Food and Beverage Business
Finance

Müller divests DTC business Milk & More to UK group Freshways

Müller divests DTC business Milk & More to UK group Freshways Unternehmensgruppe Theo Müller Food and Beverage Business

Müller has announced its decision to sell its UK milk delivery business, Milk & More, to local dairy group Freshways in the new year, without disclosing the financial details. The sale is part of Müller’s strategic review to offload Milk & More, which delivers a range of products including fresh milk, bread, and eggs. Following the acquisition of Dairy Crest’s liquid milk processing and distribution operation in 2016, Müller had operated Milk & More.

Freshways, established in 1993, operates a processing facility and 16 distribution centers in England. Bali Nijjar, Freshways’ managing director, expressed enthusiasm about entering a marketplace witnessing changing customer habits and believes the company can carry forward the Milk & More business just as they have elevated Freshways over the past 30 years.

The company turnover for Freshways from 2 January 2022 to 31 December that year was £347.5m, compared to £252.2m in the corresponding period a year earlier, with an operating profit of £2.9m, reversing a loss of £4.6m in 2021.

Milk & More CEO, Patrick Muller, emphasized the synergies with Freshways and the opportunity for vertical integration with a direct supply of fresh milk. He also sees potential in advancing their sustainability agenda by offering customers the choice between refillable glass bottled milk and renewable cartons, with improved environmental credentials.

The sale comes after Müller’s strategic review, with Müller deciding to offload Milk & More. Freshways is set to bring Milk & More under its wing soon. The company’s CEO highlights the synergies with Freshways and further potential. With this deal, Freshways aims to carry forward Milk & More’s business while also showcasing a successful history of business growth.

The company reported the sale of its UK milk delivery business to a local dairy group. Moving forward, it remains to be seen how the business will evolve under the auspices of Freshways. I ensured a smooth transition, the determination to elevate Freshways, and build a sustainable business.