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Lactalis

From Alfawiki
Groupe Lactalis S.A.
Company typePrivate
IndustryDairy
PredecessorBesnier S.A.
Founded1933; 93 years ago (1933)
FounderAndré Besnier
Headquarters
Laval, Mayenne
,
France
Area served
Worldwide (43 countries)
ProductsYogurt, butter, cheese, powdered milk formulas, infant nutrition formulas, milk beverages
OwnerBesnier family (via BSA International SA)
Number of employees
75,000 (2015)

Groupe Lactalis S.A., operating under the name Lactalis, is a French-based multinational dairy enterprise owned by the Besnier family and headquartered in Laval, Mayenne, France. Previously called Besnier S.A., Lactalis stands as the largest dairy company worldwide and ranks as France's second biggest food corporation after Danone. The company manages several well-known brands such as Parmalat, Président, Kraft Natural Cheese, Siggi's Dairy, Skånemejerier, Rachel's Organic, and Stonyfield Farm.

History

Lactalis was established in 1933 by André Besnier and introduced its Président Camembert cheese in 1968. Significant acquisitions that shaped its growth include Group Bridel in 1990, which expanded its operations to 60 countries; the U.S.-based cheese manufacturer Sorrento in 1992; Italian dairy group Galbani in 2006; Swiss cheese producer Baer in 2008; and Italian dairy giant Parmalat through a €2.5 billion acquisition in 2011 following Parmalat’s financial collapse. After acquiring these companies, Lactalis rebranded Sorrento and Precious under the Galbani name and renamed its American division as Lactalis American Group.

In 2006, Lactalis partnered with Nestlé to create the joint venture Lactalis-Nestlé Fresh Products. That year, it encountered regulatory scrutiny regarding the labeling of pasteurized Camembert but maintained a leading position in Normandy Camembert sales alongside cooperative Isigny-Sainte-Mère. Further expansion included purchasing Croatian dairy producer Dukat (company) in 2007 and southern Sweden’s Skånemejerier in 2012.

In 2015, Lactalis secured an 80% ownership of Turkish dairy company Ak Gida, part of the Yildiz Holding group. Two years later, it acquired Stonyfield Farm from Groupe Danone for $875 million to enable Danone’s takeover of WhiteWave Foods. The same year also saw Lactalis acquire Brazilian dairy firm Itambé.

In 2018, Lactalis purchased U.S.-based skyr maker Siggi's Dairy, which continues to operate independently, alongside Nestlé Malaysia’s chilled dairy segment for approximately $40 million. Its Indian branch, Tirumala Milk Products, announced a ₹17 billion acquisition of Prabhat Dairy, marking Lactalis’s third acquisition within India.

By September 2020, Lactalis reached an agreement to buy Kraft Heinz’s global natural cheese business for $3.2 billion; however, the U.S. Department of Justice mandated the divestment of Athenos and Polly-O cheese brands to preserve market competition.

In April 2023, Lactalis American Group invested $32 million to establish a whey-processing plant in South Buffalo, New York, boosting production capacity by 30%. Most recently, in September 2024, Lactalis declared intentions to purchase General Mills’ U.S. yogurt division to broaden its market footprint, pending regulatory clearance.

Operations

The group is owned by Belgian holding company BSA International SA, which remains under the control of the founding Besnier family. In 2015, Lactalis reported worldwide revenues totaling €16.5 billion. The company employs approximately 75,000 individuals across 237 manufacturing facilities located in 43 countries. The headquarters for Lactalis American Group, Inc. is situated in Buffalo, New York.

Brands

The corporation manages its operations through eight distinct divisions:

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

Lactalis possesses 198 manufacturing facilities spread across 55 nations including the United States, Romania, Poland, Italy, Russia, Ukraine, Spain, Saudi Arabia, Egypt, Ireland, Portugal, Switzerland, Croatia, Czech Republic, Georgia (under the brand "სანტე"), the United Kingdom, Australia—and since 2011—Canada and South Africa. Its principal products encompass yogurt, butter, cheese varieties, powdered milk formulas, infant nutrition formulas and milk beverages.

