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Lactalis SWOT & PESTLE Analysis

ID : 52886153| Apr 2021| 11 pages

COMPANY PROFILE -Lactalis

Business Sector :Dairy Products

Operating Geography :France, Europe, Global

About Lactalis :

Lactalis is a French multinational dairy products corporation headquartered in Laval, Mayenne, France. In 1933, André Besnier established a small cheese making company and launched its Président brand of Camembert in 1968. Milk powders, casein, caseinates, dairy & butter oils, dietary and health products, skimmed milk blends, and different varieties of cheese are among the products that the company manufactures and markets. Lactalis Ingredients (Lactalis) is a processor and supplier of dairy ingredients. These ingredients are utilized in chocolate bars & confectioneries, dairy products, medical and baby care products, frozen cakes, baked goods, croissant-type pastries, cookies, cheeses, ready-to-eat dinners, grilled meats and animal care products. Eurovo, Voreal, Prolacta, and Calciane are some of the company's labels. It operates as a division of the Lactalis Group. Lactalis mainly manufactures yoghurt, butter, cheese, powdered milk, infant formula, and milk beverages. On March 22, 2021, Lactalis Group announced that it has started negotiating with Bell Group about selling Royal Bell Leerdammer NL, Bell Italia, Bell Deutschland, the Leerdammer brand and all related rights, as well as Bell Shostka Ukraine, to the French dairy giant. In 2020, Lactalis Group won the "2020 World Championship Cheese Contest" for its Galbani PSLM Mozzarella.
Lactalis's Unique Selling Proposition or USP lies in it being the largest dairy products group in the world and is the second-largest food products group in France. The company's mission statement reads, "Since 1933 the vocation of the Lactalis Group has been to transform milk in all its forms and to offer the best dairy products to the broadest range of consumers. This mission translates into a strong commitment to the Dairy industry".

Lactalis Revenue :


€ 18.5 billion - FY ending 31st Dec, 2019

Competitive Analysis of Lactalis

SWOT
PESTLE

The SWOT analysis for Lactalis is presented below in a matrix followed by the detailed analysis report

StrengthsWeaknesses
1. Differentiated geographic presence and policy of acquisitions enables it to maintain stability and faster penetration of new markets
2. Good quality milk used that is produced in its dairy products increases demand and consumer loyalty
3. It has a very efficient distribution system with its widespread presence in over 90 countries.
1. Reduction in demand due to change in customer preferences
2. Embroiled in major products recalls
3. Tarnished with allegations of polluting the environment
OpportunitiesThreats
1. Increasing target market for expansion
2. Increased awareness among consumers about quality resulting in larger target markets
3. Immunity boosting milk to meet COVID-19 induced demand
1. High competition within the industry
2. Aggressive acquisitions may lead to inefficient integration of businesses thereby leading to losses
3. Functioning in a perishable goods industry
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Lactalis

Strength

1. Differentiated geographic presence and policy of acquisitions empowers it to maintain stability and rapidly penetrate new markets: Lactalis is widely present across geographies. It operates, markets and sells products in over 94 countries with varied trends of demand for its products. It strongly believes in increasing its market share and geographic presence through acquisitions. The Group's growth strategy through acquisitions allows it to penetrate faster into new markets and create synergies with consolidated companies. In July 2019, the group acquired Kraft Heinz's "Natural Cheese" division, U.S. Yogurt division of Ehrmann Commonwealth Dairy and Itambe (4th most popular FMG brand with Brazilian consumers in the dairy segment). The acquisition of Itambe made Lactalis, Brazil's largest player in the dairy industry. This policy of acquisitions it has undertaken and its differentiated geographic presence has enabled it to counterbalance a downward trend in some areas with stability or growth in other market areas.

2. Good quality milk used in its dairy products, produced in-house, increases demand and consumer loyalty: The major credit for development of the Lactalis Group, a major player in the French, European and global dairy sector goes to milk producers whose future is secured through the growth of the Group. Milk production requires solid professional expertise and the capacity to adapt to market changes. The technicians and salespeople at Lactalis assist milk producers with the production process, in order to meet hygiene and quality standards inherent to processing and marketing milk and dairy products. The milk procurement department of the Group is responsible for managing and optimizing milk supplies on behalf of the various factories of the Group. In this way, the milk production is done under their direct supervision which helps to ensure that the milk produced is of good quality and that it healthy and hygienic.

The remaining section under "Strength"is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threats

This section is available only in the 'Complete Report' on purchase.

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TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
References used in Lactalis Analysis Report

1. Lactalis baby milk recall a nightmare of its own making - https://www.complianceweek.com/lactalis-baby-milk-recall-a-nightmare-of-its-own-making/2394.article
2. Lactalis baby milk in global recall over salmonella fears - https://www.bbc.com/news/business-42304757
3. Lactalis declares cheese recalled over listeria fears safe - https://www.thegrocer.co.uk/food-safety/lactalis-declares-cheese-recalled-over-listeria-fears-safe/594706.article
4. French dairy products company polluting country's rivers, claims study - https://www.wionews.com/world/french-dairy-products-company-polluting-countrys-rivers-claims-study-336598
5. French dairy giant Lactalis launches immunity boosting milk in India to meet Covid-led demand - https://economictimes.indiatimes.com/industry/cons-products/food/french-dairy-giant-lactalis-launches-immunity-boosting-milk-in-india-to-meet-covid-led-demand/articleshow/79193191.cms?from=mdr
The detailed complete set of references are available on request in the 'Complete report' on purchase.

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SWOT & PESTLE.com (2021). Lactalis SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/lactalis/ [Accessed 06 May, 2021].

In-text: (SWOT & PESTLE.com, 2021)

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Lactalis SWOT and PESTLE Analysis has been conducted by Akshat Gupta and reviewed by senior analysts from Barakaat Consulting.

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