Dairy Crest leans on new products for profit

Liquid dairy dragged down Dairy Crest profits last year, the company says in its results for the year ended 31 March, resulting in a loss of £10.1 million for the UK-based dairy. However, brands such as Frijj and Cathedral City saw improved numbers, with sales of the five key brands up by 11%. “Dairy Crest’s results for the year demonstrate the continued benefit of being a broadly based business. Double digit growth from our branded spreads and cheese businesses has offset unsatisfactory results in dairies,” says Dairy Crest chief executive Mark Allen.

The company predicts growth in the next year, with an additional £20 million in costs savings to be made. Referring to the dairy business, Allen notes, “We are now the only UK listed dairy business and the only major liquid milk processor predominantly in British ownership. From a strong core of three modern and well invested liquid milk dairies we will continue to review all elements of this business to ensure its ongoing strength.”

Highlights in the portfolio include Chedds, Allen says: “We want to widen our consumer base and during the year we launched Chedds, a new snack brand for children. Chedds aims to solve the dilemma facing parents who want their children to benefit from the calcium and other nutrients cheese provides from a product they don’t see as artificial. Made from 100% Cathedral City cheddar, Chedds balances being tasty and fun for kids with a vote of approval from their parents. Chedds has already gained good penetration and has a strong repeat rate – we plan to advertise on television later this year to continue to drive growth.