Arla Foods UK
Arla Foods UK is a major United Kingdom dairy company supplying fresh milk, cream, butter, cheese and other chilled products through the Arla group and its portfolio of household brands.
Last updated August 31, 2026
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Overview
Arla Foods UK is the United Kingdom operating company of Arla Foods, a farmer-owned dairy cooperative headquartered in Denmark. Based in Leeds, the business is one of the country's largest suppliers of fresh milk and cream and operates a substantial network of dairies, processing facilities and distribution activities. Its business combines milk procurement from farmer owners with manufacturing, branded food marketing and supply to supermarkets, food-service customers and retailers' own-label ranges. The UK company was formed in 1980 through the merger of Express Dairies with the British subsidiary of the Swedish-Danish cooperative that later became Arla Foods. Arla Foods initially held 51 percent of the merged company and acquired the remaining shares in April 2007, making the UK operation fully controlled by the cooperative parent. This structure means that the wider Arla group is owned by farmer members rather than public shareholders, while the UK subsidiary operates as a commercial dairy business in the British market. Arla's UK portfolio includes fresh milk, cream, butter, cheese, yoghurt, fromage frais, milk-based drinks and fruit juice. The company supplies supermarket own-label milk, including farmer-branded ranges sold through major retailers, and owns or markets prominent brands such as Cravendale, Lactofree, Lurpak, Anchor, Castello, Skyr and Rosenborg. Cravendale is positioned around filtered fresh milk, while Lactofree addresses consumers seeking lactose-free dairy products. Anchor and Lurpak are especially important in butter, although their sourcing and market positioning differ: Arla moved Anchor toward British dairy in 2017, while Lurpak has continued to use dairy sourced from Denmark. Arla describes itself as the UK's largest supplier of fresh milk and cream, producing more than 2.2 billion litres of milk annually according to the cited reference material. Its processing footprint has included sites at Palmers Green in London, Stourton in Leeds, Settle in North Yorkshire, Malpas in Cheshire and Lockerbie in Scotland. The Aylesbury facility, opened in 2014, is described as the world's largest milk processing plant and is a central part of the company's UK milk network. Arla also obtained the Westbury Dairies plant in Wiltshire in 2016, where Anchor butter production takes place. Innovation has been an important part of the UK strategy. Lactofree launched in January 2006 and subsequently expanded beyond milk into products such as cheese and yoghurt. Arla later licensed its lactose-removal patent to other producers. The company also sells premium and specialist products, including filtered milk, cultured products, skyr-style yoghurt and blue cheeses such as Rosenborg and Danish Blue. The business has faced scrutiny over farmer milk prices, environmental impacts and animal-feed policy. In 2015, reporting compared payments to Arla farmers with prices available to producers supplying supermarkets directly. Animal Rebellion blockaded the Aylesbury facility in 2021 and again in 2022, arguing that dairy production imposes a large climate and ecological burden. In 2024, consumer boycott activity followed Arla Foods' announcement of a trial involving the methane-reducing feed additive Bovaer for some cattle. Arla said the backlash was driven partly by misinformation about the additive's safety and alleged connections to Bill Gates. These controversies illustrate the tension between the company's cooperative dairy model, environmental commitments, agricultural economics and changing consumer expectations.