Australian Brands

  • The Alternative Dairy Co.
  • Ballantyne
  • Breaka Flavoured Milk
  • Capel
  • Country Fresh
  • Ferguson Valley
  • Galbani Professionale
  • Golden North
  • Harvey Fresh
  • Ice Break
  • Jalna
  • Kraft
  • Lemnos
  • Milk Lab
  • Milo
  • Mooloo Mountain
  • OAK
  • Pauls
  • Président
  • So Natural
  • Tamar Valley
  • Vaalia
  • Vitasoy
  • Zymil

Canadian Brands

Within Canada’s market portfolio are several exclusive brands such as:

  • aMOOza
  • Astro
  • Balderson
  • Beatrice
  • Bfit
  • Black Diamond
  • Cheesestrings
  • Cracker Barrel
  • Enjoy! (plant-based offerings)
  • iÖGO and iÖGO nanö
  • Khaas (Halal and Dahi yogurts)
  • Lactantia
  • Olympic
  • P’tit Quebéc

Italian Brands

Controversies

In August 2016, farmers in France staged a blockade at Lactalis’ Laval headquarters to protest alleged collusion in price setting.

January 2018 saw a recall of 12 million baby formula boxes by Lactalis following salmonella contamination concerns amid claims that the company initially withheld information regarding the incident.

In 2020, environmental authorities accused 38 Lactalis facilities in France of violating environmental laws over multiple years. Subsequently, the company allocated €60 million to enhance wastewater management systems.

By February 2023, both Lactalis and its subsidiary Celia Laiterie de Craon were charged with aggravated fraud and failure to properly implement recall protocols linked to a salmonellosis outbreak from infant milk products; judicial supervision was imposed along with bonds amounting to €300,000.

In July 2023, the Federal Court penalized Lactalis Australia with a fine of AUD 950,000 for breaches of the Dairy Code of Conduct during 2020.

February 2024 brought an €11.69 million fine from Spain's Audiencia Nacional against Lactalis for operating a milk purchasing cartel between 2000 and 2013; affected agricultural producers retain rights to seek additional compensation.

Also in February 2024 French authorities executed raids on Lactalis offices and the CEO’s home amid suspicions of large-scale tax evasion. The French National Financial Prosecutor’s Office initiated a preliminary probe into allegations of aggravated tax fraud and money laundering involving the company.

Operations in Russia

Together with Savencia, Lactalis has drawn attention from Russian entrepreneurs, including Sergey Bachin of the Agranta group. Despite this interest, neither company has indicated plans to withdraw from the Russian market, demonstrating their dedication to sustaining business activities despite geopolitical tensions.

Disputes in Italy

The program "Italia in vendita," broadcast on Rai 3's PresaDiretta, spotlighted the increasing trend of foreign takeovers within Italy's agri-food sector, with a particular emphasis on dairy and cheese production. The investigation focused on Lactalis’ assimilation of Italian DOP brands—such as Galbani, Parmalat, Leerdammer, Castelli, Invernizzi, and Ambrosi—into its international portfolio, utilizing Parmalat's established networks in Africa and Latin America. The report also highlighted the shutdown of manufacturing facilities considered non-strategic, including Alival plants in Calabria and Tuscany, which provoked criticism regarding corporate social responsibility.

Lactalis encountered significant opposition after announcing the closure of two plants: one located in San Gregorio, Reggio Calabria, and another in Ponte Buggianese, Tuscany. These closures impacted 80 employees in Reggio Calabria and elicited strong reactions from local officials and labor unions concerned about the economic repercussions. The company attributed these decisions to financial strains linked to the pandemic. Despite protests, the San Gregorio facility ceased operations in January 2023 with only a limited number of workers being reassigned.

Swiss journalist Klaus Davi denounced the shutdown in Reggio Calabria as a profound social failure, underscoring its adverse effects on both employees and the local food sector's reputation. In contrast, the regional authorities in Tuscany responded promptly to aid workforce reintegration at Ponte Buggianese, enabling 45 out of 56 employees to maintain employment following Lactalis’ departure.

See also

External links