"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".