Milk group breaks into mail market

HOUSEHOLDS could soon receive their post with their milk after dairy group Express Dairies revealed it had won a license to break into the postal market.

The company said it could deliver up to 4.6m items of mail a year, from businesses to households, using its urban delivery network of 106 depots and 3,500 milkrounds. The licence is for an initial 12-month period.

The move is part of regulator PostComm's plan to gradually introduce competition to struggling postal service Consignia, ahead of full market liberalisation in 2007.

Express shares were 6% higher at 30 3/4p by early afternoon, valuing the firm at £92m.

Express said 'its depot infrastructure and milkmen offer an efficient and effective means of delivering mail and parcels while its investment in technology allows a level of traceability only previously available from much more expensive delivery operations'.