May 27, 2013

Arla Foods UK has entered into an agreement with a management buy-out team led by two former Milk Link executives to sell its milk drinks business, Crediton Dairy.

According to Kennedy, Crediton Dairy is "well positioned to play an important role in the fast growing and dynamic milk drinks sector."

"We will aim to be a highly professional and progressive business. One focused on making great tasting, high quality products with demonstrable British provenance and traceability, complemented by customer service excellence, category insight and targeted new product development."

Commenting on the deal, Smiddy said that Crediton would continue to focus on growing its long-life, flavoured and functional milk business.

"At the same time, we will build upon the success of Moo, the UK's leading brand of long-life milk; functional branded milks such as Flora pro activ; flavoured milk brands such as Mars Family Refuel chocolate milk made under a licence from Mars, and our Dairy Pride long life milk and cream foodservice brand," he added.

The deal, which is subject to EC approval and the undertaking of a consultation with Crediton Dairy's 117 employees, could be completed by as early as the end of June 2013.

Crediton Dairy, which has an annual milk processing capacity of around 200 million litres, manufactures a range of products including long-life milk and cream, extended shelf life milk, flavoured dairy drinks, and fresh bulk cream.