Theo Müller Group’s Milk & More to become standalone business next year as it looks to cash in on online shopping boom
- Milk & More to become separate company from German owner in February
- Firm is looking for more partners to expand the delivery service, its boss said
- The move follows Milk & More’s decision to go online-only in April
Milk & More, the UK’s largest doorstep milk delivery service, will become a standalone business in the next year as its German owner looks to cash in on the online shopping boom.
The company, which also delivers plant-based milks, organic groceries, artisanal bread and other products from small suppliers to more than 400,000 households, said it was looking for larger stores to work with.
German owner Theo Müller Group, which acquired it from Dairy Crest in 2015 and has since returned it to profitability, will remain its largest shareholder when the company is spun-off in February.
Going alone: Milk & More has plans to expand its delivery service
Patrick Müller, who is chief executive of Milk & More but who is no relation to the founding family, told the Telegraph they were looking for more partners to expand the delivery service.
‘They could be food companies, flower companies, whatever’, he said.
‘The new legal entity will create a more agile e-commerce focused company within the doorstep delivery market.’
The move comes as Milk & More upset some of its elderly long-standing customers earlier this year when it became an online-only company.
Since the end of April, customers wanting to continue receive their milk and grocery deliveries have had to set up an online account from which to place all orders.
The move was part of Müller’s turnaround strategy, which also included abolishing its franchising system and buying a fleet of electric vehicles to make deliveries.
The pandemic was a boon to the company, with revenue rising 20 per cent since 2019 and customer numbers now two-thirds higher than two years ago.
Not just milk: The company also delivers groceries, eco loo rolls, fruit and artisan bread
Last year, Milk & More told us that milk delivery has seen a ‘huge revival’ thanks to people looking to ‘live more sustainably and reduce plastic waste’.
Its ‘doorstep magic’ service means people can order up until 9pm in the evening and get items before 7am the next morning.
After those morning home deliveries, its drivers also deliver milk to nurseries and schools under a new tie-up.
Its expansion plans come despite strife competition, which saw organic online grocer Farm Drop go bust a week before Christmas.
Backed by entrepreneur Alex Chesterman and the Duke of Westminster, Farm Drop said it had struggled to find fresh capital at a time when ‘the growth in orders and sales [had] not translated into profitability’.