Dairy Crest is selling the bulk of its own-label cheese division to First Milk, the farmer-owned dairy business, for £61.9m. Dairy Crest said the sale would allow it to focus on its growing branded cheese business, which includes Cathedral City, Britain's biggest cheddar brand.

Dairy Crest also issued a pre-close trading update predicting full-year figures in line with expectations after a solid first half. Cathedral City delivered double-digit growth and the group had a strong performance from its Country Life butter brand, which has recently been extended to cheese and organic milk.