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Lactalis: after the milk crisis, a come-back strategy is taking shape

9 months after the scandal that shook Lactalis, the Craon (Mayenne) plant is back to service. Far from running at full capacity, it allows the production of infant powder to be gradually resumed. Lactalis is slowly recovering from this crisis. A three-point review of the various strategies put in place to ensure its long-term development and to overcome this tremor.
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A new breath of fresh air on infantile products at Lactalis

The French giant has decided to permanently remove the Milumel brand impacted in this case from the shelves. He now focuses on the Célia brand for its infant milk powder. This brand was previously only sold for export, so it does not suffer from a tarnished image as Milumel to consumers. The company has also restructured its sales forces in France and entrusted its subsidiary Lactel with the marketing of infant nutrition products for mass distribution. The other brands involved in the crisis will not change, Lémiel will remain the reference brand for specific milk and the Picot brand will return to pharmacies. Private labels are in the background for the moment because Lactalis prefers to focus on its brands.

A launch under increased surveillance

Following this health crisis, Lactalis asserts that « all measures to ensure that this does not happen again » have been taken in its plants. The group has put in place hygiene, control and analysis measures and also wishes to strengthen traceability using a QR code.

Acquisition and innovation to support the group’s development

With the brands it already owns, Lactalis intends to continue its commitment to organic farming and communicate on transparency and quality.  The group innovates by playing with formats and the trend of mixed fruit and milk products in Lactel infant nutrition. In addition, although Daniel Jaouen, Managing Director of Lactalis, states in Les Echos that he wants to « first promote milk of animal origin », his Santal brand is developing a new vegetable and gourmet range in the fresh section.

The company is also making several acquisitions to expand its base. Infant nutrition market has been invested by acquiring Aspen PharmaCare in South Africa. And, the group wanted to establish itself more in the United States by acquiring Stonyfield, Karoun and Siggi’s. As with many other major groups, the acquisition of existing brands or start-ups is a key way to adapt to market developments.

Post-crisis management is only just beginning, and it will now be interesting to follow the perception of these brands by the general public and prescribers.
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