Arla Foods is taking over Brancourts, which has produced cottage cheese in Australia for more than 135 years. The acquisition reflects the cooperative’s ambition to grow in what it considers one of the world’s most attractive dairy markets.

Arla Foods has agreed to acquire Australian cottage cheese producer Brancourts. The deal is being executed through Arla Foods Mayer Australia (AFMA), the joint venture Arla has operated since 2015 alongside Australian family-owned Mayers Fine Food. The cooperative announced the acquisition in a press release.

Arla already has an established presence in Australia through Lurpak and Castello, both of which hold leading positions in butter and cheese respectively. The Brancourts acquisition gives the cooperative a foothold in a new category and a ready-made local production platform to build on.

Growing consumer interest
Cottage cheese is, according to Arla, the fastest-growing segment within cooking cheese in Australia, with volume growth of more than 40 per cent year on year, driven by rising consumer interest in protein and healthy everyday cooking.

“The conditions are firmly in place for continued growth in Australia, both at category and consumer level,” says Mai Roberts, General Manager of Arla Foods Mayer Australia.

Executive Vice President Lillie Li Valeur adds that the trade agreements between the EU and Australia and between the UK and Australia are expected to open further opportunities as they come fully into effect.

More than 130 years of family ownership
Brancourts was founded in the 1880s by French immigrants and has since produced from its base in Hexham, New South Wales. Julie Conradt, the fourth-generation owner, says in the press release that the choice of buyer came down to shared values and a long-term vision for staff and the production site.

The acquisition is expected to come into effect within the coming weeks. Financial terms have not been disclosed.

By Maja Løvstrup
Photo: Arla Foods