The Scandinavian dairy giant’s acquisition of Brancourts, which manufactures cottage cheese, sour cream and sweetened condensed milk, will help to expand its local production capacity.
Based near Newcastle in New South Wales, Brancourts is one of Australia’s biggest cottage cheese brands, with its range of products stocked in some of the nation’s largest grocery retailers, including Woolworths and Coles.
The deal will be executed through Arla Foods’ joint venture with Australian firm Mayers Fine Food, Arla Foods Mayer Australia (AFMA).
Arla Foods says that the acquisition will provide it with an “established local production platform”, supporting its long‑term ambitions in one of the world’s “most attractive dairy markets”.
The company adds that the acquisition is expected to come into effect within a few weeks, and that no further details regarding the transaction will be disclosed.
“Australia is a highly attractive market for Arla, and we have confidence in its long‑term potential,” said Lillie Li Valeur, executive vice‑president 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. 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.
She continued: “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.”
Arla Foods’ decision to enter the cottage cheese space in Australia has been driven by the segment’s recent rapid expansion, experiencing more than 40% volume growth year‑on‑year.
This development, Arla says, has been prompted by changing consumer preferences around health, protein, versatility and everyday cooking.
Arla has already established a firm foothold in the Australian market in recent years, with the acquisition of Lurpak and Castello allowing it to hold leading positions in butter and cheese respectively.
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.
“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.”
