Irish dairy co-op The Irish Dairy Board has decided to merge its The Kerrygold Company and North Downs Dairy units.

The merger, set to take effect on 3 October, will create Adams Foods, a "consumer foods business" that will include brands including Kerrygold butter and Pilgrims Choice cheese.

Adams Foods, which will generate annual sales of GBP335m, will keep Kerrygold's plant in Staffordshire and North Downs' factory in Somerset "fully operational", Kerrygold said.

"Our aim is to be the most enterprising dairy marketing company in the UK and a leading supplier of cheese, butter and other dairy products to the retail and foodservice sectors," said Kerrygold MD Carl Ravenhall, who will become MD of Adams Foods.

"By combining our strengths we are creating one company that can market, sell, produce, and distribute the Kerrygold and Pilgrims Choice branded portfolio in addition to the broadest range of retailer-brand hard cheeses across the UK."