Crediton Arctic new packaging

Source: Crediton Dairy

The new programme will include upgrading the dairy’s processing capabilities, developing new employee welfare and office facilities, and investing in carbon reduction initiatives

Crediton Dairy has announced a major £20m investment programme over the next three years.

The new programme will include an upgrade to the dairy’s processing facilities, developing new employee welfare and office facilities, and carbon reduction initiatives.

Focus will be given to the installation of a new effluent treatment and water recycling plant, a new efficient gas boiler and an energy-monitoring control system to reduce gas and electricity usage.

The announcement followed Crediton’s results ending 31 December 2022, showing turnover up nearly £13m to £114.1m on last year, and a profit of £7.9m in line with 2021.

The company described the reporting period as a “challenging one for the dairy industry” due to the combined effects of the Covid-19 pandemic and Russia-Ukraine war, which drove inflationary pressures. Selling prices were increased to offset these challenges.

However, Crediton said sales remained strong, driven by its improved mix of a growing range of own-label flavoured milks and branded dairy drinks. Its Arctic Coffee brand is now the number two iced coffee brand in British supermarkets, it said. Its other brands – Promilk, The Real Milkshake Company and Moo – had also performed well.

“In light of increasing demand for our product portfolio, we are confident about the long-term prospects for the dairy drinks sector and the role that we, as a focused and flexible, independent, added-value business, can play within it,” said Tim Smiddy, MD of Crediton Dairy.

Crediton Dairy, which produces 160 million litres of milk a year, had recruited more dairy farmers to its supply pool, now totalling 94, nearly all of whom farm within 30 miles of the dairy.