Dairy Crest has put its FoodTec UK ingredients business under review and is “considering options” for the unit.

The UK dairy company confirmed today (21 March) that it has launched a strategic review of FoodTec.

The subsidiary develops, manufactures and markets a range of food ingredients. Products include Equilibrium milk protein stress relief products and GelTec egg replacements.

Dairy Crest declined to comment on the financial performance of the subsidiary.

The UK dairy group has seen profitability come under pressure, particularly given the challenging nature of the UK spreads sector and issues at its liquid milk division.

Dairy Crest is focused on cutting costs out of the business while leveraging key areas of growth.

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The group is working on the “medium term” target of generating a return of 3% on sales from its milk business by lowering its cost base and shedding unprofitable volumes.

It is also driving the growth of its key consumer brands, including Cathedral City, Country Life and Clover.

Last year, Dairy Crest revealed plans to invest in its Davidstow creamery to convert it to produce demineralised whey powder, an ingredient used in infant formula. In an interview with just-food, CEO Mark Allen said that the investment would see Dairy Crest move its whey processing “up the value chain”.

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