Global coffee company Starbucks has signed a new 21-year strategic licensing agreement with dairy cooperative Arla Foods.

Under the agreement, Arla Foods will continue to manufacture, distribute and market Starbucks’ milk-based ready-to-drink (RTD) coffee beverages for the Europe, Middle East and Africa (EMEA) region.

Starbucks EMEA channel development and foodservice vice-president Duncan Moir said: “The strength of our relationship with Arla Foods over the past seven years has seen our RTD business grow by an average of 40% per year across EMEA.

“This new licensing agreement signals our commitment to continue to work together to grow the business within the RTD sector, and we are proud to be working alongside Arla Foods.”

“The strength of our relationship with Arla Foods over the past seven years has seen our RTD business grow by an average of 40% per year across the EMEA.”

In 2010, Starbucks selected Arla Foods as its license partner to manufacture and distribute its milk-based RTD coffee beverages to supermarkets and convenience stores across the EMEA.

By this year, Arla introduced Starbucks beverages in 38 countries across EMEA and expects to sell more than 110 million units per year.

The beverage products have been produced using milk sourced from 11,200 farmers and 100% Arabica coffee beans supplied by Starbucks Coffee Company.

Arla Foods executive vice-president and CMO Hanne Søndergaard said: “We are proud to take another step in our partnership with Starbucks, bringing great tasting Starbucks ready-to-drink coffee beverages to consumers across the EMEA while adding value to our farmers’ milk.

“The partnership combines Arla’s extensive experience in manufacturing dairy beverages and our widespread distribution network with Starbucks unique coffee expertise.

“Consumers in the EMEA region have welcomed the great taste and premium nature of the beverages, and we remain committed to working closely with Starbucks on developing and growing the category in the future.”