Lactalis Company Overview and Recent News

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Lactalis is a French multinational dairy company that's been around since 1933. It was founded by André Muller.

Lactalis has a long history of innovation, starting with the introduction of the first powdered infant formula in 1950. This was a game-changer for many families around the world.

Today, Lactalis is one of the largest dairy companies in the world, with operations in over 80 countries. It's known for its wide range of dairy products, from milk and cheese to yogurt and infant formula.

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Company News

Lactalis is set to acquire Fonterra's Mainland Group for a whopping US$2.2bn.

The sale is expected to be completed in the first half of 2026, pending approvals and a farmer shareholder vote.

Australia's competition body has given the green light to a potential deal between Lactalis and Fonterra, but it's still unclear if the acquisition will go ahead.

We'll have to wait and see if the deal gets the final approval it needs to move forward.

Acquisitions and Mergers

Credit: youtube.com, Fonterra's $4 Billion Lactalis Deal: Inside the All-Night Negotiation

Lactalis has made significant strides in expanding its portfolio through strategic acquisitions and mergers. The company has acquired Kraft Heinz's Grated cheese business, adding to its growing portfolio in the US and Canada.

Lactalis has also acquired Leerdammer, a European cheese brand, and Shostka, a Ukrainian dairy company. This move has strengthened its presence in the European market.

In a major deal, Lactalis is set to buy Fonterra's Mainland Group for US$2.2 billion, subject to approvals and a farmer shareholder vote. This acquisition is expected to be completed in H1 2026.

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Buys Fonterra-Nestlé JV for $131.5m

Lactalis buys Fonterra and Nestlé JV for $131.5m. This deal involves the purchase of Dairy Partners Americas, a joint venture between Fonterra and Nestlé.

The acquisition is expected to be finalized during 2023, marking a significant move by Lactalis in the dairy industry.

Completes Leerdammer and Shostka Acquisition

Lactalis completes acquisition of Leerdammer and Shostka, expanding its global dairy presence.

Credit: youtube.com, Mergers and Acquisitions Explained: A Crash Course on M&A

The Lactalis Group has acquired the European cheese brand Leerdammer, which includes Royal Bel Leerdammer The Netherlands and Bel Shostka Ukraine.

Lactalis now has commercialization rights for Bel products in Italy, Germany, and Ukraine.

Bel Group has sold its Leerdammer brand and related rights to Lactalis, as well as its operations in these countries.

The acquisition includes Bel Italia, Bel Deutschland, and Bel Shostka Ukraine, giving Lactalis a stronger foothold in Europe.

Acquire Kraft Heinz Natural Cheese Division

Lactalis Group, a French-headquartered company, has entered into a definitive agreement to acquire Kraft Heinz's natural, grated, cultured, and specialty cheese businesses in the US, grated cheese business in Canada, and entire natural cheese division.

This acquisition is a significant move in the dairy industry, with Kraft Heinz's natural cheese division being a substantial part of its business.

The acquisition is expected to enhance Lactalis' dominance in the dairy market, as mentioned by Rabobank, a leading bank in the industry.

Sliced Cheese and Roasted Walnuts on Wooden Board
Credit: pexels.com, Sliced Cheese and Roasted Walnuts on Wooden Board

Lactalis' US affiliate is also adding Kraft Heinz's Grated cheese business to its portfolio, further expanding its presence in the market.

Yili, a Chinese dairy company, has recorded 11% brand value growth in the dairy market, widening the gap to second-placed Danone, according to the Brand Finance Food & Drink 2021 report.

Canada Acquires Agropur's Canadian Yogurt Business

Lactalis Canada Inc. has acquired Agropur Cooperative's Canadian yogurt business, Ultima Foods Inc. This acquisition was finalized through the purchase of all shares of Ultima Foods Inc.

Lactalis Canada Inc. is a subsidiary of Lactalis Group, formerly known as Parmalat Canada Inc. The company has a long history in the Canadian market.

Lactalis Canada Inc. has reached an agreement with Agropur Cooperative to acquire all shares of its Canadian yogurt business, Ultima Foods Inc. This agreement marked a significant step in the acquisition process.

Lactalis Canada Inc. is now the owner of Ultima Foods Inc., a leading player in the Canadian yogurt market.

Related reading: Agropur

Business Deals

Credit: youtube.com, Kraft Heinz to sell natural cheese unit to Groupe Lactalis for $3.2B

Lactalis is a French multinational dairy company that has been making significant moves in the industry through various business deals. The company has acquired several businesses, including Fonterra's consumer business for NZ$3.845 billion, which includes brands such as Mainland and Anchor butter, Kapiti ice cream, and cheese.

