Graham’s The Family Dairy has returned to the black after reaping the benefit of “booming” demand for natural protein dairy products - and the revival of 1980s favourite cottage cheese.

The Bridge of Allan-based firm has reported a pre-tax profit of £2.8 million for the year ended March 31, 2024, on turnover up to £153.1m from £152.9m. This follows a loss of £1.3m last year amid the "most challenging trading conditions in living memory" for the family-owned business.

Graham’s said it had seen sales of its high-protein products overtake sales of conventional milk in major supermarkets for the first time during its most recent financial year.

It underlined the impact made by its investment in new products, including a high-protein range taking in Protein 25 pouches, yogurt ports and drinks, dessert-style protein yoghurts, Skyr Icelandic-style yogurts, and Scotland’s first Greek yogurt pouch.

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And it highlighted surging demand for cottage cheese, driven in part by the huge popularity of recipes involving high-protein and low-fait dairy products on social media platform TikTok. Graham’s said views of the hashtag #cottagecheese were set to reach one billion on TikTok in early 2024.

Managing director Robert Graham said: “These results are positive, with Graham’s Family Dairy operating at a profit with strong sales growth, despite continued challenging conditions. As dairy farmers ourselves, who continue to milk our own cows, we understand the pressures of continued high energy, staffing and raw material costs.

“However our continued programme of investment in new product development and our manufacturing sites has meant that profits have remained steady.

“This last year has seen sales of protein and Skyr products overtake sales of conventional milk for the first time, illustrating the growing demand for naturally high-protein, fat-free and low-sugar goodness. Our £2m investment at our facility in Nairn has resulted in the launch of our latest product, Greek yogurt pouches, and allows us to maintain our position as the largest supplier of protein pouch products in the UK.

“However, we have not lost our focus on traditional dairy goods, with Gold Top milk from our herd of Jersey cows continuing to do well, demonstrating that people are still prepared to pay for better quality products with natural ingredients and a great taste.”

Graham’s, which employs more than 650 people, said it continued its capital investment programme last year, and spent £5m to modernise production plants and meet rising demand “in the most sustainable and responsible way possible”. It spent £8.4m on capital investment the year before.

Graham’s The Family Dairy expand its partnership with Dunnes stores in Ireland, and established new markets in the UAE through a deal with Spinneys in its most recent financial year.