Scotland's Rowan Glen wins £400K grant to enter cottage cheese market
What's the deal? Rowan GlenDealroom has a profile for this one. Try Dealroom →, an independent Scottish dairy producer, has secured a £400,000 grant from the Scottish GovernmentDealroom has a profile for this one. Try Dealroom →'s Food and Drink Processing Scheme Scotland. The money anchors a £1 million-plus overhaul of its Palnure facility in Dumfries & Galloway, with Rowan Glen putting in over £600,000 of its own.
What's the endgame? The upgrade will modernise the factory and add a high-care production environment, letting Rowan Glen expand beyond yogurt into cottage cheese and other chilled dairy products. The project is due for completion by March 2027.
Why now? UK cottage cheese demand is climbing fast, with volumes up 29.4% year on year as of March 2025, according to the Agriculture and Horticulture Development Board. TescoDealroom has a profile for this one. Try Dealroom → has reported a 200% jump in demand over two years, drawing new launches from Arla FoodsDealroom has a profile for this one. Try Dealroom → and PhiladelphiaDealroom has a profile for this one. Try Dealroom →.
The backstory. The Palnure site near Newton Stewart closed in November 2022 under previous owner Dale Farm GroupDealroom has a profile for this one. Try Dealroom →, cutting 45 jobs. Nine former employees, led by managing director Alan Baxter, rescued the brand as an independent business, backed by a £285,000 grant from South of Scotland EnterpriseDealroom has a profile for this one. Try Dealroom →.
The relaunched company now employs around 27 people, roughly three times its restart size. "When the previous business closed and everyone was made redundant, there was a real possibility that those 45 jobs would never return and Rowan Glen could disappear for good," Baxter said.
The signal: The grant reflects both Scotland's push to strengthen its food and drink processing sector — the scheme forms part of a £9 million strategy — and a wider dairy shift towards protein-rich, healthier products. For a business rebuilt from closure, the round marks a bet that consumer demand can sustain its expansion.
Read more: scottishbusinessnews.net
Image credit: StateofIsrael
