Müller Milk & Ingredients to review dairies network

UK-based Müller Milk & Ingredients (MMI) has announced plans to review its dairy network under its £100m Project Darwin programme.

Introduced in February, the Project Darwin programme aims to create a sustainable future for the business through cost reduction and margin improvement against a backdrop of declining consumption products such as fresh milk.

The programme includes a review of MMI’s operations, logistics, back office and people organisation in order to simplify the business, reduce costs and increase customer focus and accountability.

Müller Milk & Ingredients CEO Patrick Müller said: “Project Darwin is making excellent progress, with the whole workforce fully engaged in securing a vibrant, progressive future for our fresh milk business and very positive collaboration with customers who share our desire to reinvigorate this important sector.

“It is a matter of considerable regret that we must consult on steps, which could result in a restructuring of our dairy network and capacity but we must ensure the sustainability of our business and address potential over-capacity in our network.”

The company intends to commence a 45-day statutory collective consultation process at its network of six dairies to assess the existing and future utilisation and capacity requirements.

Since the outcome of the process is yet to be determined, the company cannot rule out any action, including the option to close its manufacturing site in order to balance the production capacity with current and future customer requirements.

MMI has also entered a logistics partnership with Müller Group’s sister company Culina Group, a distribution and transport specialist owned by Unternehmensgruppe Theo Müller to further optimise its cost base.

Beginning 1 June, Culina Group will assume day to day management control of MMI Distribution.

Müller added: “The distribution business partnership with Culina Group, a sister company within Müller Group, will put together the two major chilled logistics networks in the UK, ensuring that we can further build upon our reputation for great customer service at the lowest cost.”

Earlier this month, MMI announced plans to cut 40% of its 835 fresh milk and cream stock keeping units (SKU) in the UK as part of a cost-reduction initiative.