French dairy giant Lactalis has agreed to buy Saputo Inc.’s UK dairy division, a deal that will make it one of the largest suppliers of cheddar and butter in Britain. The transaction is expected to close by the end of the first quarter of 2027, pending regulatory approvals.
Brands and production sites transfer to Lactalis
The acquisition includes well-known British brands like Cathedral City and Davidstow cheddar, Wensleydale Creamery cheeses—including Yorkshire Wensleydale with Protected Geographical Indication status—Country Life butter, and spreads such as Clover and Utterly Butterly. These products have been staples in UK households for decades, with Cathedral City alone holding the title of the country’s favorite cheddar for over 60 years.
Saputo’s UK division operates five production sites across England and Scotland, employing about 1,300 people. The facilities are located in Hawes, Yorkshire; Davidstow, Cornwall; Nuneaton, Warwickshire; Kirkby, Merseyside; and the Isle of Bute. Last year, the business reported revenues of €800 million, with 94% of sales coming from the UK market and the remaining 6% exported to Europe, Asia-Pacific, and North America.
For many of these workers, the change in ownership might feel like just another corporate reshuffle—until the first paycheck arrives under a new name. But the brands themselves, some with century-old reputations, are unlikely to vanish from shelves. If anything, Lactalis may push them harder into export markets where British dairy already carries a premium.
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Lactalis expands UK footprint with heritage brands
Emmanuel Besnier, chairman of Lactalis, called the deal a “key milestone” in the company’s growth in the UK. “By welcoming famous brands and recognized expertise into the group, we are strengthening our position in the UK market and reaffirming our commitment to providing consumers with high-quality dairy products,” he said.
Lactalis, a family-owned company, is already the world’s largest dairy producer. The acquisition aligns with its strategy of expanding in markets where it can leverage both scale and local brand loyalty. In the UK, that means inheriting not just factories and distribution networks, but a piece of the country’s culinary identity.
The deal still requires approval from regulators, who will likely scrutinize whether the combined entity could reduce competition in certain segments. But for now, the focus is on integration—ensuring the transition doesn’t disrupt supply chains or the daily routines of the 1,300 employees who keep those production lines running.
One thing won’t change: the taste of a Cathedral City sandwich or a slice of Wensleydale on a cracker. At least, that’s the promise.
