Milk delivery company Hanover Dairies is looking to expand on the back of a new significant refinance deal.
The Blaydon-based business already delivers milk, eggs and non-dairy products to customers across the North East, North West and South from its network of 12 UK depots. Now the business is looking to invest further into its services, after securing the new, undisclosed refinancing agreement with NatWest.
Hanover Dairies has bottled success through the promotion of its environmentally-friendly milk glass bottle sales, and it wants to make more customers aware of the product within its trading areas. Its long-term environmental focus has seen it stop more than 18m plastic bottles potentially ending up in oceans or landfill in the past few years.
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The business was originally launched in 1976 by Trevor Hanover with a single milk round, and now operates more than 200 doorstep rounds across the country. It has more than 140,000 customers on its books, employs more than 100 people and supplies to 140 franchisees and independent milkmen.
Hanover Dairies also works with a number of local authorities on school milk contracts and supplies to over 1,000 businesses.
Manging Director Tony Baldwin said: “We’ve never stopped making glass bottle deliveries, and it’s always made clear environmental sense to do so, but over the last couple of years, we’ve seen a huge surge in demand from both existing and new customers. We’re now maximising our efforts towards making everyone aware that glass bottle deliveries are available from us, as part of a wider environmental focus that’s been a long-term part of our business strategy.
“From our first meeting, NatWest came across as people you’d want to work with, and our refinancing agreement gives us the flexibility to invest where we think we’ll get the best returns, protect jobs and promote employment growth. The RMT team’s strategy advice has long been central to our management of the business, and their market knowledge and guidance has been invaluable in reaching this new agreement.”
Dominic Duke, senior relationship manager at NatWest, added: “It’s been fantastic to work with Trevor, Tony and the Hanover Dairies team to create a flexible refinancing package that will support the business’s investment ambitions, as well as its long-term environmental focus. I look forward to continuing our relationship and seeing Hanover Dairies continue with its plans.”
Julie Cuthbertson, Michael Cantwell and Anthony Andreasen of RMT Accountants and Business Advisors worked with the Hanover Dairies management team to identify the best available refinancing options. The team will now carry on working with the dairy, to help put its investment plans into action.
Ms Cuthbertson, corporate finance manager, added: “Hanover Dairies has a proven business model that is succeeding across its distribution network and now has the resources to promote its business model and environmental focus further. We identified NatWest as the right flexible funding partner for Hanover to work with on executing their investment plans and we’re very pleased to have helped the two parties reach this agreement.”
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