Dairy Crest boosted by Cathedral City and Clover
Total revenues for Cathedral City, Clover, Frylight and Country Life grew 6%.
Sales at Dairy Crest were given a boost by the outperformance of key brands Cathedral City and Clover in the first quarter, despite challenging market conditions.
The group said combined revenues for Cathedral City, Clover, Frylight and Country Life grew 6% in the three months to June 30.
This was driven by the “ongoing outperformance” of Cathedral City and Clover, which both saw revenues grow by 10%.
Boss Mark Allen said: “2018/19 has started as we expected, with our two most important brands, Cathedral City and Clover, delivering a strong performance.
“While the butter market remains challenging, our spreads portfolio continues to go from strength to strength, demonstrating the benefit of our diversified portfolio.”
He added that Dairy Crest expects to launch several new products before the end of 2018.
In May, Dairy Crest tapped investors for £69.8 million to bankroll expansion plans.
The cash will be used to ramp up cheese production from 54,000 tonnes per year to up to 77,000 tonnes on the back of soaring demand.
At the time, Dairy Crest pointed to the fast-growing UK cheese market, which is expanding at around 2% per year, highlighting opportunities in snacking and convenience ranges.
It also said there is demand for “high-quality mature cheddar” in Europe, the US, China and the Far East.