Milk Link, Price Increase Case Study
Milk Link are the UK’s most progressive integrated dairy business. Employing
around 1,200 people at eight processing facilities, they turn over around £600m.
They are the UK’s
largest producer of branded and own label cheese, including
the successful ‘Tickler’ brand, supplying all major food retailers, food
processors and food
service organisations. They also manufacture a
wide range of other dairy products including long life milks and creams,
extended shelf life products, flavoured milks and milk powders.
Throughout the food industry there has been a significant
increase in the cost of raw
materials and other input costs.
Milk has increased in cost due to both sharp rises in animal feed and
transport costs, and also significant increases in demand from fast developing
far east economies.
Labour, energy and other inputs have also had a major impact on
Milk Link needed to successfully pass on these increases to both their
retail and food service customers in a timely
fashion while minimising loss of business.
Working with the senior management team of Milk Link, PiP Associates devised a
programme to solve this industry wide problem. Using our unique results-based
methodology, including live customer simulations, we delivered a series of 2 day
workshops to the sales and commercial teams. During the workshops we worked on
the strategy and provided training on the skills and tactics required including
the rationale, presentation, negotiation and implementation of the increase. We
also helped Milk Link monitor results ensuring that the whole team was
successful in delivering the required outcomes.
The Price Increase Programme was so successful in
delivering the price increase objectives that the commercial teams performed
ahead of target and gained numerous other concessions that increased the
profitability of individual accounts.
This was all achieved against a backdrop of professional buyers with aggressive
Neil Kennedy, Chief Executive of Milk Link, was impressed with the results and confirmed
“PiP have been a significant factor in the achievement of our most successful
price and margin increases to date, which have been sustained across the year.”
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