Cheddar mountain to help pensions of mature milkmen

cheese The cheddar will help save those mature enough to claim a pension

Related Stories

A giant mountain of maturing cheddar cheese is to be used as security for a pension fund.

Twenty million kilos of Cathedral City cheddar will now back up pension funds of workers at Dairy Crest, one of the UK's biggest cheesemakers.

Some 20,000 pallets of the cheese, nearly half the company's total stock, have been pledged to the pension fund trustees.

The cheese is made in Cornwall, but matured in a warehouse in Warwickshire.

It is kept on the shelves there for 12 months.

In the event of the pension fund running into financial trouble, the trustees will now be able to sell blocks of cheddar to make up the shortfall.

Like many companies in the dairy industry, Dairy Crest has been trying to eliminate its pension deficit.

cheese in storage The cheese will be stored at this warehouse in Nuneaton

It has not been helped by the huge numbers of retired milkmen, from the days when nearly every household had its milk delivered.

Of 3,000 members of the current scheme, most are milkman. The scheme is now closed.

And it is not the first company in the food industry to find an innovative way of plugging its deficit.

In 2010, drinks giant Diageo agreed to transfer millions of barrels of maturing whisky to a pension fund partnership, to help plug its financial shortfall.

Dairy Crest is also paying £40m in cash into the pension fund, from the proceeds of selling its St Hubert spreads business last year.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories


Features & Analysis

  • SyedTanks instead of toys

    Lyse Doucet on the plight of children in Syria and Gaza

  • Silhouette of manSuper-shy

    Why do Germany's super-rich so often keep their heads down?

  • Children playing in Seoul fountainDay in pictures

    The best news photos from around the world in the past 24 hours

  • Gin drinkerMother's ruin

    The time when gin was full of sulphuric acid and turpentine

Elsewhere on the BBC

  • EscaladeBling's the thing

    The ostentatious Cadillac Escalade cruises into 2015 with fuel-gulping gusto


  • The smartphones of shoppers being tracked in a storeClick Watch

    How free wi-fi can enable businesses to track our movements and learn more about us

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.