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Chilled dairy foods firm Dairy Crest plans to cut jobs and may close a factory in a move that could affect its truck drivers.
The company has begun a consultation on the future of its Nottingham dairy plant, which employs 215 people. It says there will also be job cuts at its head office.
This week, the company opened its new regional distribution centre (RDC) at Aldridge in the West Midlands.
Dairy Crest has just started supplying fresh milk exclusively to five of Lidl's six distribution centres in England and Wales. It is also a long-term supplier of fresh milk to both Sainsbury's and Morrisons.
Mark Allen, group chief executive says: "The commercial environment has become more challenging over recent months and we are taking actions, including significant cost reductions, to ensure our business and our brands are well positioned for the trading environment ahead."