Dale Farm is launching premium dairy brand Loseley into butter to tap into growing consumer demand for natural spreads.
It believes the line could be worth £2m within three years, which would make it a top 20 selling spreads brand.
The butter was produced from a specially selected dairy herd, whose unique feed made the butter naturally soft without vegetable oil, giving it a point of difference, said head of brand marketing Brian Beattie.
"It's a natural progression for Loseley as a dairy business to continue to move into other high-end dairy products," he added.
The launch will be backed with a press campaign breaking next month.