Dairy Crest retains milk-supply deal at Sainsbury

FTSE 250 dairy foods company Dairy Crest has managed to keep hold of its contract to supply milk to supermarket giant Sainsbury for another three years, the company said on Tuesday morning.

FTSE 250 dairy foods company Dairy Crest has managed to keep hold of its contract to supply milk to supermarket giant Sainsbury for another three years, the company said on Tuesday morning.

The news came as the company announced a "reorganisation" to consolidate into a single structure, aimed at savings at least £5.0m per annum in costs. The firm revealed a "refresh" of its senior management team, which included the departure of its long-running Finance Director Alastair Murray.

As for Sainsbury, the company said that it retained the contract from February 2014 until 2017.

Dairy Crest said that although the conditions of the contract will change, any financial impact will be offset by its ongoing cost reductions.

The company said earlier this month that it was on track to exceed its annual cost savings target by delivering £23m for the year ending March 31st.

"We are delighted to have retained our Sainsbury's business," said Chief Executive Mark Allen.

"Our track record of making efficiencies allows us to supply our customers with competitively priced milk, pay our farmers a fair price and move towards our medium-term target of 3.0% return on sales in our Dairies business."

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

Lab-grown meat: how “moo’s law” will drive innovation
Soft commodities

Lab-grown meat: how “moo’s law” will drive innovation

Jim Mellon and Anthony Chow, co-founders of Aim-listed Agronomics, explain why they believe that “cellular agriculture” will benefit from massive long…
16 Apr 2021
The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
Lab-grown meat: the new agricultural revolution
Soft commodities

Lab-grown meat: the new agricultural revolution

Vegan alternatives are taking off, but the future of food technology lies in lab-grown meat – cultivating steaks and burgers from animal cells, says A…
16 Apr 2021