Arla Foods Announces £50.9 Million Investment to Expand Bahrain Production Site

Manama: Arla Foods, a leader in the spreadable cheese in glass jar category in the Middle East and North Africa (MENA) region, is well known for its popular products marketed under the Puck brand. To reinforce this leading position and meet growing demand, particularly during peak seasons, the farmer-owned cooperative has announced a significant investment in its production site in Bahrain. The announcement was made during the Gateway Gulf Forum 2025, Bahrain's leading investment forum hosted by the Bahrain Economic Development Board (Bahrain EDB), held on November 2-3.

According to Bahrain News Agency, the glass jar, featuring the dark-blue Puck logo on its front, is a familiar symbol in countless homes across the MENA region, where the product leads its category in the market. Demand rises especially during Ramadan and the back-to-school season, during which the Bahrain facility reaches full production capacity. In the coming years, these two peak periods will coincide due to the shifting dates of Ramadan.

To maintain its market leadership and meet anticipated future demand, Arla Foods has announced a £50.9 million investment to expand the production capacity of its spreadable cheese jars.

Lillie Li Valeur, Executive Vice-President for International Business at Arla Foods, said that the company provides one of the region's most popular dairy products and takes pride in being part of family meals on both everyday and special occasions. She noted that demand peaks at certain times of the year, and to meet this demand and ensure customer and consumer satisfaction, Arla Foods is making a significant investment to expand its production capacity.

This investment is expected to increase the facility's current production capacity by approximately 30%.

Since acquiring the Bahrain production site in 2019, Arla Foods has invested in upgrading and expanding it, establishing it as a cornerstone in the MENA region, which is the company's largest international business area.

Valeur added that Arla Foods already has a strong production infrastructure and a popular product with growing demand. She said that, together with the company's ambitious strategy and solid financial position, the investment is a logical step. The project will benefit consumers, strengthen partnerships with regional customers, and create value for the company's farmer-owners.

Valeur noted that the MENA region is important not only commercially but also because Arla Foods aims to promote healthy eating habits and help consumers make informed nutrition and cooking choices. She added that the company has a strong relationship with consumers in the region and recognises that maintaining their trust requires ongoing effort, with this investment being a natural part of that commitment.

The £50.9 million investment will cover the development of production and warehouse facilities and is expected to create approximately 20 new jobs. Additionally, the roofs of the new buildings will be used to install solar panels, and the cooling system will be modified to help reduce carbon emissions per tonne of product.