Lactalis is this global milk giant, which has brands like President, Galbani mozzarella, Lactel milk, etc… It is now dethroning the mastodon Danone, thanks to an activity that has progressed a lot in 2022, to the point that its turnover exceeded 28 billion euros.
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Despite the rise in prices, Lactalis continues to sell well, because it is positioned on everyday consumer products at low prices: butter, milk, yogurts, products that the French continue to put in shopping carts, even when ‘they are careful about their spending. Not to mention that Lactalis also supplies private labels, which sell very well in times of inflation. Finally, what also boosts the industrialist’s turnover are the external brands that he bought such as Leerdamer or even some of the cheeses from Kraft, which are very popular in the United States.
At the same time, its margins are falling. Its profitability is declining: it is 1.3%, against 2% previously. Lactalis suffered from the rising costs of raw materials, energy, packaging and milk. Moreover, the group did not want to lower the purchase price of milk to farmers and it is like other manufacturers, under pressure from large retailers. Boss Emmanuel Besnier assures that Lactalis has not fully passed on the high inflation.
Lactalis wants to continue in the same direction
The group obviously wants to maintain its position on the podium by continuing to grow, by absorbing new brands. Next is going to be the Ambrosi Parmesan. The group has factories in around 50 countries and employs 85,000 people worldwide. But France remains its first market ahead of the United States or Canada.
Lactalis has the distinction of still being based in Laval in Mayenne, of being a family business, run by the 3rd generation, and of not being listed on the stock exchange. With this thorn in the side: the group still has not finished with the contaminated milk case of 2017. A procedure is still in progress.