Convenience food group Uniq has said it has entered into a four-year agreement to contract pack Cadbury chilled desserts for Muller UK, which will be taking on a new licence from UK confectionery group Cadbury.

The transaction is in line with the previously announced decision not to renew the desserts licence between Uniq and Cadbury but to look for other modes of collaboration, Uniq said.

The company said the new arrangement will reduce its sales value by approximately £5m (US$9.0m) per annum as responsibility for sales and distribution ceases. 

Uniq will continue to produce Cadbury desserts from its factory in Paignton, Devon for Muller, but marketing, sales and distribution of the products will pass to Muller. As a result, Uniq's chilled distribution centre at Gloucester, managed by Wincanton, will no longer handle Cadbury desserts.