Neal’s Yard Dairy has been left reeling after it lost 22 tonnes of cheese worth more than £300,000 in a “sophisticated fraud”.
The London-based British artisan cheese retailer and distributor has urged other small businesses in the cheese sector “to exercise extreme caution when dealing with new or unfamiliar customers, even those who appear credible”.
The incident involved a fraudulent buyer posing as a legitimate wholesale distributor for a major French retailer, with the cheese delivered before the discovery of the fraudulent identity, Neal’s Yard said.
The stolen consignment was made up of 950 clothbound artisan cheddars, including Hafod Welsh Organic Cheddar, Westcombe Cheddar, and Pitchfork Cheddar.
Neal’s Yard said the high monetary value of the cheeses “likely made them a particular target for the thieves”.
It described the fraud as “deceptively convincing”, with the perpetrators impersonating a reputable distributor well known within the European cheese industry who had previously organised large artisan cheese promotions for the French retailer.
An elaborate contract was drawn up, outlining detailed payment terms, and conversations with the alleged representative demonstrated a deep understanding of the sector, further lending credibility to the scheme, the business said.
“The complexity of the operation made it difficult to detect the fraud until it was too late,” the company said.
But despite the significant blow to its finances, Neal’s Yard said it had honoured its commitment to its small-scale suppliers – having already paid the three artisan cheesemakers in full.
The company added it was now “taking steps to address the situation to ensure both its financial stability and the continued development of the British artisan cheese sector”.
It was working with local law enforcement and international authorities “to identify the perpetrators of this fraud and bring them to justice”.
While the cheese may never be recovered, “our priority is to share openly what has happened and prevent it from happening to other businesses”, it said.
“By sharing our experience, we hope to help protect the wider community of small producers and distributors, and to ensure the continued development of this vital and delicate sector. We hope to have the opportunity to collaborate with industry groups, other distributors, and retailers to establish better safeguards in this area.”
Buyers were urged to be vigilant. If anyone was offered or received cheeses they believe may have been associated with the theft – particularly clothbound cheddars in a 10kg or 24kg format with the tags detached – they should contact info@nealsyarddairy.co.uk “so we can support the police in their investigation”.
Patrick Holden, who owns the farm where Hafod Cheddar is made, described the theft as a “violation of the atmosphere of good faith and respect that all of Neal’s Yard Dairy’s trading relationships have personified over the years”.
Tom Calver, a director of Westcombe Dairy, said “we’re devastated that this fraud has targeted one of our most valued customers”.
Neal’s Yard Dairy was “an absolute champion of British farmhouse cheese, and the fact is that they continued to put us, their supplier, first by ensuring we were paid for the cheese, even in the darkest of times”, he added.
Todd Trethowan, owner of Trethowan’s Dairy, makers of Pitchfork Cheddar, added: “The way Neal’s Yard Dairy has handled this has only deepened my respect and admiration for them. Their 30-year relationship with us and many other producers is a rare and shining example of trust and integrity – a true force for good in business, retailer-producer relationships, and in life. I am proud to supply them and call them my friends.”
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