First Milk, the UK dairy co-operative, plans to up its focus on its buoyant The Lake District Cheese Co. brand as part of a push to improve branded sales.

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The company, which earlier today (25 September) reported an annual loss of over GBP7m (US$11.2m) for the year to the end of March, wants to boost the percentage of its revenue taken up by brands.


First Milk’s brands, which also include the Pembrokeshire Cheese Co. line, accounted for 5% of the company’s turnover in its last fiscal year. The group wants to up that portion to 20% this year.


A spokesman for First Milk told just-food that the company’s Lake District line was the fifth-largest cheese brand in the UK and could continue to thrive this year – despite intense competition in the category.


“The proposition of the brand is very strong and we continue to get increased listings. Increased listings will drive volume sales,” the spokesman insisted. He pointed to a recent “nationwide” deal with Asda and a similar agreement to go live with the Co-operative Group in January.

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Despite swinging to a loss in the 12 months to the end of March, First Milk has maintained that a recent finance deal with Lloyds Banking Group will give the company the firepower to invest in the business in the next year.


Further consolidation of the UK dairy sector remains a possibility as the country’s processors look to compete on the international stage with the likes of Arla Foods and FrieslandCampina.


A mooted merger between First Milk and Milk Link was abandoned in February 2008 but the First Milk spokesman said his company always monitored the industry landscape.


“Consolidation has never gone off the agenda. We have to look at organic growth and consolidation. It’s always part of our strategy.”


When asked if First Milk and Milk Link had held talks to revive the possibility of a merger, the spokesman added: “We have a venture with Milk Link in Westbury Dairies. We speak to Milk Link all the time.”