September 30, 2010
Dairy Crest continues Morrisons milk supply deal
British food manufacturer Dairy Crest said Wednesday (Sep 29) it had renewed its fresh milk contract with Morrisons supermarkets through to 2015, boosting its shares one day before it issues a six-month trading update.
Shares in the maker of Clover spread, were up 7.42% at 0940 GMT.
"We believe our clear focus on quality, service and cost puts us in a good position in a very competitive market", Toby Brinsmead, managing director of Dairy Crest's liquid products business, said in a statement announcing the contract renewal.
Dairy Crest said in July it had traded in line with its own expectations in the first quarter, driven by growth in sales of key brands such as Cathedral City cheese and Country Life butter.
It also said at the time it had made good progress with sales of liquid milk to major retail customers. The firm has a national distribution deal with J Sainsbury, Britain's third-largest supermarket, and has also started a trial with Tesco, the country's largest retailer.