Dairy Crest sees butter and spreads business hit

Dairy Crest said sales of Clover and Country Life fell in the 12 weeks to the end of June. Picture: PA

Dairy Crest saw sales of its butter and spreads brands fall in the first three months of its year, but said strong demand for Cathedral City had helped keep trading on track.

The group, which is selling it dairy arm to Germany’s Muller for £80 million, said sales of Clover and Country Life had fallen in the 12 weeks to the end of June in line with the wider butter and spreads market.

However, the firm added that sales of its flagship Cathedral City cheese brand had “another strong quarter, during which it has continued to grow sales and market share”.

Muller, which announced its deal in November, will acquire four dairy sites and 72 depots from Dairy Crest, as well as the flavoured milk brand Frijj.

Dairy Crest said the deal had already been approved by its shareholders and was being looked at by the Competition & Markets Authority. It added it expected to complete this sale before the end of the year.