Food and Drink Industry 3 – 9 Aug: Ft Damm UK, Dalston’s Soda Co and Arla Foods
- Damm UK has acquired a stake in London-based Dalston’s Soda Co as it expands beyond its traditional beer portfolio.
- Arla Foods will invest £29.5 million in a new skyr production line at its dairy in Linköping, Sweden.
Two major European producers are strengthening their manufacturing capabilities as they seek growth beyond their established product ranges.
Damm UK has acquired a stake in London-based soft drinks business Dalston’s Soda Co, while dairy giant Arla Foods has announced a £29.5 million investment in additional skyr production capacity in Sweden.
Although the two developments involve very different product categories, they reflect a common strategy.
Established manufacturers are investing in brands and facilities that can help them respond to evolving consumer preferences, diversify their portfolios and unlock new opportunities across domestic and international markets.
Damm UK Adds Dalston’s to Its Expanding Beverage Portfolio
Damm UK’s investment in Dalston’s Soda Co forms part of the Spanish drinks producer’s wider strategy to develop a more diverse beverage offering.
The agreement follows Damm’s recent acquisition of the Old Speckled Hen beer brands from Greene King, demonstrating that the company is actively pursuing growth through both established names and emerging brands.
Under the partnership, Damm will support Dalston’s across production, distribution and commercial infrastructure. This support is intended to accelerate the soft drinks company’s expansion through both on-trade channels, including pubs, bars and restaurants, and off-trade channels such as supermarkets, convenience stores and other retailers.
Dalston’s production is eventually expected to transfer to Damm’s Eagle Brewery in Bedford. The move will give the soft drinks brand access to greater manufacturing capacity, more developed operational resources and a platform capable of supporting higher production volumes and national distribution.
For Dalston’s, the agreement offers an opportunity to move from an ambitious independent drinks company to a brand with the manufacturing and commercial backing required to compete on a much larger scale.
Accelerator Programme Targets Emerging Drinks Brands
The partnership has been established through Damm’s Accelerator Programme, an initiative designed to support developing beverage brands that demonstrate strong growth potential.
Through the programme, emerging companies can access Damm’s manufacturing knowledge, innovation capabilities and distribution infrastructure. This provides smaller brands with resources that may otherwise take years to build independently.
Dalston’s has become Damm’s first soft drinks partner under the programme, making the agreement an important milestone in the producer’s diversification plans.
The managing director of Damm UK said the company was excited to welcome Dalston’s, describing the brand as a strong match for Damm’s premium positioning. The partnership was said to be aligned with Damm’s focus on craftsmanship, high-quality ingredients and exceptional product standards.
Damm UK also expressed confidence that Dalston’s could flourish with greater operational and commercial support, both within the United Kingdom and potentially in international markets.
Dalston’s founder described the partnership as a major vote of confidence in what the company had built. The founder added that working with Damm created significant growth potential for the brand and its products.
The chairman of Dalston’s Soda Co said the partnership would also contribute to Damm’s ambition of broadening its total beverage offering. He described the deal as an exciting opportunity to accelerate Dalston’s development and unlock the brand’s full potential.
Bedford Brewery Becomes Central to Damm’s UK Strategy
The UK has been identified as one of Damm’s strategic growth markets, with the company continuing to invest heavily in its production presence.
More than £70 million has been invested in the Damm Eagle Brewery in Bedford over recent years. This spending has been used to increase production capacity, install new manufacturing lines and expand the brewery’s capabilities in areas such as alcohol-free drinks and soft drinks.
The expected transfer of Dalston’s production to Bedford illustrates how that investment is beginning to support Damm’s broader portfolio strategy.
Once associated primarily with brewing, the facility is developing into a more flexible beverage manufacturing site capable of handling a wider variety of products. That versatility will be particularly important as consumers explore alcohol-free alternatives, premium soft drinks and beverages with distinctive ingredients or craft-inspired positioning.
The Dalston’s partnership also supports Damm’s newly announced growth phase. The company is seeking to double its revenue by 2030 through continued international expansion and diversification.
Arla Foods Responds to Growing Demand for Skyr
Elsewhere in Europe, Arla Foods is making a major investment in cultured dairy production as demand for skyr continues to rise.
The Danish-Swedish multinational will invest £29.5 million in a new skyr production line at its dairy facility in Linköping, Sweden.
