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Lactalis Canada exits milk alternatives
After more than a year, Lactalis Canada is ceasing production of plant-based milk alternatives. The former dairy plant in Sudbury, Ontario, which was reopened and refurbished specifically for this purpose, is closing.
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For Lactalis Canada, this also means the end of all milk replacer activities, the company announced. From a business perspective, it's a setback, but the decision to pull the plug is due to the market developing very differently than initially anticipated, according to Lactalis.
Good returns were not achieved. The company's receipt of a $1,4 million start-up grant from a regional development fund did nothing to change the situation. The factory closure will affect approximately 25 jobs.
Midwest yogurt
Further south, in the US, Lactalis this week completed its acquisition of General Mills' yogurt business. This acquisition had been announced some time ago but has only now been fully finalized.
This acquisition carries far greater business significance than the Canadian dairy alternatives, as the yogurts generate approximately US$1,2 billion in annual sales. With the agreement, Lactalis US acquires brands including Yoplait, Go-Gurt, Ou, and Mountain High. These will fall under the new Midwest Yogurt umbrella.
Meanwhile, in Australia, Lactalis appears to be in the front row when it comes to acquiring Fonterra's dairy operations. Such an acquisition would make it by far the largest dairy company on that continent. However, the race is not over yet. The combination Bega and FrieslandCampina and Japan's Meiji are said to still be in the running.