BUTE ISLAND Foods, the manufacturers of vegan cheese alternative 'Sheese', has been bought over by Canadian dairy giant, Saputo.

The company, which started making the product by hand in a converted shed on the island back in 1994, has gone from strength to strength, and now employs around 180 staff, ironically housed in the island's Old Creamery, manufacturing both Sheese and various own-brand vegan products for retailers.

Saputo meanwhile, is a major international player, owning major dairy brands including Cathedral City, Country Life, and Utterly Butterly. It is understood to have paid a total of £109 million in this latest round of acquisitions, buying both Bute Island Foods and a US-based whey products factory owned by Wisconsin Speciality Protein.

The multi-national makes a point of supporting the communities where it operates, aiming to invest 1% of its pretax profits each year in community programs and organizations that promote a healthy lifestyle for people of all ages. as such, Saputo has pledged more than $4 million over five years to support local Bute Island community initiatives.

CEO and chairman, Lino A. Saputo, said: “We are delighted to welcome the Bute Island Foods team and the wealth of knowledge they bring to our global family. Our commitment remains to expand our footprint in the dairy alternatives space to meet the changing demands of our customers and consumers. This investment marks an important milestone that will allow us to accelerate our growth in this area globally, putting innovation at the forefront of our priorities."

Data from Kantar showed the plant-based dairy category has doubled in size over the past five years and is now worth just under £600 million. A total of 15,206 products carried The Vegan Society’s trademark in 2020, up from 14,262 in 2019, with Sheese among the labels carrying the certification.

During the sale negotiation, Bute Island Foods was advised by law firm Dentons. Lorna McCaa, a tax partner in its Glasgow office, said: “We expect to see much more activity in the plant-based and vegan sector in the months ahead. There’s huge demand out there for high-quality, authentic products like Sheese, which is shown by the number of brands asking Bute Island Foods to make own-label products.

“It’s fantastic for a Scottish company with the heritage and provenance of Bute Island Foods to attract the attention of an international player like Saputo. Appearing on the radar of a global entity is down to the quality of the products being made by the company and the efficient way in which the team runs its business.”

Bute Island Foods commented: “This was the first time that we’d been involved in a corporate transaction on this scale and so it was great to have support from Dentons’ team in Scotland. They guided us through this unknown territory with comfort and ease and were always on hand to advise us. Becoming part of Saputo will help us to bring Sheese and our other products to a much wider audience."