Dairy Crest's semi-skimmed food miles
A new £25M automated packing facility in Nuneaton will help Dairy Crest slash food miles at a time when distribution costs are rocketing, according to chief executive Mark Allen.
"Currently, cheese is transported from our factories up to our distribution centre in Nuneaton, shipped off again to another site for cutting and packing, then transported all the way back to Nuneaton before being delivered on to customers. When the new packing site becomes operational next year, we can cut out those extra legs in the journey overnight."
Speaking after Robert Wiseman issued a profit warning blamed on soaring input costs, Allen said Dairy Crest had increased margins in 2007/8, vindicating its strategy of exiting low-margin own-label business and having "a broader-based business and strong brands".
While bosses felt "aggrieved" over the way competition watchdogs had handled the recent milk price fixing probe, which resulted in a £9.4M fine for Dairy Crest, staff had all received training in competition law to ensure they did not unwittingly break the rules in future, he added.
He would not give details of new launches beyond a lighter variant of Clover coming out later this year, but said several new products using ingredients from Fayrefield FoodTec (in which Dairy Crest took a 50% stake last year) were in development.
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