East Kilbride, Scotland, UK: Dairy company Robert Wiseman has won the contract to supply the Co-operative Group with its own-branded milk in a deal that sees 350 farmers become dedicated suppliers for the chain.
Under terms of the two-year contract, Wiseman will supply 100% of the mutually-owned supermarket chain’s own-brand milk from August. At present Wiseman supplies 75% of the Co-op’s milk.
Some 350 of Wiseman’s dairy farmers will form a supply chain for the Co-op, receiving a premium rate for providing about 363m litres of milk a year to around 4 000 stores.
Dairy Crest and Arla lost out in the tender process, but the Co-op said that Dairy Crest remains a major supplier of dairy products for its stores.
The Co-op said it had always intended to set up one dedicated milk supply scheme once it completed integration of recently acquired food retailer, Somerfield.
Robert Wiseman Dairies processes and delivers around 30% of the fresh milk consumed in Britain.
