Swedish-Danish cooperative Arla Foods plans to build a new innovation lab in Beijing, China, to develop cheeses and other dairy products to suit the Chinese market.
The new innovation lab will be established in the China-Denmark Milk Technology Cooperation Centre in Beijing with an investment DKK10m ($1.8m), where Arla is working together with China's Mengniu Dairy Group to increase the strength of Chinese diary industry in terms of milk quality, food safety and quality control.
Currently, Arla's business in China is based on the export of dairy products from Europe, comprising milk powder, UHT-milk, and cheese. The new innovation lab is expected to help the company launch brand new products, which are exclusively developed and produced for Chinese consumers.
Arla Foods senior vice president Frede Juulsen said the company's first focus will be to create the right kind of cheese products that will make more Chinese consumers love cheese in new and different ways.
"But it must be done in a way that respects and contributes to the food trends developing in China, and therefore we are placing this innovation lab in Beijing," Juulsen added.
The lab will employ cheesemakers and innovation specialists with Danish or Chinese background. They will partner with customers and consumer groups as well as with Arla's strategic business partner in China, Mengniu.
