Lactalis Among the Top Contenders – A Dairy Industry Competitive Analysis

Lactalis, one of the top contenders in the dairy industry, aims to achieve carbon neutrality by 2050. The company is adopting various strategies to move towards a sustainable future while making its operation smoother and more efficient. The company is researching new technologies and acquiring several companies to bring new and innovative products to the market. Each year, more than 17,000 containers are exported to more than 90 countries worldwide by Lactalis International, which plans to expand to more continents in the coming years.

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Research Focus of Lactalis

Lactalis keeps investing in new technologies to meet the needs of both local and international markets. The company’s business model is an integral part of their long-term development approach. It consists of ongoing operations to build the company’s business outside while simultaneously developing the brand’s portfolio.

Lactalis Ingredients, a subsidiary of Lactalis, has an unrivaled level of technical knowledge with more than 50 years of experience in the processing of milk and whey. Its research and development team works on three primary areas- customer-centric product innovation, process optimization, and fundamental and clinical research. (Source)(Source)

New Programs/Process

Circular Economy – Lactalis recycles, reuses, and valorizes factory waste to promote the circular economy in its production process. Through their partnership, Lactalis and Saica Group have been able to use circularity models in their cardboard and plastic flows. This ensures the materials are recycled correctly and returned to the market as new economic resources. Such activities enable Lactalis to push for a transition to a circular production and consumption model to help create a sustainable food system for all of its customers. (Source)

Waste Reduction – Lactalis Canada was the first company to participate in the Indoor Water Assessment program by the Region of Peel, which helps the company get a free indoor water assessment to save water permanently. Lactalis Canada’s waste reduction efforts include a partnership with Ontario’s Dairy Distillery to turn milk permeate, a byproduct of ultrafiltered milk production, into alcohol for its Vodkow and Vodkow Cream spirits. Lactalis Canada launched a program to focus on waste reduction, NEXT Ventures. The program, which began in 2022, intends to find ways to cut waste, including but not limited to time, skills, funds, food, processing, packaging, energy, and material resources. SGS helped Lactalis cut waste from 3.5% to 1.5%, the same as over 1,100,000 plastic envelopes yearly. (Source)(Source)(Source)

Packaging 

Promoting a Better Circularity For Packaging – Using the mass balance concept, LACTEL, a brand of Lactalis, became the first dairy brand in 2021 to look for a potential solution for the UHT milk bottles it produced using circular post-consumer recycled HDPE. The company partnered with INEOS in this recycling project and replaced fossil-based plastic to establish a circular economy. Its Montauban factory in France, with RSB certification, conducted a successful trial with 140,000 milk bottles.

Packaging Milk Bottles

Improving The Recyclability Of Packaging Solutions – Lactalis’ PULEVA brand in Spain switched from using LDPE film to recycled LDPE (rLDPE) grouping films. This reduced virgin LDPE by roughly 550 tons in 2021. The first objective was to reach 0% to 30% rLDPE. It has achieved rLDPE films with 50% post-consumer recycled material.

PULEVA Packaging

Reducing Unnecessary Packaging – By just changing the packaging of its Président Fresh Cheese 200g range in Croatia such that it no longer includes a plastic lid or a plastic spoon, the company cut down almost 5 tons of plastic. (Source)

Sustainable Food

Plant-Based – In 2022, Lactalis Canada revealed its ambitions to transform its facility in Sudbury into a specialized plant-based production center. With this transformation, the company can extend its plant-based offerings, including Sensational Soy, Lactantia margarine, and siggi’s coconut-based yogurt alternative. (Source)

New Drying Technology

In 2021, Lactalis inaugurated its new whey drying tower at the Verdun factory. With an investment of €45 million, this new tower has the latest drying technology, which lets it make 30,000 tons of whey powder for the food industry. This new advanced technology, Flowhey®, optimizes whey lactose crystallization to avoid unstable, hygroscopic, and risky caking forms. Lactalis claims the tower uses the latest advanced technology to modernize and improve the company’s drying process while reducing its environmental impact. The factory currently has an annual production capacity of 75,000 tons. (Source)(Source)

The Flowhey® Drying Technology

New Products/Services or Inventions

Lactalis aims to bridge the innovation gap through its products and services by matching consumers’ specific needs. 

