Lactalis

Lactalis is a French multinational dairy products corporation, owned by the Besnier family and based in Laval, Mayenne, France.[1] The company's former name was Besnier SA.[1]

Lactalis
TypePrivate company
IndustryDairy products
Predecessorla société Besnier
Founded19 October 1933 (1933-10-19)
FounderAndré Besnier
Headquarters,
France
Key people
Emmanuel Besnier, CEO
ProductsCheese, butter, milk
Revenue€16.5 billion (2015)
OwnerBesnier family via Belgian holding company BSA International SA
Number of employees
75,000
Websitelactalis.fr/en/

It is the largest dairy products group in the world, and is the second largest food products group in France, behind Danone.[2] It owns brands such as Parmalat, Président, Siggi's Dairy, Skånemejerier, Rachel's Organic, and Stonyfield Farm.[3]

History

André Besnier started a small cheesemaking company in 1933 and launched its Président brand of Camembert in 1968. In 1990, it acquired Group Bridel (2,300 employees, 10 factories, fourth-largest French dairy group) with a presence in 60 countries. In 1992, it acquired United States cheese company Sorrento. In 1999, la société Besnier became le groupe Lactalis owned by Belgian holding company BSA International SA. In 2006, they bought Italian group Galbani, and in 2008, bought Swiss cheese maker Baer. They bought Italian group Parmalat in a 2011 2.5 G€ take-over after its bankruptcy and have since sought to delist it. In 2013, the Sorrento and Precious brands in the US were renamed Galbani, and the Sorrento Lactalis division was renamed Lactalis American Group.

In 2007, the French Institut National des Appellations d'Origine, which administers AOC (L'appellation d'origine contrôlée) designations for French food products, refused to permit Lactalis and the dairy cooperative, Isigny-Sainte-Mère, to sell pasteurized Camembert as "true Camembert". As of 2007, these two companies represented between 80 and 90% of Normandy Camembert sales.[4] In 2018, the INAO announced it would relax restrictions and create a new designation to include pasteurized Camembert in 2021.[5]

In February 2012 Skånemejerier in the south of Sweden was acquired.

In May 2015, Lactalis acquired an 80% stake in Turkish dairy Ak Gida, a subsidiary of Yildiz Holding.[6][7][8][9]

In July 2017 it was announced that Groupe Danone had agreed to sell its Stonyfield Farm subsidiary to Lactalis for $875 Million[10] to avoid anti-trust claims and to clear the way for Danone's acquisition of U.S. organic food producer WhiteWave Foods.[11]

In December 2017, Lactalis announced the acquisition of dairy company Itambé.[12]

In January 2018, Lactalis announced it had agreed to purchase the skyr producer Siggi's Dairy, which will continue to be run independently.[13]

In October 2018, Lactalis announced the acquisition of Nestlé Malaysia's chilled dairy business unit for approximately $40 million.[14]

Lactalis's Indian subsidiary Tirumala Milk Products said that it would acquire Prabhat's dairy business for Rs 1,700 crore. This will be Lactalis's third acquisition in India.[15]

On September 15, 2020, Groupe Lactalis announced an agreement to acquire Kraft Heinz's natural cheese operations in North America and internationally for $3.2 billion.[16]

Operations

Owned by the family controlled Belgian holding company BSA International SA, Lactalis in 2015 had global revenues of 16.5 billion euros. Lactalis employs 75,000 people worldwide, at 237 production sites in 43 different countries.[17] The headquarters for Lactalis American Group, Inc. is located in Buffalo, New York.

