UK: Supermarket loss costs Rachel's Dairy £1m
Organic yogurt maker Rachel's Dairy has written off almost £1m of its value after a major supermarket stopped selling some of its products.

Source: telegraph.co.uk
By Richard Tyler

OrganicPortal NewsRoom

The move came only months after the Welsh company was sold by US group Dean Foods to family owned French giant Lactalis, accounts just filed show.

The company shrugged off the delisting set back and "difficult economic conditions" to grow sales and market share throughout 2011 as it invested in TV advertising for the first time in its 29-year history.

Turnover rose 20pc to £25.9m in the year to December 2010. But the £978,000 write off of goodwill help generate a £409,000 pre-tax loss.

Rachel's has 140 staff and remains one of the largest private sector employers in Aberystwyth, Ceredigion. It had credited over £1.8m of government grants in its accounts in 2009, of which £1.1m remains to mature and be credited as profits.

Calon Wen, the co-operative of 23 farms that supply Rachel's with its organic milk, has said they retain the support of the French group. However, Rachel's transferred production of its rice-based deserts from the UK to France.

Rachel's, which started as a farm in Borth in the 1960s, sells more than 10m pots of yogurts to the main supermarkets, hotel chains and rail companies each year. Founders Rachel and Gareth Rowlands remain with the business but are no longer directors.

The firm expanded its core range of yogurts last year, experimenting with limited edition varieties such as its award winning Greek-style ginger flavoured yogurt.

Rachel's was unavailable for comment.

More information: http://www.rachelsorganic.co.uk/

Tip: OrganicPortal UK - Organic Dairy

OrganicPortal NewsRoom

06.01.2012

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