FTSE 250 dairy foods company Dairy Crest has managed to keep hold of its contract to supply milk to supermarket giant Sainsbury for another three years, the company said on Tuesday morning.

The news came as the company announced a "reorganisation" to consolidate into a single structure, aimed at savings at least £5.0m per annum in costs. The firm revealed a "refresh" of its senior management team, which included the departure of its long-running Finance Director Alastair Murray.

As for Sainsbury, the company said that it retained the contract from February 2014 until 2017.

Dairy Crest said that although the conditions of the contract will change, any financial impact will be offset by its ongoing cost reductions.

The company said earlier this month that it was on track to exceed its annual cost savings target by delivering £23m for the year ending March 31st.

"We are delighted to have retained our Sainsbury's business," said Chief Executive Mark Allen.

"Our track record of making efficiencies allows us to supply our customers with competitively priced milk, pay our farmers a fair price and move towards our medium-term target of 3.0% return on sales in our Dairies business."

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