DC share price blip

DAIRY CREST’S share price slumped on Tuesday this week (w/e Apr 29) wiping about £35m or 7% off the company’s value.

The fall following unconfirmed media reports that it was set to lose business with supermarket Morrisons.

The retailer buys about 140m litres each from Dairy Crest, Arla and Wiseman, but is in discussions to reshuffle its supply.

The contract is Dairy Crest’s biggest supermarket deal and losing it would be disastrous for the company, said one City analyst, who reckoned it could mean a possible exit from liquid.

However, Morrisons said it had not made any decisions yet.

Dairy Crest said it had not been informed of any move and refused to comment on how it would react if it did lose the business.

However, by Friday, the company’s share price was back up 4% to around £4.35.