Dairy Crest saving costs and upping prices

Dairy Crest is driving costs out of distribution and manufacturing, reorganising its head office to make significant cost savings and increasing prices in anticipation of “challenging market conditions”. Dairy Crest said today (30 September) it had performed in line with its expectations over the first six months of the year with its key brands Clover, Utterly Butterly, Country Life and Cathedral City achieving double-digit sales growth. However, it said that over recent months its markets had become more difficult with general economic conditions worsening and upward pressure on input costs, notably raw milk, vegetable oils, packaging, energy and fuel. Chief executive Mark Allen (pictured) said: "Our Foods business has made good progress in the first half of the year and our portfolio of key brands continues to grow strongly. Dairies has been impacted by higher input costs and a weaker ingredients market. The commercial environment has become more challenging over recent months and we are taking actions, including significant cost reductions, to ensure our business and our brands are well positioned for the trading environment ahead."