Pictured: Christoph Wenisch, CEO of Nöm International,
who is overseeing the drive for growth of Nom UK
Nom UK has revealed exciting plans for extensive development of
its dairy facilities with the aim of accelerating growth and
winning an even bigger slice of the total short life dairy market,
which is currently 'worth' around six billion pots a year.
The drive for growth is being overseen by Christoph Wenisch, CEO
of Nöm International, who said: "Nom UK is uniquely placed to
build its market share substantially through the opportunities
presented by developing our UK manufacturing centre which uses
British milk and local labour as well as sustainable production
methods and offers significant carbon footprint reduction."
The company, which has achieved impressive growth through its
strategy of focusing on the private label market, is entering the
next phase of its development. It has announced plans that could
see additional production lines introduced at the Nom Dairy plant
in Shropshire, followed by a doubling in size of the operation,
which currently employs 160 people.
Christoph said: "We have a clear strategy to increase our
presence as a major player in the UK short life dairy market and
extending the Nom Dairy plant at Telford will see us achieve
that.
"There is extensive land on our 24-acre site available for the
expansion and most of the base infrastructure is already in place
to process the large additional volumes of British milk that will
be required."
Christoph said that while Nom UK was growing organically it was
also actively looking to establish a co-operation arrangement, with
one or more partners, to enable it to accelerate its growth
strategy.
"We are already engaged in discussions with three potential
partners. At this stage we are open to what form that co-operation
would take. The important thing is that it is beneficial to all
parties involved and helps us develop our site more quickly," said
Christoph.
"We will shortly be announcing our financial results, and while
they will show an expected deficit in line with a new company that
has invested major sums in opening a dairy plant we have every
confidence our strategy will over time deliver attractive returns,"
he added.
Doubling the size of the dairy would enable Nom UK to ramp up
production from 350 million pots a year to around one billion pots,
he said. At the same time it would create about 200 new jobs.
Longer term proposals could see the company expand even further,
with capacity potentially growing to 1.5 billion pots per year.
Christoph said: "Development of brand new dairy facilities, with
scalable and flexible capacity, will allow us and future partners
to capitalise on the growing trend among UK retailers for locally
sourced produce, along with generating the opportunity to produce
at lowest cost.
"About three billion pots of short life dairy products are
imported into the UK every year and one of our objectives is to
make meaningful inroads into that market with UK retail
partners."
Nom UK supplies private label and branded short-life dairy
products to more than 90% of the supermarket retailers in the UK
and Ireland. Its strategy of manufacturing products full of taste
and full of natural ingredients sets it apart from most other
manufacturers.
It is the UK operation of Nöm AG, the Austrian dairy
company which has been making dairy products for 100 years.
Nöm is majority owned by Raiffeisen Banking Group, one of
Austria's leading banks.
Christoph emphasised Nom UK would continue to invest in its
successful Nom brand, bringing out more innovative products, such
as the recent launch of Breakfast yogurt. There is also potential
for further development of a venture brand which it produces for
one of its retail partners.
Over 50% of Nom UK's £70 million turnover at retail value
is in private label and the rest is split between the 'nom' brand
and the retailer's venture brand.
Christoph added: "To help us implement our new strategy we are
looking to build our current commercial team and at the same time
we will be looking for a new sales director."
David Potts, CEO of Nom Dairy UK, is working alongside Christoph
but has decided to leave the business at the end of the year to
follow other opportunities.
Christoph said: "We are very grateful for everything that David
has done at Nom over the past few years. He has built a successful
business with a strong customer base and we wish him well."