Disposal

RNS Number:2708Q
Dairy Crest Group PLC
29 September 2003




29 September 2003

                       Dairy Crest Group ("Dairy Crest")
                          sells chilled juice business


Dairy Crest, the UK's leading chilled dairy foods company, today announces the
sale of its chilled juice business based at Kidlington, Oxfordshire to Princes
Limited ("Princes") for a consideration of approximately #11million payable in
cash.


Dairy Crest's chilled juice business is largely customer own brand and primarily
from concentrate.  As reported in the Group's results for the year ended 31
March 2003 this business was affected by the increase in juice concentrate
prices during the year. Whilst profitability has been recovering progressively
in a competitive market place, Dairy Crest has decided to take advantage of the
opportunity to sell the business in line with its continuing strategy of
developing branded and added value products.



For the year ended 31 March 2004, the sale is expected to have a broadly neutral
impact on Group profits, excluding exceptional items and is expected to result
in an exceptional non cash loss of approximately #3million.  The final
consideration will be adjusted for stock valuation on completion.



Drummond Hall, Chief Executive, Dairy Crest Group plc, said:



"The sale of the own label chilled juice operations at Kidlington is in line
with our continuing strategy to develop our added value and branded businesses,
whilst continuing the improvement in the quality of the Group's earnings".

                                    - Ends-

For further information, please contact:

Dairy Crest Group plc                           Tel:  [phone]
Drummond Hall, Chief Executive
Alastair Murray, Financial Director
Will Shaw, Investor Relations
Greg McNeill, Corporate Communications



Citigate Dewe Rogerson                          Tel: [phone]
Martin Jackson/ Alexandra Scrimgeour


NOTES TO EDITORS



1. Dairy Crest



Dairy Crest, the UK's premier chilled dairy foods company, focuses on building
leadership positions in branded and added-value markets across the dairy sector
and investing in industry leading facilities to create competitive advantage.
Dairy Crest operates in six business areas:  spreads, cheese, liquid products,
fresh dairy products, (through our Yoplait Dairy Crest joint venture) household
and ingredients.



The company's 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, the brand leader in the dairy spreads segment, together with
    Utterly Butterly, St Ivel Gold, Vitalite, Carapelli, Argento and Willow.
    These brands give Dairy Crest a presence in every major sector of the UK
    spreads market.  Dairy Crest is also a major producer of Country Life packet
    butter and Country Life Spreadable.



  * Frijj the brand leader in the fresh flavoured milk drinks 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.



            Dairy Crest is the UK's largest purchaser of raw milk, currently
processing around 2.4 billion litres pa and is the market leader in doorstep
deliveries in southern England.



2. Princes Limited



Princes Limited is one of the most respected names in the UK grocery market and
will enjoy a turnover forecast at over #700 million for 2003, including the new
acquisition.



Its soft drinks interests cover carbonates, squash, fruit juice and juice drinks
and includes brands such as Princes, Virgin, Jucee, Cape, Twist'n'Squeeze and
Ocean Spray squash. It is also a major supplier of retailer own brand products
to the UK grocery market.



Princes Soft Drinks has demonstrated strong and successful progress through both
organic growth and acquisition in recent years. From 120 employees and a
turnover of #28 million in 1991, it will now employ over 1000 and forecasts a
turnover of almost #300 million in 2003.


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

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