Lactalis has also acquired Agropur's Canadian yogurt business, Ultima Foods Inc., and General Mills' US and Canada yogurt businesses, including brands Yoplait and Liberté. The company's acquisition spree doesn't stop there, as it has also acquired Leerdammer, a European cheese brand, and Kraft Heinz's natural cheese division in the US.

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Completes Kraft Heinz cheese acquisition

Lactalis Canada Inc. has completed the acquisition of Kraft Heinz's Grated cheese business.

This addition is part of Lactalis Canada's growing portfolio, and it follows the acquisition of Kraft Heinz's Natural, Grated, Cultured, and other specialty cheese businesses.

The Brand Finance Food & Drink 2021 report shows that Yili recorded 11% brand value growth in the dairy industry, widening the gap to second-placed Danone.

Lactalis Group's US affiliate is acquiring Kraft Heinz's natural, grated, cultured, and specialty cheese businesses in the US, as well as its grated cheese business in Canada and entire cheese business in other countries.

Buy Leerdammer Cheese from Bel

Workers in a cheese factory processing curds in stainless steel vats, showcasing traditional cheese-making.
Credit: pexels.com, Workers in a cheese factory processing curds in stainless steel vats, showcasing traditional cheese-making.

Bel Group and Lactalis Group have begun exclusive negotiations, with Bel Group set to sell Royal Bel Leerdammer NL, Bel Italia, Bel Deutschland, the Leerdammer brand and all related rights plus Bel Shostka Ukraine, to the French dairy giant.

The Leerdammer brand is a European cheese brand that will be acquired by Lactalis Group.

Bel Group will sell the Leerdammer brand and all related rights to Lactalis Group.

Lactalis Group is a global dairy company that will be acquiring the Leerdammer brand and other related assets.

The acquisition will include the commercialization of Bel products in Italy, Germany, and Ukraine.

The deal will also include the acquisition of Bel Shostka Ukraine.

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Buy Mainland Group for $2.2bn

Lactalis is paying a hefty premium in the NZ$4.22 billion Fonterra deal, according to financial advisors.

The deal includes Fonterra's global consumer business, encompassing the operations of brands such as Mainland and Anchor butter, Kapiti ice cream and cheese, and the Anlene powdered milk supplement.

Holstein dairy cows grazing in a lush rural meadow, showcasing pastoral farming life.
Credit: pexels.com, Holstein dairy cows grazing in a lush rural meadow, showcasing pastoral farming life.

Lactalis will unlock strategic synergies through the acquisition Down Under and beyond, but the price tag may be too high, according to financial advisors.

Shares of Fonterra rose 17.1% in early trading to NZ$5.88, their highest level since February 2018, following the announcement of the deal.

The sale price could rise by NZ$375 million if the Bega licences held by Fonterra's Australian business are included.

Lactalis Chairman Emmanuel Besnier said, "Combining the Fonterra consumer business operations and market leading brands with our existing footprint in Australia and Asia will allow Lactalis to further grow its position in key markets."

The deal is expected to close in the first half of 2026, subject to approval from Fonterra's farmer shareholders and regulatory authorities.

A shareholder vote is due to be held in late October to approve the sale.

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Agropur Sells Canadian Yogurt Business

Lactalis Canada Inc. has finalized the acquisition of Agropur Cooperative's Canadian yogurt business, Ultima Foods Inc.

Jar with delicious plain yogurt and wooden spoon on saucer
Credit: pexels.com, Jar with delicious plain yogurt and wooden spoon on saucer

The business was sold to Lactalis Canada Inc., formerly Parmalat Canada Inc., a subsidiary of Lactalis Group.

Lactalis Canada Inc. has reached an agreement with Agropur Cooperative to acquire all shares of its Canadian yogurt business, Ultima Foods Inc.

The acquisition is a significant move for Lactalis Canada Inc., expanding its presence in the Canadian market.

Controversies and Issues

Lactalis has faced several controversies and issues over the years, including a salmonella contamination in 2018 that led to the recall of 12 million boxes of baby formula. This incident was particularly concerning as it involved the health and safety of infants.

In 2023, Lactalis Group and a linked company were charged with aggravated deception and other offenses related to the same incident. The company was also placed under judicial supervision with a bond of €300,000.

Lactalis Australia was fined A$950,000 by the Federal Court in 2023 for breaching the Dairy Code of Conduct. This is not the only issue Lactalis has faced in Australia, as the company was also the subject of ACCC proceedings for alleged breaches of the same code.

