Arla has snatched the Starbucks milk contract, estimated at 16 million litres, from arch-rival dairy Crest
Kicking off this week, the contract will see Cravendale milk from Arla’s Hatfield and Stourton plants used in all Starbucks-owned cofee houses in the UK (though it does not apply to licensed Starbucks outlets such as those in train stations).While neither Starbucks nor Arla would say how many litres the contract covers or how much it is worth, a Dairy Co report from 2010 estimated Starbucks’ annual milk use at about 12 million litres. Consultant John Taylerson, who compiled the Dairy Co report, said this was likely to have increased to about 16 million litres by now.
Starbucks said it had decided to switch to Cravendale because its milk was high quality and because Arla was a farmer-owned co-operative. “We are committed to supporting British farmers, and by partnering with Cravendale, we not only get fantastic quality milk, Cravendale’s co-operative model also means its farmers co-own the business and therefore share in the profits,†Rhys Iley, the coffee chain’s vice president of retail operations, said.
There were no plans for co-branding or alerting Starbucks customers to the use of Cravendale milk in coffee shops, a spokeswoman added.
Cravendale brand manager Sophie Macaulay said Cravendale was especially suited to coffee making “because of the way the milk foams.
Arla and Starbucks already have a relationship through Starbucks’ range of RTD chilled coffee drinks, which Arla produces.
airy Crest said it was disappointed to have lost the contract, adding: “We understand Starbucks’ decision was part of a routine review to improve profitability.â€
Source: The Grocer