Lactalis also launched some new products in the market during 2021-2022 through their unique methods, which are as follows: (Source)(Source)

UP2U RECOVER – Protein Drinks and Unflavored Protein Powder

In 2022, Lactalis entered the post-workout recovery market, launching UP2U RECOVER protein beverages and UP2U RECOVER unflavored protein powder. The products are manufactured with whey protein in its purest form, commonly known as “native” protein powder, focusing on fitness enthusiasts and athletes.  Lactalis’ PRONATIV® native whey protein is pure and potent, appealing to fitness enthusiasts seeking higher-quality performance. Lactalis has been interacting directly with fitness enthusiasts and athletes to allow them to experience the benefits of PRONATIV in UP2U RECOVER first-hand. It is conducting various consumer events across New York.

According to Jean-Luc Bruandet, President and Chief Executive Officer of Lactalis American Group, “Consumers can use UP2U RECOVER products to help embrace a healthy lifestyle, balancing fitness needs and hectic daily life, as they offer a fast, optimized recovery using clean, minimally processed ingredients for those looking to be fit, active and take care of their bodies.” (Source)

UP2U RECOVER – Protein Drinks and Unflavored Protein Powder

Lactel Turbo Yogurt Drink

In 2021, Lactalis India entered the yogurt category in India with the launch of Lactel Turbo Yoghurt Drink in Chennai. Mango and strawberry varieties were available for the ‘on the go’ drink. It is thicker than lassi and comes in an open pouch for INR. 15. It has the presence of protein and fruits. The company predicted a 20% market penetration because the whole yogurt market size was roughly INR 5,000 crore. 

According to Rahul Kumar, Managing Director, Lactalis India, “With Lactel Turbo Yoghurt drink, we want to give the discerning audience the goodness of yogurt in a snackable drink format. India is a very strategic market. We will keep looking at acquisitions to expand our footprint and market share.” (Source)

Lactel Turbo Yoghurt Drink

Pronativ Native Micellar Casein

In 2021, Lactalis Ingredients launched a new minimally treated micellar casein with a high protein and amino acid profile. The new Pronativ Native Micellar Casein was advertised as a pure and natural protein extracted straight from milk using a cold filtration technology without adding additives or chemicals. With a micellar casein level of 90% against 80% in traditional milk protein, this protein has fascinating functional features for creating foods with low viscosity, high protein density, and neutral flavor. (Source)

Lactalis Ingredients – Pronativ Native Micellar Casein

Crottins Fondants

Président, a Lactalis brand, introduced a new culinary offering on the booming goat cheese market: Crottins Fondants. It is made from 100% French milk in its Riblaire cheese facility. Its distinct flavor and melting texture makes it more desirable to families and young people looking for popular and adaptable cheeses. Crottins Fondants can be eaten cold or hot, making them a popular cooking item, particularly among young people. (Source)

Président – Crottins Fondants

Istara – New P’tit Basque Product

Istara, a Lactalis brand, introduced a new P’tit Basque product made of sheep and goat milk. This milk blend gives it a soft, melting texture and a distinct, delicately fruity flavor. P’tit Basque Ewe-tommettes Goat’s are produced in the French Basque Country village of Larceveau from December to July. They are aged for more than two months in the vaults of its cheese dairy. The Istara cellar masters, whose unrivaled know-how, wash and brush each cheese at least four times throughout manufacture. (Source)

Istara – New P’tit Basque Product

L’Onctueux

Lactel launched L’Onctueux in June 2021 in response to consumer desire for new experiences. The product is a unique natural ingredient formulation with a gentle, light taste and an extraordinarily creamy texture. L’Onctueux can be consumed hot, chilled, or cooked. The formulation contains 1.4% fat milk (82%), milk permeate, cassava starch (3%), fragrance, and lactase. 90% of consumers who experienced the product said they would suggest it to others. (Source)(Source)

L’Onctueux

Lactalis – Smooth Operation

The company exports to over 80 countries worldwide, offering a diverse selection of over 2,000 products that span all dairy product categories, including milk, butter, cream, cheeses, and dairy sweets.

Lactalis Working with Accenture

Lactalis’ Australian distribution centers in Sydney, Melbourne, Brisbane, and Perth collaborated with Icon Integration (acquired by Accenture) and Honeywell to integrate SAP WM and voice-directed picking operations to improve operational visibility, control, and worker efficiency. A paperless voice-picking technique aided a hands-free warehouse-picking procedure.

