Why Lactalis chooses to take over Bel Leerdammer

October 1933. It is the beginning of Lactalis. It is the day on which founder André Besnier produces his first 17 camemberts, using 35 liters of milk from the area. In the following years, Besnier's 'company' continued to grow beyond the 10.000 liter limit and in 1948 he decided to give it a name: 'SARL Société Laitière de Laval A. Besnier & Cie'. As the dairy market becomes more competitive, the founder must adapt his offering. Besnier decides to produce butter and cream and sell milk. He was one of the first to market a 50-liter glass bottle of milk in the 1s.

Family business at its best
With innovation and entrepreneurship, Besnier has already managed to create a name for itself. After his death in 1955, the company was inherited by his son Michel. He proves in a short time that the apple does not fall far from the tree. Michel Besnier doubles annual turnover in just 2 years, manages to acquire many western French dairies, sets foot in the United States and launches the Président brand. The latter brand is still one of the largest cheese brands in the world.

However, Besnier's ambitions extend much further. He wants to grow in Eastern Europe, Ukraine and Poland, but at the same time also wants to take new steps in Egypt and Italy. With the acquisition of Locatelli, the third largest mozzarella brand in the world at the time, he achieved this growth in Italy, among others. In 1990 he strengthened his position when French superpowers Bridel and Société des Caves de Roquefort joined the Besnier group. Just before the turn of the century, according to Besnier, it was time to change the group name to Lactalis. A name that can be easily pronounced on all 5 continents.

This decade starts with the death of Michel Besnier, who once again passes the company on to his son: Emmanuel Besnier. And it appears to be driven to become one of the largest dairy producers in the world, starting in Europe. For example, Emmanuel completed the acquisition of the Italian Galbani, the European joint venture with Nestlé and the acquisitions of the Spanish dairy companies Forlasa, Puleva and Sanutri. In 2011, it can call itself the world leader in dairy when it becomes the majority shareholder of the Italian Parmalat, which has a turnover of almost $4 billion.

The probable takeover of Bel Leerdammer
Lactalis itself achieved a turnover of no less than €2019 billion in 19,96, today has 85.000 employees and is now active in the yogurt, butter, cheese, milk powder, baby food and milk drinks segments. Now that the French family business can easily be called one of the largest in the world, the question naturally arises why it is so interested in the cheese brand. Call Leerdammer. The answer to that question seems to be in line with the company's previous acquisition strategies: the ability to expand.

The dairy today operates in 55 countries, including the United States, Romania, Poland, Italy, Russia, Ukraine, Spain, Saudi Arabia, Egypt, Ireland, Portugal, Switzerland, Croatia, Czech Republic, United Kingdom, Australia, Canada and South -Africa. Cheese country The Netherlands does not yet belong to that list and Lactalis would like to see that change, as is evident from Emmanuel Besnier's statement: "The acquisition of the Italian, German and Ukrainian subsidiaries will strengthen our position in these countries, but the agreement also offers us also an opening to the Dutch cheese market."

This quote fits in perfectly with the reason for taking over the Italian Parmalat in 2011. That company is active worldwide in areas where Lactalis itself has little or no activities. Or as it writes: "It provides complementary coverage." It can continue that strategy with a Dutch brand such as Leerdammer. Last year, a total of... 159.669 tons of cheese exported to Japan and South Korea, among others. Lactalis has little or no activities of its own in both countries. And there certainly does not appear to be any decline in these figures in the coming period.  

It is probably also convenient for Lactalis that Bel Group aims to further expand its positioning as a major player in the field of healthy snacks. Consider expanding the marketing of products such as 'La vache qui rit' and 'Babybel'. It also wants to focus further on growing markets such as Asia and North America. In short: Bel Group may already have been looking for a buyer for the brand. Lactalis is then the ideal buyer, because Bel will then get back the previously sold shares. Lactalis pays for the takeover by redeeming almost all shares (23,16%) and then only owns 0,9% of Bel Group's capital. So a win-win situation.

What will become of Bel Leerdammer?
Perhaps more important than the why question is the question: what now? Internationalization seems to be the main goal for Lactalis. It states: "Lactalis wants to actively support the development of Bel Leerdammer by allowing the brand to benefit from the international size of the group and supporting it in the areas of industrial investments, marketing and human resources." Since Leerdammer is already very popular among the French, insiders see the acquisition by one of the largest cheese players in France as a good move for both the brand and the dairy giant.

Another question is of course how much the 1.100 dairy farmers will notice this. The answer to the question seems difficult to give and caution is advised. Yet the chance of very major changes seems small. Previous acquisitions, for example those of the Parmalat, Galbani and Puleva brands, did not involve any shocking changes in the way of working. And during its first introduction to Ukraine, the company even modernized the dairy sector. In short: Lactalis' goal seems to be primarily aimed at becoming even bigger and many Dutch dairy farmers will probably not suffer from this.