In the early 20th century the southern town border went from Strandtorget and up along Strandskillet. This meant that the building was located in the municipality of Tromsøysund and was named Tromsøysund Meieri (dairy). The dairy came at a time when access to pasturised milk made a contribution to improved public health. There were other industries in the town such as ship building and a brewery and the new dairy also led in 1908 to Tromsø Smørfabrikk (butter factory) being established at Strandtorget (currently occupied by the restaurant Skarven).