The acquisition of Brancourts, a prominent producer of cottage cheese, sour cream, and sweetened condensed milk, by the leading Scandinavian dairy company will significantly enhance its local manufacturing capabilities.
Located near Newcastle in New South Wales, Brancourts ranks among Australia’s top cottage cheese brands, with its offerings available in major grocery chains like Woolworths and Coles.
This acquisition will be facilitated through Arla Foods’ collaboration with the Australian company Mayers Fine Food, under the joint venture named Arla Foods Mayer Australia (AFMA).
Arla Foods emphasizes that this deal will establish an “established local production platform,” paving the way for its long-term strategy in one of the globe’s “most attractive dairy markets.”
The company anticipates that the acquisition will finalize within weeks, although it will not be providing additional details regarding the transaction.
Lillie Li Valeur, executive vice-president of Arla International, remarked, “Australia is a highly attractive market for Arla, and we have confidence in its long-term potential.” She elaborated, “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 the EU and Australia and the UK and Australia coming fully into effect, we anticipate even more opportunities in the years to come.”
Valeur also noted, “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.”
The decision to venture into the cottage cheese market in Australia is fueled by the segment’s impressive growth, which has seen over 40% volume increases annually. Arla identifies this trend as being driven by shifting consumer preferences that prioritize health, protein, versatility, and everyday cooking.
In recent years, Arla has fortified its position in the Australian market by acquiring brands like Lurpak and Castello, securing its leadership in the butter and cheese sectors.
Mai Roberts, general manager of Arla Foods Mayer Australia, added, “The conditions are firmly in place for continued growth in Australia, both at category and consumer level.” She went on to state, “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.”
