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How can Donegal Creameries still sell milk against cheaper competitors?

  • 29-11-2012 8:44pm
    #1
    Registered Users, Registered Users 2 Posts: 34,694 ✭✭✭✭


    Now this isn't a go at Donegal Creameries or anything.

    But I was wondering how they can continue to trade in the milk supply market at the price they charge?

    Is it customer loyalty?

    In most shops and supermarkets I can buy 2 litres of milk from another supplier cheaper than I can buy 1 litre of Donegal Creameries. Surely in a recession this will make a lot of people move to the cheaper brand?

    Milk is milk after all.


«1

Comments

  • Closed Accounts Posts: 724 ✭✭✭Flibbles


    "My mother bought this milk, as did my mothers mother, and you will too!"


  • Registered Users, Registered Users 2 Posts: 2,299 ✭✭✭hairyprincess


    Compare the nutritional content of your cheap milk and Donegal Creameries


  • Registered Users, Registered Users 2 Posts: 34,694 ✭✭✭✭NIMAN


    I must do that. First I'll have to buy a DC milk!

    I would have thought that most milks were similar in this regard? No? (ignoring Super Milk of course, which is a fair bit more expensive again).


  • Registered Users, Registered Users 2 Posts: 1,416 ✭✭✭Maldesu


    Was in a lecture earlier today (yesterday at this point) and the topic was on the water supply and how in Ireland we add fluoride to it, about .75 ppm or something. So, they though about introducing this in the UK and they went nuts and said 'no way' so it was never done. What was done, was that fluoride was added to milk instead. So if you aren't buying Donegal Creameries and perhaps purchasing another product, you'd have to wonder how much of it comes from the North.

    So, consider this:
    Flouride in water is about .75 ppm and lets say the same is in your NI sourced milk. Upper range of intake is 1.2 ppm thereabouts. After that you can suffer from fluoride toxicity. So, you might want to check the source on your carton before you buy it. Seems milk isn't just milk anymore.


  • Registered Users, Registered Users 2 Posts: 34,694 ✭✭✭✭NIMAN


    So is fluoride definitely added to all UK milk?


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  • Registered Users, Registered Users 2 Posts: 512 ✭✭✭md23040


    Compare the nutritional content of your cheap milk and Donegal Creameries

    Can you tell me please the difference between DL creameries and other cheaper competitors in the shops? What's the point in throwing out a rhetorical question without providing an answer in the first place.

    Maldesu wrote: »
    Was in a lecture earlier today (yesterday at this point) and the topic was on the water supply and how in Ireland we add fluoride to it, about .75 ppm or something. So, they though about introducing this in the UK and they went nuts and said 'no way' so it was never done. What was done, was that fluoride was added to milk instead. So if you aren't buying Donegal Creameries and perhaps purchasing another product, you'd have to wonder how much of it comes from the North.

    Can you provide relevant actual facts without scare mongering on your point. Also without getting into the whole fluoride debate of whether fluoride is bad or not, what else is intrinsically different in the cows and pasture process between DLC and other competitors?

    In my opinion DLC is way over priced. What you could charge five years ago cant be generally charged now in a wage deflationary environment. This company has not adjusted to the new economic realities of life, but obviously still have strong brand loyalty otherwise price reductions would have been an issue.

    Fair play if they can get away with it but would love still to know main differences.


  • Registered Users, Registered Users 2 Posts: 14,163 ✭✭✭✭danniemcq


    Maldesu wrote: »
    Was in a lecture earlier today (yesterday at this point) and the topic was on the water supply and how in Ireland we add fluoride to it, about .75 ppm or something. So, they though about introducing this in the UK and they went nuts and said 'no way' so it was never done. What was done, was that fluoride was added to milk instead. So if you aren't buying Donegal Creameries and perhaps purchasing another product, you'd have to wonder how much of it comes from the North.

    So, consider this:
    Flouride in water is about .75 ppm and lets say the same is in your NI sourced milk. Upper range of intake is 1.2 ppm thereabouts. After that you can suffer from fluoride toxicity. So, you might want to check the source on your carton before you buy it. Seems milk isn't just milk anymore.

    Can't agree with all that, upper range of intake for flouride at 1.2 is the upper range of intake recommened in water by the US, (.7 - 1.2mg/l is what they are at as a guideline atm)

    if you were worried about flouride levels then you also want to stay away from tea though as boiling it will concentrate it.

    What you really need is to do is capture the steam as you boil and this water will be pure.

    also isn't it only school milk that has flouride added?


