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Dairy Crest is the whey to go

The dairy products group looks to boost growth with product innovation, making good use of its cheese by-products
May 22, 2017

Dairy Crest (DGC) is looking more nimble since it sold its liquid milk division in December 2015 and drastically downsized, but growth in new areas are on the horizon. The dairy products producer has been investing in its cheese business with a focus on the by-product whey, which is set to benefit as consumer focus has shifted to prioritise protein intake. The group has also been researching uses of galacto-oligosaccharide, another by-product of milk better known as GOS, and how it can improve the stomach lining and allow humans to better absorb nutrients.

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The price deflation that the group experienced in the first half of the year partially reversed during the second half, resulting in flat sales volume growth across its four key brands. Although milk prices increased in the second half of the year, leading to a higher cost of sales, the margin was resilient, increasing to 16.4 per cent from 15.6 per cent. This was in part helped by £3m profit from the sale of the liquid milk business.

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