Llaeth y Llan – Village Dairy started back in 1985 when founders Gareth and Falmai Roberts began making yogurt in the airing cupboard of their North Wales dairy farm. This has since developed into a thriving company with a modern linear production facility. It remains a family business through and through. Hannah Barnett spoke to Director Owain Roberts, son of the founders, alongside his wife and the company’s Marketing Manager Nia Roberts.
Heritage is paramount to the company, according to Owain Roberts, Director:
“The Welsh language is very important to us, hence our name. But the language and our history are massive parts of who we are.
“I think that resonates most with the Welsh core consumer looking for a Welsh product. But nowadays, everyone wants to capitalise on regionality, partly because there’s that strong sustainability element of buying local.”
Expansion has been the name of the game at Llaeth y Llan on the family farm where the company is based, for the last 40 years. The initial dairy was converted from old farm outbuildings, with milk bottled, cream separated, and yogurt produced next door to the milking parlour.
This was followed by diversification from a 50-cow, 50-acre farm into the manufacture of value-added products on a large scale. By 1995, the company had invested in a new factory, allowing entry into more markets. In 2016, Llaeth y Llan invested again, building a bigger state of the art factory.
“The first factory paid for the second,” explained Mr Roberts. “And we’ve continually invested in our manufacturing capabilities over the years. In 2016, we
pushed production capacity to 200 tonnes of yogurt a week. So, turnover continues to grow.”
Llaeth y Llan now employs about 60 local people, making it a key employer in a very rural area.
“Staff are the heartbeat of everything we do here, and any new growth is achieved collaboratively,” said Mr Roberts. “We have an unbelievable team. I pinch myself sometimes about the talent we have here. We are indebted to their loyalty; some have relocated their family to come and work in North Wales.”
Product perfect
From blueberry to gooseberry, the company offers a wide selection of fruit flavoured yogurt as part of its core range, as well as a line of natural flavours. Keeping up with sector
trends has also meant further diversification, with three protein varieties recently launched as well as a range of kefir products.
Llaeth y Llan products can be found at most retailers in Wales. While the focus remains local, the company does produce national volumes for some retailers and challenger brands, as well as exporting internationally.
“We’re about 60 per cent branded, 40 per cent own-label,” Mr Roberts explained. “The latter has been a large growth area for us in recent years. But the nature of own-label is that we might have it one day and lose it the next. So, our branded business is the key focus.
“Export is only a small part of the business, but it is quite surprising that a small company from Wales can go as far as Dubai and Hong Kong. The Welsh Government supports us in trade missions to the Far East, because it is
very keen to promote Welsh food and drink. We’re very grateful for that support, because it helps our business to grow.”
Closer to home, Llaeth y Llan yogurt can also be found at most Welsh primary schools. As well as providing immediate benefits for the children consuming healthy produce, the contract may also enable brand loyalty for the company further down the line.
“Welsh children are very lucky, they get free school meals in primary school,” said Nia Roberts, Marketing Manager. “The children are now growing up in schools with Llaeth y Llan. And obviously, we’re hoping that they will continue to buy it when they are older.”
The S factor
Following the sharp rise in energy prices, Llaeth y Llan invested heavily in solar power and is now starting to see the benefit of that investment. It is also implementing an innovative plastic reduction pathway and has already removed over three million lids from its 450-gram range.
The company will continue to use recyclable methods wherever possible, including baling all cardboard, which also provides an additional income stream. A sustainable supply chain is the other key element to this environmentally friendly operation.
“We source all our produce locally,”
Mr Roberts said. “Milk, being the primary ingredient, is sourced within an eight-mile radius of here. We work closely with our suppliers in terms of technical teams, product quality and packaging.”
Llaeth y Llan has obtained its fruit from the same supplier in Stoke-on-Trent for the last 30 years, so the two companies must share an understanding. Similarly, Greiner Packaging in Northern Ireland have produced the company’s pots for many years.
“Of course, new players do enter the market,” said Mr Roberts, “but working with a company for a long time means we have built up trust. What I’ve learned is, if our service and quality levels are high, we get a repeat order. So, I look for that when retaining business too.”
Indeed, key performance indicators of high service levels and repeatability are something Llaeth y Llan prides itself on.
“The technical team don’t want issues with variable products,” Mr Roberts explained.
“I’d like to think that’s why customers enjoy working with us – we can offer that repeatability of quality. At the same time, we are always on the lookout for new things; we’ve invested in our technical capabilities and NPD.
If the market demands it, we have a strong team that allows us to move quickly in a different direction.”
Continued growth
Llaeth y Llan has a clear growth plan: continue to invest in manufacturing capabilities as well as an upcoming diversification into drinks. With the addition of three new filling lines, the company will also have the capacity to produce more for the ingredient sector.
“Natural yogurt and health products are on the rise,” said Mr Roberts.
“So, we’d like to target that market, whether that be the B2B side, retail or wholesale.
We’ll look at every avenue to drive further volume.”
With no customer accounting for more than 20% of the business, Llaeth y Llan remains a very strong stable business. Though com-
modity prices are an ongoing challenge, overcoming obstacles is something that makes working in the sector so enjoyable.
“No one day is the same,” Mr Roberts reflected. “I really enjoy that. Yes, it can be tough, but the joy I get from seeing people develop and taking responsibility within new roles, is really rewarding. It’s an
amazing place to work, because we all collectively learn.”
“The family element of what we do is so important,” Mrs Roberts concluded. “Obviously, we’re a family business, but our staff feel like family too.” n
