Müller UK and Ireland is planning a rapid integration of Dairy Crest’s dairy operations following the completion of the £80m takeover deal.

The integration could bring major changes to its milk collection and delivery operations.

Unlike Dairy Crest, which mainly used third party logistics suppliers, including Wincanton, for fresh milk operations, Müller uses its in-house fleet of more than 770 vehicles.

In a statement this week the company said the business, “must integrate with pace to realise its potential”.

However, Graeme Jack, Muller's group communications director, told Mototransport.co.uk: "It is too early to provide further detail on our plans for the logistics side of the business."

The acquisition, which was completed on 26 December, saw Müller UK takeover Dairy Crest’s processing, trading and distribution activities in liquid milk, packaged cream, flavoured milk and bulk commodity ingredients.

It includes Dairy Crest’s dairy facilities at Severnside, Chadwell Heath, Foston and Hanworth together with around 70 depots, employing around 3,500 people.

Under the deal Dairy Crest’s dairy operation will combine with Müller Wiseman Dairies to create a new division dubbed Müller Milk and Ingredients.

It will employ over 8,000 people and process 25% of Britain’s milk production, with 2,000 dairy farmers contracted to supply the business.

Müller's MD Andrew McInnes said: “We have the opportunity to build something special in the UK dairy industry with real benefits for customers, colleagues, farmers and suppliers.

“It is important to recognise that the status quo, particularly within the fresh milk sector, was not working and we must therefore identify and make the changes and savings required to build a combined business which is sustainable, successful and vibrant.”

McInnes said staff and suppliers will be consulted on its plans, adding: “Our aim is to become a successful milk and ingredients business as quickly as possible.

"To do this we will prioritise the delivery of great products and service, building an engaged workforce, putting in place common systems and processes, and achieving higher levels of competitiveness through savings from combining the two businesses.”

Wincanton renewed its milk distribution contract with Dairy Crest for a further three years in August last year. The company is yet to comment on whether it is affected.

Gregory Distribution told Motortransport.co.uk that the deal would not have an impact on its work for Dairy Crest, which is continuing to operate as a business producing cheese, spreads and butters followign the sale of its dairy division.

Topics