The company produces high quality fetta cheese, which is provided to major customers and distributed extensively in Australia.

"The Hillwood staff are leading specialty cheesemakers who have provided quality produce to us and other customers for some years, so when this opportunity presented itself we responded with strong interest," National Foods managing director Ashley Waugh said.

"We acknowledge the importance of the business not only to discerning Australian consumers, but also to the local economy.

"We are very conscious of the need to protect the integrity and local identity of the business.

"Hillwood Cheeses is an important addition to our Tasmanian portfolio and ensures we continue to source fresh premium quality ingredients from Tasmania."

National Foods alos owns the nearby Cheese Factory in Burnie.