Arla Foods expands Australian footprint with Brancourts acquisition

AUSTRALIA – Arla Foods has deepened its investment in Australia through the acquisition of family-owned cottage cheese producer Brancourts.

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.”

Recently, the company invested US$324 million (EUR 300 million) in a new cheese dairy at its production site in Götene, Sweden, to expand capacity, strengthen supply resilience and accelerate innovation across the production network.

At the same time, the investment will boost Swedish cheese production, jobs, food security and regional growth.

By building modern, efficient capacity in Sweden, Arla will scale high-quality, nutritious dairy for consumers, enhance food security across its markets, and accelerate innovation in core cheese categories.

Götene is already one of Arla’s largest production sites, with approximately 600 employees and round-the-clock operations producing butter and spreads, milk powder and cheese.

With the new cheese dairy, Götene is expected to receive around 1 billion kg of milk per year, roughly double today’s volume, strengthening skills, jobs and regional development.

Subscribe to receive our email newsletters with the latest news and insights from Africa, the Middle East and around the world. SUBSCRIBE HERE