Arla Foods Expands in Australia with Brancourts Acquisition
On Wednesday, May 20, Arla Foods announced the acquisition of Brancourts, an Australian producer of cottage cheese, sour cream, and sweetened condensed milk. Brancourts, a family-owned business based in Hexham, New South Wales, sources fresh milk from Australian farms. The acquisition will be executed through Arla Foods’ joint venture with the Australian family-owned Mayers Fine Food, known as Arla Foods Mayer Australia (AFMA), established in 2015.
Arla Foods has expressed a commitment to significantly expand local production capacity in Australia. The company also emphasized its dedication to creating long-term value for its farmer owners while enabling good food choices. Lillie Li Valeur, executive vice president of Arla International, highlighted that the acquisition would allow Arla to broaden its branded presence and enter additional dairy categories in Australia.
Arla has identified Australia as a highly attractive market due to its stable economy, high purchasing power, and strong dairy traditions. The market is characterized by high consumption and a sophisticated retail environment akin to Europe. Furthermore, Arla anticipates more opportunities arising from the free trade agreements between the EU-Australia and UK-Australia, which are expected to come fully into effect in the future.
According to Arla, cottage cheese is currently the fastest-growing product in the cooking cheese category in Australia, with over 40% volume growth year-on-year. Mai Roberts, general manager of Arla Foods Mayer Australia, stated that combining Brancourts' production capabilities with Arla's global expertise positions the company well to innovate and meet evolving consumer needs.
Julie Conradt, a fourth-generation owner of Brancourts, remarked that finding the right successor was crucial for the family, emphasizing shared values and a long-term vision for the business. The acquisition is expected to take effect in a few weeks, with further transaction details remaining undisclosed.
