{"id":88271,"date":"2024-04-19T10:20:54","date_gmt":"2024-04-19T13:20:54","guid":{"rendered":"https:\/\/murray.adv.br\/?p=88271"},"modified":"2024-04-19T10:20:55","modified_gmt":"2024-04-19T13:20:55","slug":"lactalis-aims-to-increase-market-dominance-in-brazil","status":"publish","type":"post","link":"https:\/\/murray.adv.br\/en\/lactalis-aims-to-increase-market-dominance-in-brazil\/","title":{"rendered":"Lactalis aims to increase market dominance in Brazil"},"content":{"rendered":"\n<h6 class=\"wp-block-heading has-text-align-center\"><em><strong>After integrating the DPA operation, the group will invest in higher value-added lines<\/strong><\/em><\/h6>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>04\/19\/2024 <\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" \/>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/s2-valorinternational.glbimg.com\/G_9z60dAnzjRRsX0HW3oo0usRqE=\/0x0:888x498\/984x0\/smart\/filters:strip_icc()\/i.s3.glbimg.com\/v1\/AUTH_37554604729d4b2f9f3eb9ad8a691345\/internal_photos\/bs\/2024\/N\/R\/BGqcLfR3qUIazBCk1yqQ\/emmanuel-besnier-da-lactalis-gilson-de-souza-idt.png\" alt=\"Emmanuel Besnier \u2014 Foto: Gilson de Souza\/IDT\" style=\"width:566px;height:auto\" \/><\/figure>\n<\/div>\n\n\n<p class=\"has-text-align-center\"><em>Emmanuel Besnier \u2014 Foto: Gilson de Souza\/IDT<\/em><\/p>\n\n\n\n<p>Lactalis, the world\u2019s largest dairy company, plans to consolidate its leadership in Brazil, targeting a market share of 15% by 2028\u2014up 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 Nestl\u00e9. The R$700 million deal, completed in December 2023 after receiving approval from Brazil\u2019s Administrative Council of Economic Defense (CADE), marks a significant step.<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>\u201cWe see significant growth potential for our group in Brazil. Therefore, we are investing substantially in Brazil compared to its current contribution to our overall revenue, emphasizing its importance as a priority market for us,\u201d Lactalis CEO Emmanuel Besnier told Valor. On Tuesday (17), the executive visited the operations of Itamb\u00e9, which belongs to the group, accompanied by French journalists.<\/p>\n\n\n\n<p>Lactalis has operated in Brazil for 10 years, investing \u20ac1.3 billion in acquisitions and \u20ac300 million in enhancing milk productivity, quality, and product development. The company owns 16 brands in the country, including Eleg\u00ea, Itamb\u00e9, Cotoch\u00e9s, Parmalat, and Batavo. Last year, sales totaled \u20ac2.5 billion.<\/p>\n\n\n\n<p>Currently, the Brazilian operation accounts for nearly 10% of the group\u2019s 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.<\/p>\n\n\n\n<p>For 2024, Lactalis\u2019s priority is to integrate the DPA operation properly. \u201cWe\u2019re going to keep the company independent but look for synergies with the group\u2019s other activities,\u201d said Mr. Besnier. The acquisition adds the Chandelle, Chamyto, and Chambinho brands to Lactalis\u2019s portfolio, along with the rights to use the Nestl\u00e9 brand on refrigerated products. DPA has two factories, in Garanhuns (state of Pernambuco) and Araras (state of S\u00e3o Paulo), eight distribution centers, and employs 1,300 people. In 2023, the operation generated net sales of \u20ac361 million.<\/p>\n\n\n\n<p>To gain long-term market share in Brazil, Lactalis has focused on creating higher value-added products. \u201cBrazil is a big commodity market. It sells a lot of UHT milk and cheese groups that offer very low profitability,\u201d said Mr. Besnier. The company plans to expand its range of fine cheeses, yogurts, and other dairy products with higher added value.<\/p>\n\n\n\n<p>Mr. Sauvageot noted that Lactalis had also felt the impact of increased imports of powdered milk from Argentina and Uruguay into Brazil and the consequent drop in dairy prices. \u201cWe think that the whole chain needs the government\u2019s help to ensure the improvement of the competitiveness of dairy production in the country,\u201d he said.