Two County Durham farming brothers who last year added an ice cream plant to their already successful milk processing business at Lanchester, have received an order worth many thousands of pounds to supply ice cream to Heron Frozen Foods, the Hull-based company which has 136 stores from Humberside to the North and Midlands.
Billy and Geoffrey Austin, who run the £8 million turnover Lanchester Dairies, probably the largest independent dairy in the North East, last year started an associated business, Bill 'N' Geoff's, to produce quality dairy ice cream using a purpose-built, state-of-the-art production facility. As with the main business, the milk and cream used to make the ice cream comes from local farms in the Tyne and Derwent Valleys. "Bill 'N' Geoff's is a wholesale business supplying local general dealers, supermarkets, restaurants and cafes, and is going very well, but this is by far the largest single order we've had," said Barry Peacock, general manager of Lanchester Dairies.
Currently the ice cream comes in four flavours, chocolate heaven, farmhouse pleasure, strawberry delight and vanilla sensation, and is sold in 110 and 500ml tubs, and one, two and four-litre catering boxes. Bill 'N' Geoff's is being run separately and is already making a significant contribution to the income of the parent company Lanchester Dairies, which has itself expanded greatly in recent years.
The business was set up at Upper House Farm about 16 years ago when the Austin family, including Billy's wife Julie, Geoffrey's wife Sandra, backed by the sons' parents, decided to process the farm's own milk, using a small processing plant. About seven years ago, they decided to sell their own dairy herd to concentrate on processing, with local dairy farmers being paid up to two pence a litre above the national farmgate price for their milk, according to Barry Peacock, which ensures a continuity of supply. Lanchester use up to 14 farmers to meet the demand for their milk and are currently processing around 80,000 litres a day.
The company collects milk from farms seven days a week, using three large tankers, and distributes to outlets on Tyneside and Teesside in nearly 40 delivery trucks and vans.
Two years ago, Lanchester Dairies started delivering milk to Asda. Not only has the business grown, covering nine stores in Northumberland and Tyne and Wear, Lanchester is also a regional hub for local food producers. It provides them with a central collection and distribution point for Asda stores in the North East, handling the administration and settling invoices. "Asda are brilliant for small food producers in the region," said Mr Peacock, " they pay every 28 days which helps all our cash flows."
Local food producers, through Lanchester Dairies, are now supplying Asda stores in the North East with eggs, pies, cakes, sausages and other meats, mineral waters, rapeseed oil for cooking, honey and confectionery.
Barry Peacock, who joined Lanchester Dairies 11 years ago, was formerly a corporate branding and marketing manager in the motor industry. " Joining a dairy business was a new experience for me but essentially the sales and marketing operation are similar. This is still essentially a family business, run by Billy and Geoffrey, and supported by Julie and Sandra. They are definitely a hands-on partnership." Barry is a director of Northumbria Larder, the lead organisation in the North East England Food and Drink Group, which promotes the interests of food producers in Northumberland, County Durham, Tyne and Wear and Tees Valley.
