Lactalis: A Global Dairy Industry Leader

Company Overview

Lactalis, headquartered in Laval, Mayenne, France, stands as a significant entity in the global dairy sector. Operating an extensive network of over 260 factories globally, Lactalis distributes its diverse range of brands across more than 90 countries, solidifying its status as France's largest dairy group.

Financial Performance

In 2024, Lactalis reached a revenue milestone of €30.3 billion. Despite experiencing a 19% decline in net profits, largely due to a substantial tax settlement in France, this achievement underscores its financial strength and continued market leadership.

Important Company Events

  • Colombian Expansion: Strategic investments in Colombia have led to local employment boosts and economic growth, expanding Lactalis' influence in the region.
  • Southern Germany Acquisition: The acquisition of BMI dairy assets has enhanced Lactalis' position in this key European market.
  • South African Ventures: Marking a significant expansion in Africa, Lactalis purchased the Cremora creamer business from Nestlé.
  • U.S. Market Expansion: The acquisition of General Mills' U.S. yogurt business strengthened Lactalis' operations in North America.
  • Investment in Brazil: Lactalis invested €55.3 million to upgrade facilities in Paraná and Minas Gerais, highlighting its growth in South America.
  • 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: In response to European market conditions, milk prices were raised by 1.5 cents per liter to a new base of 42.5 cents.
  • Fonterra Acquisition: Progress in acquiring Fonterra's consumer brands, including Anchor and Mainland, strengthens Lactalis' presence in Oceania.
  • Contract Violations: Facing a fine of $950,000 for contract violations, Lactalis highlights the importance of regulatory compliance.

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 improve 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 serves as the General Manager of Purchases and Supplies at Lactalis in Spain and Portugal.

Conclusion

With revenue surpassing €30 billion for the first time in 2024, Lactalis continues to lead the global dairy industry. Strategic expansions and acquisitions demonstrate its trajectory towards sustained growth, despite challenges such as potential plant closures and controversies. The acquisition of Fonterra's global consumer business for $4.22 billion, contingent upon conditions, underscores its commitment to global expansion. Lactalis retains its top spot in Rabobank's Global Dairy Top 20 ranking, further cementing its leading position.

Modified: 2025/10/02


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