<\/p>\n\n\n\n<p>Lactalis and other industry players, including cooperatives, recently proposed that the federal government increase the refund rate for PIS and Cofins\u2014taxes on business revenue funding social security and healthcare\u2014from 50% to 100%. In exchange, the industrial companies would boost the percentage of credits earmarked for investments in productivity improvements from 5% to 10%. He estimates that this would raise investments from R$110 million to R$440 million per year, on average. He explained that since the 2015 implementation of a rule allowing PIS and Cofins tax credits to be returned in exchange for investments, industries have launched over 1,800 projects. These projects represent investments exceeding R$900 million and have benefited more than 168,000 producers.<\/p>\n\n\n\n<p>*Por Cibelle Bou\u00e7as\u00a0\u2014 Belo Horizonte<\/p>\n\n\n\n<p>Source: Valor International<\/p>\n\n\n\n<figure class=\"wp-block-embed\"><div class=\"wp-block-embed__wrapper\">\nhttps:\/\/valorinternational.globo.com\/\n<\/div><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>After integrating the DPA operation, the group will invest in higher value-added lines 04\/19\/2024 Emmanuel Besnier \u2014 Foto: Gilson de Souza\/IDT Lactalis, the world\u2019s largest dairy company, plans to consolidate its leadership in Brazil, targeting a market share of 15% by 2028\u2014up from 11% last year. In the short term, the French company will focus [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8106],"tags":[24883,24882],"class_list":["post-88271","post","type-post","status-publish","format-standard","hentry","category-murray-news","tag-increase-market-dominance-in-brazil","tag-lactalis"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Lactalis aims to increase market dominance in Brazil - Murray Advogados<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/murray.adv.br\/en\/lactalis-aims-to-increase-market-dominance-in-brazil\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Lactalis aims to increase market dominance in Brazil - Murray Advogados\" \/>\n<meta property=\"og:description\" content=\"After integrating the DPA operation, the group will invest in higher value-added lines 04\/19\/2024 Emmanuel Besnier \u2014 Foto: Gilson de Souza\/IDT Lactalis, the world\u2019s largest dairy company, plans to consolidate its leadership in Brazil, targeting a market share of 15% by 2028\u2014up from 11% last year. In the short term, the French company will focus [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/murray.adv.br\/en\/lactalis-aims-to-increase-market-dominance-in-brazil\/\" \/>\n<meta property=\"og:site_name\" content=\"Murray Advogados\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-19T13:20:54+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-04-19T13:20:55+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/s2-valorinternational.glbimg.com\/G_9z60dAnzjRRsX0HW3oo0usRqE=\/0x0:888x498\/984x0\/smart\/filters:strip_icc()\/i.s3.glbimg.com\/v1\/AUTH_37554604729d4b2f9f3eb9ad8a691345\/internal_photos\/bs\/2024\/N\/R\/BGqcLfR3qUIazBCk1yqQ\/emmanuel-besnier-da-lactalis-gilson-de-souza-idt.png\" \/>\n<meta name=\"author\" content=\"Gelcy Bueno\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Gelcy Bueno\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/murray.adv.br\/en\/lactalis-aims-to-increase-market-dominance-in-brazil\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/murray.adv.br\/en\/lactalis-aims-to-increase-market-dominance-in-brazil\/\"},\"author\":{\"name\":\"Gelcy Bueno\",\"@id\":\"https:\/\/murray.adv.br\/en\/#\/schema\/person\/dd0d0bea46c2436124555d18c1a0d52e\"},\"headline\":\"Lactalis aims to increase market dominance in Brazil\",\"datePublished\":\"2024-04-19T13:20:54+00:00\",\"dateModified\":\"2024-04-19T13:20:55+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/murray.adv.br\/en\/lactalis-aims-to-increase-market-dominance-in-brazil\/\"},\"wordCount\":603,\"image\":{\"@id\":\"https:\/\/murray.adv.br\/en\/lactalis-aims-to-increase-market-dominance-in-brazil\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/s2-valorinternational.glbimg.com\/G_9z60dAnzjRRsX0HW3oo0usRqE=\/0x0:888x498\/984x0\/smart\/filters:strip_icc()\/i.s3.glbimg.com\/v1\/AUTH_37554604729d4b2f9f3eb9ad8a691345\/internal_photos\/bs\/2024\/N\/R\/BGqcLfR3qUIazBCk1yqQ\/emmanuel-besnier-da-lactalis-gilson-de-souza-idt.png\",\"keywords\":[\"increase market dominance in Brazil\",\"Lactalis\"],\"articleSection\":[\"Murray News\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/murray.adv.br\/en\/lactalis-aims-to-increase-market-dominance-in-brazil\/\",\"url\":\"https:\/\/murray.adv.br\/en\/lactalis-aims-to-increase-market-dominance-in-brazil\/\",\"name\":\"Lactalis aims to increase market dominance in Brazil - 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