Arla Foods acquires Australian cottage cheese producer Brancourts

Strengthening its Australian dairy footprint, Arla Foods has moved to acquire family-owned cottage cheese producer Brancourts, while announcing plans to significantly expand local production. The acquisition is expected to come into effect in a few weeks. Further details of the transaction will not be disclosed. 

The deal will be completed through Arla Foods’ joint venture with Australian Mayers Fine Food, Arla Foods Mayer Australia (AFMA).

“Australia is a highly attractive market for Arla, and we have confidence in its long-term potential,” says Lillie Li Valeur, executive VP of Arla International.

“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,” he adds.

“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.”

Arla Foods’ hold on Australian dairy

Arla Foods’ prominent branded positions in Australia have grown in recent years, including Lurpak and Castello, which are growth drivers in butter and cheese, respectively. The new acquisition equips the company with decades of local production experience and established reputation among local consumers.

The global dairy giant sees cooking cheese as a “natural extension” of its existing cheese portfolio, and this acquisition could facilitate its entry into additional dairy categories.

“Through AFMA, we have demonstrated our ability to build strong branded positions locally, and the acquisition of Brancourts allows us to apply our global category expertise to unlock further growth in line with consumer needs,” says Valeur.

Cottage cheese witnessed over 40% volume growth year-on-year, driven by changing consumer preferences around health, protein, versatility, and everyday cooking.Within this space, cottage cheese is the fastest growing segment, experiencing over 40% volume growth year-on-year, driven by changing consumer preferences around health, protein, versatility, and everyday cooking. Innova Market Insights named “Powerhouse Protein” as its top F&B industry trend this year, highlighting that nearly 60% of global consumers say they are actively pursuing protein for overall health.

“The conditions are firmly in place for continued growth in Australia, both at category and consumer level,” says Mai Roberts, general manager at AFMA.

“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.”

Brancourts will tap into Arla’s scale and capacities to drive market growth. “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,” says Julie Conradt, fourth-generation owner of Brancourts.

“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.”

Global activities and innovation pipeline

In other recent business moves, Arla Foods completed its largest-ever investment in Swedish cheese dairy, committing approximately €300 million (~US$354 million) to a new production site in Götene, intended to boost capacity and supply chain resilience, and accelerate product innovation.

Earlier this year, the global player made headway in sustainability for having exclusively powered its European sites by electricity from renewable sources since the end of last year. Approximately 93% of Arla Foods’ total electricity consumption is located within Europe, where the dairy company operates 46 sites across seven different countries.

Touring the company’s innovation pipeline, Food Ingredients First connected with Jeppe Sand Laursen, global head of sales – SBU Food at Arla Foods Ingredients, at At Fi Europe 2025, to learn about novel high-protein concepts that address robust global demand for functional dairy snacks and beverages.