“PiP have been a significant factor in the achievement of our most successful price and margin increases to date, which have been sustained across the year”.
Neil Kennedy
Chief Executive , Milk Link
Milk Link are the UK’s most progressive integrated dairy business. Employing around 1,200 people at eight processing facilities, they turn over around £600m.
The focus of the work for Milk Link International was a Price Increase Programme in the face of a significant increase in the cost of raw materials and other input costs.
They are the UK’s largest producer of branded and own label cheese, including the successful ‘Tickler’ brand, supplying all major food retailers, food processors and food service organisations. They also manufacture a wide range of other dairy products including long life milk and creams, extended shelf life products, flavoured milk and milk powders.
The Challenge
Throughout the food industry there has been a significant increase in the cost of raw materials and other input costs. Milk has increased in cost due to both sharp rises in animal feed and transport costs, and also significant increases in demand from fast developing Far East economies.
Labour, energy and other inputs have also had a major impact on production costs. Milk Link needed to successfully pass on these increases to both their retail and food service customers in a timely fashion while minimising loss of business
The Programme
Working with the senior management team of Milk Link, PiP Associates devised a programme to solve this industry wide problem. Using our unique results-based methodology, including live customer simulations, we delivered a series of two day workshops to the sales and commercial teams. During the workshops we worked on the strategy and provided training on the skills and tactics required including the rationale, presentation, negotiation and implementation of the increase. We also helped Milk Link monitor results ensuring that the whole team was successful in delivering the required outcomes.
Results
The Price Increase Programme was so successful in delivering the price increase objectives that the commercial teams performed ahead of target and gained numerous other concessions that increased the profitability of individual accounts. This was all achieved against a backdrop of professional buyers with aggressive purchasing agendas.
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