  • Registered Users, Registered Users 2 Posts: 21,676 ✭✭✭✭smashey


    This all boils down to brand loyalty. I know a few people who won't buy anything else as they believe it tastes better. One of the reasons they give for that is that the milk is in a cardboard carton as opposed to a plastic bottle. Personally, I don't get that argument at all.


  • Registered Users, Registered Users 2 Posts: 8,488 ✭✭✭Goodshape


    Maybe a certain amount of brand loyalty, and 'shopping local'.

    I'm also firmly in the "it tastes better" camp. Honestly haven't even looked past it on the shelf, since I moved back to Donegal, to notice there was any price difference.


  • Registered Users, Registered Users 2 Posts: 339 ✭✭martyeds


    I buy it because they sponsor the county football team.... So it must be the best.


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  • Registered Users, Registered Users 2 Posts: 34,694 ✭✭✭✭NIMAN


    Goodshape wrote: »
    Maybe a certain amount of brand loyalty, and 'shopping local'.

    I'm also firmly in the "it tastes better" camp. Honestly haven't even looked past it on the shelf, since I moved back to Donegal, to notice there was any price difference.

    But the alternative milk on the shelves in Irish too, and I'm sure locally produced as well.

    Think its just brand snobbery at play.


  • Registered Users, Registered Users 2 Posts: 14,661 ✭✭✭✭retalivity


    I pretty much only drink milk sourced from my own free-range gallaghers bread-fed cows.


  • Registered Users, Registered Users 2 Posts: 8,488 ✭✭✭Goodshape


    NIMAN wrote: »
    But the alternative milk on the shelves in Irish too, and I'm sure locally produced as well.

    Think its just brand snobbery at play.

    I can only argue that my 'loyalty' is a result of preferring the taste. I lived in Dublin for 5 years and didn't have the option of Donegal Creameries. A glass of Avanmore just doesn't taste as nice. Closest I could find regularly was some purposefully-overpriced 'organic' milk (I forget the brand but it's common enough).

    Do the people that argue it doesn't make a difference actually drink milk by the glass, or just on the cornflakes and in the coffee/tea?


  • Registered Users, Registered Users 2 Posts: 1,416 ✭✭✭Maldesu


    NIMAN wrote: »
    So is fluoride definitely added to all UK milk?

    Doing a quick google, seems it is primarily added to school kids milk. Most of the stuff the lecture was on was based on the study of tooth decay in children.
    md23040 wrote: »
    Can you provide relevant actual facts without scare mongering on your point.

    I'm not scaremongering, just repeating some of what I heard in a lecture. For the most part the addition seems to be in milk products supplied to childrens schools rather than widescale commercial use.
    danniemcq wrote: »
    Can't agree with all that, upper range of intake for flouride at 1.2 is the upper range of intake recommened in water by the US, (.7 - 1.2mg/l is what they are at as a guideline atm)

    For water, ppm and mg/L is about the same. Different with other fluids though.


  • Registered Users, Registered Users 2 Posts: 3,254 ✭✭✭overshoot


    had a very quick look when i was in super valu today (2litres)... connaught gold milk (who own them DC dairy anyway) 4c cheaper... super valu own brand was about 60c cheaper then there was the more expensive supermilk and the like. a super valu in almost every town in the county with similar choices and a vague buy local sentiment, makes sales easy


  • Registered Users, Registered Users 2 Posts: 34,694 ✭✭✭✭NIMAN


    I can buy Dale Farm 2 litres for €1.15 in a local forecourt shop.

    The 1 litre Donegal Creameries carton is €1.49.

    Shocking difference.


  • Registered Users, Registered Users 2 Posts: 34,694 ✭✭✭✭NIMAN


    Goodshape wrote: »
    I can only argue that my 'loyalty' is a result of preferring the taste. I lived in Dublin for 5 years and didn't have the option of Donegal Creameries. A glass of Avanmore just doesn't taste as nice. Closest I could find regularly was some purposefully-overpriced 'organic' milk (I forget the brand but it's common enough).

    Do the people that argue it doesn't make a difference actually drink milk by the glass, or just on the cornflakes and in the coffee/tea?

    I drink a lot of milk by the glass with dinners, as well as the usual in tea/cereals etc.

    To be honest, I never really notice a difference in brands. Having said that, I never really went out of my way to think "lets see how this tastes" as I drink a glass of milk. To me the difference must be very slight, as I have never ever found myself thinking "I don't like the taste of that milk".

