The battle for the UK’s milk
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- 02 September 2004
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The UK’s largest multiple, Tesco, and the third largest, Sainsbury, last week announced their future suppliers of liquid milk.
With effect from January 1, 2005 Tesco will buy all its milk from Arla Foods UK and the Scotland-based Robert Wiseman Dairies while Sainsbury will cancel its contract with Arla Foods UK totalling 140 million litres in favour of Dairy Crest. From the same date, Tesco will cancel its current contract with Dairy Crest.
The battle for the UK milk market intensified in May when Arla Foods UK was appointed sole supplier of liquid milk to Asda, thus increasing Arla Foods UK’s supplies to the chain by 220 million litres from October.
In consequence of the move, Arla Foods UK remains a supplier to Tesco and the sole supplier to the second largest chain, Asda, but loses its supplies of own label milk to Sainsbury. Arla Foods UK, however, will continue to supply its branded milk, Cravendale Purfiltre, to Sainsbury.
Own label milk shares in the UK
Source: Dairy Industry Newsletter
Arla Foods is an international dairy company owned by 9,700 farmers from Denmark, Sweden, the UK, Germany, Belgium, Luxembourg and the Netherlands. Arla Foods is one of the leading players in the international dairy arena with well-known brands like Arla®, Lurpak®, Puck® and Castello®. Arla Foods is focused on providing good dairy nourishment from sustainable farming and operations and is also the world's largest manufacturer of organic dairy products.