German dairy giant Muller revealed their plans to their dairy network in the UK and Ireland, comprised of six branches spread across the two countries, as part of its Project Darwin cost-saving initiative launched in February. Alongside this, they’re partnering up with a logistics systems specialist in order to improve their operations.
Muller Milk and Ingredients, the UK’s biggest dairy producer, covering branded and private-label fresh and flavoured milk, butter, cream, as well as ingredients. The company will be conducting a 45-day consultation process for its dairies, as its looking to save about GBP100m/US$129m from its business over a two-year time span.
The Muller Group has also entered a partnership with sister company and logistics systems specialist, Culina Group, which handles delivery and logistics for food and drink in the UK and the Ireland.
Muller stated that the consultation process covering the dairies would look at what the sites could provide in the future, as well as capacity requirements, and that it would not rule out closing a manufacturing site should the company feel that it has to be done in order to make sure that the company’s resources aren’t wasted on capacity that’s not amounting to the requirements of the market currently or in the future.
Muller is conducting Project Darwin as the retail environment changes, with reduced consumption of fresh milk and other dairy products, with the aim of cutting down on costs, as stated by the company.
Muller Milk and Ingredients CEO Patrick Muller says that they consult on steps which could result in their dairy network and capacity, which might result in certain sites closing. With considerable regret, he says, do they undertake this endeavour, but they have to in order to make sure that their business remains sustainability, as well as addressing any potential issue of over-capacity.
The Bavaria-base Muller, as well as the chilled distribution and logistics systems specialist Culina Group, is owned by the German businessman, Theo Muller.
Culina will handle distribution for its sister company starting in June, with Ian Smith to oversee Muller’s logistics operations, but employees will remain unaffected by the changes.