Second time lucky for Dairy Crest on omega-3 spreads

Dairy Crest is planning to launch an omega-3 enriched spread this year, chief executive Mark Allen has revealed.

This is expected to be under the Utterly Butterly, Country Life or Clover brand.

Although the company’s first foray into functional spreads with the launch of St Ivel Gold/Omega-3 in 2005 had not been a roaring success, this was due to a lack of confidence in the St Ivel brand, Allen insisted. “Omega-3 will be a success when combined with a bigger brand in our portfolio.”

Dairy Crest would not however scrap the St Ivel brand, despite its recent lacklustre performance in spreads, he said. “We are not getting rid of St Ivel, but we’re not spending a lot of money on it either. It’s small, but it’s still profitable and we’ll keep it as long as consumers want it.”

Sales of Clover were returning to normal after the recent product recall, he said. “Product was becoming contaminated with mould owing to a leaky valve that was causing transfer between cleaning lines and fresh product. We’ve looked at every valve and pipe in the factory and made lots of improvements, but it will take time to rebuild stock levels.” Insurance would cover “the majority” of the costs associated with the recall, he said.

Dairy Crest’s ‘Milk & More’ doorstep deliveries, enabling customers to order products for next day delivery via milk floats by internet and email, would be extended to more depots after successfully launching in Surbiton, he said.

In the first three months of the financial year, the company’s food division had seen good performances from Cathedral City cheese, St Hubert Omega-3 (in France), Petis Filous, Utterly Butterly and Country Life Spreadable, said Allen. Sales of new launch Cathedral City Lighter were also encouraging, he added.