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UK's Dairy Crest renews Morrisons milk supply deal

by Lin Noueihed; Editing by Matt Scuffham - 04/10/2010

UK's Dairy Crest renews Morrisons milk supply deal

"British food manufacturer Dairy Crest said on Wednesday it had renewed its fresh milk contract with Morrisons supermarkets through to 2015, boosting its shares one day before it issues a six-month trading update.
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Shares in the maker of Clover spread, were up 7.42 percent at 0940 GMT.

"We believe our clear focus on quality, service and cost puts us in a good position in a very competitive market", Toby Brinsmead, managing director of Dairy Crest's liquid products business, said in a statement announcing the contract renewal.

Dairy Crest said in July it had traded in line with its own expectations in the first quarter, driven by growth in sales of key brands such as Cathedral City cheese and Country Life butter. It also said at the time it had made good progress with sales of liquid milk to major retail customers. The firm has a national distribution deal with J Sainsbury (SBRY.L), Britain's third-largest supermarket, and has also started a trial with Tesco (TSCO.L), the country's largest retailer.

(Reporting by Lin Noueihed; Editing by Matt Scuffham)

More Details: http://www.reuters.com/article/idUSLDE68S0VA20100929