Medina Dairies has bought R&A Dairies in a move that will give Medina a second distribution depot to grow sales of its Cymru milk brand from.

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.