Dairy Crest boosted by strong growth of key brands

Key brands helped Dairy Crest achieve a “strong performance” in the final quarter of 2009.

The UK dairy company has issued an interim management statement for the nine months to the end of December.

The company’s five key brands, Cathedral City, Country Life, St Hubert Omega 3, Clover and Frijj have continued to perform strongly during this period.

These brands have been supported with high levels of television advertising and promotions. Sales have grown by 10% in the first nine months of the year against tough prior-year comparatives.

Sales of milk to supermarkets have continued to increase and the company has renewed its contract to supply fresh milk to Sainsbury’s.

The cold weather increased demand for milk during the first week of January with sales volumes up by 17% over normal levels.

Dairy Crest also has more than 180,000 customers registered to use its milk&more internet delivery service. The company will continue to market this in the current quarter.

The company has also announced plans for £75 million (€86m) of investment in its liquid milk dairies over the next three years.

Mark Allen, chief executive of Dairy Crest, said: “We are encouraged by the strong progress we have made so far this year and anticipate that we will maintain our momentum into the fourth quarter.

“Looking forward, the increased investment in our liquid milk dairies will allow us to drive further cost efficiencies, remain competitive and maintain high levels of service to our customers.”