Arla Foods has today (Wednesday, May 20) announced that it has acquired Australian cottage cheese producer, Brancourts.

The international dairy company has also confirmed plans to "significantly expand local production capacity" in Australia.

Founded in 1895, Brancourts is a family-owned Australian dairy producer based in Hexham, New South Wales.

Brancourts produces cottage cheese, sour cream and sweetened condensed milk using fresh milk supplied by Australian farms.

Arla Foods

Arla said the acquisition reflects the company's commitment to "enabling good food choices, while creating long term value for its farmer owners".

The deal will be executed through Arla Foods’ joint venture with Australian family owned Mayers Fine Food, Arla Foods Mayer Australia (AFMA), which was formed in 2015.

In recent years, Arla has built strong branded positions in Australia, with Lurpak and Castello holding leading positions in the butter and cheese categories.

Lillie Li Valeur, executive vice president of Arla International, said the acquisition of Brancourts enables the expansion of Arla's branded presence and entry into additional dairy categories on shelf.

"The country combines a stable economy, high purchasing power, population growth as well as strong dairy traditions with high consumption and a sophisticated retail environment similar to Europe.

"Moreover, with the free trade agreements between EU-Australia and UK-Australia coming fully into effect, we anticipate even more opportunities in the years to come," she said.

Australia

According to Arla, cottage cheese is the fastest growing product in the cooking cheese category in Australia, experiencing over 40% volume growth year-on-year.

"The conditions are firmly in place for continued growth in Australia, both at category and consumer level," Mai Roberts, general manager, Arla Foods Mayer Australia, said.

"By combining Brancourts’ production capabilities with Arla’s global category and innovation expertise, we are well positioned to meet evolving consumer interests and needs by actively innovating the cottage cheese category – from product development to usage occasions – and accelerate its growth in the Australian market," Roberts added.

Acquisition

Commenting on the deal, Julie Conradt, fourth-generation owner of Brancourts, said: "For Brancourts and our family, finding the right successor to our business was about shared values and a long term vision for our people, our site and the Australian market".

"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.

"After more than 130 years of family ownership, I am incredibly proud of the contribution our family, our team and our products have made to Australian dairy, and excited to see Brancourts’ potential continue to unfold under its new owners," Conradt said.

The acquisition is expected to come in to effect in a few weeks. Arla said that further details of the transaction will not be disclosed.