Freshways and Medina Dairy discuss potential merger
In doing so they are examining the potential of establishing a sustainable and progressive dairy business in the best interests of their combined staff, customers and the British dairy farmers that supply them.
The fresh liquid milk market has been a highly challenging one, and the companies said it is a market dominated by two major national players, and has low margins and declining sales volumes. In response, businesses large and small have sought to consolidate, rationalize and cut costs, but despite this, some have proved to be unsustainable. Against this backdrop, Medina Dairy and Freshways are discussing whether a potential merger will create the basis for a viable, long-term, fresh liquid-milk business.
In the meantime, an entity linked to Freshways has taken security to protect arrangements with the Medina Group, documented by a charge registered at Companies House on February 19, 2021. The confidential terms of those arrangements do not give Freshways any control over the day-to-day operations of Medina and the Medina Group remains wholly independent.
Bali Nijjar, managing director of the Freshways group of companies, said, "We are very excited about the possibility of entering into a partnership with the Medina Group, as we believe that the two companies have complementary structures and cultures, which will mean we are able to compete even more effectively with the two large players which dominate the dairy sector in the UK."
Sheazad Hussain, chief executive of Medina Dairy, said, “We are looking forward to working with the Directors of the Freshways business to explore the possibilities of a merger. In doing so our joint objective will be to create a business that is leaner, more agile and fit for purpose. One that will benefit customers, consumers and suppliers and will ultimately be well placed to grow and develop in a sustainable manner for the long term.”
