Tough for Dairy Crest but key brands prosper

Dairy Crest today warned that trading is "increasingly tough" but said its key brands are doing well.

Sales of Cathedral City, Country Life, Clover, St Hubert Omega 3 and Frijj increased by 5% in the first quarter, and more products will be launched later this year including Chedds, cheese snacks for children.

Chief executive Mark Allen said: "We knew at the start of the year that we faced higher input costs in an increasingly tough environment for consumers. By focusing on our brands and by becoming more efficient, we are dealing with those challenges and are soundly placed for the rest of the year."

Dairy Crest and its rivals have been struggling with the rising cost of fuel and plastic packaging.