With the new voice-directed system-driven SAP WM solution, Lactalis rapidly witnessed an increase in warehouse efficiency and productivity. The new technology also allowed Lactalis real-time, two-way data flow between distribution floor workers and the WMS. Lactalis has gained additional advantages for its warehouse operations by expanding the use of its current voice SAP WMS solution.

When compared to an RF solution, Lactalis’ voice solution saved 18 seconds for every direct worker completing the operation in the warehouse. Lactalis enhanced workforce productivity by 32% in the first 18 months after implementing voice-picking and decreased stock loss by AUD$170,000 in the first year.

According to Kristian Brennan, National Logistics Optimisation Manager, Lactalis, “We understood the value of voice from our initial roll-out, and it has proven itself repeatedly, right through to us now having voice door-to-door throughout our operation.”

”With this latest door-to-door voice deployment, Icon has showcased that standard SAP WM can be massively enhanced with our support and our SAP addon framework and enhancements to provide better warehouse control, orchestration, visibility, reporting, and more”, said Paul Roddis, Icon Integration. (Source)

Lactalis Working with Cority

In 2022, Lactalis Group and Cority joined forces to provide a streamlined, integrated solution for managing the dairy group’s global health, safety, and sustainability programs. With 270 production facilities in 52 countries worldwide, the Lactalis Group needed to easily integrate and consolidate the data collected and tracked onsite and give enhanced reporting for analysis and visibility. Lactalis chose incident and risk management, audit and inspections, ESG management, and sustainability performance from the Company’s reliable business platform, CorityOne.

The dairy firm implemented Cority’s mobile application, myCority, after recognizing the importance of staff activation in driving meaningful change and success. The application aids in the collection of data points and empowers their staff to play a significant role in global health and safety activities. 

According to Nicolas Incarnato, Head of Group Risk Management, Lactalis Group, “The purpose of the project was to make the life of the shop-floor manager easier so that they could focus more on assessing and managing risk and spend less time on administrative tasks.” (Source)

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Top Markets (Countries) of Lactalis

In 2021, Lactalis’ annual revenue stood at €22 billion. More than half of the revenue came from the European region, 55%, followed by the Americas generating 27% of the revenue, and Africa and APAC generating the rest, 18%. 

With around 24% of the revenue share, Lactalis France remained the country generating the highest revenue share. (Source)(Source)(Source)(Source)

Here are the 4 market segments of Lactalis in terms of revenue:

New Potential Markets

• In 2022, Lactalis announced its plans to expand in Germany by acquiring a facility in Bavaria and three local dairy brands from Bayerische Milchindustrie eG (BMI), along with BMI’s fresh activities and dairy facility located in Würzburg. The deal covers a wide range of BMI’s products, including fresh milk, yogurt, quark, cream, and ayran, as well as regional German brands like Frankenland, Thüringer Land, and Haydi. The assets have an annual turnover of approximately €200 million. According to Morten Felthaus, the Managing Director of Lactalis Germany, the company intends to develop the regional brands and ensure favorable economic prospects for partner farmers while strengthening Lactalis’ position in Germany, just a few months after the successful integration of Leerdammer in the German market. (Source)
• In 2022, Lactalis said it would keep doing business in Russia to supply the food market there. In Russia, Lactalis employs over 1,900 employees across its 4 production sites that process the local milk. In 2021, the country was accountable for around 1% of the company’s total global sales. The company pulled all of its advertising and industrial investments out of Russia and began to operate its local business independently from the rest of its operations. (Source)
• Lactalis American Group decided to expand its operations in South Buffalo sales offices, in 2021, due to the consistently high demand for mozzarella cheese. In cooperation with the Buffalo zoning and planning boards, the company developed a proposal for expanding the sales offices located at 2376 South Park Avenue that would cost $2 million and increase the space available by 20%, from 26,865 square feet to 31,871 square feet. The only part that was expanded was Lactalis Sorrento American Group’s offices. The company’s factories, which are also on South Park Avenue, were not affected. (Source)

Lactalis’s Operation and Research Facilities

Lactalis Ingredients works with customers worldwide, from national brands to smaller local players. Its headquarters are located in the west of France. It employs around 80,000 people in 88 countries, thus ensuring a global footprint. 

The dairy company has an industrial facility in Retiers in western France dedicated to producing lactose and whey protein concentrate/isolates for nutritional applications. They have demineralized whey production capabilities at their plant in Verdun in eastern France and updated their equipment to reach the highest standards. Lactalis has a team of experts (doctors, pharmacists, dieticians, and research and development engineers) who work in partnership with specialized Health Professionals. Their team focuses on identifying key ingredients and formulas for great nutritional support for their clients. Clinical studies have recognized the ingredients’ benefits and their products’ overall effectiveness. (Source)(Source)(Source)

Consumers Trends – Lactalis

Advanced Nutrition

For any customer using their dairy ingredients who require formulation assistance, Lactalis has expert application technologists available to provide efficient advice and support. They can also advise on production processes, depending on the customers’ facilities. Their services include worldwide on-site implementation support at customers’ facilities, developing finished product prototypes, providing expert advice on recipes for specific applications, and more.

Clean Label

The number of consumers following vegan, plant-based, and flexitarian diets, as well as climate change and animal welfare concerns, is fast growing. With this in mind, Lactalis group has planned to convert a milk production facility in Sudbury, Canada, into a dedicated plant-based facility over the coming months. To accommodate these changes, the company will cease all fluid dairy milk production and packaging at its Sudbury facility by September 30th. 

Mark Taylor, president and CEO of Lactalis Canada, said: “While our core business is dairy, as an innovation leader and as demonstrated by our forthcoming expansion into plant-based, we are constantly following the consumer and continually seeking opportunities to innovate and respond to the market.” (Source)(Source)

Environment-conscious and Sustainable Sourcing

While organic is still an important factor in developing countries, in mature markets, concerns about animal welfare, farmers’ well-being, and the environment are driving consumer purchases. Lactalis Canada, a subsidiary of Lactalis Group, unveiled Lactalis Canada NEXT Ventures – an innovation program designed to accelerate future thinking, innovation, and creativity by empowering employees and leveraging internal crowdsourcing to explore ideas and bring to market new products, processes, technologies or business models. It was launched on Earth Day, focusing primarily on Waste Reduction. (Source)(Source)

Pleasure in food

With the health crisis and lockdowns, consumers have rediscovered the pleasure of eating and indulging themselves with food. Consumers are searching for new experiences. 57% of consumers of Lactalis said that they prefer products with unique and unusual flavors. The ice cream market is heavily driven by pleasure and new healthier solutions (clean label, natural and authentic recipes) in developed countries. In line with consumer trends, they offer dairy solutions such as dairy powders, buttermilk powders, anhydrous milk fat, and butter that are required for the various types of ice creams. (Source)(Source)

Healthy

The principle of healthy eating is not new but has become a central focus for consumers. The “healthy” trend, which is widely focused on social media, is portrayed as an effective way of self-care by focusing on quality products. In line with this trend, Lactalis has a range of yogurt products, such as Laktein WPC 80 and WPC 35. The products offer a higher protein intake along with less fat and less sugar. In early 2021, Siggi’s, a subsidiary brand of Lactalis, launched its newest line of reduced-sugar yogurts. The new offering contains 50% less sugar than the existing leading Greek yogurt on the market. With 2% fat, the product is available in several flavors and sizes. The range is part of the brand’s commitment to providing consumers with reduced-sugar products made with simple ingredients and no artificial sweeteners. (Source)

Portion size

Portion size is important in reaching a balanced diet. At Lactalis, clear, complete, and understandable consumer information on food products is promoted. They are participating in industry platforms to improve existing systems. It is notably the case at the European Union level, with their contribution to official consultations on the evolution of the related regulation. They are raising consumers’ awareness of the right portion size to help them adopt balanced healthy diets. They encourage the widespread use of portion indications on their products. (Source)

Channel Revolution

In September 2021, Lactalis Canada launched two direct-to-consumer e-commerce platforms for cheese and dairy, Cheeseworld.ca and DairyMarketCulinary.ca. 

“Lactalis Canada’s entry into e-commerce is in response to new consumer and customer trends in the marketplace, which focus on both the convenience and online experience,” says Mark Taylor, President and CEO of Lactalis Canada. Cheeseworld.ca caters to the cheese enthusiast looking for delectable new discoveries, while DairyMarketCulinary.ca supplies to a niche segment of the foodservice industry, giving us an opportunity to serve a market different from our retail and foodservice customers and independent from our core business. (Source)

Top Clients of Lactalis

For over 25 years, Lactalis International has provided an extensive range of dairy products for retail and food service with customers in Asia, Africa, the Middle East, and the French Overseas Territories. They work mainly with independent importers, with strong expertise and extensive distribution networks to be close to their final customers. Their representative offices and subsidiaries located in more than 10 locations are committed to opening more roads to markets. Each year, more than 17,000 containers are exported to more than 90 countries worldwide by Lactalis International. (Source)(Source)

From worldwide leading brands such as Président and Galbani to local, regional brands with strong positions such as Pride and Laicran, their brands are positioned to meet the expectations of the most significant number of customers, adapting to local consumption modes. 

Acquisitions and Investments – Lactalis

Lactalis Acquired Dairy Partners Americas (DPA)

In 2022, Lactalis acquired Fonterra and Nestlé’s joint-venture holdings in Brazil, including “long-term” licenses to use Nestlé brands in the country. As part of the deal, Lactalis agreed to a BRL700 million (US$131.5 million) agreement with Dairy Partners Americas (DPA), pending clearance from Brazil’s Administrative Council for Economic Defense (CADE) by mid-2023. According to Patricio Sauvageot, President of Lactalis for Brazil and Cone Sul, the acquisition of DPA complements Lactalis’ portfolio of brands and products while expanding its commercial coverage through the expansion of geographic areas. 

This acquisition consolidates Lactalis’ position as a responsible leader in dairy products in Brazil, committed to continuously improving its competitiveness, quality, and productivity. “We will continue to work with the DPA team to increasingly improve the quality and productivity of milk in the field, which translates into benefits for the entire sector and, mainly, for the Brazilian consumer,” Sauvageot added. (Source)(Source)

Lactalis Acquired Jalna Dairy Foods

In 2022, Lactalis purchased Jalna Dairy Foods, an Australian yogurt manufacturer. Lactalis bought a yogurt manufacturing facility in Melbourne and a milk farm in northern Victoria. Lactalis has been marketing various dairy products in Australia, with a portfolio that includes yogurt, milk, cheese, and desserts. This acquisition expanded Lactalis Australia’s yogurt portfolio by adding the well-known and popular Jalna yogurt brand. According to the Company, “This acquisition strengthens Lactalis Australia’s leadership role in the local dairy sector, a growing national footprint, and Lactalis’ long-term investment in Australia. Jalna is a fully integrated, paddock-to-pot dairy business that produces pot set yogurts, manufactures most of its unique containers, and operates a biodynamic farm with a strong focus on Greek, organic, and all-natural yogurts.” With this acquisition, Lactalis Australia has further solidified its position as a major player in the Australian dairy industry. (Source)(Source)

Lactalis Acquired Ambrosi

In 2022, Lactalis acquired Ambrosi, an Italian cheesemaker, from Emmi. The price agreed upon was 300 million Euros ($307 million). Lactalis expanded its product line and established various production synergies as a result of the deal. Ambrosi cheeses include parmigiano reggiano and other Italian dairy favorites including mozzarella, gorgonzola, and taleggio. Ambrosi’s sales in 2021 were 420 million Euros. 

Giovanni Pomella, CEO of the companies of the Lactalis group in Italy, said, “This operation confirms the interest of the group in supporting and developing the Italian dairy supply chain: thanks to the strong penetration capacity of Lactalis’ international commercial network, two exceptional kinds of cheese such as Grana Padano and Parmigiano Reggiano will be able to consolidate their international presence and expand into new markets”. Lactalis’ acquisition of Ambrosi represents a significant investment in the Italian dairy industry and further reinforces its commitment to expanding its global reach. (Source)(Source)

Lactalis Acquired Leerdammer and Shostka

In 2021, Lactalis purchased Leerdammer in a deal that included Royal Bel Leerdammer in The Netherlands, Bel Shostka Ukraine, the commercialization of Bel goods in Italy, Germany, and Ukraine, and the Leerdammer brand and all associated rights. The deal aligned perfectly with Lactalis’ strategic aims, which were centered on high-quality product development. The company wanted to expand Leerdammer’s international reach while also further enhancing the brand. Lactalis expanded its access to the Dutch cheese market with the €500 million transaction. 

According to Emmanuel Besnier, Chairman of Lactalis Group, “By acquiring Leerdammer and Shostka, we have now completed our offering with a range of food brands that consumers know and love. We want to turn the European Leerdammer brand into a global one by tapping into our worldwide reach. We are delighted to welcome new staff backed by their cheese-making pedigree into our Group.” With this acquisition, Lactalis has demonstrated its commitment to the growth and development of its cheese portfolio and to expanding its presence in the European and global markets. (Source)(Source)

Lactalis Acquired Kraft Heinz Natural Cheese Business

In 2021, Lactalis bought Kraft Heinz Company’s natural, specialty, and certain other cheese businesses in the United States, Canada’s grated cheese business, and the entire worldwide cheese business outside of the United States and Canada. The deal cost $3.3 billion in total. This transaction enabled Lactalis to acquire a portfolio of historic cheese brands such as Cracker Barrel, Breakstone’s, Knudsen, and Hoffman’s and a perpetual license to utilize the Kraft trademark in natural, grated, and overseas cheeses.

Lactalis Heritage Dairy, a newly formed division of Lactalis based in Chicago, managed the acquired businesses in the United States. The deal also comprised 750 former Kraft Heinz employees and three manufacturing plants in California, New York, and Wausau, Wisconsin. (Source)(Source)

Lactalis Acquired Ultima Foods Inc.

In 2021, Lactalis bought all shares of Agropur Cooperative’s Canadian yogurt company, Ultima Foods Inc. The agreement’s terms were revealed on December 17, 2020. The deal comprised IGO and IGO nanö yogurt brands, Olympic yogurt, sour cream, and kefir.

Furthermore, Lactalis Canada bought Ultima Foods’ manufacturing facilities in Granby and Delta, a leased distribution facility in Longueuil, and a service contract with a third-party operator of a distribution hub in Richmond, Canada.

According to Mark Taylor, President and CEO of Lactalis Canada, “Lactalis Canada’s investment in Ultima Foods and its yogourt brands speaks to the significant opportunity we see in growing the yogourt category in Canada. With this acquisition, we expand our footprint nationally, reinforce our long-term investment in the country and the Canadian food processing sector, and welcome approximately 450 employees who passionately share our dedication to providing Canadian consumers with healthy, nutritious, and high-quality dairy products.” (Source)(Source)

Lactalis Acquired Prabhat Dairy

In 2019, Tirumala Milk Products Private Limited, a wholly-owned local subsidiary of Lactalis Group, purchased Prabhat Dairy for INR 1,700 crores. Lactalis minimized its reliance on domestic markets inside Europe, where it generates the majority of its revenue due to the acquisition. On the other hand, the transaction enabled Prabhat Dairy to extend its cow feed business in other parts of the country and expand into linked sectors such as animal nutrition and animal genetics. 

Vivek Nirmal, Joint Managing Director of Prabhat Dairy, said, “The association with Lactalis – one of the world’s largest dairy players – will offer this business a strong platform for accelerated growth momentum in becoming one of the largest private dairy businesses in India.” (Source)(Source)

Lactalis Acquired Ehrmann Commonwealth Dairy

In 2019, Ehrmann Commonwealth Dairy, Ehrmann AG’s US yogurt company, was acquired by Lactalis. This acquisition aided Lactalis’s expansion in the US yogurt market. Ehrmann Commonwealth Dairy operated two manufacturing plants that employed over 250 people while producing and distributing yogurt and other dairy products under the Green Mountain Creamery and Liebe brands. 

According to Thierry Clement, CEO of Lactalis North America, “Ehrmann’s Vermont and Arizona plants are the ideal platform to develop our star brands, strengthen national distribution, and secure topflight quality and service for our private label customers.” (Source)(Source)

Lactalis Acquired Green Land Company

Lactalis bought Green Land Company in Egypt in 2019 through its joint venture Lactalis-Halawa. The acquisition boosted the joint venture’s (Lactalis-Halawa) position as Egypt’s leading manufacturer of dairy products. 

The company shared, “The acquisition of Green Land will effectively strengthen our position in the cheese category, but since the start of the partnership with Halawa, we always worked to build a strong position in all the categories of dairy products such as p-processed cheese, then white cheese, yogurts since 2008/09 and UHT milk since 2011.” (Source)(Source)

Lactalis purchased Nuova Castelli

In 2019, Lactalis purchased Nuova Castelli, an Italian cheese maker, from private equity company Charterhouse Capital Partners. Lactalis Group Italia developed its complete portfolio in Italy with the acquisition of Parmalat, Galbani, Invernizzi, Vallelata, Locatelli, and Cademartori. Nuova Castelli concentrated on protected designation of origin cheeses from Italy, such as parmigiano reggiano, grana padano, and gorgonzola.