Credit: youtube.com, Lactalis CEO faces French lawmakers on contaminated baby milk scandal

Here is a list of some of the notable controversies and issues faced by Lactalis:

  • Salmonella contamination in 2018 that led to the recall of 12 million boxes of baby formula
  • Charged with aggravated deception and other offenses in 2023
  • Fined A$950,000 by the Federal Court in 2023 for breaching the Dairy Code of Conduct

Salmonella: France Charges Over Infant Formula Recall

In August 2016, French farmers blockaded Lactalis's headquarters in Laval, protesting what they saw as price fixing. This was just one of many controversies surrounding the company.

Lactalis had to withdraw 12 million boxes of baby formula due to a salmonella contamination in January 2018. The company was accused of trying to hide the initial discovery of contamination, which led to the crisis.

A five-year-old case in France involved babies being diagnosed with salmonellosis after consuming Lactalis products. This led to Lactalis Group and Celia Laiterie de Craon being charged with aggravated deception, involuntary injuries, and non-execution of withdrawal and recall measures.

In February 2023, Lactalis Group and Celia Laiterie de Craon were charged with aggravated deception, involuntary injuries, and non-execution of withdrawal and recall measures in the five-year-old case. Both firms were placed under judicial supervision with a bond of €300,000 each.

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Credit: youtube.com, France: Stores admit to selling baby formula recalled over salmonella fears

Lactalis has also faced environmental regulations breaches in France, with allegations made in 2020 that 38 of their production plants had breached regulations. The company stated it had invested €60 million in improving wastewater treatment plants.

Here's a timeline of some of the key events:

  • August 2016: French farmers blockaded Lactalis's headquarters in Laval, protesting price fixing.
  • January 2018: Lactalis withdrew 12 million boxes of baby formula due to salmonella contamination.
  • February 2023: Lactalis Group and Celia Laiterie de Craon were charged with aggravated deception, involuntary injuries, and non-execution of withdrawal and recall measures.
  • February 2024: Lactalis was fined 11.69 million euros for forming a cartel with other milk companies to avoid competition.

ACCC Alleges Code Breaches

Lactalis Australia was fined nearly AU$1m for Dairy Code breaches, including featuring no-fault termination clauses in milk supply agreements. This is not the only issue Lactalis has faced.

In 2020, Lactalis Australia was accused of breaching the Dairy Code of Conduct. The Australian Competition and Consumer Commission (ACCC) took action against the company, marking the first time they had commenced proceedings for alleged breaches.

Lactalis has been fined a total of A$950,000 by the Federal Court for breaching the Dairy Code of Conduct in 2020. This is a significant penalty, but it's clear that the company's actions had serious consequences.

The ACCC has alleged that Lactalis Australia engaged in various breaches of the Dairy Code, including featuring no-fault termination clauses in milk supply agreements. These clauses can have a significant impact on dairy farmers.

For more insights, see: Financial Conduct Authority

Black Cows in a Dairy Farm
Credit: pexels.com, Black Cows in a Dairy Farm

Here are some key dates related to Lactalis's alleged code breaches:

  • 2020: Lactalis Australia was accused of breaching the Dairy Code of Conduct.
  • 2023: Lactalis Australia was fined A$950,000 by the Federal Court for breaching the Dairy Code of Conduct.

It's clear that Lactalis has faced significant issues related to its code breaches. As the company continues to operate, it's essential to monitor their actions and ensure they are complying with industry regulations.

Cyberattack Hits Company

Cyberattacks can be devastating for companies. Groupe Lactalis, a dairy company, recently experienced a cyberattack on part of its IT network.

This cyberattack highlights the vulnerability of companies to cyber threats. The attack occurred last week, causing disruptions to the company's operations.

Companies must be proactive in protecting themselves from cyber threats. Cyberattacks can have serious consequences, including data breaches and financial losses.

The cyberattack on Groupe Lactalis serves as a reminder of the importance of cybersecurity measures. Companies must invest in robust cybersecurity systems to prevent and respond to cyber threats.

Company Operations

Lactalis is a global company with a significant presence worldwide. It's owned by BSA International SA, a Belgian holding company controlled by the Besnier family.

The company has a massive workforce, employing 75,000 people across 237 production sites in 43 countries. This scale of operation is truly impressive.

Lactalis has a global revenue of 16.5 billion euros, a testament to its success in the dairy industry.

Solar Thermal Power for Sustainable Whey Production

Credit: youtube.com, VIDEO: Expand Solar Thermal Use

Lactalis has invested heavily in sustainable whey production, with a significant focus on solar thermal power.

The company unveiled the largest solar thermal power plant in France, which will help reduce CO2 emissions by 2,000 tons per year.

