Rabobank reveals a new leader of the pack
Rabobank has recently published its annual Global Dairy Top 20 report for 2021, and has revealed that French firm Lactalis outpaced long-time industry giant Nestlé as the world’s biggest dairy player.
According to the Rabobank report, Lactalis’ attention to organic growth, as well as its dedicated global M&A strategy, has propelled the company from ninth place in 2000, with a turnover of 4.8 billion, to the dominant position in 2021, with a turnover of $23 billion, an increase of more than 370 per cent since the start of the century. Since 2010, Lactalis has grown through approximately 60 deals, expanding its global footprint in the Middle East, Africa, and North and South America.
Lactalis’ pending acquisition of the Kraft Heinz natural cheese business and Groupe Bel’s Royal Bel Leerdammer, Bel Italia, Bel Deutschland, and Bel Shostka Ukraine, which have a combined annual turnover of about $2.5 billion, will extend the company’s lead in next year’s ranking, Rabobank predicts.
As per the report, Nestle’s repositioning was foreshadowed in 2019 when it sold its US-based ice cream business to Froneri, narrowing the gap between the two companies to $1.1 billion. Since, Nestle’s estimated 2020 dairy-related turnovers of $20.8 billion represents a solid 60 per cent increase compared to the start of the century.
Dairy Farmers of America (DFA) retains the third position while Danone stays on the fourth, as compared to 2020.