First Milk to sell Scottish creameries

Wed, 18 Apr 2018 | BUSINESS SALE

First Milk has announced that it will sell off two of its creameries in Scotland that produce premium cheeses, saying that the cost of keeping them running is too high.

The company said that the two facilities, located on Arran and in Campbeltown, required “significant investment” in order to keep up production of products under the Isle of Arran and Mull of Kintyre brands.

First Milk said that though both operations will continue as normal during the sale process, both sites could prosper with a new owner who was willing to invest in them.

The firm’s chief executive, Shelagh Hancock, said that the move represented a shift in focus to other creameries located in Wales and Cumbria as the Scottish facilities were “not a strategic fit” moving forward following a company-wide review.

She added: “The review identified that there is undoubtedly a market for the premium Mull of Kintyre and Isle of Arran brands but capturing the opportunities would require significant investment for activity that is not core to our strategic direction.

"However, we are confident that with the right focus and investment under new ownership the businesses would prosper."

Farming industry group NFU Scotland said that producers who supplied First Milk were “shell-shocked” by the announcement, however.

The group’s milk committee chairman John Smith, who supplies milk to the Campbeltown creamery himself, said that as both facilities were well-known for their world-famous cheeses they would be “hugely attractive” to potential buyers.

He also warned that in the short term, other dairy farmers who supplied the creameries would be “frustrated, justifiably worried but not completely surprised” by the news.

Smith added: “They have built their businesses with a view to continuing to milk cows and have stuck with First Milk through thick and thin. However, these are local, family farms who have also successfully invested in building and promoting their brand locally and nationally and we must now look to the future."


Share this article



Latest Businesses for Sale

Licensed Thai Restaurant & Takeaway
Somerset, South West, UK

Fantastic Freehold restaurant opportunity in a quaint Somerset market town. With an immediate population of 45,000, and around 70,000 visitors annually, this restaurant benefits well from local and visiting trade. Offers invited.

Asking Price: £165,000
Turnover: £82,000

FREEHOLD


Restaurant with Accommodation
Cambridgeshire, East of England, UK

The historical property has an inbuilt charm and ambience and has now become Cambridgeshire's top quality destination venues often fully booked months in advance. Offers invited.

Asking Price: £899,000
Turnover: £500,000

FREEHOLD


Italian & Portuguese Restaurant
Clwyd, Wales, UK

Fantastic opportunity to acquire TripAdvisor Top 5 rated discerning food lover's paradise offering fresh and varied authentic menu range on 6-day week from superbly fitted and presented 50-cover 5-star hygiene character parade premises. Offers invite...

Asking Price: £559,950
Turnover: £364,000

FREEHOLD



View more businesses for sale

News Search

Latest News

 
23
 
May
 

Fintech company Loot collapses into administration | ADMINISTRATION

After failing to secure further backing from the Royal Bank ...

 
22
 
May
 

Spike in M&A activity in the education sector | BUSINESS SALE

In recent months, the education sector in the UK has witness...

 
22
 
May
 

Jamie Oliver restaurant empire collapses into administration | ADMINISTRATION

Celebrity chef Jamie Oliver, who shot to fame after campaign...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources