RNS Number:9646I
Dairy Crest Group PLC
20 March 2003


20 March 2003

                             Dairy Crest Group plc

                     Site Visit and Year-end Trading Update


Dairy Crest, the UK's premier chilled dairy foods company with leading brands,
Clover, Cathedral City, Frijj and the Yoplait brands is today taking analysts to
its "super dairy" at Severnside, Gloucestershire.

Severnside

Severnside, which is now fully operational, is capable of processing 500 million
litres of milk per annum.  The completion of the investment at Severnside and
the closure of the Kidlington dairy operations represented the final step in the
restructuring and capital investment programme  following the acquisition of
Unigate's dairy and cheese business in July 2000.  Severnside, together with the
Group's other "super dairy" at Chadwell Heath, which opened in 2001 will give
the Group significant competitive advantage in the challenging retail liquid
milk market.  Severnside produces a range of regional NRC  and organic fresh
milks, Frijj, added value milk shakes and potted cream.

Trading Update

In accordance with the practice established at the half year the Group is
providing the following trading update ahead of its financial year-end:

"The strong performance of Clover, Cathedral City, Frijj and the Yoplait brands
has continued throughout the year with all showing good volume growth and
increasing market share.  The integration of the St Ivel Spreads business,
acquired in November 2002, is going well and since completion the combined
spreads business has performed ahead of expectations.

We reported in the Interim Statement that margins in the cheese business were
under short-term pressure due to high industry wide cheese stocks.  These have
remained at a high level for longer than expected but stocks are now approaching
more normal levels.  The #41 million net investment in our creamery at
Davidstow, Cornwall is on track to be completed in Spring 2004, which will
support the continuing growth of the Cathedral City and Davidstow brands.

Trading conditions in the retail liquid milk market have been challenging,
however the business's performance has improved in the second half in line with
expectations.  Our household business has performed well.   As expected the
ingredients business has performed ahead of last year despite the results being
adversely impacted in recent months by the appreciation of the Euro against the
Pound and reductions in milk supply to this business.

The interest charge has benefited from the reduction in interest rates and the
proceeds of #27 million from the disposal of the Westway and Marshfield sites.

Overall adjusted Group profit before tax (before exceptional items and goodwill
amortisation) for the year ending 31 March 2003 is expected to be in line with
expectations."

Preliminary results for the year ending 31 March 2003 will be announced on 
10 June 2003.

For further information, please contact:

Dairy Crest Group plc                            01372 472200

Drummond Hall, Chief Executive
Ian Laurie, Finance Director
Sinead Noble, Corporate Communications

Citigate Dewe Rogerson                           020 7638 9571
Andy Cornelius / Alexandra Scrimgeour



NOTES TO EDITORS

Dairy Crest is the UK's premier chilled dairy foods company with leading brand
positions across the dairy market - dairy spreads, cheese, liquid milk, fresh
flavoured milk drinks, fresh dairy products (yogurt, fromage frais, chilled
desserts), through our Yoplait Dairy Crest joint venture, and dairy-based
ingredients.

The company focuses on building leadership positions in branded and added-value
markets and its portfolio of brands includes:

*     Cathedral City, Davidstow and Wexford cheese brands which make Dairy
Crest the leading supplier of mature cheddar in the UK.  The company is also the
UK's largest producer of Stilton.

*     Clover is the brand leader in the dairy spreads segment and Frijj is
the brand leader in the fresh flavoured milk drinks market.  Dairy Crest is also
a major producer of Country Life packet butter and Country Life Spreadable,
Willow dairy spread and the recently launched Argento, an olive oil based
spread.

*     Dairy Crest acquired the St Ivel Spreads business in November 2002
with its strong portfolio of well known brands including Utterly Butterly, St
Ivel Gold, Vitalite and Carapelli.  The acquisition gives Dairy Crest a presence
in every major sector of the UK spreads market.

*     Dairy Crest is a leading supplier of fresh dairy products through the
Yoplait Dairy Crest joint venture with its brands Petits Filous and Frubes,
together with ranges including Wildlife and Weight Watchers from Heinz.

      
Dairy Crest is the UK's largest purchaser of raw milk, processing over 2.5
billion litres p.a. and is the market leader in doorstep deliveries in southern
England.  The Group is also the leading British producer of dairy ingredients,
such as butter, skimmed milk powder and whey-based products, which it supplies
to major UK food manufacturers.

                      This information is provided by RNS
            The company news service from the London Stock Exchange
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