Arla buys Australian cottage cheese firm

Arla Foods said on May 20 it had agreed to acquire Brancourts, an Australian cottage cheese producer, in a deal aimed at expanding its position in a fast-growing local dairy category. The transaction will be carried out through Arla Foods Mayer Australia, the company’s joint venture with Mayers Fine Food, according to company statements and trade reports. Financial terms were not disclosed. Arla said it also plans to expand production capacity at Brancourts’ dairy in Hexham, New South Wales. ### Which company did Arla buy, and how old is it? Brancourts is a family-owned Australian dairy business best known for cottage cheese and other cultured dairy products. Trade publications described the company as a historic producer, and Brancourts said the sale ends more than 130 years of family ownership. (brancourts.com) Food Manufacture and other industry outlets identified Brancourts as the target of the acquisition after Arla announced the deal this week. The companies did not publish a purchase price. ### How is Arla doing the deal in Australia? Arla said the acquisition is being executed through Arla Foods Mayer Australia, known as AFMA, its joint venture with Australian family-owned Mayers Fine Food. (foodbev.com) Mejerimedier reported that Arla has operated that venture since 2015. Australia is not a new market for Arla. (foodbev.com) Arla already sells brands including Lurpak and Castello there, with Mejerimedier saying those brands hold leading positions in butter and cheese in the country. ### Why is Arla targeting cottage cheese now? Arla said Australia’s cottage cheese segment has recorded more than 40% year-on-year volume growth, making it the fastest-growing segment within cooking cheese. (mejerimedier.dk) The company linked the move to demand for high-protein dairy products. Arla already has an established cottage cheese brand elsewhere. (mejerimedier.dk) The company’s KESO brand page describes KESO as Arla’s Swedish cottage cheese brand, suggesting the group is bringing category experience into the Australian market. That is an inference based on Arla’s brand portfolio and its stated expansion plans. ### What did Arla say it will do after the acquisition closes? (dairybusinessmea.com) Arla said it plans to “significantly expand local production capacity” after the acquisition, with Brancourts’ Hexham dairy identified as the site for that increase. Agriland and Brancourts’ own statement both reported the expansion plan. The Brancourts statement said the deal is intended to accelerate growth in Australia’s cottage cheese market. (arla.com) Arla has not, in the materials reviewed, given a closing date or a target investment amount for the Hexham expansion. ### What else has Arla been doing this year? Arla’s news page shows the company announced strong results for 2025 and, separately, a roughly 300 million euro investment in a new Swedish cheese dairy earlier in 2026. (agriland.ie) Those announcements place the Brancourts purchase alongside a broader run of dairy investment by the cooperative. Arla’s next public updates are likely to come through its company news page or any closing announcement tied to AFMA and Brancourts. (brancourts.com) As of May 22, the companies had disclosed the acquisition, the Hexham expansion plan and the absence of financial terms, but not a completion date. (arla.com)