This innovative approach to energy generation will not only benefit the environment but also reduce costs associated with traditional energy sources.

Lactalis has also showcased its commitment to sustainable practices by inaugurating a new €45m whey-drying tower at its Verdun factory in northeast France.

Instant Whey Protein with Sunflower Lecithin

Lactalis Ingredients has recently launched a range of instant whey protein produced with sunflower lecithin. This innovative product is a game-changer for those looking for a high-quality protein source.

The use of sunflower lecithin in the production process is a notable feature, providing a cleaner and more sustainable alternative to traditional methods. Lecithin is a natural emulsifier that helps improve the texture and stability of the protein powder.

This new product range from Lactalis Ingredients is a testament to the company's commitment to innovation and customer satisfaction. Their instant whey protein is now more accessible and convenient than ever.

Operations

Credit: youtube.com, Operations Management Video

Lactalis is a global dairy company with a significant presence in the United States. It operates through various divisions such as Lactalis Heritage Dairy, Lactalis American Group, Lactalis US Yogurt, and Karoun Dairies.

The company employs 75,000 people worldwide and has 237 production sites in 43 countries. Its global revenues in 2015 were 16.5 billion euros.

Lactalis has a strong global network, with operations in 55 countries, including the US, Romania, Poland, Italy, Russia, and the UK. It owns 198 industrial sites across these countries.

The company's headquarters for Lactalis American Group, Inc. is located in Buffalo, New York.

What's Next?

The sale of Fonterra's global business to Lactalis is still pending farmer and regulatory approval, expected to be finalized in early 2026.

Fonterra's global business includes its operations in Australia, Oceania, Sri Lanka, and the Middle East, where it owns well-known brands like Western Star butter and Mainland cheeses.

Lactalis is already the largest dairy company in the world, and this acquisition will allow it to grow in key markets like Oceania, South-East Asia, and the Middle East.

With the acquisition, Lactalis' chief executive Emmanuel Besnier said they will significantly strengthen their strategy in these regions.

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Join Cority

Production of Dairy Products in a Plant
Credit: pexels.com, Production of Dairy Products in a Plant

Cority has partnered with Lactalis Group to provide a simplified, integrated solution for managing global health, safety, and sustainability.

This partnership aims to streamline EHS management for the dairy group.

Cority is a global enterprise environmental, health, and safety software provider.

By joining forces with Cority, Lactalis Group can now manage its global health, safety, and sustainability initiatives more efficiently.

The partnership is a significant step forward in the dairy group's commitment to sustainability and employee well-being.

Company History

Lactalis was founded in 1933 by André Besnier, who started a small cheesemaking company in Laval, France.

André made 17 camemberts in that first year and went on to grow the brand with innovative products until his son Michel took over the family business in 1955.

By 1980, Lactalis had opened its first US office in New York City and continued to expand across the country with more offices, plants, and distribution centers.

Today, Lactalis is led by André's grandson, Emmanuel Besnier, and has over 85,000 employees in 94 countries.

Credit: youtube.com, Emmanuel Besnier His Story (France / Lactalis CEO)

The company's portfolio of dairy products has expanded significantly over the years, with notable acquisitions including Group Bridel in 1990, Sorrento in 1992, and Italian group Galbani in 2006.

Lactalis has also formed joint ventures, such as Lactalis-Nestlé Fresh Products in 2006, and has acquired several other dairy companies, including Dukat in 2007 and Ak Gida in 2015.

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History

André Besnier started a small cheesemaking company in 1933 and launched its Président brand of Camembert in 1968.

By 1990, the company had acquired Group Bridel, a French dairy group with 2,300 employees and 10 factories, expanding its presence to 60 countries.

In 1992, Lactalis acquired Sorrento, a US cheese company, marking its entry into the American market.

The company underwent significant changes in the late 1990s, becoming le groupe Lactalis owned by BSA International SA in 1999.

In 2006, Lactalis acquired Italian group Galbani, and also formed a joint venture with Nestlé, Lactalis-Nestlé Fresh Products.

Close-up of a cow in a shaded farm stable in Jos, Nigeria.
Credit: pexels.com, Close-up of a cow in a shaded farm stable in Jos, Nigeria.

However, the company faced a setback in 2007 when the French Institut National des Appellations d'Origine refused to permit Lactalis to sell pasteurized Camembert as "true Camembert".

Lactalis continued to expand its operations, acquiring Croatian dairy company Dukat in 2007 and southern Swedish dairy company Skånemejerier in 2012.

The company also made significant acquisitions in 2015, acquiring an 80% stake in Turkish dairy Ak Gida, a subsidiary of Yildiz Holding.

