Primula makers explore goats' milk market

A Gateshead cheese company has strengthened its grip on the UK dairy market with the acquisition of a major goat’s milk producer.

Kavli UK, which makes Primula cheese, has acquired the St Helen’s Farm dairy, representing a major step forward for the Norwegian-owned company.

They are significantly expanding their presence in the UK dairy market and boosting Kavli UK turnover to more than £40m.

The St Helen’s Farm dairy, at Seaton Ross in the Vale of York, has 40 employees and produces goats’ milk, cheese, cream, butter, yogurts and ice cream to supply supermarkets across the country on a daily basis.

There is a growing awareness that goat’s milk products are beneficial alternatives for people who have an intolerance to cow’s milk and demand is currently rising fast, a trend which is expected to continue into the future.

The market for goats’ milk in the UK is now worth more than £50 million a year.

Paul R Lewney, managing director of Kavli UK Ltd, said: “We believe that Kavli and St Helen’s Farm are a good business fit in terms of customers and markets and are also well-aligned in terms of culture and values.”

“This acquisition is a major step forward for our business and demonstrates the confidence that the Kavli Group has in the UK and as part of on-going strategy we will continue to look for opportunities that build our position in added value sectors of the dairy market in the future.”

KPMG’s Newcastle based head of Transaction Services advised on the deal and partner Chris Stott said: “We are very pleased to have advised the UK Kavli team on their acquisition of St Helen’s Farm Limited as they pursue a growth strategy focused on a diversification of products and brands within the dairy sector.

“St Helen’s Farm is a very complementary purchase for Kavli: It operates in a growing niche part of the dairy industry, with goat milk product sales benefiting from a rising number of consumers seeking healthy, natural alternatives to traditional dairy products. In turn, the St Helens Farm brand stands to receive a boost as part of the Kavli Group, which can help support further growth through its comprehensive relationships with major retailers and other customers.”

Kavli is owned by the Kavli Trust, a charitable organisation set up by the Kavli family in the 1960’s. Profits from the group’s commercial activities are used to support good causes both in the UK and around the world - ranging from fair-trade and culture to health and education projects.

It funded the development of a new sensory room for pupils at Dryden School, donating more than £30,000.

Currently, Kavli UK employs 190 people across two manufacturing sites, one based at Team Valley in Gateshead and the other at Kirkcudbright in southwest Scotland, making a range of food products including cheese spreads, snacks and ambient dips under the Primula brand and chilled pâté under the Castle MacLellan brand and for private label customers. Products are distributed to all major retailers, wholesalers and cash & carries in the UK.