Arla Foods invests in Bahrain cheese production expansion

Arla Foods is investing €50.9m ($59.4m) to expand output of spreadable cheese in glass jars at its manufacturing facility in Bahrain.

In a statement, the Danish cooperative said its spreadable cheese sold under the Puck brand is a “staple in countless homes” across the Middle East and North Africa (MENA) region.

Demand for its Puck cheese is “especially high” during Ramadan and the back-to-school periods, with production at its Bahrain facility “almost at capacity” during these peak times, Arla Foods added.

The dairy group expects the investment to boost the Bahrain site’s production capacity by approximately 30%, future-proofing its brand for the anticipated growth in demand as Ramadan and back-to-school seasons will coincide in two years.

Lillie Li Valeur, executive vice president of international at Arla Foods, said the group has “one of the most well-known and loved dairy products in the region”.

Valeur adds that to “accommodate” the increased demand and “maintain the favourability”, “we are now investing significantly in expanding our production”.

Arla Foods, which acquired the Bahrain site in 2019, also said MENA is its “biggest commercial region” in the international business segment.

Construction for the expansion is scheduled to begin at the end of 2025.

“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,” Valeur said.

“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.”

Elsewhere, Arla Foods is expanding its cream cheese production at the Holstebro Dairy site in Denmark with a €59.4m investment and committed €34.5m to start skyr production at its Swedish dairy site in Jönköping in Småland province.