French dairy giant Lactalis is to invest €1bn ($1.18bn) into “modernising” its domestic manufacturing sites.
The company has set out a programme until 2030 to “modernise and improve the performance” of its facilities in France.
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Lactalis, the world’s largest dairy company, has 69 dairies across France and markets around 6,000 SKUs in the country.
The Lactel and Président brands owner said its investment would focus on developing production equipment, innovation and decarbonisation.
The group has lined up projects including the expansion of its Petit Basque cheese production plants in Larceveau and new production lines at sites in Bouvron and Bayeux.
Lactalis said the French dairy market remained “in flux”, impacted by environmental “constraints” and international competition.
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By GlobalDataWithout providing specific details, the company said it had grown its sales volumes in France by 1.4% in the first of the year “outperforming the national market in certain categories”.
It pointed to its cheese business, where sales had been supported by demand for its products for use in hot dishes.
The group added its Lactel brand “continues to gain market share” in a declining milk category in part due to “the strong performance” of the new Vita’ Vie product.
In April, the privately owned group published its financial results for 2024.
Last year, Lactalis’s revenue grew by 2.8% “exceeding €30bn for the first time”.
Operating income rose by 4.3% although the company’s net income fell from €428m to €359m.
