Slimmed-down Dairy Crest to simplify supply
Dairy Crest has announced a major internal reorganisation, including board and other senior management changes.
The company, which runs the giant cheese-making factory at Davidstow, North Cornwall, and takes milk from hundreds of Westcountry farmers, says the changes will make it a more focused, less complex business.
The sale of its stake in Yoplait Dairy Crest in 2009, the creation of a unified dairies business, and last year's disposal of its French spreads subsidiary St Hubert, have provided the opportunity to simplify the business.
As a result, from April 1, Dairy Crest will consolidate its organisation into a single structure focused on consumer-driven growth, with an integrated supply chain. The aim is to "facilitate best practice, eliminate duplication and maintain Dairy Crest's strong focus on profit delivery".
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Annual cost savings of at least £5 million are anticipated. The reorganisation will also result in various changes to the management team.
The company has also announced it has retained its contract to supply liquid milk to Sainsbury's supermarkets from next February, after a competitive process. The new contract is for three years.