History
Arla Foods UK's roots in the British dairy industry date to 1980, when Express Dairies merged with the British subsidiary of a Swedish-Danish dairy cooperative. The parent cooperative subsequently developed into Arla Foods amba, a farmer-owned international dairy group. At the time of the merger, Arla's predecessor held 51 percent of the British company. It acquired the remaining shares in April 2007, integrating the UK business fully into the cooperative's group structure. The UK operation expanded as both a processor and brand owner. It supplied large retailers with fresh milk, including supermarket own-label ranges, while building a portfolio spanning milk, cream, butter, cheese, yoghurt and related chilled foods. Its principal consumer brands in Britain came to include Cravendale, Lactofree, Lurpak, Anchor and Castello. The company also sells Rosenborg and Danish Blue cheeses and has developed yoghurt and skyr offerings. Lactofree became one of the company's most important UK innovations. Launched in January 2006, the range removed lactose from milk and later extended into cheese and yoghurt. Arla began licensing the relevant lactose-removal patent to other producers in September 2010. Reference material states that the brand recorded 37 percent year-on-year growth up to that point and held 70.8 percent of the UK's lactose-free milk market in July 2021. Arla's production network has changed over time. The company ended production at its Manchester dairy in January 2009. It operated the Crediton, Devon, dairy acquired through the 2012 Milk Link merger, but that operation was sold through a management buyout in April 2013 and became Crediton Dairy Limited. Arla opened its Aylesbury milk-processing facility on 24 May 2014; the site has been described as the world's largest milk-processing plant. In January 2016, Arla obtained the Westbury Dairies plant in Wiltshire, which became a location for Anchor butter production. Other listed UK sites include Palmers Green, Stourton, Settle, Malpas and Lockerbie. Sourcing has also been part of the company's brand strategy. In 2017, Arla decided to switch Anchor butter from imported New Zealand dairy to British dairy. Lurpak continued to use imported Danish dairy, reflecting the wider cooperative's farm base and supply structure. In the fresh-milk category, Cravendale used filtration before pasteurisation to remove bacteria, while Lactofree targeted consumers who are lactose intolerant or seek lactose-free dairy. The company has attracted criticism and protest over the economics and environmental consequences of dairy production. In 2015, BBC reporting compared Arla's farmer payments with prices paid by supermarkets sourcing milk directly. In August 2021 and September 2022, Animal Rebellion activists blockaded the Aylesbury facility, arguing that dairy production creates significant climate and ecological impacts. In late 2024, Arla Foods' announcement of a Bovaer trial in cattle feed triggered boycott calls from some consumers. The company said the reaction was connected to misinformation concerning Bovaer's safety and inaccurate claims linking the measure to Bill Gates. The Soil Association stated that 3-NOP, the active ingredient in Bovaer, would not be classified as an organic ingredient. These episodes place Arla Foods UK within wider debates about farm-gate pricing, animal agriculture, methane reduction, organic standards and the future of dairy.
- 2017
Anchor sourcing shifts to British dairy
[1]Arla decided to use British dairy rather than imported New Zealand dairy for Anchor butter.
- 2016
Westbury Dairies acquired
[1]Arla obtained the Westbury Dairies plant in Wiltshire for operations including Anchor butter production.
- 2014
Aylesbury processing plant opens
[1]Arla opened its large Aylesbury milk-processing facility on 24 May.
- 2012
Milk Link merger
[1]Arla merged with Milk Link and briefly operated the Crediton dairy in Devon.
- 2009
Manchester dairy production ends
[1]Arla ceased production at its Manchester dairy.
- 2007
Arla acquires remaining UK shares
[1]Arla Foods acquired the remaining shares in the UK company, having initially held a 51 percent stake.
- 2006
Lactofree launched
[1]Arla launched Lactofree in the United Kingdom as a lactose-free milk brand.
- 1980
Formation through merger
[1]Express Dairies merged with the British subsidiary of the Swedish-Danish dairy cooperative that became Arla Foods.
Products and positioning
A large, farmer-owned dairy supplier combining high-volume fresh-milk manufacturing with established British and international dairy brands, specialist lactose-free products and supermarket own-label supply.
Filtered fresh milk
Cravendale
Cravendale is Arla's premium filtered-milk brand in the United Kingdom. The milk undergoes filtration intended to remove bacteria before pasteurisation, giving the range a differentiated processing and quality proposition within the fresh-milk market.
