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Packaging And Design

Dairy Crest To Close Bottling Plant and Phase Out Glass Bottles

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Dairy Crest To Close Bottling Plant and Phase Out Glass Bottles

Dairy Crest, the English dairy processor, has announced that it plans to close its glass bottling dairy in London within the next two years and its cream potting plant in Somerset by the end of next year, resulting in a loss of around 260 jobs.

Chief executive Mark Allen said the closures were right for the long-term future of the business. There has a been a reduction in demand for milk in glass bottles, with most consumers opting for plastic bottles; only around 4 per cent of doorstep delivered milk now comes in glass bottles. The company said that its milk will soon only be delivered in plastic bottles and pointed out that plastic bottles are now so far advanced that they are as environmentally friendly as glass bottles.

Dairy Crest decided to make the announcements regarding the plant closures now in order to enter into consultations with workers about the future of their jobs.

It is hoping that the closures will help it hit its target of £20 million in annual savings. Dairy Crest, the maker of dairy brands such as Clover and Frijj, has said it is facing a "challenging trading environment" and while it still expects first half profits to be roughly the same as last year, its dairies division has been loss making recently. It is facing particular pressure from falling milk prices and the "extremely volatile" dairy commodities markets which also influenced the decision to close the plants. However, Dairy Crest has said that its key brands are perfoming strongly.

The company has said that it will set up its production at its three plastic bottling dairies to make up for the loss of prodcution.

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© 2014 European Supermarket Magazine – Europe’s grocery retail magazine, for all your breaking supermarket, convenience store and FMCG news. Article written by Nicole Gernon

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