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Global dairy giant Arla Foods is deepening its investment in Australia through the acquisition of family-owned cottage cheese producer Brancourts.

Announced on 20 May, the acquisition will be carried out through Arla Foods Mayer Australia (AFMA), Arla’s joint venture with Australian speciality food distributor Mayers Fine Food. The deal also includes plans to substantially expand Brancourts’ local production capacity.

The move gives Arla an established manufacturing platform in Australia and positions the company to broaden its presence beyond its existing strengths in butter and speciality cheese. Arla’s brands Lurpak and Castello already hold strong positions in the Australian market.

Lillie Li Valeur, executive vice president of Arla International, said: “The acquisition of Brancourts allows us to apply our global category expertise to unlock further growth in line with consumer needs."

The transaction comes as cottage cheese experiences a resurgence globally, driven by demand for high-protein, versatile dairy products. According to Arla, the Australian cottage cheese category has recorded more than 40% year-on-year volume growth, making it the fastest-growing segment within cooking cheese.

Mai Roberts, General Manager of AFMA, said: “By actively innovating the cottage cheese category, from product development to usage occasions, we are well-positioned to meet evolving consumer interests and accelerate growth in the market."

Founded in 1895, Brancourts has operated for more than 130 years and is based in Hexham, New South Wales. The company produces cottage cheese, sour cream and sweetened condensed milk using locally sourced Australian milk.

Julie Conradt, fourth-generation owner of Brancourts, said: "AFMA brings the ambition to invest in the future of the business while respecting the heritage, people and local relationships that have defined Brancourts for generations."

The acquisition is expected to close within the coming weeks. Financial terms were not disclosed.

Top image: © Brancourts