Factfile
One of Scotland’s best known grocery suppliers has had a name change, so we caught up with Dan Howell, Commercial Director at the newly named Müller Milk & Ingredients, to find out the background to the change and what the company has planned for 2016.
What’s the thinking behind the name change?
The new name reflects our new combined business. We are now focused on bringing Müller Wiseman Dairies and Dairy Crest’s dairy operations together to create a brand new organisation – Müller Milk & Ingredients – which aims to be the biggest and best of its kind in the UK.
Can retailers expect any changes in the way you work with them?
This transaction is good news for our customers – it will help us to achieve economies of scale, reducing our costs and enhancing our ability to compete. In the first instance, however, it is business as usual. We’ll continue to provide our customers with quality products at good prices. Though in the longer term we believe retailers will benefit as we’ll be able to add value through end to end supply chain solutions as well as enhanced innovation, and we’ll be able to offer a wider range of products. When it comes to pricing, the competitive market conditions will continue to regulate that aspect of the business.
Can we expect changes to the brands, or is this just a corporate change?
By lowering our production costs and improving our efficiency we can unlock the potential for higher levels of supply chain innovation and product development. In the context of a fresh milk sector, which has not to date been able to innovate in comparison to other key categories, this represents a significant opportunity for our customers and consumers. We see real opportunities for the FRijj brand in particular. Müller’s brand building expertise and extensive track record of growth and innovation within the flavoured milk market in Europe means that we are well-placed to invest in innovation and branding to further enhance FRijj’s performance.
What are the plans for the company in 2016?
Müller Milk & Ingredients can play a major role in invigorating and revitalising the UK’s fresh milk and dairy ingredients sector, and that’s our plan for the future. 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.
How important a role do you think milk plays in convenience?
Fresh milk is hugely important in convenience. We know that milk is a crucial footfall driver – one in every eight shoppers say that milk is the main reason they visit their local convenience store, along with news/magazines (15%) and cigarettes/tobacco (14%). And Black & White is helping to grow the overall market, with its MAT volume growth ahead of total milk market (+2.2% vs +0.6% (B&W total market MAT growth +2.2% or B&W total impulse growth +2.5%)). It has been another tough year for fresh milk, however at Müller Milk & Ingredients we are committed to growing the fresh milk market by focusing on adding value back into the category, which is a crucial strategy for us next year.
