The digital agency won the creative brief, following a competitive pitch that included Navigate Digital, which will be handling all digital media.
Clusta will be responsible for developing Palmers' digital campaign across all accounts, including its popular Cocoa Butter range.
The work will concentrate on raising awareness and consumer engagement with the Palmer's brand, using social networking, online partnerships and other digital touch points.
Zahira Beddou, Palmer's brand manager, said: "Palmer's is expanding rapidly and appointing Clusta highlights our commitment to invest in digital media to make a significant impact on this area and continue our growth. This is a key opportunity for us to enhance our online strategy in the UK and potentially roll out campaigns for our products further afield."