Tremendous scope’ for new cottage cheese products

By Elaine Watson

- Last updated on GMT

Related tags Cottage cheese New product development Cheese Uniq

There is a yawning gap in the market for premium cottage cheese, according to a report from analysts at Numis Securities.The gap could be filled...

There is a yawning gap in the market for premium cottage cheese, according to a report from analysts at Numis Securities.

The gap could be filled “with a matter of urgency” by Uniq, claims the report. “A great flavour carrier, with good texture, cottage cheese is a category waiting to be driven, and Uniq virtually owns this category in the UK.

“The stock keeping units have remained largely unchanged since the 1970s with canned pineapple or small shrimp inside. In our view, a super premium-priced branded range of highly flavourful products with good quality ‘bits’ inside needs to be launched as a matter of urgency. The category is in decline and needs leadership and we believe it is Uniq’s job to provide leadership.”

There was “tremendous scope” for new product development that would re-engage consumers, said Numis. “Uniq needs new packaging (snackpots, twinpots, dipping products, fruit on the bottom, fish on the top, etc) aimed at new eating occasions and a great range of super premium-priced cottage cheese products to compete in lunchtime eating.”

Uniq’s Spalding-based Smedley’s salads business was also capable of making a much wider range of ready-to-eat-salads, claimed Numis. “Given the quality of the facility, the management team and the new product development drive, we would expect that Spalding cannot only restore itself to profitability, but add up to £20M of [additional] sales over the next three to four years.”

As for desserts, which are produced at Uniq’s sites at Minsterley in Shropshire, Evercreech in Somerset and Paignton in Devon, Uniq needed to explore developing a branded offering: “Once some of the pension fund and European questions for Uniq have been resolved, we can envisage a situation in which carefully targeted acquisitions might make sense, and consolidating the fresh chilled dairy desserts space might look attractive.

“From Elisabeth the Chef and Yeo Valley Foods to some of the Heinz branded desserts, we believe some business combinations might look attractive to Uniq. Gü for example has performed superbly and would really add to Uniq’s desserts franchise, but would come at a high price.”

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