DAIRY has the potential to be the grocery sector’s "engine for growth" for the foreseeable future, with both consumers and farmers set to benefit, according to sector giant Müller.

The liquid milk, dairy ingredients and yoghurt and desserts business will shortly outline its plans to unlock an additional £700million of category growth in the sector by 2020.

To make this happen, Müller has confirmed that it is to invest £100m – over and above its normal planned expenditure – in its operational, innovation and marketing capabilities over the next 18 months.

Capital projects will include installing new filling lines and further upgrading the capacity and capabilities of ther company's existing added-value production facilities.

Müller Group chief executive Ronald Kers said: “The Müller brand is already ahead of Coca-Cola and Cadbury’s Dairy Milk in the top 10 most purchased fast moving consumer goods brands in the UK, picked from supermarket shelves 207 million times each year.

“Now we want to use our leadership position in dairy to rev up the engine and work collaboratively with our customers and of course our farmers to delight consumers and realise the untapped potential that exists to grow this amazing category.”