Cheddar makes Dairy Crest smile

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Manufacturing News, Source : The Manufacturer
Published : 26 Mar 2007 10:50
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Trading for the year has been “in line with our expectations” said Utterly Butterly to Express Dairies milk group, Dairy Crest today.

The company said that its Cathedral City cheddar brand, had once again delivered double-digit growth.

Issuing a trading update for the year ending 31 March, the company said the financial year has been one of significant progress with

the announcement of three major transactions. In August, it acquired Express Dairies; in October disposed of the majority of

its retailer brand cheese operations to First Milk; and in January acquired the French and Italian spreads business of St Hubert from Uniq plc. The transactions were all in line with Dairy Crest's strategy to improve earnings and reduce the exposure to commodity markets, it said.

Alongside this, there was good growth from some of key brands including Cathedral City, although the Stilton market had remained challenging.

Clover and Country Life Spreadable performed well while Utterly

Butterly and St Ivel Gold declined during the year, leading to a weaker overall performance in UK spreads.

The dairy business retained its status as a key supplier of fresh milk to Sainsbury's following a supplier review, while the benefits from the Express Dairies acquisition are on track to deliver savings of £9 million in 2008/09. Eight overlapping depots have been closed so far and the administration office is expected to close in the autumn.

Commenting on the full year, chief executive Mark Allen said: "This has been an active year during which we have significantly reshaped the business. Dairy Crest traded solidly throughout the year and we are encouraged by the initial contribution from St Hubert spreads and the continued strong performance of Cathedral City. We expect to report full year results in line with our expectations."

The company’s full results are due on 22 May 2007.