The Company stated, “We pursue our development in Italy with the signature of an agreement for the acquisition of Nuova Castelli, a company specializing in the production and distribution of dairy products in the Italian tradition, such as Parmigiano Reggiano, Mozzarella di Bufala Campana, and Gorgonzola.” (Source)(Source)

Lactalis Acquired siggi’s

Lactalis agreed to buy siggi’s, a maker of Icelandic-style skyr yogurts based in the United States, in 2018. siggi’s remained a distinct firm under its existing senior leadership team, operating out of its New York City location. The transaction was completed for $300 million. 

Emmanuel Besnier, President of the Lactalis Group, said, “We are delighted to welcome siggi’s to the Lactalis Group, which further expands our yogurt platform in the U.S. with this unique and fast-growing yogurt brand. We look forward to supporting siggi’s as it continues to bring its retail partners exceptional dollar growth in the yogurt category.” (Source)(Source)

Lactalis Purchased Aspen Pharmacare Holdings Ltd. – Infant-Formula Business

In 2018, Lactalis International spent 739.8 million Euros ($860 million) to acquire Aspen Pharmacare Holdings Ltd.’s infant-formula business. The transaction allowed the privately held company to capitalize on increased demand for baby food in Asia’s largest economy following the repeal of its one-child policy in 2016. Lactalis used the division to propel a push into China, where it was granted permission to sell its Alula formula goods. 

Lactalis stated in a Bloomberg article, “This operation will accelerate the group’s development on the global nutrition market and is complementary to the existing nutrition business.” (Source)

Lactalis Acquired Hanilor

Lactalis purchased a majority share in the Lebanese distribution company Hanilor in 2018. Hanilor distributes Lactalis’ Smeds-brand cheese products and butter, cream, and powdered milk. Lactalis’ presence in Middle Eastern markets was boosted by the transaction, as Hanilor operates not only in its home market but also in Syria, Jordan, and Iraq. (Source)

Lactalis Acquired Nestle’s chilled dairy division in Malaysia

Lactalis paid about $40 million for Nestle’s chilled dairy division in Malaysia in 2018. Nestle’s chilled dairy division in Malaysia generated 21 million Euros ($24 million) in sales the same year. (Source)(Source)

Total Number Of Acquisitions by Lactalis

Sl. No.	Year	No. of Acquisitions	Company Name
1	2022	3	Dairy Partners Americas (DPA)Jalna Dairy FoodsAmbrosi
2	2021	3	Leerdammer and ShostkaKraft Heinz – Natural Cheese BusinessUltima Foods Inc.
3	2019	4	Prabhat DairyEhrmann Commonwealth DairyGreen Land CompanyNuova Castelli
4	2018	4	Siggi’sAspen Pharmacare Holdings Ltd. – Infant-Formula BusinessHanilorNestle’s chilled dairy division in Malaysia

Financial Condition – Lactalis

Revenue and Net Income

Lactalis is ranked first in World’s leading dairy group, World’s leading group in the cheese market, World’s leading group in dairy fats (butter and creams), and World’s leading player in PDO and raw milk cheeses. The company aims to guide the group toward profitable and responsible growth. Despite the global economic downturn in 2021, the Lactalis Group continued to develop and invest in its future. Lactalis’s revenue in the fiscal year 2021 was around €22 billion. The company’s revenue increased by approximately 4.2% from €21.1 billion in 2020 to €22 billion in 2021. (Source)(Source)(Source)

Lactalis’s Revenue During the Period 2019-2021 (€ Billion)

In 2021, the revenue of Lactalis was valued at €22 billion and is broken down into six categories through which the sales are done.

Share of Market Revenue of Lactalis, By Category in 2021 (%)

Top Partnerships Made By Lactalis

Partnership with the Canadian Culinary Federation

On December 6, 2022, Lactalis Canada Foodservice announced a new national partnership with the Canadian Culinary Federation. Lactalis became the exclusive National Dairy Partner for the Canadian Culinary Federation to deliver excellence in food service. They collaborated closely with the association’s members on dairy solutions, food trends, flavor, format, product research, and development under its best-selling brands. 

