Source: Arla Foods 

Arla acquired the rights to Yeo Valley’s non-yoghurt, cream, dessert and ice cream business in 2018

Arla has launched its first major NPD under the Yeo Valley brand licence it acquired in 2018 – an organic mature cheddar cheese.

The cheese went on sale in Tesco last week (rsp: £3.50/300g), with Waitrose due to follow with a listing for the SKU and a new mild variant in the summer. The launch will be supported by a six-figure marketing campaign across digital and PR.

Produced at Arla’s Taw Valley site in Devon using organic milk from British cows, the cheddar took the Yeo Valley brand into a new category, the dairy co-op said.

The cheese boasted a “rich and creamy” taste and provided an “exciting opportunity” for Yeo Valley to dominate an organic market in demand, Arla added.

The launch follows the acquisition of the Yeo Valley Dairies business two years ago and the rights to produce milk, butter, cheese and spreads under the Yeo Valley brand.

As part of the deal, Arla agreed to pay annual royalties to the Yeo Valley and take over the sole rights to sell Yeo Valley products in the above categories. The Yeo Valley yoghurt, ice cream, cream and desserts business continues to be run independently through Yeo Valley Group – which remains under the ownership of the Mead family.

“We know there is a huge appetite for organic cheese amongst consumers and see this as a great opportunity to increase our share in this market,” said Kate Sharrock, Yeo Valley brand manager at Arla Foods.

“We firmly believe organic should be for everyone and by positioning this alongside mainstream cheddar brands, we are expanding the category and offering organic for all.”