Dairy Crest wins Sainsbury’s milk business

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Dairy Crest wins Sainsbury’s milk business

February 12
09:52 2013
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Dairy Crest has announced that it has retained its contract to supply liquid milk to Sainsbury’s from February 2014, after a competitive process.

The new contract is for three years until 2017. Although the conditions of the contract will change from 2014, the company said that its ongoing cost reductions are expected to offset any financial impact on its business.

Dairy Crest said that it continues to focus on driving efficiencies so it can meet customers’ demands for cost, quality and service. In its IMS on 7 February 2013, the company reported that it was on track to exceed its annual cost savings target by delivering savings of around £23 million for the year ending 31 March 2013 and that it had already identified several meaningful projects for the following year.

“We are delighted to have retained our Sainsbury’s business,” said Mark Allen, chief executive of Dairy Crest. “Our track record of making efficiencies allows us to supply our customers with competitively priced milk, pay our farmers a fair price and move towards our medium-term target of 3% return on sales in our Dairies business.”

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