World’s Largest Dairy Processor, Lactalis, Plans Expansion in Chicago
A big dairy expansion is making its way to the Windy City. France’s Groupe Lactalis, the world’s largest dairy maker, is expanding in Chicago after a previous $3.2 billion deal made in 2020 with Kraft Heinz Co. to acquire their cheese brands, according to Bloomberg.
The French based dairy giant has been growing its business within the U.S. in recent years, with America becoming its second largest market. The expansion comes as Lactalis prepares to separate its supply chain and finance systems as part of the integration of Kraft brands including Cracker Barrel and Knudsen.
“The U.S. is obviously a much bigger country from a land-based standpoint than France is,” says Peter Cotter, chief executive officer of Lactalis Heritage Dairy — the business that runs the natural cheese brands bought from Kraft. “The absolute growth opportunity that exists I think makes it the perfect growth market.”Cotter notes Lactalis agreed to buy Kraft’s natural cheese business in 2020 and has since then completed the first phase of separation, which included sales, marketing, human resources, the commercial area and manufacturing. A transition agreement for the supply chain and finance systems will end in March, he says.
Bloomberg states Lactalis is now hiring to build out those areas and expects to have about 220 employees in its Chicago offices by the end of the year, bringing the division’s total workforce to 850. Currently, Lactalis Heritage Dairy represents 39% of the group’s total U.S. business.
The family-owned company plans to hire almost 100 people at its offices in the Windy City over the next 12 months. Lactalis says hiring is still challenging in engineering, manufacturing and other technical areas, but the company is confident it can continue bring in employees from firms that have decided to leave the city.
