Danone and Arcor Solidify Argentine Dairy Market Position

Danone and Arcor have finalized a major dairy joint venture in Argentina, combining their operations with Mastellone Hermanos under a jointly controlled structure. This transaction, first announced in March 2026, provides Danone and Arcor equal ownership of the new enterprise. Previously, the two companies held a combined 49% stake in Mastellone Hermanos, a prominent Argentine dairy producer. As part of the deal, they will acquire the remaining shares.

The agreement also involves the full integration of Logistica La Serenísima, the logistics subsidiary jointly owned by Danone and Arcor, into the new business. Danone expressed that this partnership builds on over twenty years of collaboration with Arcor, aiming to create a more integrated dairy platform to drive innovation and strengthen their commercial footprint in Argentina.

Arcor's president, Alfredo Pagani, emphasized that the alliance is set to accelerate growth through an integrated strategy focusing on high value-added products. The combination of Danone's global dairy expertise with Arcor's local market knowledge and distribution capabilities is expected to support future growth across the dairy category.

Argentina is a core market for Danone in Latin America, alongside Mexico, Brazil, and Uruguay. The group holds a leading position in infant formula and has a strong presence in dairy, plant-based kids products, and medical nutrition. The new joint venture is anticipated to bolster Danone's regional presence, especially as significant competitor Saputo has sold a majority stake in its Argentine business. Additionally, SanCor, once a leading producer and exporter, is experiencing prolonged financial difficulties, resulting in a reduction of its processing capacity.