Dairy Crest forsakes commodities
12 November 1999
Dairy Crest forsakes commodities
SEVERAL years-worth of investment in value-added products is starting to pay off for Dairy Crest, which has come under pressure in its traditional commodity milk and Cheddar markets.
John Houliston, chief executive, said that heavy marketing of Dairy Crest labels such as Clover and Yoplait had been rewarded with double-digit growth in the half-year to 30 September.
He said that the marketing budget of about £12 million a year would continue in Dairy Crests value-added products.
But he confirmed that the company was also keeping its options open on consolidation in the over-supplied milk market. These could include acquisitions.
The group reported a 1% rise in pre-tax profits to £21m for the six months to 30 September and 3% rise in turnover to £396m.
In line with Dairy Crests ambition to balance its exposure to commodity milk markets, he declared a push into the branded market for Stilton cheese, in which the company is already the biggest processor in Britain.
- Dairies play down merger rumours, FWi, 15 October, 1999
- Dairy Crest details dividend after profit rise, FWi, 26 May,1999
- The Times 12/11/99 page 38
- Financial Times 12/11/99 page 26
- The Guardian 12/11/99 page 26 (City Briefing)