Arla Foods is boosting its presence in Robert Wiseman Dairies’ Scottish heartland with a new 150-million-litre milk processing facility in Lockerbie.
The £10m-plus facility at a Milk Link cheese factory will open early next year and supply Asda’s Scottish estate plus other accounts, said UK chief executive Neil Davidson.
The 34 Asda stores will account for less than half of the capacity, creating opportunities for Arla to strike deals with new customers on Wiseman’s home territory, said analysts.
Arla’s successful bid to be Asda’s sole fresh milk supplier cost Robert Wiseman and Dairy Crest £70m and £20m respectively in lost business.