Lactose-free dairy · 2006
Lactofree
Lactofree began as a lactose-free milk range launched in 2006 and later expanded into products including cheese and yoghurt. It is aimed primarily at consumers who are lactose intolerant or prefer lactose-free dairy, and became a leading brand in the UK's lactose-free milk segment.
Butter and spreads
Lurpak
Lurpak is a major butter brand marketed by Arla in the UK. Unlike Anchor's British sourcing shift, Lurpak has continued to use dairy imported from Denmark, where a substantial part of Arla's cooperative farming base is located.
Butter and dairy
Anchor
Anchor is a longstanding butter brand in Arla's UK portfolio. In 2017, Arla announced a move from imported New Zealand dairy to British dairy for Anchor, linking the brand more directly to domestic milk supply.
Cheese
Castello
Castello is part of Arla's branded cheese portfolio in the United Kingdom. It sits alongside blue-cheese products sold under the Rosenborg and Danish Blue names and gives the company coverage across specialty and everyday cheese categories.
Yoghurt
Skyr
Arla's Skyr range extends the company's UK yoghurt business into the high-protein, Icelandic-style cultured dairy segment. It is part of a broader portfolio that also includes conventional yoghurts and fromage frais.
Controversies
2024
Bovaer feed-trial backlash
Some consumers called for a boycott after Arla Foods announced a trial adding Bovaer, a methane-reducing cattle-feed additive, to the feed of some cows. Arla said the response was driven in part by misinformation about safety and misleading claims concerning links to Bill Gates. The Soil Association said the active ingredient 3-NOP would not qualify as an organic ingredient.
Marketing campaigns
- 2022Second Animal Rebellion Aylesbury blockade
United Kingdom
A second blockade at Aylesbury continued the activist campaign against the climate and ecological burden attributed to dairy production.
Outcome. No further outcome is specified in the reference material.
- 2021Animal Rebellion Aylesbury blockade
United Kingdom
Animal Rebellion activists blockaded Arla's Aylesbury facility to draw attention to dairy farming's environmental and ecological impacts and to promote plant-based alternatives.
Outcome. The facility was targeted again in 2022; no operational resolution is specified in the reference material.
Brand decisions
2024
Bovaer methane-reduction feed trial announcedStrategyBackground
Arla Foods sought to reduce methane emissions associated with cattle production.
Action taken
The group announced that Bovaer would be added to the feed of some cows in a trial.
Aftermath
The announcement led to boycott calls and public controversy over the additive's safety, organic status and online misinformation.
2017
Anchor butter sourcing changed to British dairyStrategyBackground
Arla reviewed the sourcing proposition for Anchor butter in the UK.
Action taken
The company moved Anchor from imported New Zealand dairy to British dairy.
Aftermath
Anchor became more closely associated with domestic British dairy supply, while Lurpak continued to use Danish dairy.
2013
Crediton dairy sold after Milk Link integrationM&ABackground
Arla briefly operated the Crediton, Devon, dairy following its merger with Milk Link in 2012.
Action taken
The Crediton operation was sold through a management buyout in April 2013 and became Crediton Dairy Limited.
Aftermath
The site continued under independent ownership rather than remaining within Arla Foods UK's operating network.
Recent events
- 2022
Animal Rebellion returns to the Aylesbury site[1]
Campaign · Other
The Aylesbury dairy facility was blockaded again in a continuation of activism focused on dairy farming's climate and ecological footprint.
- 2021
Animal Rebellion blockades Arla's Aylesbury dairy facility[1]
Campaign · Other
People acting for Animal Rebellion blockaded the Aylesbury facility to protest the environmental and ecological impact of dairy production compared with plant-based alternatives.
- 2015
Arla farmers reported to receive lower milk prices than some direct supermarket suppliers[1]
Pricing · Other
BBC reporting highlighted differences between payments made by Arla to farmers and prices available to producers supplying supermarkets directly, bringing scrutiny to dairy pricing and farmer economics.
Sources3 sources
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