    I have also drunk DC milk many times as well, as to be honest again it never made me think it was any different.


  • Registered Users, Registered Users 2 Posts: 12,235 ✭✭✭✭Cee-Jay-Cee


    I buy DC milk purely because it tastes better than other milk. The price doesn't make any difference. I couldn't tell you the price of it anyway.


  • Registered Users, Registered Users 2 Posts: 1,003 ✭✭✭2moreMinutes


    Compare the nutritional content of your cheap milk and Donegal Creameries
    The 1 litre carton in Lidl is produced/sourced/made(milked??) by Donegal Creameries.

    As someone else said, its all about brand loyalty regardless of the price. To me, its all from a cow so it cant be all that different.:confused:


  • Registered Users, Registered Users 2 Posts: 34,694 ✭✭✭✭NIMAN


    CJC999 wrote: »
    I buy DC milk purely because it tastes better than other milk. The price doesn't make any difference. I couldn't tell you the price of it anyway.

    Its a lot more expensive;)


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  • Closed Accounts Posts: 5,852 ✭✭✭homer simpson


    The main thing that would stand out for me is the taste, I find a taste of plastic from the cheaper brand's of milk. It could very well be that it has been because I was raised on DC milk but I done a wee test because I always wanted to buy DC milk and my OH the cheaper branded version...

    I put some DC milk in a freshly empty cheaper brand plastic carton (after being well washed out), left for about 24 hours and then poured 2 glasses of milk. 1 from the DC milk left in the plastic carton, the other from the original DC milk carton and the one in the cheaper plastic packaging tasted awful and the original was fine. Both of us agreed too :eek: We buy DC milk only now.

    Another thing, people are saying the milk all comes cows which is very true so why then does more often than not the cheaper branded milk come with a much longer shelf life / use by date than DC's milk ;)


  • Registered Users, Registered Users 2 Posts: 3,937 ✭✭✭implausible


    I try to buy locally and Irish as much as I can, but when the alternative is half the price and you go through nearly 2 litres a day, principles are hard to keep up. Most of the local shops have 2 litres of milk from the North for €1. It tastes a bit more watery to me, but it's hard to argue with the saving.

    Two local farmers are now supplying a creamery in the North instead of DC and I can only presume that it's because they're getting a better price for it.

    Sponsoring the team must be very expensive!:eek:


  • Registered Users, Registered Users 2 Posts: 34,694 ✭✭✭✭NIMAN


    I try to buy locally and Irish as much as I can, but when the alternative is half the price and you go through nearly 2 litres a day, principles are hard to keep up. Most of the local shops have 2 litres of milk from the North for €1. It tastes a bit more watery to me, but it's hard to argue with the saving.

    Two local farmers are now supplying a creamery in the North instead of DC and I can only presume that it's because they're getting a better price for it.

    Sponsoring the team must be very expensive!:eek:

    Sure you haven't bought skimmed;)


  • Registered Users, Registered Users 2 Posts: 34,694 ✭✭✭✭NIMAN


    I think I will do a taste test this weekend to see if there is a difference.


  • Registered Users, Registered Users 2 Posts: 3,937 ✭✭✭implausible


    NIMAN wrote: »
    Sure you haven't bought skimmed;)

    There'd be war if that stuff crossed the threshold :eek:


  • Registered Users, Registered Users 2 Posts: 34,694 ✭✭✭✭NIMAN


    Agree, its just white water.


  • Closed Accounts Posts: 904 ✭✭✭yourpics


    NIMAN wrote: »
    I can buy Dale Farm 2 litres for €1.15 in a local forecourt shop.

    The 1 litre Donegal Creameries carton is €1.49.

    Shocking difference.

    1 litre of Donegal Creameries milk is €1.15 or €1.16
    Where are you buying it for €1.49?

    It tastes much better from the cardboard carton than the plastic carton.
    Alot of Donegal Creameries milk is supplied by farms in NI particularly around Omagh


  • Registered Users, Registered Users 2 Posts: 34,694 ✭✭✭✭NIMAN


    I must double check the litre price again, maybe I didn't recall it properly.

    Even if it is 1.15, you can get twice the amount of milk for the same money from Dale Farm.

    And if its true that DC get a lot of their milk from NI, then people buying it to keep Donegal jobs is a bit of a myth then?

    Also, re: the taste, is the milk itself better tasting or is it the fact that its packaged differently? If you put the other milks into a carton, would they be as good as the DC milk?


