For Lactalis ever fight for the lead in cheese

Since coming to Brazil in August 2013, the French for Lactalis gave clear signs that had big ambitions for the cheese market in the country. Almost three years later, the company-founded in 1933 in Laval, in France, as a small artisan cheese factory-give important steps to get consolidate as segment leader in Brazil.
The company, which in 2013 bought the Balqis and the following year the assets of the BRF and dairy factories of the LBR, the country began the production of fresh mozzarella with the brand for Galbani, traditional in Italy and in other European countries. Besides, it''s beginning to manufacture cheese and mozzarella plate, in the piece, with the recognized French brand Président in Brazilian units.
Although the market for fresh mozzarella is more restricted, the start of production of the two international brands in Brazil is the most visible sign of the importance that the country has in the strategy of the French company, the world''s biggest producer of cheese, with global revenues of € 16.5 billion in 2015.
The fresh mozzarella is being produced at the factory for Lactalis in Santo Antônio do Aracanguá (SP). Mozzarella cheeses already and plate in the piece with the Président, are manufactured in plants of Ijuí and Three may, both in Rio Grande do Sul, and São Paulo unit.
For Lactalis CEO of Brazil, the Polish Marek Warzywoda, is economical in the information about the new production lines in the country, but does not hide his enthusiasm with the growth potential in the Brazilian market of cheese. "The Group has a giant ambition (...) to be the number one cheese in Brazil. That''s exactly what the group is doing in the world, "he said in an interview to the value. According to him, to secure this position in the country, for Lactalis provides for investments for a period of five years. The amount of the contribution, however, the Executive does not reveal.
To produce the fresh mozzarella for Galbani in Brazil, for Lactalis reorganized the factory of Santo Antônio do Aracanguá, where were installed equipment imported from Italy. Warzywoda says that the French group''s plan is to follow in Brazil the same strategy introduced in other countries in which the company is.
The for Lactalis acquired for Galbani, leader in Italy in 2006 in cheeses. Today, the French group has 20 factories worldwide producing items of the Italian brand. "The strategy is to have a local production, manufacture here a part of portfolio for Galbani, fresh produce, and at the same time import others brand cheeses produced in Italy, such as grana padano", explains.
The crisis in Brazil scares not for Lactalis. According to Warzywoda, the interest in fresh mozzarella grows worldwide, regardless of the macroeconomic situation. "We are sure that there is a market for this product. What is is how this market will develop. We know we have great opportunity with this kind of cheese, but we need to look at the speed of development of this category here in Brazil ".
As a first step, the production capacity of fresh mozzarella with Italian brand in Brazil will be 300 to 400 tonnes for a period of 12 months. But the Executive estimates that there will be space for larger volumes and says the company has the flexibility to produce more if there is demand. The product will be sold in retail and food service. Initially, will be distributed in the State of São Paulo, but the plan is to have national distribution.
On the production of mozzarella and cheese plate with the mark Président in the country, the CEO of for Lactalis of Brazil again, reveals little. It took units and equipment investments made adaptations in existing lines, says. The high consumption of mozzarella in country Warzywoda, which surprise admits that the production capacity of this item is high. "We have the possibility of producing in three factories, but the flexibility to adapt to demand".
According to him, the two products fall into the category commodities and will be sold at retail, in part for slicing or already sliced, throughout the country. The fine cheeses Président brand, such as brie, camembert, will continue to be imported from France.
For Lactalis''s vision, says Warzywoda, is that "to be number 1 in the local cheese market, you must have the possibility of producing local brands but also that international market". Furthermore, we must seize the opportunity to use local raw material, to be competitive, "he adds.
In fact, the decision to spend producing cheese and mozzarella dish with the brand in Brazil was a Président natural step for for Lactalis. That''s because, to acquire the assets of the BRF dairy, it was agreed that the French would use the Sadia brand for these cheeses for a specified period. When this transition is over, the Sadia brand is no longer used by for Lactalis in their cheeses.
In the sector, the estimate is that for Lactalis is already the leader in volume in the market of cheeses from Brazil. In value, however, the company is behind the Bongrain, which produces branded cheeses Polenghi, and is controlled by the French Fromage Savencia and Dairy too.
According to Euromonitor, Bongrain had an interest of 10.5% of the value of sales of retail cheese in 2015, which totaled R$ 19.406 billion. The for Lactalis 8.2% of this total got. The Dairy Tirolez was third, with 4.9%. The value does not consider food service sales.
Second largest on the uptake of milk in the country, for Lactalis produces cheeses in five of their 17 milk factories in Brazil and has two local brands for this products, Balqis, focused on São Paulo, and Good cream, with presence in Minas Gerais and Rio de Janeiro. In the world, the French, who owns the Parmalat, has more than 200 production sites in 42 countries, and photographed 15.6 billion liters of milk in 2015.