Food News

France-based dairy group Lactalis revealed an agreement to acquire a major part of Kraft Heinz’s cheese business in USA, Canada and for some products world-wide.

In Europe Lactalis brands such as Président, Galbani, Parmalat are well-known. Less known might be, that Lactalis had strongly invested in the USA during the past 40 years, running eight plants meanwhile.

Kraft Foods sees in the divestment of their grated and specialty cheese branch an opportunity to focus on other businesses. Lactalis shall also receive a perpetual licence for the “Velveta” natural and international cheese products, whereas the “Philadelphia” cream cheese and Velveta processed cheese will stay under Kraft-Heinz roof. The deal shall being worth 3.2 billion USD, which is about 1.8 times the  revenue achieved with these brands world-wide within 12 months.

After this deal Lactalis becomes the largest milk processor worldwide and puts Nestle in 2nd place

Author: Frank Mörsberger