Sainsburys to drop Arla as own-brand milk supplier

Arla has confirmed it will stop supplying milk for Sainsbury’s own-label products from early next year.

Milk supplied by Arla is believed to make up a considerable proportion of Sainsbury’s own-brand milk, and this volume will be picked up by a different supplier.

Other branded Arla products will continue to be sold at Sainsbury’s.

See also: More retailers slash milk prices as market eases

Last week, Sainsbury’s, alongside other retailers, reduced the retail price of its four-pint own-brand milk from £1.65 to £1.55.

The reasoning behind Sainsbury’s decision to drop Arla as a supplier of its own-brand milk has not been made public, however price is likely to have been a factor.

A Sainsbury’s spokesperson said: “We regularly review our suppliers to make sure we are offering our customers great products at great value.

“We have recently updated how we work with our milk suppliers so that together we can improve how we manage supply and continue to compensate our farmers fairly and competitively.”

A spokesperson for Arla said that the anticipated transition of the business will take place during February 2024, adding: “Arla and Sainsbury’s remain committed to their long-standing relationship.

“The retailer remains a key strategic partner across Arla’s recognised brands, which are seeing significant growth within Sainsbury’s stores.

“Growing our branded business across dairy categories is a key part of our long-term strategy and we are pleased that they will continue to support us and our farmer owners as we continue to provide nutritious and tasty dairy to UK shoppers.”