters in Leeds, forecasts 2024 revenue between €14.5 billion and €15.3 billion, up from €13.8 billion in 2023.
Despite an £89 million increase in branded UK revenue, overall UK revenue fell 2.9% year-on-year due to lower milk prices, declining volumes, and changes in private label contracts. The company also cited consumer uncertainty as a factor impacting growth.
Arla previously faced backlash in November 2024 after announcing plans to test Bovaer, a feed additive aimed at reducing methane emissions. The company attributed the boycott to misinformation about the product’s safety.
