National distribution will more than double sales at Graham's The Family Dairy to £100m within five years, managing director Robert Graham has predicted.

The Bridge of Allan-based company expanded beyond the borders of Scotland for the first time last year when it launched Graham's Gold Jersey milk, which helped increase sales 20% to £40m in the year to 31 March 2009. It followed this by launching the UK's first 1% fat organic milk into 380 Sainsbury's stores nationwide in February.

These would provide the catalyst for further UK-wide listings, said Graham. "We want to be a £100m company in five years, with a Scottish brand across the UK. We'll be extending the brand, as well as doing some niche lines. There's a lot of opportunity for a good number of our products to be nationwide."

Graham's, which sells 70% of its products under the family brand, had national appeal as shoppers understood its strong farming heritage, he added.

"Our brand has a real connection to the consumer. We've been showing our full range to consumer focus groups in England and the strengths were that we were a family dairy and a caring company. People also like to have a story."

The company began work on a £1.2m extension to its factory this week, adding a butter room and further distribution space. Plans are also afoot to launch into a new product area, although Graham would not reveal further details. Last year the company moved into premium ice cream for the first time.

Despite the additional milk volumes that would be required for expansion, Graham stressed he was not concerned about the tightening UK milk supply, claiming the company paid the highest milk price in the country. "Securing our own supply is important for us. It's about getting good farms well invested with succession plans. We have a big waiting list of farms to supply us."

Graham's would also consider bringing further non-family members into its senior team following the appointment of a non-family financial director in January last year and a non-executive director this February, he added.