UK – In a strategic move set to reshape the dairy landscape, Müller Group has announced the sale of its UK-based milk delivery business, Milk & More, to local dairy powerhouse Freshways.

The financial details of the deal, slated for the new year, have not been disclosed.

The story of Milk & More is intertwined with Müller’s acquisition of Dairy Crest’s liquid milk processing and distribution operation in 2016.

However, a recent “strategic review” has prompted Müller to divest Milk & More, a business employing 1,100 people and delivering a range of products, including fresh milk, bread, and eggs.

Patrick Muller, the CEO of Milk & More, expressed optimism about the synergies between the two entities.

“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,” he stated.

Muller also highlighted the potential for advancing sustainability initiatives, offering customers a choice between refillable glass bottled milk and renewable cartons.

Freshways, established in 1993 in London, operates a processing facility alongside 16 distribution centres in England.

Bali Nijjar, Managing Director of Freshways, affirmed their confidence in carrying forward the Milk & More business, citing their successful elevation of Freshways over the past 30 years.

Financially, Freshways reported a turnover of £347.5 million (US$379.9 million) in the period from January 2, 2022, to December 31, compared to £252.2 million in the corresponding period a year earlier.

The company recorded an operating profit of £2.9 million, a significant turnaround from the £4.6 million loss in 2021.

Müller, a German dairy giant with headquarters in Fischach, Bavaria, is a global player with a turnover of €5.7 billion in 2019 and a workforce of over 27,500 employees worldwide.

The company’s diverse portfolio includes well-known brands such as Müller Corner yoghurt and Müller Dairy (U.K.), along with subsidiaries like Müller Wiseman, Müller Quaker Dairy, Weihenstephan, Sachsenmilch, and Käserei Loose.

The Müller Group’s presence extends beyond dairy, with subsidiaries like HK Food, a leading German convenience foods manufacturer, and ownership stakes in various dairy companies globally, including Molkerei Weihenstephan, Sachsenmilch, Käserei Loose, Mlékárna Pragolaktos, and Müller Milk & Ingredients in the United Kingdom.

Despite the sale of Milk & More, Müller Group continues to be a force in the dairy industry, maintaining a robust presence in markets across Europe and beyond.

The group’s commitment to sustainability and innovation remains evident through its diverse product offerings and strategic business decisions.