  • Closed Accounts Posts: 904 ✭✭✭yourpics


    NIMAN wrote: »
    I must double check the litre price again, maybe I didn't recall it properly.

    Even if it is 1.15, you can get twice the amount of milk for the same money from Dale Farm.

    And if its true that DC get a lot of their milk from NI, then people buying it to keep Donegal jobs is a bit of a myth then?

    Also, re: the taste, is the milk itself better tasting or is it the fact that its packaged differently? If you put the other milks into a carton, would they be as good as the DC milk?

    Probably just the packaging.

    I don't know what percentage of their supply comes from NI farms, but bear in mind the transport, processing and distribution takes place/is sourced from/in Donegal


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  • Registered Users, Registered Users 2 Posts: 3,937 ✭✭✭implausible


    yourpics wrote: »
    I don't know what percentage of their supply comes from NI farms, but bear in mind the transport, processing and distribution takes place/is sourced from/in Donegal

    And vice-versa - Donegal farmers are supplying Northern creameries.

    As for the differences in packaging - we go through far too much of it to be faffing about with cartons!


  • Registered Users, Registered Users 2 Posts: 34,694 ✭✭✭✭NIMAN


    Correction:

    I bought 1 litre of DC milk this morning and it was indeed €1.19.


  • Registered Users, Registered Users 2 Posts: 1,003 ✭✭✭2moreMinutes


    Another thing, people are saying the milk all comes cows which is very true so why then does more often than not the cheaper branded milk come with a much longer shelf life / use by date than DC's milk ;)
    2litres of Daisy Lane milk had same BB date as Dgl Creameries where I bought milk today. €1.49 for 2 litres v €1.15 for 1 litre (forget DC 2 litre price). It also has the IE stamp on it which I believe means its sourced in Ireland.


  • Registered Users, Registered Users 2 Posts: 155 ✭✭leedslad


    Farm Fresh low fat is my preferred choice from Millburn Daries in Lk. Where abouts in LK?


  • Registered Users, Registered Users 2 Posts: 7,056 ✭✭✭darced


    This post has been deleted.


  • Closed Accounts Posts: 904 ✭✭✭yourpics


    leedslad wrote: »
    Farm Fresh low fat is my preferred choice from Millburn Daries in Lk. Where abouts in LK?

    Castelfin I think


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  • Registered Users, Registered Users 2 Posts: 512 ✭✭✭md23040


    The main thing that would stand out for me is the taste, I find a taste of plastic from the cheaper brand's of milk....

    I put some DC milk in a freshly empty cheaper brand plastic carton (after being well washed out), left for about 24 hours and then poured 2 glasses of milk. 1 from the DC milk left in the plastic carton, the other from the original DC milk carton and the one in the cheaper plastic packaging tasted awful and the original was fine. Both of us agreed too :eek: We buy DC milk only now.

    Would love to see competition against DLC because we buy loads of milk and my wife and kids think alternatives are plasticky too.

    So basically according to posts here and from personal experience there`s definitely a market opportunity for any competitor supplying milk in tetra cartons.

    Also it can't be the cost of tetra packaging pushing up the price either because DL creameries supplies 2 litre plastic cartons at €2.24 which is twice the price of the 1 litre tetra. So they`re feeding of brand loyalty and getting away with massive margins on high turnover product which is an amazing fete in such a price sensitive general environment.

    Btw Tesco do a fantastic organic milk carton, much cheaper too than DLC, but Tesco's a bit away from me.....


  • Registered Users, Registered Users 2 Posts: 1,230 ✭✭✭Beanstalk


    i always hated the plastic bottles because of the aftertaste and for years i would only buy the dlc cartons but recently i bought the aldi milk in the carton and theres no difference in my opinion, plus its 79c a litre!


  • Registered Users, Registered Users 2 Posts: 1,260 ✭✭✭harpstilidie


    It's a bit like drinking Coke from a can and from a plastic bottle, it seems to taste nicer from a can. I've been brought up drinking DC milk and will only drink it now. The other stuff is fine for tea/coffee but if I'm having a glass of milk it has to be DC.


  • Registered Users, Registered Users 2 Posts: 213 ✭✭GoldenGreen


    just though i would put this up:
    Donegal Creameries sells liquid milk and cream products under the brands of
    “Donegal Creameries,” “Milburn,” “Farm Fresh,” and “Daisylane.” Almost
    all of Donegal Creameries’ total sales of branded liquid milk and cream
    products are made in Co. Donegal.

    http://www.tca.ie/images/uploaded/documents/M-11-037%20Connacht%20Gold%20Donegal%20Creameries%20Public.pdf


  • Registered Users, Registered Users 2 Posts: 8,488 ✭✭✭Goodshape



    Interesting! I wonder if there's any difference at all to the quality / how they're produced. Must buy one of those brands and compare.


