Lactalis: A Global Dairy Industry Leader

Lactalis, headquartered in Laval, Mayenne, France, is the world's largest dairy company. With more than 260 factories, Lactalis distributes a diverse array of dairy products to over 90 countries worldwide. This extensive network underscores its significant influence in the global dairy market.

Financial Performance

In 2024, Lactalis reached a substantial revenue milestone of €30.3 billion. However, the company experienced a 19% decline in net profits, largely attributed to a significant tax settlement in France. Despite this setback, Lactalis has demonstrated robust financial resilience, maintaining its leadership in the industry.

Important Company Events

• Colombian Expansion: Strategic investments in Colombia have boosted local employment and economic growth.
• Southern Germany Acquisition: The acquisition of BMI dairy assets has reinforced Lactalis' position in this critical European market.
• South African Ventures: Lactalis expanded its presence in Africa by acquiring the Cremora creamer business from Nestlé.
• U.S. Market Expansion: The acquisition of General Mills' U.S. yogurt business has strengthened Lactalis' operations in North America.
• Investment in Brazil: €55.3 million was invested to upgrade facilities in Paraná and Minas Gerais.
• Queijos Tavares Acquisition: On May 5, 2025, Lactalis expanded its cheese manufacturing capabilities by acquiring Portugal's Queijos Tavares.
• Potential Plant Closure: Considerations to close the Cardona plant could impact around 150 jobs, prompting discussions on restructuring operations.
• Controversies: Allegations of questionable pricing practices in Galicia have drawn regulatory attention.
• Price Adjustments: Milk prices were raised by 1.5 cents per liter to a new base of 42.5 cents in response to European market conditions.
• Fonterra Acquisition: Progress in acquiring Fonterra's consumer brands, including Anchor and Mainland, strengthens Lactalis' presence in Oceania.
• Contract Violations: A fine of $950,000 was imposed for contract violations, highlighting the importance of regulatory compliance.
• Legal Dispute: Lactalis faced a dispute over underpaying employee profit bonuses, with accusations of misrepresenting profits.
• Adulteration Incident: The company was found guilty of adulterating whole milk with whey, affecting consumer trust and industry standards.

Company Plans

Lactalis is focused on global expansion, market penetration, and product diversification. The company is pursuing eco-friendly packaging innovations and integrating AI and Big Data to enhance efficiency, particularly in its Spanish and Australian operations. The proposal to acquire Fonterra's assets underscores its commitment to strengthening its global presence.

Leadership

Under the leadership of CEO Emmanuel Besnier, Lactalis aims for continuous growth and maintains its competitive edge in the global dairy industry. José Sáez, the General Manager of Purchases and Supplies in Spain and Portugal, is instrumental in strategic decisions, such as reducing French milk processing by 450 million liters to focus on higher-margin consumer products like cheese and yogurt.

Lactalis' recognition as one of Australia's top dairy processors is evident, with significant operating revenue generated during 2023-24, despite the financial challenges faced by local dairy farmers. The completion of the sale of Fonterra's consumer unit to Lactalis is anticipated, pending regulatory approvals, which will further enhance its market position.

Moreover, the acquisition of ProViva, a Swedish probiotic brand, along with the Österlenmejeriet factory, marks another strategic expansion for Lactalis. The company has contested a fine imposed by Colombia's SIC for allegedly adding whey to its dairy products and plans to seek annulment of the ruling, emphasizing its commitment to high product quality standards and regulatory compliance.

Lactalis plans to double its sales in Colombia within the next three years by expanding its distribution network, increasing product value, and integrating operations with Sanulac. The company is also focusing on offering products with enhanced nutritional benefits to address local consumer needs in a competitive market.

Modified: 2025/12/23