Major order from Scotland
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- 17 May 2005
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Arla Foods UK plc has won a key order in the ongoing battle to supply the UK’s multiples and, at the same time, made major inroads into the Scottish market.
As a consequence of its decision to cut its liquid milk suppliers from three to two, the UK’s fourth largest supermarket chain, Morrisons, has dropped the Scotland-based Robert Wiseman Dairies, which served large parts of the Scottish market. Consequently, from October, only Arla Foods UK plc and the UK’s second largest dairy company, Dairy Crest, will supply liquid milk to Morrisons’ stores in England, Scotland and Wales.
Neil Davidson, Chief Executive, Arla Foods UK plc, believes that Arla’s strong focus on Scotland was a significant factor in Morrison’s decision.
“As a result of the strategic decision to build a new dairy in Lockerbie, combined with our investment in Claymore Dairies, we now have Scotland’s two most modern dairies. This clearly played an important role.”
Excavation for the Lockerbie dairy began in late March and the dairy, which will have a capacity for 150 million kg per year and will employ approx. 100 people, is expected to start production towards the end of the year.
Arla Foods UK plc currently has in the region of 20% of the Scottish milk sales. The aim is to increase this to around 43%, i.e. the equivalent of Arla’s stake in England.
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.