The stoush between Fonterra and Lewis Road Creamery over labelling on Kapiti milk bottles has come to an end.

Fonterra today confirmed they are updating their Kapiti milk range with "distinctive new packaging" which is due to hit stores from June.

"Given this, Kapiti and Lewis Road Creamery are both pleased to have settled their packaging dispute," a Fonterra spokesman said.

Earlier today, Lewis Road Creamery posted a statement to their Facebook page indicating their pleasure.

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"Hats off to the Fonterra team who will be rolling out distinctive, new packaging on their Kapiti milk range from June," the post read.

"This change has enabled us to resolve our packaging dispute with them. We are delighted to have sorted things out, and want to thank each and every one of you for your unwavering support."

The agreement between parties is confidential, Fonterra said, and neither company would make any further comment.

Lewis Road Creamery was taking action against Fonterra over branding issues, alleging the milk products bore similair labels.

Lewis Road Creamery co-founder Peter Cullinane raised concerns in December about packaging similarities between Lewis Road Creamery products and new Fonterra brand products "which is likely to confuse shoppers".