Lactalis Aims to Increase Market Dominance in Brazil

Lactalis Aims to Increase Market Dominance in Brazil
Photo: 19.04.2024 543

The company plans to expand its range of dairy products with higher added value.

Lactalis, the world’s largest dairy company, plans to consolidate its leadership in Brazil, targeting a market share of 15% by 2028—up from 11% last year. 

In the short term, the French company will focus on integrating the operations of DPA Brasil, a venture created by Fonterra and Nestlé. The R$700 million deal, completed in December 2023 after receiving approval from Brazil’s Administrative Council of Economic Defense (CADE), marks a significant step.

The company aims to increase its milk processing volume from 2.5 billion to 3.5 billion liters per year by 2028. In terms of dairy sales, Lactalis seeks to boost its market share from 13% in 2023 to 20% within five years.

Lactalis has operated in Brazil for 10 years, investing €1.3 billion in acquisitions and €300 million in enhancing milk productivity, quality, and product development. The company owns 16 brands in the country, including Elegê, Itambé, Cotochés, Parmalat, and Batavo. Last year, sales totaled €2.5 billion.

Currently, the Brazilian operation accounts for nearly 10% of the group’s global revenue, according to Lactalis CEO in Brazil, Patrick Sauvageot. In 2023, Brazil was the fifth largest market for Lactalis, trailing behind France, the United States, Canada, and Italy. In the first quarter of 2024, Brazil surpassed Italy in sales.

To gain long-term market share in Brazil, Lactalis plans to expand its range of fine cheeses, yogurts, and other dairy products with higher added value.

Lactalis dominates the market in Brazil for dairy and soy-based products, followed by Nestlé and French peer Danone, according to research firm GlobalData.

Source: Valor International

food markets  Brazil 

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