German yoghurt maker Müller is carving out its farm shop delivery service in a potential challenge to Ocado.
Milk & More will become a standalone business in February in a bid to turbocharge growth following a pandemic sales boost. Parent company Theo Müller Group will remain its largest shareholder.
Milk & More had originally been part of Dairy Crest, operating as a milk round delivery service, but was bought by Müller in 2016 and has since returned to profitability.
It now delivers artisanal products from smaller suppliers to more than 400,000 households across the UK using its electric fleet, which is among the largest in the country.
Patrick Müller, chief executive of Milk & More, said there was potential to start entering into more deals with larger stores, positioning the company for a battle with market leader Ocado, which has partnered with the likes of M&S and Morrisons.
Mr Müller, who is not related to the Müller family, said: “We have a big fleet of vehicles, so it would absolutely make sense to look at who wants an efficient delivery. We are looking for more partners – they could be food companies, flower companies, whatever.”
He added: “The new legal entity will create a more agile e-commerce focused company within the doorstep delivery market.”
It follows a surge in sales since Covid hit, with revenue up 20pc since 2019. Online customer numbers are now two thirds higher than they were in 2019.
The company currently offers what it calls “doorstep magic”, whereby people can order up until 9pm in the evening and get items before 7am the next morning.
Milk & More has already started striking partnerships to use its delivery fleet after those morning deliveries – for example, agreeing a tie-up with nurseries and schools to deliver milk after it finishes its deliveries to UK homes.
The push to accelerate growth at Milk & More comes just weeks after the grocery delivery sector was left shaken by the collapse of online grocery service Farmdrop, which had been backed by entrepreneur Alex Chesterman and the Duke of Westminster.
The demise of the business, which had struggled to find fresh capital at a time when “the growth in orders and sales [had] not translated into profitability”, ultimately resulted in customers scrambling to get hold of turkeys in time for Christmas.
