The Swedish-Danish Company and milk producer Arla Foods has decided to broaden their distribution outside of Europe and have created two joint-ventures in West Africa, one in Senegal and one in Nigeria.
Arla Foods is an international dairy company with farmers from Denmark, Sweden, the UK, Germany, Belgium, Luxemburg and the Netherlands. The company dates back to 1881 when Swedish and Danish farmers went together to create a cooperative and jointly invest in plants to produce dairy. Today they are producing in a lot of countries and already have an active role producing in West Africa, but mostly through various distribution agreements. They are now going from a license based business model to implementing foreign direct investments, by creating
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Arla Foods is therefore planning to start with powder milk and liquid milk, which is strongly demanded in the big cities, and from there on diversify the products to yogurt, butter etc. (Arla, 2015). Arla states in a press release that “We are here to build a long-term business, and that requires strong local partners.” (Steen Hadsbjerg, head of Arla’s business region in Sub Saharan Africa, 2015).
Joint venture with Tolaram Group
Arla Foods is already producing in Nigeria today under the brand Arla Dano. Nigeria is one of the biggest markets in Africa for dairy products and Arla Foods is hoping that by succeeding in Nigeria thereby creating a platform to spread to other countries (Arla, 2015).
The joint venture is going under the name TG Arla Dairy Products and is a 50/50 partnership with the Nigerian company Tolaram Group, a well-known company that is the producer of noodle products and food oils. Tolaram Group will handle the packaging, marketing, sales and distribution of the Arla products in Nigeria, as they have a profound understanding of the Nigerian consumer-goods
Ben E. Keith Foods does not manufacture or assemble any of the products they sell. They work directly with many manufacturers and, in some cases brokers, to procure the products they offer to their customers. They are considered to be distributors and operate in a break bulk fashion. Ben E. Keith places orders for individual products in large quantities, often full truck loads, and the warehouse is stocked according to inventory thresholds set for each product based on weekly demand. When orders are received, the products requested by each customer are pulled by warehouse personnel, in the quantities requested, and combined into shipments of mixed product to be delivered to each customer.
My organization, Trader Joe’s, is not an international business. Their stores are all located in the United States; therefore, I chose Whole Foods, who is a main competitor of Trader Joe’s for this assignment.
The fruit juice and health drinks market has, over the past couple of years, seen a massive growth both in terms of sales and of the increasing demographic of customers that are choosing to purchase the products, especially at the expense of carbonated drinks. In 2006 the estimated value of the total market was £2.77 billion at retail selling price, having grown from 30.7% in 2002 (Key Note, 2007). Innocent Drinks are the markets biggest player with a market share of around 62% , selling in excess of 600,000 drinks every week (Barnett, 2005) The business is currently valued at £100 million. Not only content with being the largest distributor of smoothies the business has branched out to start the selling of "thickies" a yoghurt based drink which promises to be a hugely innovative idea and also water based fruit drinks aimed at children.
The current Production Capacity is Low to face the upcoming competition-The dairy currently produces 10000 liters of milk per day even after 30 years of presence in the market. This will certainly affect the chances to take advantage of the current growing market and to manage the consumption cycles of the industry. The question of whether to decide on the expansion of production capacity: With an incredible growth expected in the industry, the issue that the management faces now is, whether to increase the production capacity or not. This is very much needed as the expansion of production capacity will equip the company to supply and cater to the demand as well as attain economies of scale, which can be used as a competitive advantage against the new entrants. However, this calls for capital investments on the assets required for expansion.
...alented young managers in this area need to be aggressively obtained for long term growth. For a quick fix, this service should be outsourced to handle current needs. Distribution channels need to improve as well. Currently, competitor’s products are easily found at major retail channels. Nestle is in the position to gain a strong hold on the home dessert market for ice cream. Ice-fili needs to compete more aggressively in this portion of the market. In addition franchises and fast food chains should be targeted for partnerships or joint ventures so Ice-Fili’s ice cream can grow in association with a post meal dessert opposed to simply impulsive snack purchases. A key avenue to explore is an Initial Public Offering. This would generate enough funds to continue capital investment in technology desperately needed as well as promoting international market growth.
Vision: “Together we will build the world’s most extraordinary food company by nourishing people’s lives everywhere, every day”
According to Whole Foods Market Blog, expanding globally has been on the radar since 2002 when they expanded into Canada and later in 2004 into the United Kingdom. However, international expansion did not explode like Whole Foods Market hoped it would. Instead, they focused their time and money on tripling the number of stores in the United States (International Strategy, 2013).
The Dangote Group is one of the most diversified business conglomerates in Africa with a hard-earned reputation for excellent business practices and products' quality with its operational headquarters in the bustling metropolis of Lagos, Nigeria in West Africa.
Dangote is one of the largest and most successful companies in Africa. The company is owned by the famous billionaire Aliko Dangote .The business is controlled by a great management team which consists of the President Ali`ko Dangote, Vice president, Sani Dangote, Executive director, Abdu Dantata, chief operating officer, Okakunlew Alake and other group directors. It has a reputation for outstanding business operation and products ‘quality. (Dangote, 2013) .The headquarters is in the western part of Nigeria, Lagos. The company’s enterprises include salt, sugar, cement, flour, pasta, real estate, noodles, fertilizer, spaghetti, oil, gas, steel, macaroni, logistics and poly products and runs in fourteen African countries. The following are their brands:
Skim milk is obtained as a by-product of cream separation from whole milk. Due to its negligible fat content (0.02%, compared to 4.0% in whole milk) and hence unpalatability, skim milk was previously considered unsuitable for human consumption and hence used as an animal feed, the advent of spray drying led to its wide utilization as skim milk powder; the process allows for shelf life extension and economical transportation due to the reduction in weight and volume. Skim milk powder has been incorporated into many processed food products such as soups, sauces, bakery and confectionery products, and recombined evaporated milk. A wide range of milk protein products can also be produced from skim milk by varying the processing conditio...
...leader in its selected markets through creativity and superior customer service. The Group is continuing to focus many efforts to expand its presence in global food and ingredients markets and its consumer foods businesses in Europe and abroad.
However, this company consists a lot of brand for their all products. For example, Cocopie, Golbean, Mum’s Bake, Lot100, Koko Jelly,
Fonterra will always prioritizes New Zealand milk so they need to maintain the active and dynamic business going. To be more efficient, there have been projects mobilizing out to make improvements to the company’s assets in New Land i.e. supply chain and manufacturing plants.
Besides, Dutch Lady was recognized as the first milk producer to use Ultra High Temperature (UHT) milk processing method in Malaysia which allowed Dutch Lady to use the name UHT milk on its products. Dutch Lady Malaysia is also a large exporter of infant formula, growing up milk products, condensed milk as well as fru...