Starbucks picks Arla for European drinks deal

Scandinavian dairy producer Arla Foods has signed a contract with Starbucks to produce and sell ready-to-drink beverages under the US coffee giant’s brand throughout Europe.

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“We are proud to join with Arla Foods to bring our premium RTD beverages to consumers in Europe,” Starbucks’ global consumer products vice president Rich DePencier said in a statement.

Under the agreement, Arla -- one of Europe’s largest dairy producers jointly owned by Danish and Swedísh farmers -- will manufacture, distribute and market Starbucks' premium milk-based ready-to-drink (RTD) coffee beverages throughout the European market.

The products, which are already sold widely throughout North America and Asia, will be sold at in supermarkets and convenience stores as well as Starbucks coffee shops.

Arla Foods’ subsidiary Cocio Chokolademælk A/S will manage most of the production.

“We are delighted to be entering into this partnership, which in many ways is a breakthrough for Cocio on the European market,” Cocio CEO Peter Giørtz-Carlsen said in a statement.

“Starbucks is one of the world’s largest coffee brands, and we will be working in a growing RTD category with premium, value-added products.”

Production of the drinks is expected to commence in the next few months at a Cocio facility located in Denmark.