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June 2, 2020

Meadow Foods moves into dairy-free category with dedicated new facility

Meadow Foods, a UK dairy cooperative, is moving into the plant-based category with plans for a dedicated production site.

By Dean Best

Meadow Foods, a UK dairy cooperative, is moving into the plant-based category and is spending GBP4m (US$5.01m) to build a dedicated facility on its existing production site in north west England.

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  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
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Work on the factory in the city of Chester started in January and manufacturing is set to begin toward the end of the year. It will produce milk, cream, yogurt, and custard for the retail and foodservice channels, as well as the “industrial” sector, a spokesperson confirmed, with plans to expand to plant-based sour creams, soft cheeses and mousse.

Chief executive Mark Chantler said: “We’re excited to be developing our capabilities and capacity to manufacture a range of plant-based products that extend the strength and depth of our product portfolio. This decision is in direct response to consumers who are choosing to make lifestyle changes and purchase new and innovative products as well as demand from our customers for high quality, valued-added plant-based ingredients.

“Dairy remains core to our business and we will continue to explore strategic investments, partnerships and acquisitions that extend the range of quality products we are able to offer our customers, allowing us to offer complementary products alongside our dairy range.”

Meadow Foods has four production facilities, with the other three located in Peterborough, Holme-on-Spalding Moor and Dolgellau, Wales, where it manufactures value-added ingredients and processes around 550 million litres of milk a year.

The co-op said it has been developing the plant-based range for more than 12 months using a blend of oats and rice. Last year, Meadow Foods acquired Nimbus Foods, which manufactures decorations and toppings for the bakery, confectionery, dairy desserts, ice cream, snacks and cereals sectors from its base in Dolgellau.

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What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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