SOAS Research Online

Abstract

The Danish company Arla Foods is a global dairy group with production facilities in 11 countries, sales offices in 24 countries, and sells its products in over 100 countries. Arla started its operation in the Middle East some 40 years ago. Soon after its entry into the Middle East market, it became the market leader mainly because of the absence of any credible local competitors at a time when the Middle East was still in its early economic development. Over the years, Arla has maintained its position as market leader in the Middle East in cheese, butter and cream production. In the mid-1980s, Arla started to operate the Danya Foods dairy in Saudi Arabia’s capital, Riyadh. The production facilities in Riyadh are seen to enhance and strengthen its position as market leader in the region. It employs more than 1,200 people across the Middle East, most working in Saudi Arabia. Since its early days in the Middle East until the end of 2005, Arla has enjoyed excellent brand recognition as indicated by the Executive Director of the Overseas Division, Finn Hansen (2005): “consumer awareness of our brands is on a par with, say, Coca Cola.”