Mystery as fake firm stirs up dairy price war

Mystery surrounds the setting up of a bogus dairy in a Wolverhampton cul-de-sac that is apparently trying to cream trade off city firms.

Flyers from "Morning Fresh Dairies (Midlands)" have been sent to hundreds of independent shops and cash-and-carries across the region offering discount milk, bread and eggs.

But the only point of contact is a mobile phone number that was today ringing out without being answered, and there is no dairy in the small, residential road.

JN Dairies today vowed to take legal action if it finds out who is behind the move.

A letter to customers of JN Dairies, based in Millfields Road, Ettingshall, explaining a recent rise in milk and bread prices, was attached to a flyer from Morning Fresh.

Competitor Johal Dairies, in Cannock Road, Fallings Park, say they have been similarly hit but have not been targeted in the flyers.

One flyer read: "It has come to our attention that one company has moved its prices upwards, and this is simply to line their own pockets."

Morning Fresh was offering two litres of milk for 65p, six pints for £1.15, Hovis White 800g for 55p, Kingsmill at 65p and a dozen medium eggs for 99p.

JN Dairies director Manrupe Singh Nijjar said all the major middle-ground suppliers had increased prices in recent weeks and that Morning Fresh had been set up to "destabilise our business".

Johal Dairies lost a court appeal in April after it was found to have paid a sacked milkman £40,000 to steal the names, addresses and order details of JN Dairies' customers.

JN Dairies is claiming around £1 million in damages.

Morning Fresh Dairies claims to be based in Clayton Close, Blakenhall, but there is no record of it at Companies House.

However, a legitimate firm called Morning Fresh Dairies, based in Coventry, says it has received dozens of calls from corner shops and mini-supermarkets in the Black Country asking whether they are the suppliers of the discount milk and bread.

Director Avtar Dhillon said: "No-one can afford to sell at those prices. The milk is cheaper than tap water."