FDBusiness.com

UK dairy group Dairy Crest is reported to planning to move into the £1.2b yoghurt market either through developing its own business or by acquisition. Dairy Crest had been a key player within the UK yoghurt market through a joint venture with French dairy group Yoplait before selling its stake in 2009. A condition of the deal was that Dairy Crest would not compete in the yoghurt market for two years. That exclusion period expired in March.

“We want to develop a yoghurt business over time – that means developing a brand or going out and acquiring one,” says Mark Allen, chief executive of Dairy Crest. “In terms of our aspirations for the group, we are also looking at other businesses across our dairy categories.” Dairy Crest is involved in the cheese, liquid milk and spreads categories of the UK dairy market and also has a spreads business based in France.

According to Mark Allen, Dairy Crest could easily manage to pay £100m for the right acquisition without compromising its internal net debt targets.