Medina bought R&A which supplies milk to cafés, hotels, restaurants and indies in Wales last week for an undisclosed sum. R&A's Swansea distribution depot will complement Medina's existing Cardiff depot.
The acquisition meant Medina had a firm base from which to distribute across densely-populated areas, said trading director Steve Carter. "There's good potential to grow that business with sales outside of milk," he explained.
Medina would look to increase sales of its Cymru-branded Welsh milk via R&A and to sell non-milk products in its Watsons range, Carter added.
Meanwhile, Medina has sold off equipment from its Blaydon processing plant and is considering what to do with the site.