DC to shut yoghurt factory

DAIRY CREST‘S joint venture with yogurt manufacturer Yoplait is closing the remnants of the Raines Dairy Foods‘ business, which it bought for £66m in 1998.

Yoplait Dairy Crest‘s factory at Enfield, Essex, which produced own-label yoghurt, soft cheese and cream for retailers and the ingredients market, will shut early next year with the loss of about 280 jobs.

The factory accounted for 20% of the business‘s output. 

Raines Dairy Foods’ other main plant at Basildon was closed in 2001.

The purchased was intended to broaden Yoplait Dairy Crest‘s customer base, which was principally based on its strong branded portfolio.

But one analyst said it had not proved a good fit with existing operations.

Managing director Jan Lloyd said: “Unfortunately, the market for retailer own brand yogurts and soft cheeses has become increasingly difficult with little growth and low margins.”