Freshways appetite for Spot Milk is believed to be a combination of two factors

Reports of Freshways suddenly seeking both 3rd party processing and packing plus relatively large volumes of milk including spot milk has left a few of us puzzled. It is claimed that Freshways have lost significant volumes of milk in South Wales but more importantly there are very strong rumours that the Muller Dairy Crest 5 year Medina deal ending has had the biggest impact.

Back in the Autumn of 2015 the CMA gave the green light to the Muller take over of Dairy Crest’s liquid business subject to Muller providing up to 100 Million Litres a year of toll processing to Medina from Severnside, Gloucestershire.

It is believed Muller have decided to end the facility from 1st of April following Freshways involvement with Medina which has put pressure on the combined businesses. This is likely to be the reason why Freshways are seeking additional processing. In addition, there are rumours suggesting changes at Severnside as part of Project Darwin.