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Monday, 8 April, 2002, 08:28 GMT 09:28 UK
Scots dairy supplies Sainsbury's
Jugs of milk
Wiseman shares rose on news of the deal
Scottish dairy firm Robert Wiseman has signed a major deal with the UK's second biggest supermarket chain.

Sainsbury's stores in the north of England and the Midlands will now be supplied by the Lanarkshire dairy firm, following a three-month trial.

The contract, which gets under way towards the end of this month, represents around 10% of all of the grocer's total fresh milk requirements.

Wiseman milk cartons
Wiseman is expanding its operations
Chairman Alan Wiseman said: "This is a significant development for the company and this new contract will be helpful in building value for our Droitwich Dairy.

"We hope that over time we can further develop our business with Sainsbury's and this is the beginning of a fruitful relationship for both companies."

Shares in the group rose 4p to 122�p in early trading, a 3% improvement, as investors digested the announcement.

The Sainsbury's deal comes just two months after Robert Wiseman confirmed plans for a �5.6m milk distribution centre near Bristol after winning a contract to supply Somerfield.

As well as Somerfield and Sainsbury, Robert Wiseman also supplies Safeway although last year the group conceded it had been hit after WM Morrison cancelled its agreement.

The milk group opened its Droitwich Spa plant, in the West Midlands, a year ago.

See also:

14 Sep 01 | Scotland
Milk firm avoids price sanction
25 Jun 01 | Scotland
Dairy firm faces price cap
17 May 01 | Scotland
Milk firms under investigation
01 Feb 00 | Business
Supermarkets: 'no rip-off'
28 Jan 00 | Business
Blow to ice cream monopolies
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