Muller to expand Shropshire factories as part of £100m investment
Dairy giant Muller is to invest £100 million to grow its range of yoghurts and desserts – meaning investment and expansion in its three Shropshire factories.
The company wants to develop new products to let it move into new market areas, while growing sales in those where it is already a significant player.
As part of that the company says it plans to increase capacity and capabilities at its three Shropshire sites, including with the 10,000 sq m extension of the former Nom factory it runs in Telford, revealed in July.
That will double output from the Telford operation, which currently makes private label products for customers such as supermarkets, but it will also invest in its headquarters at Market Drayton, where Muller makes its own-brand products.
Muller also says it plans to build on its agreement with Mondelez to develop its range of Cadbury desserts, which are made at its Minsterley factory.
Muller currently sells 208 million yoghurts and desserts a year, using milk from thousands of British dairy farmers.
A big increase in sales would also mean it needs more milk, providing an opportunity for dairy farmers at a time when milk prices are on the rise.
Bergen Merey, managing director of Muller Yogurt & Desserts said: “This unprecedented level of investment will ensure that we can offer an increasing portfolio of great yoghurt and desserts products made in Britain with milk from British farmers, which meet the needs of our customers.
“Muller’s approach in the UK within the yoghurt and desserts and milk and ingredients sectors is to grow our capabilities so that we can reduce the UK’s dependence on imported dairy products, and build a vibrant future for the British dairy industry.”
Muller will also raise its marketing spend by almost a quarter over the next three years, helping its expanded product portfolio to gain traction in the market.
The German-owned company has identified £233 million of growth from yoghurt and desserts by 2020, which will partly be delivered by introducing new products to the market.
Already this year, Muller has successfully introduced a range of "Big Pot" yoghurts and its first-ever whipped fat free Greek-style yoghurt.
Most recently it has launched Muller White Velvet, which it hopes will corner the plain yoghurt sector, and a new type of rice pudding.
It has also started adding plastic spoons to some of its Muller Corner products so that it can target people who are buying food to eat on-the-go.
