First Milk to sell two factories in Scotland

18-Apr-2018 - Last updated on 18-Apr-2018 at 14:52 GMT

First Milk is to sell its two Scottish creameries

Dairy processor First Milk is to sell two of its Scottish creameries, following a strategic review of the business.

The two sites in Arran and Campbeltown were deemed not to be a strategic fit for the company going forwards, despite there being a market for the premium branded products they produce – Mull of Kintyre and Arran.

Commenting on the announcement, CEO Shelagh Hancock said that capturing the opportunities presented by the premium brands would require a significant investment for activity that was not core to the company’s plans.

“A sale would enable us to continue with our focus on developing our major creameries in Haverfordwest and the Lake District, creating value through broadening and strengthening our strategic partnerships and delivering best value for our members' investment,” said Hancock.

‘Ensure a smooth transition’

“Campbeltown and Arran Creameries will continue to run as normal during this sale process and we will be working closely with prospective buyers to ensure a smooth transition.”

First Milk said the sale would affect some of the workers at the sites, but has not confirmed if any redundancies are on the cards.

Hancock added: “We appreciate that this decision will affect some of our colleagues, but we hope that, under new ownership, the sites will thrive, offering good employment prospects for the future.

‘The businesses would prosper’

“We are confident that with the right focus and investment under new ownership the businesses would prosper.”

In September, First Milk announced it was to cut 30 jobs across two sites in the Lake District and Wales, as part of plans to increase efficiency at its factories.

At the time, Hancock said the changes were part of the company’s strategy of “driving more for less”and producing a consistent, good-quality cheese, while concentrating on high productivity and factory optimisation.

First Milk has invested £40 million into the Haverfordwest and Lake District creameries over the past five years, which will continue after the consultation into job cuts.

Meanwhile, baking ingredients manufacturer Real Good Food has sold subsidiary Garrett Ingredients to Kent Foods, in a deal worth about £1.8m.