Fan Milk PLC was founded in 1963 by Danish merchant and industrialist Erik Emborg with a recombination-plant at Ibadan, a distribution centre in Lagos and less than 30 employees.​

The plant produced fresh milk from imported milk powder. Initially, the product range was white milk, chocolate milk, cottage cheese and set yoghurt. The main outlet was bicycle vendors supplied with cold products from a growing number of smaller depots.​

In 1970s Fan Milk introduced yoghurt drink, ice lollies, ice cream and new Tetra Pak packaging technology. The new products became very popular in the market and generated the financial strength to set up further depots and, in 1981, a second recombination plant in Kano.​

At the outset, the foreign partner owned 96 per cent of Fan Milk Plc, When the government introduced The Nigerian Enterprises Promotion Decree in the late 1970s, Fan Milk Plc increased its capital and invited more Nigerians to invest which created a 60 per cent Nigerian participation in the company.​

In 2016, Danone (Global Dairy Manufacturer) partnered with Abraaj (a Private equity firm) to acquire majority stake in Fan Milk. In 2019, Danone secured Abraaj’s stake in Fan Milk becoming the sole majority shareholder of Fan Milk.​