As part of its "Good food deserves Lurpak" campaign, the brand used 500 replica butter packs to create the installation in Covent Garden.
The tree is surrounded by a kitchen and chef who cooked mince pies, roast ham and cookies.
Gareth Turner, interim category director for butter at Arla Foods, said: "Our target audience are food lovers basically; people who love great food, who love great quality ingredients and are prepared to perhaps pay a little bit more.
"People who are prepared to try new recipes, to try new and exciting things in the kitchen and there's no better time to do that than Christmas."
The activation was created by BD Network. It began in Birmingham in November.