Organic dairy company Rachel's up for sale

Rachel's, the organic dairy products brand, is to be put for sale with a price tag of around £20m, according to reports.

Rachel's: organic dairy firm up for sale
Rachel's: organic dairy firm up for sale

US owner Dean Foods is looking at strategic options for the business, which is one of the UK's oldest producers of organic dairy goods.

Dean Foods is thought to have hired bankers NM Rothschild to look at a number of options for the business, including selling it.

The company was founded by Rachel Rowlands in west Wales in 1966. The company expanded rapidly between 1985 and 1990. 

It moved into yoghurts, which have become popular with middle class consumers, in the 1980s.

Last year, Rachel's backed a campaign to kick-start sales of organic goods after market growth stalled due to the recession.

to handle its marketing services account following a pitch against two undisclosed agencies.

According to Nielsen, sales of Rachel's hit £28.6m in 2009, a year-on-year uplift  of 9.2%. But across the yoghurts and pot desserts sector, it lags behind brands such as Yeo Valley Organic, Danone Activia and Muller Corner.

Dean Foods was unavailable for comment.

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