In recent years, Lactalis has continued to grow, announcing an agreement to acquire Kraft Heinz's natural cheese operations in North America and internationally for $3.2 billion in 2020.

Today, Lactalis is a global dairy organization with over 85,000 employees in 94 countries, led by André's grandson, Emmanuel Besnier.

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Future of Heritage

Lactalis Heritage Dairy started in 2021 with a portfolio of beloved brands including Kraft Natural & Grated Cheese, Cracker Barrel, Breakstone’s, Hoffman’s and Knudsen.

Our commitment to quality and customer needs is evident in our expansion of the Lactalis Heritage Dairy name through our product line and innovative brands.

You can trust that you're getting the best cheese has to offer with our focus on meeting your lifestyle needs.

Our brand names are recognizable and trusted by many, with a start date of 2021.

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Company Brands

Credit: youtube.com, LACTEL MILK - France's No.1 Milk Brand in India | Now Ready to Take the Dairy Market by Strom

Lactalis has a diverse portfolio of brands across various divisions. The company operates in eight divisions, each with its own set of brands.

In the Lactalis cheeses division, you'll find well-known brands like Président, Rouy, Lepetit, and Galbani. The company also offers a range of cheeses under the Munster's Little Friends brand.

Here are some of the brands under Lactalis' various divisions:

Some other notable brands under Lactalis' portfolio include aMOOza, Astro, and Lactantia.

Organic Whole Milk Powder

Lactalis Ingredients is expanding its milk powder range with a new organic whole milk powder. This new addition is a great option for those looking for a high-quality, organic milk powder.

Their new organic whole milk powder is a game-changer for those seeking a more natural alternative to traditional milk powders. The fact that it's made from organic whole milk makes it a great choice for health-conscious consumers.

Lactalis Ingredients is a trusted brand in the industry, and their commitment to providing high-quality products is evident in their new organic whole milk powder. This new product is a testament to their dedication to innovation and customer satisfaction.

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Brands

Men Looking at a Product and It's Packaging
Credit: pexels.com, Men Looking at a Product and It's Packaging

Lactalis operates in eight divisions, which include a wide range of brands.

The company's cheese division features brands like Président – Rouy, Lepetit, Bridélight, Galbani, Rondelé, and Munster's Little Friends.

Lactalis' Butter & Creams division includes brands like Bridélice and Primrose.

In the Lactel division, you'll find brands like Awakening – Day after day and Morning Light.

The Lactalis AOC division boasts a range of high-end brands, including Istara, Beulet, Salakis, and Roquefort Société.

Lactalis' consumption AFH division features brands like Society and Bridel.

The company's industry division includes brands like Calciane and Prolacta.

Tendriade Veal is a division that features brands like Eurovo and Voréal.

Lactalis International is another division that includes brands like Sorrento and Galbani.

Lastly, the LNUF division features brands like The Milkmaid and Kremly.

Here's a list of some of the other brands owned by Lactalis:

  • aMOOza
  • Astro
  • Balderson
  • Beatrice
  • Bfit
  • Black Diamond
  • Cheesestrings
  • Cracker Barrel
  • Enjoy!
  • iÖGO and iÖGO nanö
  • Khaas
  • Lactantia
  • Olympic
  • P'tit Quebéc

Brand Enters Indian Market

Lactalis has made its mark in India with the launch of Lactel, its French milk brand. Lactel's UHT toned milk is now available in 1 liter packets.

Credit: youtube.com, Can a Global Brand entering India make a dent?

Lactel's entry into the Indian market is a significant move for the brand. This move is likely to expand Lactel's customer base and increase its market presence.

Lactalis' decision to launch Lactel in India suggests a growing interest in the Indian market. This could be a strategic move to tap into the country's growing demand for dairy products.

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Company Information

Lactalis is a French giant that has made a significant acquisition in the dairy industry.

Fonterra, a New Zealand dairy company, has agreed to sell its global businesses to Lactalis for $3.4 billion.

Following the deal, Lactalis will become the largest dairy company in Australia.

Recalls and Safety

Lactalis has faced a significant recall issue in the past.

The French dairy group was under investigation over a five-year-old case when babies were diagnosed with salmonellosis after consuming Lactalis products.

This incident highlights the importance of food safety.

Babies were diagnosed with salmonellosis after consuming Lactalis products.

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Lynette Kessler

Lead Writer

Lynette Kessler is a seasoned writer with a keen eye for detail and a passion for creating informative content. With a focus on business and finance, she has established herself as a trusted voice in the industry. Her expertise spans a range of topics, from product liability insurance to business insurance costs.

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