Lactalis - Misplaced Pages

(Redirected from Sorrento Lactalis) French multinational corporation

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Groupe Lactalis S.A.

Trade name	Lactalis
Formerly	Besnier S.A.
Company type	Private
Industry	Dairy products
Founded	19 October 1933; 91 years ago (1933-10-19)
Founder	André Besnier
Headquarters	Laval, Mayenne, France
Area served	Worldwide
Key people	Emmanuel Besnier, CEO
Products	Cheese, butter, milk
Revenue	€29.5 billion (2023)
Net income	€428 million (2023)
Owner	Besnier family via Belgian holding company BSA International SA
Number of employees	85,000
Subsidiaries	Lactalis-Nestlé Fresh Products Lactalis Nestle Chilled Dairy Co. Ltd.
Website	lactalis.com

Groupe Lactalis S.A. (doing business as Lactalis) is a French multinational dairy products corporation, owned by the Besnier family and based in Laval, Mayenne, France. The company's former name was Besnier S.A.

Lactalis is the largest dairy products group in the world, and is the second largest food products group in France, behind Danone. It owns brands such as Parmalat, Président, Siggi's Dairy, Skånemejerier, Rachel's Organic, and Stonyfield Farm.

History

André Besnier started a small cheesemaking company in 1933 and launched its Président brand of Camembert in 1968. In 1990, it acquired Group Bridel (2,300 employees, 10 factories, fourth-largest French dairy group) with a presence in 60 countries. In 1992, it acquired United States cheese company Sorrento. In 1999, la société Besnier became le groupe Lactalis owned by Belgian holding company BSA International SA. In 2006, they bought Italian group Galbani, and in 2008, bought Swiss cheesemaker Baer. They bought Italian group Parmalat in a 2011 2.5B € takeover after its bankruptcy and have since sought to delist it. In 2013, the Sorrento and Precious brands in the US were renamed Galbani, and the Sorrento Lactalis division was renamed Lactalis American Group.

In 2006, the company formed a joint venture with Nestlé, Lactalis-Nestlé Fresh Products.

In 2007, the French Institut National des Appellations d'Origine, which administers AOC (L'appellation d'origine contrôlée) designations for French food products, refused to permit Lactalis and the dairy cooperative, Isigny-Sainte-Mère, to sell pasteurized Camembert as "true Camembert". As of 2007, these two companies represented between 80 and 90% of Normandy Camembert sales. During that same year, it acquired the Croatian dairy company Dukat. In 2018, the INAO announced it would relax restrictions and create a new designation to include pasteurized Camembert in 2021.

Lactilis acquired the southern Swedish dairy company, Skånemejerier, in February 2012.

In May 2015, Lactalis acquired an 80% stake in Turkish dairy Ak Gida, a subsidiary of Yildiz Holding.

In July 2017 it was announced that Groupe Danone had agreed to sell its Stonyfield Farm subsidiary to Lactalis for $875 Million to avoid anti-trust claims and to clear the way for Danone's acquisition of U.S. organic food producer WhiteWave Foods.

In December 2017, Lactalis announced the acquisition of dairy company Itambé.

In January 2018, Lactalis announced it had agreed to purchase the skyr producer Siggi's Dairy, which will continue to be run independently.

In October 2018, Lactalis announced the acquisition of Nestlé Malaysia's chilled dairy business unit for approximately $40 million.

Lactalis's Indian subsidiary Tirumala Milk Products said that it would acquire Prabhat's dairy business for ₹17 Billion. This will be Lactalis's third acquisition in India.

On 15 September 2020, Groupe Lactalis announced an agreement to acquire Kraft Heinz's natural cheese operations in North America and internationally for $3.2 billion. The U.S. Department of Justice ruled that Lactalis must divest the Athenos and Polly-O cheese brands.

In April 2023, Lactalis American Group announced an investment of $32 million to construct a new whey-processing facility in South Buffalo, boosting its production of the ingredient by 30%.

In September 2024, Lactalis Group announced the acquisition of General Mills' US yogurt business to expand its yogurt business in the United States market, pending regulatory approval.

Operations

Owned by the Belgian holding company BSA International SA, which is controlled by the Besnier family that founded Lactalis, Lactalis in 2015 had global revenues of 16.5 billion euros. Lactalis employs 75,000 people worldwide, at 237 production sites in 43 countries. The headquarters for Lactalis American Group, Inc. is located in Buffalo, New York.

Controversies

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In August 2016, farmers blockaded the company's headquarters in Laval, protesting what they saw as price fixing.

In January 2018, the company had to withdraw 12 million boxes of baby formula due to a salmonella contamination. They were accused of trying to hide the initial discovery of contamination, which led to the crisis.

In 2020 allegations were made that 38 of Lactalis's production plants in France had breached environmental regulations, and had been doing so for a number of years. Lactalis stated it had invested €60 million in improving wastewater treatment plants.

