´óÏó´«Ã½

A Scottish vegan cheesemaker has been bought by an international dairy producer in a multi-million pound deal.

Canadian firm Saputo paid a total of £109m for Bute Island Foods and an unrelated Wisconsin-based factory specialising in whey protein products.

The Isle of Bute-based firm employs about 180 people.

Its main product is vegan cheese alternative Sheese, which is stocked by several major UK retailers, including Waitrose and Sainsbury's.

Saputo owns a number of well-known dairy brands, including Cathedral City, Country Life and Utterly Butterly.

The company has pledged to invest about £3m over five years in community initiatives on Bute.

Sheese was first developed at a farmhouse in Rothesay as a "cheddar style soya-based cheese alternative" as far back as 1988.

Originally called "Scheese", its ingredients included hydrogenated vegetable oil, soybean concentrate, carrageenan and locust bean gum.

Over the years, Bute Island Foods has introduced new products, including spreadable Sheese, dairy-free goats cheese and a new melting range.

New flavours were also brought in as the market for vegan cheese began to grow.

Three years ago, its blocks, sliced and grated Sheese ranges became soya-free.

A spokesman for Bute Island Foods said: "Becoming part of Saputo will help us to bring Sheese and our other products to a much wider audience."

Recent data from market research firm Kantar showed the plant-based dairy category has doubled in size over the past five years, and is now worth nearly £600m.

More than 15,200 products carried The Vegan Society's trademark in 2020, with Sheese among the labels carrying the certification.

Legal firm Dentons, which advised Bute Island Foods on its sale, has predicted a surge in activity in the vegan and plant-based food market.

Tax partner Lorna McCaa said: "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."