Dairy deal fuels Creamline’s delivery ambitions
A FAMILY dairy business has revealed plans to offer a home delivered online grocery service to all households in Greater Manchester after agreeing a £1m acquisition.
Eccles-based Creamline Dairies says its planned purchase of Dairy Crest’s North West depot-based milk delivery business will take turnover beyond £30m next year.
The deal, which is funded out of exisiting resources, is expected to complete later this month subject to Dairy Crest’s consultation with its staff.
Following a successful transaction with Dairy Crest, Creamline will retain the Manchester business whilst the Liverpool and Wirral business will be acquired by Mortons Dairies.
The potential deal will add four depots to its operations – in Stockport, Flixton, Warrington and Macclesfield. It will also add 72 franchisees to Creamline’s portfolio and secure the jobs of the 65 depot staff.
Creamline, which has been built up since 1994 from a £3m to a £20m turnover business by the Swallow family, expects to hire another 20 peoples in administration and logistics roles, taking its team to 200.
Joint managing director Chris Swallow, whose father Tony is chairman, told TheBusinessDesk.com: “Weare very excited about this deal and the potential for growth in our online business which we can now roll-out to Greater Manchester and Warrington.
“We are not competing with the big supermarkets, but what we are doing is offering a reliable convenience service, where if an order is placed before 9pm it will be delivered the next morning at home.”
Creamline has recently struck a deal with Manchester wholesaler Henshaws to sell fresh fruit and vegetables via the service, while essential items such as bacon, eggs and baked beans are also available.
Chris Swallow added: “I think it is a very exciting proposition, I can’t think of many other businesses able to do it.”
Creamline, which supplies independent shops, schools, hotels and restaurants, sources its milk from a network of local farmers.
Mr Swallow senior, who was MD of Healds Dairies before buying Creamline added: “The potential deal adds the final pieces to the puzzle in terms of Creamline’s heartlands, strengthening our service to local businesses and consumers, as well as propelling our online offering.
“Acquisition has traditionally played an important part of our strategy, in 2002 we acquired our Red Bank and Brinnington depots from what was formerly Lancashire Dairies and this regional consolidation means we can maximise our strong network of local farmer partners.
“It works for everyone – keeping transport costs low, allowing us to maintain our market premium for our farmers, whilst keeping food miles low for consumers.’’
