Muller has announced the sale of its milk round and doorstep delivery service, Milk & More, to Freshways Group with the sale completing on January 1, 2024.
The Milk & More brand delivers milk and other produce to doorsteps across the country and employs 1,100 people and was acquired by Muller as part of its acquisition of Dairy Crest's wider liquid milk processing and distribution operation in 2016.
Muller said it had ‘transformed' it into a modern service, investing in a digital platform, a large fleet of electric vehicles and a broader range of products beyond milk.
However, it said following a strategic review, it decided to divest its interest in Milk & More, as a direct to consumer business with its focus instead on supplying milk to retail, wholesale and other businesses.
Bali Nijjar, managing director of Freshways said: "Freshways is delighted to be entering a marketplace which we have not been a part of for many decades."
Mr Nijjar highlighted the changing customer habits, looking for convenience. This has been demonstrated through the growth of home delivery operations such as Amazon and Deliveroo.
Milk & More
"We are confident that we can carry forward the Milk & More business in the same manner that we have elevated Freshways over the past 30 years," he said.
Patrick Muller, chief executive of Milk & More said: "The synergies that exist between Milk & More and Freshways, and the opportunity afforded through vertical integration with a direct supply of fresh milk, offers Milk & More the means to further develop its proposition for customers.
"Potential also exists to advance our sustainability agenda by offering its customers the choice between refillable glass bottled milk and renewable cartons, the environmental credentials for which have significantly improved."