“Lactalis Canada Foodservice is very proud to join forces with the Culinary Federation and its 1000+ esteemed member chefs who share a common dedication and commitment to the food industry,” said Iven Zanardo, General Manager, Foodservice, Ingredients & Exports at Lactalis Canada. “With over 140 years of heritage, our purpose is to enrich and nurture the lives of Canadians, and we are excited to continue to do just that as the National Dairy Partner for the Culinary Federation.” (Source)

Partnership with Jonathan David

In November 2022, Lactalis Canada released its promotional campaign, “Kick Up Your Game,” celebrating football as Canada entered the world stage in the FIFA World Cup 2022. Lactalis Canada partnered with Canadian football star Jonathan David intending to rally millions of soccer fans nationwide to cheer on their country in the world cup held in Qatar. Lactalis had put its Black Diamond, Cracker Barrel Cheese, P’tit Québec, and Cheestrings brands at the forefront of the campaign through large shopper displays set up as a Football goal.

“We are excited to launch the Kick Up Your Game campaign to celebrate soccer and encourage Canadians to cheer on their favorite teams with delicious party recipes made with Black Diamond, Cracker Barrel, & P’tit Quebec products,” said Sabrina Zollo, Vice President Of Marketing For Cheese & Table Spreads. “Celebrating the beautiful game of soccer with cheese will also give one lucky fan a chance to attend the match of their dreams to watch their favorite team play anywhere in the world.” (Source)(Source)

Partnership with Buffalo Bills

On August 10, 2022, The Buffalo Bills announced that Galbani, a hometown cheese brand manufactured in Buffalo by Lactalis American Group, was the Official Cheese of the Buffalo Bills. Lactalis has distributed cheese products under the Galbani brand in the United States since 2011 and produces Galbani ricotta, mozzarella, and provolone cheeses at its plant on South Park Ave. in Buffalo.

Daniel Assef, Vice President Of Marketing At Lactalis American Group, said, “Buffalo is a very important market for our Galbani brand. We recently launched two important initiatives from Lactalis in Buffalo for consumers – our #GottaRicottaTM campaign to show the many uses of ricotta cheese in everyday cooking. We introduced our newest product, Galbani Lactose-Free Ricotta. Now, as we partner with the Buffalo Bills, we look forward to continuing to enhance our presence and commitment to Buffalo.” (Source)

Partnership with The Cativa Cooperative

In June 2021, Lactalis Do Brazil signed a strategic partnership with Cativa, a local cooperative in southern Brazil. The collaboration aimed to provide Lactalis access to Paraná, the second-largest milk-producing state in Brazil after Minas Gerais, where it has gained a presence through the CCPR deal. Lactalis purchased Cativa’s processing and warehouse facilities in Cerqueira César, São Paulo, and those in Londrina and Pato Branco, both in Paraná state. It also entered a ten-year milk supply agreement with Cativa, which formed a partnership where the companies worked together to develop the regional milk industry with an option to extend the contract by another decade.

Patrick Sauvageot, President of Lactalis’ operations in Latin America, added: “With this win-win partnership, Lactalis benefits from the cooperative’s experience and trust with its 4,000 producers, to whom we bring our industry knowledge and the prospect of developing their production.” (Source)(Source)

Future Outlook

Lactalis intends to expand its line of products under regional and international brands in the near future while also launching new items to meet the changing needs of modern customers. (Source)

Lactalis has several plans focusing on future sustainability and the planet. The strategy is as follows:

• To achieve at least 25% GHG emissions reductions by 2025 
• To achieve at least 50% GHG emissions reductions by 2033
• To achieve Carbon Net Zero by 2050
• Achieve 100% of packaging eco-designed by 2025
• Minimum 30% recycled materials in Lactalis’s packaging
• Achieve 100% packaging recyclable by design by 2025
• Achieve 100% packaging recyclable in practice by 2033
• Achieve 100% of purchased palm oil and derivatives RSPO certified (Mass Balance or Segregated) by the end of 2025 (Source)

“Lactalis American Group firmly believes that we should take climate risk seriously and adopt a long-term perspective that incorporates responsible sustainability into our core business reporting. As a dairy company, commodity pricing underpins our business; it is, therefore, in our best interest to pay attention when climate change simultaneously destabilizes markets. Also, companies like ours that track sustainability indicators are better prepared to transition to a future that includes a low-carbon economy.” Jean Luc Bruandet, President & CEO of Lactalis American Group.

Lactalis American Group is aligned with the Sustainable Development Goals defined by the United Nations. As partners with the Innovation Center for U.S. Dairy, it endorses its mission of being “dedicated to addressing climate change and water quality while providing nutritious and affordable foods that promote public wellness.” As a result, this call to action has required a methodical review of our value chain at every stage.

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