Dairy Crest remains on track

In a trading update, Dairy Crest said sales for the nine months ended 31 December had grown by 4% against the same period last year. Sales of its branded dairy products and retail liquid milk had grown strongly, but were offset by reduced ingredients volumes, lower doorstep sales, and reduced cheese volumes following the sale of its Stilton and speciality cheese business last August. The Cathedral City cheese brand performed strongly in the quarter with sales growing by 14% and the brand is now worth £190 million at retail sales value. Dairy Crest had also been awarded an increased share of Marks & Spencer's cheese category, which would, it said, contribute to profits next year. The new packing facility at Nuneaton had successfully started operating on a trial basis and remained on schedule to complete full commissioning during the spring of 2009. It would provide efficiency and distribution benefits and lessen future environmental impact, the group said. The dairies division continued to focus on efficiency improvements and, in line with an earlier announcement, the Nottingham dairy had now closed, and this, together with a now completed head office reorganisation, would help reduce costs next year. Chief executive Mark Allen (pictured) said the company had traded in line with expectations. He went on: “Our strategy of investing in marketing has enabled our key brands to continue with their strong performance. We are particularly pleased by the lighter variants, which not only offer consumers increased choice, but have also led to incremental sales for the Group.”