UK dairy foods group Dairy Crest is to pump £41 million (€64m) into expanding and upgrading its cheddar-making plant in Cornwall, according to a report from the BBC.
The move aims at increasing sales of its Cathedral City brand, the company said when it announced the news. Dairy Crest said it was making the investment following "continued strong growth" in consumer demand for its Cathedral City and Davidstow brands.
It said sales of Cathedral City rose 18 per cent over the last year against a declining market for mature cheddar, which saw sales volumes fall 2 per cent.
Dairy Crest said it aimed to increase the number of people buying Cathedral City, and believed there was "considerable scope for future growth" of the brand.
The group is to spend two years expanding capacity and upgrading facilities at its creamery at Davidstow in Cornwall, which employs 174 staff, and aims to increase production by two thirds over the next decade.
The increased cheddar sales helped boost group turnover for the year to 31 March, rising to £1.37 billion against £1.31 billion.
Dairy Crest also makes Clover spread, Country Life butter and the Yoplait and Frijj ranges, as well as producing milk.