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Dundee institution Kerr’s Dairy on course to deliver £10m sales

The boss of the family-owned firm says its success has been helped by a rise in glass bottle sales.

Kerr's Dairy now has current fleet of 32 vans and 69 delivery runs. Image: Kerr's Dairy.
Kerr's Dairy now has current fleet of 32 vans and 69 delivery runs. Image: Kerr's Dairy.

Many so-called experts have forecast that competition from big supermarkets would lead to the demise of doorstep milk deliveries.

Try telling that to Kerr’s Dairy of Dundee, which has been around for more than 120 years.

It now has a second operation in Aberdeen, with further depots also targeted for Inverness and Fife.

Kerr’s Dairy has been on a growth drive since 2018 – and staff numbers are forecast to top 100 by the end of this year, with annual turnover exceeding £10 million.

The dairy has been family-owned since 1900, when it was founded by Sandy Kerr.

Director Kelvin Kerr junior became the fifth-generation Kerr to run the company five years ago.

He was responsible for the return of doorstep deliveries, which have proven hugely popular.

From helping out to running Kerr’s Dairy

Kelvin worked in the family business from the age of 12 until he was 17, at which point he decided to venture out and gain experience in different fields.

During his time away, he worked in sales and took on management positions as well as running his own business.

Returning to Dundee at 25, Kelvin decided to learn all aspects of the dairy. He started as a shop driver.

Kelvin Kerr Jnr with a crate of glass milk bottles.

He saw the potential of reintroducing doorstep deliveries in the city. Kelvin also recognised the need for return of more environmentally-positive glass bottles.

For a start, Kelvin introduced one van and two doorstep runs.

Both the doorstep and retail departments of the business have since grown significantly, with a current fleet of 32 vans and 69 delivery runs.

There are now 39 drivers and 22 support staff working out of Dundee and Aberdeen.

Growth in glass bottle use

Kerr’s Dairy has seen a remarkable growth in the use of glass bottles.

It has progressed from sales of 750 glass bottles a week in the early part of 2018, to 57,000 in the summer of 2021.

And that rose further still last summer – to an incredible 67,000 a week.

Kelvin said that has meant Kerr’s has made a huge saving on plastics.

“That’s what truly makes us stand out from other competitors providing milk,” he said.

“Without a doubt, Kerr’s Dairy’s unique selling proposition is our milk coming in a glass bottle – something that it is unattainable at 99% of milk providers.

Some of the Kerr’s Dairy vans. Image: Kerr’s Dairy.

“To build on this, we’ve expanded our glass bottle product range. We now offer four fruit juice options as well as three fresh milkshake variants in glass bottles too.”

A visitor to the Dundee base can see how much of a hands-on approach Kelvin has.

It’s not uncommon to see him accepting deliveries or sorting IT issues.

And if there is a driver short, there’s a chance Kelvin will be out in one of the vans delivering milk.

Kerr’s Dairy plans further growth

Kerry’s Dairy is also proud to buy local.

Kelvin explained: “Our expansion in our product range gave real evidence of our local procurement – as in a lot of instances we have chosen local suppliers over potentially-cheaper suppliers from out with our area.

“Nothing beats some juicy strawberries and we supply these to our customers via the local Craigowl Farms.

“Furthermore, our bakery suppliers are Wallace Family Bakers and it wouldn’t be amiss to say the majority of people in Dundee are familiar with Wallace’s.”

Kerr’s Dairy has seen a huge rise in the number of products they sell in glass bottles. Image: Kim Cessford/DC Thomson.

He said growth in the customer base to 17,700 in 2021/22 shows Kerr’s Dairy has a real grasp of its market.

The company turnover has soared from £1.4m in 2018 to £5.9m in 2022.

New Dundee premises in Ash Street were opened in 2021.

The Aberdeen depot was opened in 2020, then moved to a new site last year to allow for further growth.

Kelvin stepped back from day-to-day tasks in 2021 to concentrate on strategic growth of the diary.

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