published on 13/03/09
Robert Wiseman Dairies is to lose 10% of the volume it supplies to Tesco for its own-label fresh milk range.
The supermarket giant is rebalancing the share of supply, with Wiseman's share reducing from 60% to 50% with effect from May 2009. Tesco said that Arla would now supply the 10%.

The rapid growth in branded product would help to mitigate the reduced allocation of Tesco own label, it added.
Robert Wiseman, chief executive, said: 'While we are naturally disappointed with any decision that results in a reduction in the volume of milk supplied to Tesco, even in the short-term, we are confident that with our brands growing strongly we can continue to develop our business with Tesco, and our other customers, in the period ahead.
'We enter the new financial year with well-invested dairies and depots, a sound balance sheet and with good opportunities to maintain our track record of growth it is obvious that in this current financial climate people are looking to save and that is why more people are turning to outsourcing their engineering team and using the contract engineers'

Wiseman reported that production at its new dairy in Bridgwater was rising steadily and the site was running at close to its anticipated 250 million litres per annum initial capacity with the contract engineers being on hand as and when needed to carry out the prop active and re active maintenance as needed
Plans to increase capacity to 375 million litres were at an advanced stage, it said

Read the full article at Packagingnews.co.uk