Arla Foods is nearing full recovery after a cybersecurity breach disrupted operations at its Upahl factory in Germany. While production was temporarily impacted, the cooperative expects to resume normal activity within days. Other Arla sites remained unaffected. This event comes amid Arla’s planned merger with DMK to form Europe’s largest dairy cooperative, and amidst a broader rise in cyberattacks across the German food and beverage sector.
Arla Foods, a leading dairy cooperative known for popular brands like Lurpak and Castello, is on track to resume normal operations at its German facility after experiencing a cybersecurity breach. The incident, described as “suspicious activity,” temporarily disrupted production at the Upahl factory, located in northern Germany.
Despite the setback at Upahl, Arla’s other production sites have continued to operate without interruption, ensuring the cooperative’s broader supply chain remains stable. The company anticipates that the impacted facility will return to full operational capacity within a few days.
Germany is a significant market for Arla Foods, with sales reaching €1.27 billion in 2024—a 1.5% increase from the previous year—making it the cooperative’s third-largest market after the UK and Sweden. Overall, Arla posted revenues of €13.8 billion in 2024, slightly up from €13.7 billion the year before.
The cybersecurity incident comes at a critical time as Arla Foods is moving forward with plans to merge with DMK, Germany’s largest dairy cooperative. This strategic alliance aims to create Europe’s largest dairy cooperative, with projected combined revenues of €19 billion. Although DMK saw a decline in revenue from €5.5 billion to €5.1 billion in 2024, the merger underscores both companies’ ambitions for growth and increased market presence.
The recent cyberattack on Arla echoes a similar breach experienced earlier this month by Oettinger Getränke, another German beverage company, highlighting a growing trend of cyber threats targeting the food and beverage sector in the country. These incidents emphasize the need for heightened cybersecurity measures to protect critical infrastructure within the industry.
As Arla Foods works through the recovery process, its commitment to safeguarding operations and maintaining product supply remains clear, even amid increasing digital risks.