Arla said the project forms part of its long-term strategy and is designed to meet increasing demand for skyr, the traditional Icelandic cultured dairy product known for its thick texture and high protein content.
According to the company, the European skyr category grew by an average of 8% each year between 2022 and 2024. Arla expects growth to continue at a similar rate through to 2030.
The trend is being supported by consumers seeking high-protein and low-fat products. This preference has become increasingly visible across several European markets, including Sweden and the UK, where protein-rich yoghurts, dairy snacks and convenient breakfast products have gained greater prominence.
New Production Line Scheduled for 2028
Arla’s new production line is expected to become operational during the first quarter of 2028.
It will primarily produce skyr for the Swedish market, where demand has increased significantly in recent years. However, the additional capacity will also strengthen Arla’s overall European supply network and complement its existing skyr manufacturing facilities in Denmark, Finland and Germany.
The investment will reinforce Linköping’s position as a strategic centre within Arla’s Swedish operations.
Employing approximately 290 people, the Linköping facility is Sweden’s largest specialist dairy. It currently manufactures more than 280 products, including yoghurt, sour cream and crème fraîche, alongside lactose-free and organic dairy ranges.
Adding skyr production will expand the site’s capabilities while allowing Arla to make greater use of its experience in processing milk into specialist, value-added dairy products.
Arla’s executive vice-president of supply chain said the investment met several important strategic objectives. The company is responding to strong consumer demand, drawing on the commitment of its Swedish farmer owners and using its expertise to produce high-protein skyr with a lower carbon footprint.
The executive added that the investment would position Arla to secure future growth within the category.
What the Developments Mean for Food Manufacturing and Production
The investments from Damm and Arla demonstrate how food and beverage manufacturing is becoming increasingly focused on flexibility, category diversification and scalable production.
Damm’s approach shows how established producers can use existing industrial infrastructure to help smaller brands reach national markets. Moving Dalston’s production to the Bedford brewery should create opportunities for more efficient manufacturing, greater purchasing power, improved quality control and stronger distribution coverage.
It also highlights the growing importance of multi-category production sites. Breweries and drinks plants are no longer necessarily restricted to traditional alcoholic products. Investments in flexible filling lines, alcohol-free capabilities and soft drink manufacturing can allow producers to respond more quickly to consumer trends while making better use of their facilities.
Arla’s investment, meanwhile, illustrates the level of long-term planning required to serve rapidly growing food categories.
A production line scheduled to open in 2028 requires decisions about equipment, supply chains, milk availability, energy use, staffing and future market demand to be made several years in advance.
Both developments may also increase competition for specialist manufacturing technology, packaging materials and technical expertise. Producers able to operate efficient, adaptable facilities will be better positioned to launch new products, increase volumes and respond to changes in consumer behaviour.
Established Infrastructure Meets Emerging Consumer Demand
The investments also reveal two different routes to growth.
Damm is combining the character and identity of an independent soft drinks brand with the scale of an international producer. Dalston’s retains the appeal of a modern, craft-led company, while gaining access to the infrastructure required for wider expansion.
Arla is pursuing growth through direct capital investment, adding dedicated production capacity to meet measurable demand within an established category.
In both cases, manufacturing is central to the commercial strategy. Branding and consumer interest may create an opportunity, but sufficient capacity, consistent quality and dependable distribution are required to turn that opportunity into sustainable growth.
Conclusion
Damm UK’s investment in Dalston’s Soda Co and Arla Foods’ plans for a new skyr production line demonstrate the continuing transformation of the European food and beverage industry.
For Damm, the Dalston’s partnership strengthens its move into premium soft drinks and makes use of the expanded capabilities at its Bedford brewery. It also represents another step towards the company’s ambition of doubling revenue by 2030 through international growth and diversification.
For Arla, the £29.5 million Linköping investment is a calculated response to rising demand for high-protein, low-fat dairy products. When the new line becomes operational in 2028, it will increase skyr capacity and strengthen the Swedish site’s role within Arla’s wider European production network.
Together, the announcements show that future growth will depend not only on spotting the right consumer trends, but also on building the manufacturing capacity, technical capability and distribution strength needed to serve them.
New Credits:
Damm UK takes stake in Dalston’s Soda Co
Arla Foods pumps £30M into new production line
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