Controversies

In Aug 2016, farmers blockaded the company HQ in the French city of Laval, protesting what they saw as price fixing.[18]

In Jan 2018, the company had to withdraw 12 million boxes of baby formula due to a salmonella contamination. They were accused of trying to hide the initial discovery of contamination, which led to the crisis.[19][20][21]

In 2020 allegations were made that 38 of Lactalis’s production plants in France had breached environmental regulations, and had been doing so for a number of years. Lactalis stated it had invested €60 million in improving wastewater treatment plants.[22]

Brands

The group operates in eight divisions:

  • Lactalis cheeses with President – Rouy   Lepetit   Bridélight   Galbani   Rondelé   Munster's Little Friends
  • Lactalis Butter & Creams with President – Bridélice   Bridélight   Primrose
  • Lactel with Awakening – Day after day   Morning Light
  • Lactalis AOC with Pochat – Istara   Beulet   Salakis   Lanquetot   Roquefort Société   Golden Ball   Lou Pérac   The Ruby   Raguin   The Stone Bridge
  • Lactalis consumption AFH with President – Society   Bridel   Locatelli
  • Lactalis industry with BBA – Calciane   Prolacta
  • Tendriade Veal with Tendriade – Eurovo   Voréal
  • Lactalis International with President – Sorrento   Valbreso   Galbani   Sorrento   Locatelli   Invernizzi
  • LNUF with The Milkmaid – Yoco   Flanby   Sveltesse   Vienna   Greek Yogurt   Kremly   BA   Fold

Lactalis owns 198 industrial sites in 55 countries. 18 of these countries are USA, Romania, Poland, Italy, Russia, Ukraine, Spain, Saudi Arabia, Egypt, Ireland, Portugal, Switzerland, Croatia, Czech Republic, United Kingdom, Australia and as of 2011 Canada and South Africa. Lactalis mostly produces yoghurt, butter and cheese and powder milk, baby formula and milk drinks.

See also

References

  1. World's Major Multinationals. Directories (Euromonitor PLC). Euromonitor. 2000. p. 309. ISBN 978-0-86338-883-5. Retrieved 15 August 2017.
  2. Sukumar, C. R.; Kumar, Arun (15 August 2017). "Le Groupe Lactalis of France to purchase Tirumala Milk Products for $275 mn". Retrieved 15 August 2017 via The Economic Times.
  3. Lactalis UK website. "Companies and Brands".
  4. "Flex-news-food.com".
  5. Monaco, Emily. "The end to a French cheese tradition?". Retrieved 30 August 2018.
  6. "Lactalis set to enter thriving Turkish dairy sector through Ak Gida deal". dairyreporter.com. 7 May 2015. Retrieved 14 November 2015.
  7. "AK GIDA". unluco.com. Archived from the original on 17 November 2015. Retrieved 14 November 2015.
  8. "Yıldız Holding sells dairy unit to French food giant". Hürriyet Daily News. 6 May 2015. Retrieved 14 November 2015.
  9. "Lactalis acquires Turkish dairy producer Ak Gıda". Foodbev.com. 6 May 2015. Retrieved 14 November 2015.
  10. Beth Kowitt. "Danone's Stonyfield Sale Is the Latest Twist in the Yogurt Wars". Fortune. Retrieved 24 August 2017.
  11. "Danone to sell Stonyfield unit as part of WhiteWave deal". CNBC. Reuters. 31 March 2017. Retrieved 27 April 2017.
  12. "France's Lactalis to pay $600 million for Brazil's Itambé: source". Reuters. 5 December 2017. Retrieved 30 January 2018.
  13. "Siggi's skyr sold to French dairy company". Retrieved 5 January 2018.
  14. "Lactalis buys Nestle Malaysia's chilled dairy business in $40 million deal". Reuters. Retrieved 9 October 2018.
  15. "This dairy stock has jumped 20% in trade today. Here's why". cnbctv18.com.
  16. "Subscribe to read | Financial Times". www.ft.com. Retrieved 8 October 2020. Cite uses generic title (help)
  17. "Lactalis website. "Lactalis Group"".
  18. "French farmers step up fight against dairy giant Lactalis". France 24. Retrieved 19 April 2019.
  19. "Lactalis to withdraw 12m boxes of baby milk in salmonella scandal". The Guardian. Retrieved 19 April 2019.
  20. "Lactalis failed to report salmonella on a product -government official". Reuters. 13 February 2018.
  21. "Baby milk contamination 'began in 2005'". BBC. 1 February 2018.
  22. Harrap, Caroline (19 October 2020). "French dairy giant accused of polluting country's famous rivers for years". The Guardian. Retrieved 20 October 2020.
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