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A brief history of the Lactalis dairy giant and the President brand

France 11.03.2024
Source: DairyNews
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On October 19, 2023, Lactalis celebrated its 90th anniversary.
A brief history of the Lactalis dairy giant and the President brand
On a cloudy day on October 19, 1933, when Mr. Besnier bought 35 liters of milk from farmers in the suburb of Laval in northwestern France to make cheese in his small workshop. At the same time, his choice fell on camembert, which Andre cooked 17 heads, calling the cheese Le Petit Lavallois. The taste was so excellent that the cheese surprisingly quickly found its customers.

Very quickly, the dairy business became the main source of income for the Besnier family, and the head of the house gave the company his name - Societe Laitiere de Laval A. Besnier et Cie.

In 1947, the company's turnover amounted to 12 million old francs (120 thousand francs). In 1948, the mark of 10,000 liters of harvested milk was reached. The next 10 years were a time of uplift for Beigne and his brainchild. They brought the company the first medal at the national agricultural exhibition for the unique taste and quality of butter, and annual production figures by 1958 amounted to 25 million heads of camembert cheese, 800 tons of milk, 100 thousand packages of cream. The company's turnover amounted to 80 million francs.

Three years later, Besnier decided to rename the company Societe Laitiere Besnier, and its turnover grew to 119 million francs.

In 1955, Andre Besnier died and his son Michel inherited the company.At that time, the company had 50 employees, but Michel Besnier "doubled the annual turnover in just two years," according to the Lactalis website. He continues the product diversification started by his father. Due to the favorable economic context, "several dairies in the greater west of France are joining Besnier, thereby expanding the milk collection area and thus providing large volumes of milk, which allows to expand the product range to meet the needs of consumers."

A landmark event for the company - the launch of one of the most famous brands of the President company took place in 1968. "In 1972, convinced of the potential of the President brand, the company built a modern cheese factory in Le Bocage Norman, completely dedicated to him. Thanks to the latest innovations, the Domfront cheese factory (Orne) remains the iconic and most important cheese factory for soft cheeses in France," the company's website says. The President is still the flagship brand of the group. With the advent of supermarkets in France in the 1970s, the volume of milk collected by Lactalis became increasingly significant.

In 1980, Societe Laitiere Besnier became the undisputed leader in the French market and thought about entering the international market. Her first overseas acquisition was a cheese factory in a Boston suburb. At that time, the company's turnover outside France was 350 million francs. The company launched its first American production site, Fromagerie de Belmont, in 1984. Its cheese production has reached 100 thousand tons. In the late 1980s, she got a second well-known brand – Lactel. Drinking milk was produced under this brand.

By that time, the company's turnover abroad had reached 1.5 billion francs, and the total milk output was 450 million tons.

By the 1990s, the company was already processing 4 billion liters of milk per year. At this time, she began to focus more on the international market, actively conducting mergers and acquisitions. For example, the company became the owner of the Roquefort cheese factory, and also expanded the line of cheeses of the Appellation d'origine Controlee. The President has sold his billion-dollar camembert cheese.

In addition, it began to expand its presence in the international market more and more: it opened factories in Italy, Scotland, Poland, Egypt and Saudi Arabia. At the same time, the President brand won the hearts of customers in Belgium, the USA, Central and Eastern Europe. In 1999, Henri Benier Michel, who headed Societe Laitiere Besnier, decided to rebrand the company for the second time in the company's history, the company was renamed Lactalis, since this word is pronounced the same on all continents and languages. The volume of cheese production at that time was 400 thousand tons. tons, trade turnover in France amounted to 30 billion francs, trade turnover outside the country: 10 billion dollars, the number of staff – 14 thousand employees.

In the early 2000s, the Lactalis Group opened the first processed cheese production plant in Russia. With a turnover of 5.5 billion euros and a milk production volume of 6.9 billion liters, the brand has become a leader among French dairy farmers and the second largest producer in Europe. President was present in 128 countries around the world, offering consumers a wide range of dairy products.

In 2004, the company signed an agreement with the American API investment fund to purchase the assets of Foodmaster International in Kazakhstan, Ukraine and Moldova. A year later, Lactalis became the second largest supplier of cheddar cheese in the UK. As part of its international policy, the company strengthened its positions in Italy, Scotland, Poland, and also entered the market of Middle Eastern countries: Egypt and Saudi Arabia.

The purchase of the leader of Italian cheeses, Galbani company, took place in 2006. Thanks to this, Lactalis has become the second cheese maker in the world. In the same year, a joint branch of Lactalis and Nestle was opened - Lactalis Nestle Produits Frais, which supplied products to 9 countries: France, Belgium, Luxembourg, Great Britain, Ireland, Spain, Italy, Portugal and Switzerland.

In 2007, Lactalis bought the Croatian company Dukat, the leader of the dairy market in Croatia, Serbia, Bosnia and Macedonia. They began to produce milk, cheese and a wide range of dairy products under the Sirella brand. In the same year, Groupe Lactalis entered into an agreement with the Ukrainian company Dairy House, a manufacturer of dairy products under the brand, Fanni, as a result of which Lactalis became the owner of a full stake in Dairy House. The company owned the Pavlogoradsky dairy plant, and also had 11 own branches on the territory of Ukraine.

The company became a global leader in the dairy market after acquiring 83.3% of Parmalat in 2008, the Italian dairy leader.

In 2018, the company acquired shares in the Lyakhovichi Dairy Plant located in Belarus. The amount of the transaction amounted to about 10 million US dollars. A year later, she bought two Nestle plants in Uzbekistan for the production of water and dairy products. In 2020, the plant will be in Ukraine.

Earlier we wrote: Lactalis UK & Ireland Forecasts Positive Trends for the UK Cheese Market in 2024

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