Müller prepares for 2020
Dairy has the potential to be the grocery sector’s engine for growth for the foreseeable future with consumers, customers and farmers all set to benefit, according to Müller.
The liquid milk, dairy ingredients and chilled yogurt and desserts business is preparing to outline plans to unlock an additional £700m (€811.6m) of category growth in the sector by 2020.
To help facilitate this, Müller has confirmed that it is to invest a further £100m (€115m) over and above normal planned expenditure in its operational, innovation and marketing capabilities over the next 18 months.
Capital projects will include installing new filling lines and further upgrading the capacity and capabilities of existing production facilities at its Müller Yogurt & Desserts and Müller Milk & Ingredients businesses.
“The Müller brand is already ahead of Coca-Cola and Cadbury’s Dairy Milk in the top 10 most purchased fast moving consumer goods brands in the UK, picked from supermarket shelves 207 million times each year,” says Ronald Kers, Müller group chief executive.
“Now we want to use our leadership position in dairy to rev up the engine and work collaboratively with our customers and of course our farmers to delight consumers and realise the untapped potential that exists to grow this amazing category.”
Bill Mathieson, commercial director at Müller Yogurt & Desserts, adds, “In the chilled yogurt and potted desserts (CYPD) sector, we will bring new excitement, innovation and game changing product development to our branded and private label business, which is growing strongly.”
Better shopper and consumer understanding, coupled with new investment in improving the capabilities of Müller’s fresh milk, cream and milk drinks business, could unlock category growth of £470 million by 2020.
Dan Howell, commercial director of Müller Milk & Ingredients, concludes, “By working closely with our customers to deliver products which tap into the aspirations of our consumers, we can increase the size of this category in 2020 by up to 14% compared to its current value. We are very excited by the strategic customer partnerships we are developing which will lead to long-term growth and value creation.
“Milk plays the central role in the dairy category. It’s the core driver of both penetration and frequency, bringing shoppers into the aisle to select the rest of their dairy produce. It’s also of huge importance to the UK diet and is rightly viewed as a beacon of healthy, refreshing, enjoyable nutrition.”
