The UK’s Robert Wiseman Dairies has announced that it is to increase its supply of fresh milk to UK supermarket chain Sainsbury’s.
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Robert Wiseman said it had been successful in Sainsbury’s review of its milk suppliers and that the dairy company’s share of the supermarket group’s fresh milk requirement will increase from 20% to around 50%. The new business will take effect from early 2005.
“We are all delighted to have been rewarded by Sainsbury’s with this increased contract which is a major boost for all the employees and milk suppliers of Wiseman Dairies,” said managing director Robert Wiseman.
The announcement comes just three months after Robert Wiseman Dairies announced that it had been given notice by supermarket chain Asda that its supply contract was to be ended, following a decision by Asda to source its milk from only one supplier, namely Arla Foods. Wiseman’s contract with Asda was worth around £70m (US$125.8m) in turnover for the 53-week period to 3 April 2004.
Meanwhile Arla Foods UK said that it will cease to supply Sainsbury’s with effect from January 2005, as a result of the supermarket chain consolidating its fresh milk suppliers. Arla said the loss of this contract would have no impact on profitability for the financial period ending 30 September 2004.
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By GlobalData
