SOUTH AFRICA – Dairy Group South Africa has introduced a new dairy brand dubbed, Creamline comprising of UHT milk, butter and dairy liquid blends.
The Creamline dairy products, according to the processor, are made from milk produced by its Homegrown Farmers and packed at its manufacturing plant in the Eastern Cape.
Dairy Group SA came into existence in October 2020 following the merger of the country’s leading dairy companies, Dairy Farmers of South Africa (DFSA) and Coega Dairy.
The merger led to formation of South Africa’s largest raw milk buyer and supplier of Ultra High Temperature (UHT) milk, sterilised milk, butter and other dairy products to private labels and consumers.
Under the 50:50 partnership DFSA brought its over a century long experience as a market leader in the procurement of raw milk and supplying premium brands such as Clover, combining with Coega Dairy’s low-cost efficiency and house-brand knowledge.
DFSA was initially a full subsidiary of Clover SA. Later its milk producers acquired 74% ownership of the company with Clover finally disposing of its remaining investment to the Milk Producers Trust in May 2020.
Despite the change in ownership, DFSA still supplies Clover’s full raw milk requirements, including its own products which are predominantly UHT under the Clover, retailer-owned and Ultra Milk brands.
Coega Dairy on the other hand, is owned by Coega Food Group and commenced operations in September 2011, producing UHT and butter products under the Coastal View and Crystal Valley brands for private labels.
In September 2019, Dawson Dairy was brought into the Coega Dairy family, and Amasi brand was introduced into Coega Dairy’s product line.
The new joint venture brought together offerings from both companies thus venturing into high value and house brand business creating a powerhouse dairy brand with the potential to significantly strengthen the local dairy sector.
The merger is deemed to have been timely following rising operation costs, as consumption of fresh milk is fairly stagnant or declining with increase in demand for products such as butter, cheese, yogurt, whey, milk powders and dairy desserts, making product diversification to be key.
Also by joining forces, it enable the parties to boost their raw milk purchasing power at a time the number of milk producers in the country contraction following exit of small-scale farmers, leading to presence of fewer commercial farms with larger herds who can absorb towering costs.
The new Creamline has joined the existing private label UHT milk produced by Dairy Group for both Usave and Checkers, brands under Shoprite Group.
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