Cravendale creams it

ARLA FOODS UK has said it is looking to capitalize on the success of its extended-life Cravendale brand with cream and a snack format.

Newly appointed chief executive Tim Smith said the launch of the snack-sized pack was already penciled in, and could open up the lucrative vending machine market.

Arla was also planning to process flavoured milk, said Mr Smith. It would be less sweet than existing brands and aimed at adults.

Cream could follow too, he said. “The perceptions of Cravendale play well in all fresh milk sectors, so cream would be a natural extension.”

The Cravendale brand had seen year-on-year sales rise 33% to 110m litres since its launch six years ago.

But supply should catch up with demand in August when a £25m investment in extra capacity at Arla’s Stourton dairy, near Leeds, comes on line.

Output is currently centred around the firm’s Hatfield Peverel dairy in Essex and the new production line will double capacity to 300m litres.

It includes a secret “black box” that gives Cravendale its popular pure-filtered taste and extra longevity.

Mr Smith said he would be amazed if it took longer than three years to utilise Stourton’s full Cravendale production potential.

He forecast the brand’s market share increasing from 3% of fresh milk consumption in the UK to 10%.

Jonathan Ovens, chairman of the Arla Foods Milk Partnership, which supplies Arla with 65-70% of its milk, said the expansion plans would be good for farmers.

He said the amount of milk supplied by the partnership was set to rise from 1.35bn litres now to 1.6bn litres by September.