Müller is set to sell its UK milk delivery business Milk & More to local dairy group Freshways in the new year.

Financial details were not disclosed.

The dairy major snapped up Milk & More as part of its acquisition of Dairy Crest’s wider liquid milk processing and distribution operation in 2016.

However, following a “strategic review”, Müller has decided to offload Milk & More, which delivers products including fresh milk, bread and eggs. Milk & More employs 1,100 people.

Patrick Muller, the CEO of Milk & More, said: “The synergies that exist between Milk & More and Freshways and the opportunity afforded through vertical integration with a direct supply of fresh milk, offers Milk & More the means to further develop its proposition for customers.

“Potential also exists to advance our sustainability agenda by offering its customers the choice between refillable glass bottled milk and renewable cartons, the environmental credentials for which have significantly improved.”

Freshways was established in 1993 in London where it continues to operate a processing facility, alongside 16 distribution centres in England.

Freshways managing director Bali Nijjar said: “Freshways is delighted to be entering a marketplace which we have not been a part of for many decades. We have seen customer habits changing in relation to convenience through the growth of home delivery operations like Amazon and Deliveroo.

“We are confident that we can carry forward the Milk & More business in the same manner that we have elevated Freshways over the past 30 years.”

In the period from 2 January 2022 to 31 December that year, Freshways turned over £347.5m ($379.9m), versus £252.2m in the corresponding period a year earlier.

It reported an operating profit of £2.9m – having made a loss of £4.6m in 2021.