DairyCo

Company Review: Robert Wiseman Dairies

Published 23 January 12

The updated company review of Robert Wiseman Dairies' strategy and performance is now available to download.  Formally titled the Company Strategy and Performance Report, the report provides information relating to the 2010/11 milk year on:

• The markets Robert Wiseman Dairies (RWD) is involved in, and the current state of these markets in terms of profitability, growth potential, and how well the company is performing in those markets.
• How efficient the company is in generating profits from its milk and the margins it is making from production.
• How secure the company is financially, both in the short run and longer term.

Download the Company Review here.

Further to the preparation of the Company Review on Robert Wseman Dairies, it was announced that the German dairy company Müller has agreed to purchase RWD for £279.5m in cash. The company has operated within the UK since 1987 in the yogurts and potted desserts market, where it is the market leader.

According to the offer document* (available at www.muellergroup.com and www.wiseman-dairies.co.uk), Müller will maintain Wiseman's headquarters in East Kilbride and that the management team will continue to lead the Wiseman business alongside Müller. There are no indications that Müller intend to make any immediate or major changes to the Wiseman business in terms of asset use or location of operations, although a review of the business may identify future operational changes.

The sale provides Müller with access to the liquid milk market, an area which has previously not been involved within the UK. Based on data from the 2010/11 milk year, the company will now handle over 2 billion litres of milk per annum (based on 2010/11 data), representing around 16% of UK total milk production.

Müller state that the move will allow it to enter a new market segment in the UK and form a larger business that can offer a range of products to customers across Europe. While processors in the liquid milk market are finding it difficult to maintain margins due to the difficulty of passing on increasing input costs, market commentators believe that as a private company, Müller will be able to take a longer-term view of market opportunities.

*Access to the micro-site may be restricted under the Securities laws of certain jurisdictions.

NOTE: The review was prepared prior to the takeover of the dairy by Müller.