Dairy Crest confirmed this week that it had bought the Midlands Co-operative Society’s dairy business in a deal worth £20m.
The company said it would shut down Midlands Co-op Dairy’s Birmingham milk processing site, a move widely predicted by analysts. Three of Midlands Co-op Dairy’s 16 distribution depots - at Oxford, Farringdon and Thame - will also close. The closures were expected to cost £9m, said Dairy Crest, but it believed the acquisitions of Midlands Co-op Dairy and Starcross Foods [The Grocer, May 7, p68] would help add £4m a year to its profits.
Midlands Co-op Dairy is the largest regional dairy operator in the UK.
It processes 200 million litres of milk a year for retail, wholesale and doorstep customers across the Midlands.