DDB's hold on the Cravendale account was put under pressure last month when Arla shifted its £15m Lurpak account into Wieden & Kennedy. CHI retained the £7m Anchor butter account in June.
The Danish dairy firm launched a review of its agencies last December, following the departure of Hanne Sondergaard, head of marketing, who was replaced by Simon Stevens in a management reshuffle.
The loss of the account is a further blow to DDB, which had held it since 1998. Already this year, the agency lost the £5m Guardian account to W&K and its £10m Weetabix account to WCRS.
DDB has also lost key staff after chief executive Paul Hammersley and chief strategic officer David Hackworthy defected to Sir Frank Lowe's start-up agency The Red Brick Road.
Danny Micklethwaite, business unit director for Arla Foods, said: "Having developed Cravendale into a £72m brand since its launch in 1998, we believe that it continues to represent a huge growth opportunity for Arla Foods and we are very confident that Wieden & Kennedy London can play a major part in helping us achieve our ambitions."
Neil Christie, managing director of Wieden & Kennedy London, said: "We are delighted to be strengthening our relationship with Arla Foods by adding Cravendale to our recent appointment to handle the Lurpak account."
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