Big year on the way as Wiseman lands contracts

Published on Thursday 29 March 2007 11:46

DAIRY firm Robert Wiseman said its performance for the year is in line with expectations, but it expects strong growth in the next financial year after securing significant new contracts.

The company said in a trading statement ahead of its year-end results to March 31, that new deals would be worth 40 million litres of milk, mainly down to an extensive expansion of its contract with the Co-operative Group from August 2007 both in Scotland and south-west England.

It has also started supplying the regional retailer Booths in the north of England.

Wiseman finance director, Billy Keane, said: "Sales volumes for the group generally have been running in line with forecast, with continued strong like-for-like growth from major customers.

"The new organic milk orders from Tesco and Rachel's commenced in November last year and initial sales are encouraging."

Wiseman said milk consumption was being stimulated through new products and promotion. In the last six months, the company has launched Tesco flavoured organic milk, Kids flavoured milk and a fortified milk with omega 3 and vitamins A, C and D.

But the company, run by brothers Robert and Alan Wiseman, said it would need to pay higher prices to milk producers from March because of rising farm costs.

Construction of a new south-west dairy at Bridgewater is expected to be completed this year.

Mr Keane said: "We are optimistic that with our new acquisitions being integrated, we are in excellent shape going forward."