The global dairy giant balancing culinary heritage with industrial expansion

The global dairy giant balancing culinary heritage with industrial expansion
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In short: From a small French cheesemaking operation in 1933 to the world's largest dairy products group, Lactalis has built a massive global portfolio. But this growth comes with a complex legacy of high-profile acquisitions, regulatory battles over traditional food designations, and intense scrutiny over its industrial footprint.

Founded by André Besnier, the company transformed from a local cheesemaker into a multinational powerhouse by acquiring iconic brands like Parmalat, Président, and Kraft Natural Cheese. By 2020, the group reported net sales of €21.1 billion, employing approximately 85,000 people across 266 plants in 51 countries. Its strategy has involved aggressive international expansion, including a 2011 takeover of the bankrupt Italian group Parmalat and a 2025 acquisition of several consumer brands from New Zealand's Fonterra, including the Anchor brand.

However, Lactalis's dominance has sparked significant friction regarding cultural heritage and competition. In 2007, the French Institut National des Appellations d'Origine (INAO) initially refused to allow the group to sell pasteurized Camembert as "true Camembert," a move that impacted a market where the company held between 80 and 90% of Normandy sales. Additionally, the company has faced heavy legal penalties, including a 2024 Spanish fine of 11.69 million euros for forming a milk-buying cartel between 2000 and 2013, and a 2023 Australian fine of A$950,000 for breaching the Dairy Code of Conduct.

The company also faces a fraught reputation regarding safety and social responsibility. A 2018 withdrawal of 12 million boxes of baby formula followed a salmonella outbreak; while Lactalis claimed it was an isolated incident in 2017, the Pasteur Institute reported the specific strain had been present since at least 2005. Furthermore, its closure of Italian production facilities in 2023, which impacted 80 workers in Reggio Calabria, drew sharp criticism from journalists and local authorities for prioritizing financial consolidation over regional social stability.

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