16 June 1999
Sainsburys drops MD Foods’ milk
SAINSBURYS is slimming down the number of its milk suppliers from four to three. MD Foods has ended up the loser.
MD, the subsidiary of a Dutch co-operative, had supplied some 60 Sainsbury stores, with about 8% of the retailers milk supplies.
More than half of those stores will now take milk from Dairy Crest. Unigate and Express Dairies are sharing the business lost by MD.
MD is the largest supplier to Asda, accounting for about 60% of the total.
In April, Safeway also consolidated its operations, a move which left the Irish group Glanbia out in the cold. Tesco dropped Dairy Crest last year. More rationalisation of suppliers is expected.
- Financial Times 16/06/99 page 36