Bangladesh shines as cornerstone in Arla Foods’ growth strategy in region

European dairy cooperative Arla Foods sees great potential in Bangladesh and has big plans for what is already its biggest market in Southeast Asia. Led by the DANO brand, which recently won “Most Loved Milk Powder” at the Best Brand Award in Bangladesh making it a 7th straight win.

European dairy cooperative Arla Foods can once again claim the title of having the most popular milk powder brand in Bangladesh after an impressive 7th win. The Arla DANO brand took home the prize for “Most Loved Full Cream Milk Powder” at the 13th edition of the Best Brand Award.

And this latest accolade fittingly summarises the growth journey Arla Foods is on in Bangladesh. Where a yearly growth of around 10% has been the norm in recent years, 2021 exceeded expectations and delivered a growth of 25%. Driven primarily by the very strong DANO brand with focus on early-life and family nutrition.

“Southeast Asia was our biggest region measured in growth last year. And even though we saw growth in all markets in the region, Bangladesh was the star of the show,” says executive vice president and head of Arla Foods International Simon Stevens and adds, “And not only have we seen impressive growth numbers coming out of Bangladesh, we foresee this picture continuing in the coming years, which is why we given it a prominent position in our new five-year strategy, Future26, where building growth platforms, such as Bangladesh, is a key building block.”

One in three households now consume DANO

DANO is the basis of Arla Foods’ portfolio in Bangladesh and by far the dairy cooperative’s most well-known brand in the country. The brand was the primary growth driver in 2021 and even with extensive lockdowns and inflationary pressure the team in Bangladesh managed to increase sales and gain market shares, which is why DANO is now consumed in one in every three households in the country with a population of 165 million.

“DANO has been a household name in Bangladesh since 1961. During these more than 60 years, the brand has been a part of stories, memories and journeys of millions of families. This latest accolade exemplifies Arla's commitment towards serving the community with quality and nutritious dairy products. I cannot but thank our consumers enough for the constant love and trust they have shown over these years. We are truly humbled and inspired,” says Peter Hallberg, managing director of Arla Foods Bangladesh.

While DANO remains at the core of Arla Foods’ plans for Bangladesh, the dairy cooperative is also looking to expand into new categories to secure long-term growth.

“There continues to be great growth opportunities for us within family nutrition but we are also establishing local production at a UHT factory, investing in that market as well. It should be seen as a natural extension of the fact that today we have the leading dairy brand with DANO,” says Stevens.

Arla Foods has sold products in Bangladesh since 1961 with Arla Foods Bangladesh operating since 2014. The portfolio currently includes DANO Powder, DANO Growth Shakti and DANO Daily Pushti, providing dairy nourishment and nutrition to one in every three Bangladeshi homes every year.