Lactalis

Last updated

Groupe Lactalis S.A.
Lactalis
FormerlyBesnier S.A.
Company type Private
Industry Dairy products
Founded19 October 1933;91 years ago (1933-10-19)
FounderAndré Besnier
Headquarters
Laval, Mayenne
,
France
Area served
Worldwide
Key people
 Emmanuel Besnier, CEO
Products Cheese, butter, milk
RevenueIncrease2.svg €29.5 billion (2023)
Increase2.svg €428 million (2023)
OwnerBesnier family via Belgian holding company BSA International SA
Number of employees
85,000
Subsidiaries Lactalis-Nestlé Fresh Products
Lactalis Nestle Chilled Dairy Co. Ltd.
Website lactalis.com

Groupe Lactalis S.A. (doing business as 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 S.A. [1]

Contents

Lactalis 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

Galbani mozzarella with cherry tomatoes. Galbani mozzarella with cherry tomatoes - Stierch.jpg
Galbani mozzarella with cherry tomatoes.

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 cheesemaker Baer. They bought Italian group Parmalat in a 2011 2.5B € takeover 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 2006, the company formed a joint venture with Nestlé, Lactalis-Nestlé Fresh Products.

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] During that same year, it acquired the Croatian dairy company Dukat. In 2018, the INAO announced it would relax restrictions and create a new designation to include pasteurized Camembert in 2021. [5]

Lactilis acquired the southern Swedish dairy company, Skånemejerier, in February 2012.

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 ₹17 Billion. This will be Lactalis's third acquisition in India. [15]

On 15 September 2020, Groupe Lactalis announced an agreement to acquire Kraft Heinz's natural cheese operations in North America and internationally for $3.2 billion. [16] The U.S. Department of Justice ruled that Lactalis must divest the Athenos and Polly-O cheese brands. [17]

In April 2023, Lactalis American Group announced an investment of $32 million to construct a new whey-processing facility in South Buffalo, boosting its production of the ingredient by 30%. [18]

In September 2024, Lactalis Group announced the acquisition of General Mills' US yogurt business to expand its yogurt business in the United States market, pending regulatory approval. [19]

Operations

Owned by the Belgian holding company BSA International SA, which is controlled by the Besnier family that founded Lactalis, Lactalis in 2015 had global revenues of 16.5 billion euros. Lactalis employs 75,000 people worldwide, at 237 production sites in 43 countries. [20] The headquarters for Lactalis American Group, Inc. is located in Buffalo, New York.

Controversies

In August 2016, farmers blockaded the company's headquarters in Laval, protesting what they saw as price fixing. [21]

In January 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. [22] [23] [24]

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. [25]

In February 2023, Lactalis Group and Celia Laiterie de Craon, a company linked to the group, were charged with aggravated deception, involuntary injuries and non-execution of withdrawal and recall measures in a five-year-old case where babies were diagnosed with salmonellosis after consuming the French dairy group's infant milk products, with both firms placed under judicial supervision with a bond of €300,000 each. [26]

In July 2023, Lactalis Australia was fined A$950,000 by the Federal Court for breaching the Dairy Code of Conduct in 2020. [27]

In February 2024, the Spanish Audiencia Nacional fined Lactalis with 11.69 million euros for forming a cartel with other milk companies to avoid competition when buying milk from Spanish farmers between 2000 and 2013. The farmers can now further sue for damages. [28]

In February 2024, police officers from the French National Fiscal Offenses Repression Brigade (BNRDF) raided the offices of Lactalis as well as its CEO's private mansion on suspicion of tax evasion. Lactalis is the target of a preliminary investigation by the French National Financial Prosecutor's Office (PNF) into aggravated tax fraud and aggravated laundering of tax fraud. [29]

Russian invasion of Ukraine

Lactalis has been criticized for its decision to continue operating in Russia following the country's invasion of Ukraine in February 2022. The company, which has been present in the Russian market since 2003, operates four production facilities that produce dairy products under the brands President, Galbani, Parmalat, and Bely Gorod. Despite international calls for companies to withdraw from the Russian market as a form of economic pressure, Lactalis reported substantial financial success in 2023, with its subsidiaries generating 43 billion rubles in revenue and over 3 billion rubles in profit. [30]

Lactalis, alongside Savencia, has also attracted interest from Russian business figures, including Sergey Bachin, head of the Agranta group, who has reportedly expressed interest in their assets. However, both companies have shown no intention of leaving the market, raising concerns about their unwavering commitment to maintaining operations. [31]

Controversies in Italy


Rai 3's PresaDiretta aired a special report titled "Italia in vendita," highlighting the increasing foreign acquisitions in Italy's agri-food sector, from North to South. The focus was on the dairy and cheese industries, particularly iconic products like mozzarella and Parmigiano Reggiano, which have been taken over by the French multinational Lactalis. The investigation explored operations at Parmalat's Collecchio plant, Nuova Castelli in Reggio Emilia, and Alival in Reggio Calabria and Tuscany.

