Scottish milk processor Robert Wiseman has secured its first listings at Sainsbury ­ the only major multiple not on its books ­ as part of a trial to prove its mettle in terms of product quality and operational efficiency. If the three-month trial is successful, say analysts, Wiseman could snatch Sainsbury contracts from rivals Express Dairies and Dairy Crest, adding a new dynamic to the power struggle between the top four processors battling for share in a market bedevilled by overcapacity. While Wiseman has lost business with Morrisons to Express, it will have forced its debt laden rival to a rock bottom offer price it can little afford, said one City analyst. However, Express deputy executive for liquid milk John Loak countered: "We are the best operators in the country and the largest white milk supplier to convenience retailers and the multiples." An Express spokesman added: "Everybody's margins are low because of the intense competition in the industry." Wiseman finance director Billy Keane said his firm was not under pressure to instigate the next round of industry consolidation. It would continue its strategy of driving volume through its new dairy at Droitwich by offering multiples milk from the biggest, most efficient dairies capable of top quality product at the lowest cost. Keane said: "The net effect of new business wins from Safeway and Somerfield means volumes are still up, despite losing Morrisons." Droitwich is churning out 150m litres of liquid milk, and Wiseman plans to increase capacity to 250m litres by securing additional listings. Keane conceded rival Dairy Crest was better placed geographically to pick up business in the south-east from its superdairy in Essex, but said there were ample opportunities to fill capacity at Droitwich from elsewhere in the UK. Pre-tax profit slipped 5.5% to £8.96m on sales up 22.5% to £178.5m for the six months to September 30. {{NEWS }}

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