In February 2023, Lactalis Group and Celia Laiterie de Craon, a company linked to the group, were charged with aggravated deception, involuntary injuries and non-execution of withdrawal and recall measures in a five-year-old case where babies were diagnosed with salmonellosis after consuming the French dairy group's infant milk products, with both firms placed under judicial supervision with a bond of €300,000 each.

In July 2023, Lactalis Australia was fined A$950,000 by the Federal Court for breaching the Dairy Code of Conduct in 2020.

In February 2024, the Spanish Audiencia Nacional fined Lactalis with 11.69 million euros for forming a cartel with other milk companies to avoid competition when buying milk from Spanish farmers between 2000 and 2013. The farmers can now further sue for damages.

Russian invasion of Ukraine

Lactalis has been criticized for its decision to continue operating in Russia following the country's invasion of Ukraine in February 2022. The company, which has been present in the Russian market since 2003, operates four production facilities that produce dairy products under the brands President, Galbani, Parmalat, and Bely Gorod. Despite international calls for companies to withdraw from the Russian market as a form of economic pressure, Lactalis reported substantial financial success in 2023, with its subsidiaries generating 43 billion rubles in revenue and over 3 billion rubles in profit.

Lactalis, alongside Savencia, has also attracted interest from Russian business figures, including Sergey Bachin, head of the Agranta group, who has reportedly expressed interest in their assets. However, both companies have shown no intention of leaving the market, raising concerns about their unwavering commitment to maintaining operations.

Controversies in Italy

Rai 3's PresaDiretta aired a special report titled "Italia in vendita," highlighting the increasing foreign acquisitions in Italy's agri-food sector, from North to South. The focus was on the dairy and cheese industries, particularly iconic products like mozzarella and Parmigiano Reggiano, which have been taken over by the French multinational Lactalis. The investigation explored operations at Parmalat's Collecchio plant, Nuova Castelli in Reggio Emilia, and Alival in Reggio Calabria and Tuscany.

The report concluded that Lactalis sought to integrate Italy's DOP products and brands—such as Galbani, Parmalat, Leerdammer, Castelli, Invernizzi, and the more recent acquisition of Ambrosi—into its global portfolio. It aimed to leverage Parmalat's international presence in Africa and Latin America, while closing down plants considered non-essential, such as Alival in Calabria and Tuscany, sparking controversy over a lack of social responsibility.

Lactalis faced significant backlash for its decision to shut down two production facilities: one in San Gregorio, Reggio Calabria, and another in Ponte Buggianese, Tuscany. The closure, impacting 80 workers and their families in Reggio Calabria, was widely condemned by local authorities and unions for the negative impact on the regional economy. Lactalis, which acquired Alival through the Castelli Group, justified the closures citing financial challenges worsened by the pandemic and international crises. Despite protests, the San Gregorio plant officially closed in January 2023, with only 4 out of 84 employees being relocated.

Swiss Journalist Klaus Davi strongly criticized the decision, stating: “The closure of the Lactalis plant in Reggio Calabria is an indefensible disgrace. Sending 80 workers home, pushing 80 families into poverty in a city like Reggio, is no small matter, especially when Italian food excellence is being celebrated.”

In contrast, Tuscany's regional government took swift action, engaging local entrepreneurs to create favorable conditions for reemployment at the Ponte Buggianese plant. As a result of these efforts, 45 out of the 56 workers will be re-employed, providing stability after Lactalis’ decision.

Brands

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The group operates in eight divisions:

Lactalis cheeses with Président – Rouy • Lepetit • Bridélight • Galbani • Rondelé • Munster's Little Friends
Lactalis Butter & Creams with Président – Bridélice • Bridélight • Primrose
Lactel with Awakening – Day after day • Morning Light
Lactalis AOC with Pochat – Istara • Beulet • Salakis • Lanquetot • Roquefort Société • Golden Ball • Lou Pérac • The Ruby • Raguin • The Stone Bridge
Lactalis consumption AFH with Président – Society • Bridel • Locatelli
Lactalis industry with BBA – Calciane • Prolacta
Tendriade Veal with Tendriade – Eurovo • Voréal
Lactalis International with Président – Sorrento • Valbreso • Galbani • Sorrento • Locatelli • Invernizzi
LNUF with The Milkmaid – Yoco • Flanby • Sveltesse • Vienna • Greek Yogurt • Kremly • BA • Fold

Lactalis owns 198 industrial sites in 55 countries including the US, Romania, Poland, Italy, Russia, Ukraine, Spain, Saudi Arabia, Egypt, Ireland, Portugal, Switzerland, Croatia, Czech Republic, Georgia ("სანტე" brand), United Kingdom, Australia and as of 2011, Canada and South Africa. Lactalis mostly produces yogurt, butter, cheese, powdered milk, baby formula and milk drinks.