The £20m project includes upgrades to the dairy’s processing capabilities, investment in carbon reduction initiatives and the development of new employee facilities.
Crediton Dairy is based in Devon and was involved in a management buyout in 2013. Since then, the independent drinks manufacturer has invested £33m in its operations, in addition to this latest move.
Crediton Dairy’s announcement comes at the same time as the filing of its financial results for the 52 weeks ending on 31 December 2022. During this period, the business posted a turnover of £114.1m, up from £101.5m a year prior, and profits of £7.9m. In response to the challenges presented by Covid and the war in Ukraine, the dairy raised its prices in concert with retail partners.
According to IRI data, its Arctic Coffee is the number two ranked iced coffee brands sold in British supermarkets, while the Promlk range is ranked third among protein drink brands. Crediton Dairy also launched its Biocol cholesterol lowering milk during 2023.
In response to the strong performance of its product portfolio, the producer has grown its pool of local milk suppliers, with a total of 94 farmers now contracted by the dairy. The vast majority of these farmers are based within 30 miles of its facility and supply 160m litres of milk a year.
Looking ahead, Crediton Dairy managing director, Tim Smiddy, said: “In the light of increasing demand for our product portfolio we are confident about the long-term prospects for the dairy drinks sector and the role that we, as a focussed and flexible, independent, added value business, can play within it.
“Our latest £20 million, three-year, capital investment programme will enable us to upgrade our processing capabilities, improve our staff welfare facilities and reduce our carbon footprint.”