The appointment comes after a pitch process, which kicked off in November and involved a number of undisclosed agencies.
Grey London is the incumbent on the £14 million Dairy Crest advertising business, overseeing work for brands including Country Life, Cathedral City and Frijj.
The agency's relationship with Dairy Crest on these brands is unaffected by VCCP's appointment.
Dairy Crest revealed that it was planning to introduce a new children's product into the market last year, but details were not made public until this week.
Chedds will be rolled out under the Cathedral City cheddar brand, as Dairy Crest looks to step up its rivalry with Kraft's Dairylea.
Universal McCann London is expected to handle the media planning and buying for the launch.