The report concluded that Lactalis sought to integrate Italy's DOP products and brands—such as Galbani, Parmalat, Leerdammer, Castelli, Invernizzi, and the more recent acquisition of Ambrosi—into its global portfolio. It aimed to leverage Parmalat's international presence in Africa and Latin America, while closing down plants considered non-essential, such as Alival in Calabria and Tuscany, sparking controversy over a lack of social responsibility. [32]

Lactalis faced significant backlash for its decision to shut down two production facilities: one in San Gregorio, Reggio Calabria, and another in Ponte Buggianese, Tuscany. [33] The closure, impacting 80 workers and their families in Reggio Calabria, was widely condemned by local authorities and unions for the negative impact on the regional economy. Lactalis, which acquired Alival through the Castelli Group, justified the closures citing financial challenges worsened by the pandemic and international crises. Despite protests, the San Gregorio plant officially closed in January 2023, with only 4 out of 84 employees being relocated.

Swiss Journalist Klaus Davi strongly criticized the decision, stating: “The closure of the Lactalis plant in Reggio Calabria is an indefensible disgrace. Sending 80 workers home, pushing 80 families into poverty in a city like Reggio, is no small matter, especially when Italian food excellence is being celebrated.” [34]

In contrast, Tuscany's regional government took swift action, engaging local entrepreneurs to create favorable conditions for reemployment at the Ponte Buggianese plant. As a result of these efforts, 45 out of the 56 workers will be re-employed, providing stability after Lactalis’ decision. [35]

Brands

The group operates in eight divisions:

Lactalis owns 198 industrial sites in 55 countries including the US, Romania, Poland, Italy, Russia, Ukraine, Spain, Saudi Arabia, Egypt, Ireland, Portugal, Switzerland, Croatia, Czech Republic, Georgia ("სანტე" brand), United Kingdom, Australia and as of 2011, Canada and South Africa. Lactalis mostly produces yogurt, butter, cheese, powdered milk, baby formula and milk drinks.

Australian Brands

See also

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References

  1. 1 2 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". The Economic Times. Retrieved 15 August 2017.
  3. ↑ Lactalis UK website. "Companies and Brands". Archived 10 April 2018 at the Wayback Machine
  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. 22 January 2019.
  16. ↑ Gray, Alistair; Fontanella-Khan, James; Abboud, Leila (15 September 2020). "Kraft Heinz sells parts of cheese business for $3.2bn". Financial Times. Retrieved 8 October 2020.
  17. ↑ "Justice Department Requires Divestitures in Lactalis's Acquisition of Kraft Heinz's Natural Cheese Business in the United States". 10 November 2021.
  18. ↑ "Lactalis pursues $32M expansion for added whey production". The Buffalo News. 10 April 2023. Retrieved 10 April 2023.
  19. ↑ "Lactalis Group adding scale with yogurt acquisition". Food Business News. Retrieved 13 September 2024.
  20. ↑ "Lactalis Group - Key Figures". Lactalis.com.ua. Archived from the original on 7 February 2017.
  21. ↑ "French farmers step up fight against dairy giant Lactalis". France 24. 29 August 2016. Retrieved 19 April 2019.
  22. ↑ "Lactalis to withdraw 12m boxes of baby milk in salmonella scandal". The Guardian. 14 January 2018. Retrieved 19 April 2019.
  23. ↑ "Lactalis failed to report salmonella on a product -government official". Reuters. 13 February 2018.
  24. ↑ "Baby milk contamination 'began in 2005'". BBC. 1 February 2018.
  25. ↑ Harrap, Caroline (19 October 2020). "French dairy giant accused of polluting country's famous rivers for years". The Guardian. Retrieved 20 October 2020.
  26. ↑ Lyubomirova, Teodora (20 February 2023). "Salmonella: Lactalis criminally charged in France over infant formula recall". Daily Reporter. Retrieved 13 April 2023.
  27. ↑ Buchanan, Kallee; Nichols, Jennifer; Halter, Abbey (25 July 2023). "Owner of some of Australia's biggest dairy brands fined $950k over treatment of farmers". ABC News. Retrieved 23 August 2023.
  28. ↑ Obelleiro, Paola (23 February 2024). "El cártel de la leche se enfrenta a pagar miles de millones de euros a los productores perjudicados". elDiario.es (in Spanish). Retrieved 26 February 2024.
  29. ↑ "French dairy giant Lactalis raided on suspicion of massive tax evasion". 6 February 2024.
  30. ↑ "Lactalis - Still Doing Business in Russia". Leave Russia. Retrieved 13 December 2024.
  31. ↑ Best, Dean (4 March 2022). "Lactalis underlines need for agility amid Ukraine war". Just Food. Retrieved 13 December 2024.
  32. ↑ "Lactalis Italia, Pomella: Prezzi spingono fatturato 2023 ma volumi in calo".
  33. ↑ "PresaDiretta, le anticipazioni e gli argomenti della puntata di questa sera".
  34. ↑ "Lactalis e chiusura Alival a Reggio Calabria: Una crisi che viene da lontano". 5 May 2023.
  35. ↑ "Alival, in Calabria tutto fermo invece i lavoratori toscani sono salvi".
  36. ↑ "Dairy Product Brands - Australian Dairy Company".
  37. ↑ "Dairy Product Brands - Australian Dairy Company".
  38. ↑ "Dairy Product Brands - Australian Dairy Company".
  39. ↑ "Dairy Product Brands - Australian Dairy Company".
  40. ↑ "Dairy Product Brands - Australian Dairy Company".
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