The agency, which pitched with the communications planning agency Rise, beat St Luke's, Craik Jones Watson Mitchell Voelkel and Iris in a pitch managed by COI.
The agency has been briefed to promote milk through an integrated brief comprising PR and advertising. The ads - part-funded by the European Union - will break next year, and will run for a minimum of three years, featuring a brand identity developed by the design agency Uffindell West.
Milk has a history of popular advertising, including the Milk Marketing Board's famous "Accrington Stanley" spot of the 80s, which featured two young boys referring to a conversation about milk with the footballer Ian Rush.
Freud bought DFGW in May. A spokesman confirmed it had won the brief, but refused to comment further.