2 minute read - 25th August 2023
Crediton Dairy to make major £20m investment
Independent dairy drinks producer Crediton Dairy has announced details of a £20m capital investment programme set to be undertaken over the next three years. Having already invested £33m in the business since a management buyout in 2013, the new programme will include further upgrading of the dairy’s processing capabilities; investment in carbon reduction initiatives including the installation of new effluent treatment and water recycling plants, an efficient gas boiler and an energy monitoring control system to reduce the usage of gas and electricity; and the development of new employee welfare and office facilities.
The latest investment announcement coincides with the filing of Crediton Dairy’s report and accounts for the year ending 31 December 2022. During this reporting period, inflationary pressures resulted in both increased milk prices and significantly higher processing, ingredients, packaging and distribution costs. As a result, the company had to work closely with its retail customers to recover cost inflation through higher selling prices whilst aiming to minimise the impact on consumers. Against this backdrop, financially the business performed well with a turnover of £114.1m (2021: £101.5m) and a profit of £7.9m in line with the prior year (2021: £7.8m).
The company said the results reflect the continuing strong sales performance and an improved mix of own label flavoured and functional milks and branded dairy drinks made by Crediton. The latter includes iced coffee, fresh protein shakes and lactofree milks. While in the current year, the branded portfolio made by Crediton Dairy has been further expanded with the recently launched new Biocol cholesterol lowering milk.
In line with this growth, Crediton Dairy has recruited more dairy farmers into its dedicated local milk supply pool. Today, 94 farmers, nearly all of whom farm within 30 miles of the dairy, are contracted to supply Crediton Dairy, with an annualised volume of 160 million litres of milk.
Tim Smiddy, managing director of Crediton Dairy, said: “In the light of increasing demand for our product portfolio we are confident about the long-term prospects for the dairy drinks sector and the role that we, as a focussed and flexible, independent, added value business, can play within it. Our latest £20 million, three-year, capital investment programme will enable us to upgrade our processing capabilities, improve our staff welfare facilities and reduce our carbon footprint.”