    It's not really DLC vs plastic bottles though, is it? Other brands do cardboard containers too, and doesn't DLC have a plastic 2ltr?

    I think DLC vs other brands and cardboard vs plastic are two separate issues.


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  • Registered Users, Registered Users 2 Posts: 836 ✭✭✭uberalles


    Cream war begun has


  • Registered Users, Registered Users 2 Posts: 7,814 ✭✭✭TPD


    I'm surprised Oatfields' chocolates didn't taste better with the access to the milk of the gods up here.

    I'm in the 'DC tastes better' camp by the way :P Having said that, I'd only notice the odd time I'd take a notion to drink a pint or two straight. In tea or on cereal it's all the same.


  • Registered Users, Registered Users 2 Posts: 1,416 ✭✭✭Maldesu


    A visiting relation bought a carton of milk for me from Lidl and knowing that I loath the fat free stuff, made a point of buying 'organic whole milk' which she added in triumph, that its from Donegal too. Indeed, it's from Donegal Creameries but I've no idea how much it cost. Next time your in take a look to see where it's from.


  • Registered Users, Registered Users 2 Posts: 1,003 ✭✭✭2moreMinutes


    I guess they're grabbing all shares of the market - the loyal Daisi customers and the "its all coming from a cow anyway" customers.

    A slight derail while still connected to the above but I remember a factory worker telling me a while back that a well know crisps brand produce and supply their own popular packets as well as packets for either Lidl or Aldi (cant remember now which one). The only difference was they changed the wrapping on the machines when it was time to produce the "German" variety.:D


  • Registered Users, Registered Users 2 Posts: 1,549 ✭✭✭BlackEdelweiss


    They are just different labels, they know if they do not have a cheaper product then people will buy a cheaper milk produced by another supplier. They are catering to different market demographics. The snobs will continue to buy the expensive carton and the smart people will buy the cheaper carton/bottle.


  • Moderators, Regional North West Moderators Posts: 19,159 Mod ✭✭✭✭byte
    byte


    I guess they're grabbing all shares of the market - the loyal Daisi customers and the "its all coming from a cow anyway" customers.

    A slight derail while still connected to the above but I remember a factory worker telling me a while back that a well know crisps brand produce and supply their own popular packets as well as packets for either Lidl or Aldi (cant remember now which one). The only difference was they changed the wrapping on the machines when it was time to produce the "German" variety.:D
    I'm to believe that Largo Foods who own Hunky Dorys, Tayto, King, etc. make crisps for Aldi alright, especially the Okey Dokey crisps that mimic Hunky Dorys.


  • Closed Accounts Posts: 5,852 ✭✭✭homer simpson


    NIMAN wrote: »
    I think I will do a taste test this weekend to see if there is a difference.

    Well? :D


  • Registered Users, Registered Users 2 Posts: 34,694 ✭✭✭✭NIMAN


    Well? :D

    Tbh, I usually only drink Semi-skimmed, but I did taste the DC carton full fat milk (belonging to the wains) v a full fat in a plastic container, and there did seem to be a difference in taste ok. Not sure if you would call it a nicer or better taste, but certainly different.

    I must try the semi-skimmed next to see if I notice anything, cos to be honest the full fat seemed so rich to me that it might just have been the high of getting full fat milk again!!


  • Registered Users, Registered Users 2 Posts: 1,398 ✭✭✭Technique


    Donegal Creameries put their highest quality and freshest milk into cartons, the rest goes into plastic containers.

    The reason for this is that the cartons are mostly delivered by milkmen and need to be of a high quality


  • Registered Users, Registered Users 2 Posts: 34,694 ✭✭✭✭NIMAN


    Technique wrote: »
    Donegal Creameries put their highest quality and freshest milk into cartons, the rest goes into plastic containers.

    The reason for this is that the cartons are mostly delivered by milkmen and need to be of a high quality

    I might not be a farmer here, but highest quality milk? Is there different qualities?

    And freshest? Surely all milk is fresh at first, and by that logic it should all be put into cartons? For stuff not to be the freshest, does that mean DC leave it lying around for a day or two then put it into plastic containers?;)


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