The company, created after Müller Wiseman Dairies acquired Dairy Crest’s dairies operations for £80M last month, had the opportunity to build “something special” in the UK dairy industry with real benefits for customers, farmers and suppliers, md Andrew McInnes said.
However, he conceded that the status quo, particularly within the fresh milk sector, “was not working” and consequently the company must “identify and make the changes and savings required to build a combined business that is sustainable, successful and vibrant”.
McInnes said the company would listen to colleagues, customers, farmers and suppliers so that it could validate and refine its plans and estimates.
Communication commitment
He said: “Our commitment is then to communicate the resultant changes and improvements we need to make clearly and in a timely manner.
“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.
McInnes added: “We have an excellent workforce and I am confident that we will make real progress in 2016.”
Company objectives
- Prioritise the delivery of great products and service
- Build an engaged workforce
- Put in place common systems and processes
- Achieve higher levels of competitiveness through savings made by combining the two businesses
Employees, customers, farmers and suppliers are receiving information directly on the vision and plans for the new organisation, which employs around 10,000 people in 13 dairies and 70 depots, and processes 25% of Britain’s milk production.
Sustainable sector
Upon completion of the deal, Dairy Crest ceo Mark Allen said it was a “transformational moment” and would help to create a “more sustainable UK dairy sector”.
“It will deliver economies of scale and cost efficiencies that will underpin investment in the sector and help the UK to compete more successfully in global markets,” he said.
“Dairy Crest will now be able to focus on growth, through both our branded cheese and spreads operations and new revenue streams from manufacturing products for the fast-growing global infant formula market,” Allen added.