Lactalis: A Global Dairy Industry Leader

Company Overview

Lactalis is headquartered in Laval, Mayenne, France, and stands as a prominent entity in the dairy sector, renowned for its extensive range of dairy products. The company operates more than 260 factories worldwide and sells its brands in more than 90 countries.

Financial Performance

In 2024, Lactalis reached a significant revenue milestone of €30.3 billion. Despite this achievement, the company experienced a 19% decline in net profits due to a substantial tax settlement in France.

Important Company Events

• Colombian Expansion: Strategic investments have enhanced local employment and stimulated economic growth in Colombia.
• Southern Germany Acquisition: The acquisition of BMI dairy assets bolstered Lactalis' position in a key European dairy region.
• South African Ventures: The purchase of the Cremora creamer business from Nestlé marked a significant expansion effort in Africa.
• U.S. Market Expansion: Acquiring General Mills' U.S. yogurt business enhanced operations in North America.
• Investment in Brazil: Lactalis invested €55.3 million 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, leading to discussions on restructuring operations with seasonal work and wage adjustments.
• Controversies: Allegations of questionable pricing practices in Galicia have attracted scrutiny.
• Price Adjustments: Lactalis raised the milk price by 1.5 cents per liter, setting the new base at 42.5 cents, in response to improving European dairy market conditions.
• Fonterra Acquisition: Progress in acquiring Fonterra's consumer brands, including Anchor and Mainland, strengthens its presence in Oceania.
• Contract Violations: Lactalis faced a fine of $950,000 for contract violations, highlighting the importance of regulatory compliance.

Company Plans

Lactalis is committed to global expansion, enhancing market penetration, and diversifying product offerings. The company is pursuing eco-friendly packaging innovations and has submitted a proposal to acquire Fonterra's assets. Integration of AI and Big Data into operations is underway to improve efficiency, particularly in Spanish and Australian operations.

Leadership

Emmanuel Besnier, as CEO, is steering Lactalis towards continuous growth and maintaining its competitive edge in the global dairy industry.

Conclusion

With revenue surpassing €30 billion for the first time in 2024, Lactalis solidifies its status as France's largest dairy group. Ongoing expansions and strategic acquisitions in various regions demonstrate the company's trajectory towards sustained growth. Despite challenges such as potential plant closures and controversies, Lactalis remains focused on innovation and market expansion. The acquisition of Fonterra's global consumer business for $4.22 billion, contingent upon certain conditions, reflects its commitment to strengthening global presence. Lactalis retains its top spot in Rabobank's Global Dairy Top 20 ranking, further cementing its leading position in the global dairy market.

Modified: 2025/09/11