A former pub landlord is planning to expand his new milk delivery business after turning down a six-figure offer to buy the fledgling operation.

Julian Terriaca of Hamilton said EM Dairies is attracting attention from large established operators, having secured an order book worth £5 million annually after just four months in operation. After recently turning down a £400,000 buyout offer, he is now looking to extend operations into the north and east of Scotland.

Rather than traditional doorstep deliveries, EM Dairies focuses on the needs of businesses including small retail traders, coffee shops, cafes, garden centres, factories and nurseries. Deliveries are currently running at 80,000 litres per week.

“The B2B sector has been somewhat neglected by the industry," said Mr Terriaca, who ran pubs in London for 15 years but also has a strong background in the Scottish dairy trade.

"The overwhelming majority of companies do doorstep deliveries through the night. But I was aware from speaking to many customers in the areas that I have identified and targeted that they want a different kind of more bespoke service which fits their needs.

“They don’t want to arrive at their premises to open up and find a milk order has been lying outside through the night for possibly several hours. They want fresh deliveries, made to them during their normal opening times so they can make sure everything is tip top and in great condition when they welcome our people through their doors, direct from our chillers to their premises in refrigerated vans."

Backed by a private angel investor, EM Dairies has now set its sights on the areas around Aberdeen, Dundee, Perth and Inverness. Mr Terriaca said he is also actively seeking to establish new bases in Edinburgh, Dunfermline and Livingston.

“We’ve had significant numbers of enquiries from other parts of the country from potential customers who like our model," he said. "Many have learned of our operation from their contacts in the central belt area."

The company currently employs 10 people with seven vehicles operating out of its base in Bellshill seven days per week. EM Dairies has also forged connections with an east coast fruit and veg wholesaler that delivers their produce to west coast customers while in return EM’s dairy produce is distributed by them in the east.