Robert Wiseman Dairies has been successful in Tesco’s review of its fresh milk supply arrangements, as well as increasing its fresh milk share at Sainsbury, as reported yesterday.

The company will now hold a 60% share of Tesco’s fresh milk requirements, from a previous 40% share. At Sainsbury it has increased its share from 20 to 50%, pushing Arla out of the picture altogether.

Also as part of its review, Tesco has also cancelled its milk contract with the Dairy Crest Group, although the dairy business will continue to supply the supermarket with other dairy products including spreads, cheese and dairy desserts.

Dairy Crest’s current sales of fresh milk to Tesco are worth around £60 per year. The company will cease it supply of fresh milk to Tesco during the first quarter of 2005.

Commenting on the new Tesco deal, Robert Wiseman, managing director said: “We are absolutely delighted to have been rewarded by Tesco with this increased contract which is another major boost for the Company. This is further evidence of the success of our strategy of investing in ‘state of the art’ dairies and depots and our decision to establish n infrastructure to service our growing share of the market in the south of England.”

Shares in the Scottish dairy company gained 6% following yesterday’s announcement of its extra business with Sainsbury.