The global dairy giant has just announced a substantial investment plan in France. Read on for some expert analysis and insights from AURIS Finance, a consultancy specialising in mergers and acquisitions.
One billion euros. This is the amount that the Lactalis Group plans to invest in France by 2030. The sum is earmarked for the modernisation of its industrial sites in France. Lactalis currently has 69 sites. All of these are currently facing major challenges in terms of modernisation and the energy transition.
Strengthening France’s dairy industry
A few days ahead of SPACE, the international livestock show, Lactalis Group CEO Jean-Marc Bernier said, ‘Lactalis is not disinvesting from the French market.’ He went on to say that they are continuing to defend the sector firmly. In recent years, the dairy industry has had to deal with a number of issues, including trade wars, adverse weather conditions and cattle diseases. The sector’s sustainability is also threatened by a lack of interest among younger farmers. Added to this are regulatory and societal pressures concerning two growing issues: animal welfare and the carbon footprint. Competition from plant-based alternatives is now a reality for the industry. There is a real ‘oat rush’ taking place around the world, particularly in France, with an increasing number of oat milk products appearing on supermarket shelves.
Industrial efficiency and CSR
Against this backdrop, the food giant is committed to more sustainable production methods. The €1 billion investment will be divided between several strategic areas. First and foremost, priority will be given to modernising the industry by renewing and improving production lines. At the same time, substantial efforts will be devoted to corporate social responsibility (CSR). Almost 15% of the group’s annual capital expenditure — around 150 million euros each year — is already specifically earmarked for decarbonising the group’s activities. Lastly, efforts will be made in the area of product innovation to encourage a move upmarket and better adaptation to new markets.
A tense French market
Lactalis is currently the world’s leading dairy group and the 9th largest food group. In 2024, the company’s sales totalled €30.3 billion, marking a 2.8% year-on-year increase. While France remains the leading market, Lactalis’ profitability is under pressure. The investment plan aims to maintain the group’s industrial competitiveness and stabilise local supplies, particularly in France.
124 acquisitions over 20 years
Forecasts indicate that the French dairy market will see modest growth in the coming years, with liquid milk expected to rise by approximately 1.2% annually through 2029. To tap into new opportunities, Lactalis is shifting toward premium products and expanding its global footprint. The company frequently pursues acquisitions, having completed 124 deals over the past two decades. A notable recent move came in June 2025, when Lactalis acquired General Mills’ U.S. yoghurt division, positioning the group as the third-largest player in America’s ultra-fresh dairy segment.
Our experts at your service
Following in Lactalis’ footsteps, France’s food giants are currently facing a number of challenges. In the domestic market, they must maintain and strengthen their industrial capacity. At the same time, opening up to international markets remains a priority for companies in the food industry looking to diversify their outlets, particularly in emerging markets and premium segments. At AURIS Finance, our experts specialise by sector. Our agri-food specialists are ready to assist you with disposals, buy-outs, and financing.
