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Dairy Crest Q1 trading boosted by ‘milk in bag’ success

By Ben Bouckley, 20-Jul-2010

Related topics: Financial

Dairy Crest's first quarter figures are “in line with expectations”, with sales boosted by the success of new patented milk bags that Tesco is now trialling.

The ‘Jugit’ milk bag comes packaged in a cardboard box and looks like a jug. Dairy Crest’s claim that the two pint container will reduce packaging waste weight by 75% is proving popular with major retailers.

Chairman Anthony Fry said there had been “good progress” in liquid milk sales to major retail customers in the first quarter, with the new milk bags a notable success story.

“In particular, sales of milk in bags…are growing strongly. In addition to national distribution with Sainsbury’s, we have recently started a trial with Tesco.”

Fry also reported that the group was increasing sales to doorstep customers, while the internet-based doorstep delivery proposition, milk&more, “continues to develop well.”

Sales of Dairy Crest’s five key brands – Cathedral City, Country Life, Clover, Frijj and St Hubert Omega-3 – were up 3% compared with the first quarter of last year.

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