Yeo Valley has extended its organic milk range with the launch of a 1.5 litre format in whole, semi-skimmed and skimmed variants.
The new format rolled out in Tesco stores this week (rsp: £1.29), and was developed to give “shoppers added convenience and better value”, Yeo said. While winning over plenty of new shoppers, organic milk was “yet to become a staple for the mainstream shopper”, said Yeo Valley executive chairman Adrian Carne, and only captured 5% of total UK milk sales every year.
“With the new 1.5 litre format and ‘everyday’ price, Yeo Valley wants to make organic milk accessible to more shoppers,” he added.
It comes a week after the CMA officially launched an investigation into the proposed multi-million pound tie-up between Arla Foods and Yeo Valley. The CMA said it was considering whether the merger would “result in a substantial lessening of competition” across the dairy sector.
The proposed deal was first announced in February, and would see Arla acquire the licence for Yeo Valley’s milk, cheese and spreads division as it seeks to cash in on growing consumer demand for organic produce.
Under the deal, Arla would pay royalties to Yeo Valley annually and take over the sole rights to sell Yeo Valley products in the above categories.
However, the Yeo Valley yoghurt, ice cream, cream and desserts business would continue to be run independently through Yeo Valley Group, which remains under the ownership of the Mead family.