Denmark-based dairy cooperative Arla Foods is set to invest €50.9m in its Bahrain production site to expand the capacity of its Puck brand cheese glass jars.
The move aims to strengthen Arla Foods’ position in the Middle East and North Africa (MENA) region, where demand for cheese surges during Ramadan and back-to-school seasons.
The investment is expected to increase the company’s production capacity by around 30%, addressing near-capacity operations during peak periods in the region.
With Ramadan and back-to-school seasons soon to coincide, the expansion is crucial for meeting future demand, said Arla Foods.
Arla Foods International executive vice president Lillie Li Valeur said: “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.
According to Arla Foods, its Puck-branded cheese jars are a staple in many MENA households, making the investment crucial for maintaining market leadership.
The €50.9m investment will cover both production facilities and warehouse expansions at the Bahrain site, creating around 20 new jobs.
The construction, incorporating solar panels to reduce carbon emissions per ton of product, is scheduled to commence by the end of this year.
Arla Foods said the investment aligns with its commitment to sustainable operations, using solar energy and improved cooling systems to boost environmental efficiency.
Valeur said: “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.”
Arla Foods is an international dairy company owned by over 7,600 farmers from Belgium, Denmark, Germany, Luxembourg, the Netherlands, Sweden, and the UK.
The company offers organic dairy production and sustainable farming practices with brands like Arla, Lurpak, Puck, and Castello.
