While fight the Itambé, for Lactalis attempts to popularise premium brand

Waiting for closure on the Itambé, Minas acquisition that is in the process of arbitration, the French for Lactalis has sought other markets to advance in the country. The multinational, runner-up in dairy products in the domestic market, wants to strengthen your brand of cheeses and butters Président, quite popular in France, but that the national market is seen as a premium product. Andre Salles, President for Lactalis Group in the country, said the company wants to expand sales of gourmet cheeses in Brazil, replicating the model that he adopted when he was still ahead of Brazil Kirin (sold to Heineken). In the brewery, Salles told who made bets on special markings, such as craft beer Eisenbahn, which guarantee higher margins than the company's popular labels. To popularize the Président, for Lactalis decided to produce some of its products in 6 of 14 the company's factories in the country. Some cheeses, such as mozzarella, provolone, dish, gruyere, gouda, in addition to cream cheese and butter are produced locally. Others, however, such as brie and camembert, because they controlled designation of origin, comes from France. Last year, the multi R $3.6 billion won in the country, which is the seventh largest market for the company outside of the array. In the last three years, the company has invested some R $150 million per year in the modernisation of their units. History. The for Lactalis entered the Brazil with the purchase of the small dairy paulista Balqis, in 2013. Italian Parmalat's parent since 2011, the multi has grown through acquisitions. In 2014, announced two major transactions: the purchase of the dairy division of the BRF, under the Batavo, and Elect the LBR dairy products (which sold Parmalat in the country), which was in bankruptcy and a lot of debt. For dairy farmers, the acquisition of the assets of the LBR by for Lactalis brought relief, but not added a significant gains to the chain. "The reactivation of the factories was important," said Roberto Jank, Vice President of industry Milk Brazil entity. He considers, however, that the large groups operating in the country do not encourage the productive chain. "There is hope in the industry that a company the size of for Lactalis encourage producers. However, the Brazil produces milk long life the same way for 30 years, "he said. Dispute. A recent bet for Lactalis in the dairy sector – the purchase of Itambé, strategic regions of the North and Northeast and the powdered milk segment – is facing legal mishaps. The acquisition was announced at the end of 2017 – the Itambé was in the hands of the Central Cooperative of Farmers of Minas Gerais (CCPR). However, the multi faces strong resistance from one of the shareholders: the Force, which belonged to the J&F, the brothers, and was sold to the Mexican Lala several months before. The Force had 50% of the Itambé in a joint venture with the CCPR. By a shareholders ' agreement, if the Force were sold, the CCPR could exercise the right of first refusal to buy the other 50% of the business. That's what the cooperative did on day 4 of last December. The next day, however, sold the company to the BSA International, the holding company for Lactalis. The transaction was questioned by Force, alleging breach of the shareholders ' agreement. Since the beginning of July, a Court of arbitration was established to discuss whether the operation is legal or not. Market sources say that the imbroglio should last at least two years. Questioned, Salles didn't want to talk about the subject. He said only that the acquisition was made by BSA. Force and CCPR nor expressed. While the deal has no outcome, wants to expand in performance for Lactalis new sectors. The Executive does not rule out new acquisitions, if the acquisition of Itambé do not move on.