UK dairy co-operative Long Clawson is in talks to secure more supermarket after losing a cheese contract with Tesco.

Marketing manager Janice Breedon said Long Clawson had recently lost a contract to supply Tesco with blended cheese, which had hit sales last year.

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However, speaking to just-food at the Food & Drink Expo in Birmingham, UK today (27 March), Breedon said the company was in discussions to sell its full range through Asda, Morrisons and Waitrose. It already sells selected products at Asda stores.

In 2011, Long Clawson generated turnover of GBP50.2m, which Breedon said was a “slight drop” on 2010. However, she said the co-op had “maintained our profit”.

She said the company had managed to avoid any aggressive promotion-driven competition in major supermarkets due to its premium placing.

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Consumers are happy to pay more for “more artisinal” products, she said. “While consumers are being more frugal, they are still spending on treats. Premium cheese sales are up 3% year-on-year, which says a lot about the market. We think there is a gap there.”

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Breedon said the company was continually looking at expansion, adding that it would not rule out a move into an additional category in the future, but that cheese continues to be its current focus.

Separately, Breedon said Long Clawson has largely managed to navigate itself away from any conflict or issues with milk prices.

“Because we are a co-operative, we have to buy our milk from our farms in Leicestershire, Nottinghamshire and Derbyshire. But we look after our farmers sustainably, we pay them bonuses and we work with them in order to avoid any kind of conflict, so it is all done democratically. Our farmers are very much at the heart of our business,” she said.