Arla Foods expands Bahrain Facility for sustainable cheese packaging

DENMARK – Arla Foods, a leading dairy cooperative, has announced a US$55.6 million investment to expand its Bahrain facility, aiming to increase production of spreadable cheese in glass jars for the Middle East and North Africa (MENA) market. 

According to the company, the expansion will boost output by approximately 30% to meet growing demand, particularly during peak seasons like Ramadan and back-to-school periods, which are expected to align in coming years, driving higher sales.

The Bahrain facility, acquired by Arla Foods in 2019, is a key hub for its international operations, producing spreadable cheese that dominates the glass jar category in the MENA region. 

In a statement, Executive Vice President for International, Lillie Li Valeur, emphasized the strategic importance of the investment: 

“This expansion will not only support our growth in the MENA market but also strengthen partnerships with regional customers while creating around 20 new jobs.”

The project includes modern upgrades to enhance sustainability. New warehouse facilities, rooftop solar panels, and an advanced cooling system are expected to reduce carbon emissions per ton of output, aligning with global trends toward eco-friendly packaging. 

Glass jars, a hallmark of Arla’s cheese products, are increasingly favored for their recyclability and durability compared to plastic alternatives. Construction is slated to begin by the end of 2025.

This move comes amid growing demand for sustainable packaging in the dairy industry.

 A recent industry report highlighted that 68% of consumers in the MENA region prefer eco-conscious packaging, driving companies to adopt greener practices. 

Arla’s investment positions it to meet this demand while maintaining its market leadership.

In related news, Nestlé recenlty launched a pilot program in Saudi Arabia to introduce recyclable glass jars for its dairy products, according to a statement from the company last month. 

This initiative, aimed at reducing plastic waste, reflects a broader industry shift toward sustainable materials in the region, complementing Arla’s efforts. 

Both companies are responding to consumer preferences and regulatory pressures to minimize environmental impact.

“By integrating solar energy and efficient cooling systems, we’re ensuring our operations are both competitive and environmentally responsible,” Valeur added. 

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