Dairy Crest and Robert Wiseman Trading Summaries

Published 3 October 2007

Dairy Crest Trading Summary

Dairy Crest have issued their trading update for the six months ending 30 September 2007, stating that trade was in line with expectations. The strong dairy market enabled Dairy Crest to increase the price paid to its direct suppliers of liquid milk and cheese, this will come into effect from October, although Dairy Crest has agreed price increases with its customers for cheese, milk, cream and butter.

The strong cheese market has seen continued growth for Dairy Crest’s Cathedral City brand, including the newly launched Cathedral City Lighter. Country Life Spreadable saw strong growth and Utterly Butterly returned to good levels of growth, however, due to the product recall in May Clover sales have been significantly affected.

Dairy Crest saw good growth in potted cream and flavoured milk, despite promotional activity being limited due to the focus on improving the factory. However, production was affected over the summer due to the milk shortages. The integration of Express Dairies remains on track, with the closing of nine depots, production in Totnes was also ceased with processing moved to other dairies.

Robert Wiseman Trading Summary

Sales volumes and turnover for Robert Wiseman Dairies Plc are at present in line with the forecast, despite a number of contracted producers having resigned from their contracts, however on this front Wiseman’s do not anticipate that there will be any issues with replacing the lost volume.

Plastic costs have continued to increase which has been a concern, although they have been able to successfully recover the increased costs in the selling price. Also the increases in the milk price paid to producers have in the majority of cases been recovered from customers.

Competition for Wiseman’s has been intense, but margins still continue their slow recovery, and there has been the plus of supplying additional Co-operative stores from July. Robert Wiseman’s new South West dairy at Bridgwater is still on schedule for limited production to commence prior to Christmas, and for full capacity of 250 million litres to be coming on the market by spring 2008.