Arla take 100 million litres off Muller in battle to supply Aldi

The outcome of the recent Aldi liquid tender is that Arla have won an additional two regions in England and Wales currently supplied by Muller which amount to around 100 million litres.  From October Muller will supply Aldi in two regions with around 60 million litres annually, which will be less than 20% of the combined Arla/Muller literage.  Ian calculates Arla will then be Aldi’s dominant supplier having easily in excess of 80% of Aldi’s liquid and cream business, especially given Aldi’s speed of growth.  The deal is understood to be a 5-year contract.

Note, So far as Scottish Aldi stores are concerned it’s no change as Grahams Dairy retain their supply agreement and similarly Trewithen Dairy in Cornwall will retain their Aldi liquid business to  their Southwest stores.

Muller will continue to supply Aldi with a range of non-liquid dairy products. 

Last month Kantar confirmed that Aldi had regained its crown as Britain’s fastest growing supermarket with sales up 15% year on year with Aldi, now Britain’s 5^th largest supermarket.

Muller has taken one or two knocks too many from Arla, including the loss of volume from Sainsbury’s, Morrison’s and now Aldi and can’t afford to loose anymore literage and the gloves are sure to come off more than ever.