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The Grocer Talking Retail

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Müller to axe up to 40% of its milk and cream SKUs in cost-cutting drive

Müller Milk & Ingredients is to cut the amount of fresh milk and cream SKUs it manufactures by more than a third in a bid to cut distribution costs and reduce packaging and food waste.

The dairy giant’s SKU rationalisation programme, part of its Project Darwin cost-cutting drive, could see Müller pare down the 835 lines it manufactures at its network of six dairies by up to 40% over the coming months.

Müller is also in the process of rolling out a lightweighting programme for the SKUs that remain, following an ongoing investment in its milk packaging and bottle blowing capabilities. This will allow the business to remove 400 tonnes of plastic from its core fresh milk SKUs this year.

The simplification of Müller’s range will see a variety of less conventional lines and those that sell in small numbers delisted, with both own label and branded lines set to be axed.

Source: The Grocer Apr 17 | Competitor News