Food and beverages (especially dairy)
The company was restructured in 2005 to aid recovery from the 14 billion euro fraud uncovered in 2003. French dairy giant Lactalis became majority owners in 2011.
Company Ownership
Parmalat SpA
ITA
Lactalis Group
owns 96% of Parmalat SpA
FRA
Dairy product manufacturer
World's largest dairy company with 250 production sites in 50 countries. Founded in 1933 by Andre Besnier; his descendants still own and oversee the company. Increased its stake in Parmalat from 29% to 83% in July 2011. Bought Lemnos Foods in 2010 and Jindi cheese in Nov 2012.
Company Assessment
(Last updated Aug 2024)
Praise
Criticism
Information
Parmalat SpA
Praise
Criticism
Information
Corporate financial fraud
Criticised for massive financial fraud 'one of the largest ever' of between 4 and 8 billion EUR ($10bn) and illegal business practices. Following judicial inquiries in December 2003, the company went into bankruptcy, but was not split up but rather restructured.
Lactalis Group
Praise
Criticism
Information
Access to Nutrition rating
The Global Access to Nutrition Index assesses how the world's 25 largest global food and beverage manufacturers contribute to addressing malnutrition in all its forms: overweight and obesity, undernutrition, and micronutrient deficiency. All have been assessed on their commitments, practices, and disclosure with regards to governance and management; the production and distribution of healthy, affordable, accessible products; and how they influence consumer choices and behavior. Of the 25 companies ranked, this company came 23rd.
0.1% in BMS Marketing Index
The BMS Marketing Index 2024 assesses how well companies making breast-milk substitutes (BMS) are following international guidelines for marketing their products. The Index aims to ensure marketing practices don't discourage breastfeeding. This company scored 0.1%. The highest score was 37% and the average score was a disappointing 10%.
0/20 in Social Benchmark
The 2024 Social Benchmark assesses the world's 2,000 most influential companies on their responsibility in meeting society's fundamental expectations towards three measurement areas: respecting human rights, providing decent work, and acting ethically. This company was assessed in 2023 and received a score of 0/20. The average score was an alarmingly low 4.6/20 and the highest score was 15.5/20.
4.4% in Food and Agriculture Benchmark
The 2023 Food and Agriculture Benchmark assessed 350 keystone companies across the entirety of the food system, from farm to fork. It covers three dimensions where transformation is needed: nutrition, environment and social inclusion. This company ranked #279/350, with a total score of 4.4/100.
4.3% in Nature Benchmark
The Nature Benchmark ranks 816 companies across 20 industries on their efforts to protect our environment and its biodiversity. Companies were assessed in three phases between 2022 and 2024 using three measurement areas: governance and strategy; social inclusion and community impact; and ecosystems and biodiversity. This company was assessed in 2023 and is ranked #654/816, with a total score of 4.3/100.
3.2% in methane scorecard
The livestock sector is the single largest contributor to man-made methane emissions. Even though rapid reductions of methane emissions are needed to slow the rate of global warming, the largest meat and dairy corporations are oblivious to the problem. Changing Markets' 2021 report 'Blindspot' investigated the policies and actions of 20 meat and dairy giants to reduce their methane emissions. This company scored 3.2/100 for their methane policy and actions.
Source: Changing Markets
(2021)
24.5% in Forest 500 Rankings
Forest 500 identifies the 350 companies and 150 financial institutions with the greatest exposure to tropical deforestation risk, and annually assesses them on the strength and implementation of their deforestation and human rights commitments. This company received a score of 24.5%.
Source: Forest 500
(2023)
CDP Forests score of D
In 2023, the Carbon Disclosure Project (CDP) asked companies to provide data about their efforts towards removing commodity-driven deforestation and forest degradation from its direct operations and supply chains. Responding companies are scored across four key areas: disclosure; awareness; management; and leadership. This company received a CDP Forests score of D.
Source: CDP
(2023)
Palm oil rating - WAZA
The PalmOil Scan app, produced by the World Association of Zoos and Aquariums (WAZA), rates companies on their commitment to sourcing sustainable palm oil. Companies are scored on their use of certified sustainable palm oil (CSPO), commitment to sourcing CSPO, on-the-ground conservation action, and membership to the RSPO. Companies can earn a rating of Excellent, Good, Poor or No Commitment. This company is rated "Poor" (retrieved 18 Nov 2023).
Source: WAZA
(2023)
Water pollution
In 2010 US-based Lactalis subsidiary Sorrento Lactalis paid the United States a $315,000 penalty for excess discharges in violation of its wastewater permit levels. The company discharged the excess pollutants into Mason Creek from its factory operations in Nampa, Idaho, in violation of the Clean Water Act. The company repeatedly violated its National Pollutant Discharge Elimination System (NPDES) permit over a period of three years from December 2005 to September 2008.
Source: EPA
(2010)
Soy scorecard 2016 - WWF
This company received a score of 2 out of a possible total of 24 in the WWF Soy Scorecard 2016, which rates companies on their use of responsible soy, grown without damaging the environment and harming people. [Listed under Information due to age of report]
Source: WWF Soy Scorecard 2016
(2016)
Irresponsible BMS marketing
This company is named and shamed in IBFAN's 2017 report, 'Breaking the Rules, Stretching the Rules 2017', evidence of violations of the International Code of Marketing of Breastmilk Substitutes (BMS), compiled from June 2014 to June 2017. The report covers 792 Code violations from 79 countries and by 28 companies. [Listed under Information due to age of report]
Source: IBFAN
(2017)
Joint venture with Nestle
Lactalis and Nestle created a dairy products joint venture in 2006 called Lactalis Nestle Chilled Dairy, which operates in nine European countries. Nestle is the target of a boycott call.
Source: company website
(2006)
Palm oil scorecard - WWF
The 2024 WWF Palm Oil Buyers Scorecard evaluates the progress and performance of 285 major retailers and manufacturer companies, focusing on actions companies have taken to ensure their own palm oil supply chain is sustainable and free of deforestation, natural ecosystem conversion, and human rights abuse. This company is rated 'middle of the pack' with a score of 12.98 out of a possible total of 24.
Source: WWF Palm Oil Scorecard
(2024)
Tier 4 in farm animal welfare rankings
The Business Benchmark on Farm Animal Welfare (BBFAW) 2023 Report ranks global food companies on their farm animal welfare policies, practices and performance. This company appeared in tier 4, "Making progress on implementation", with tier 1 being the best, and tier 6 the worst.
Source: BBFAW
(2023)
Underpaying dairy farmers in France
Five hundred French dairy farmers are to take Lactalis to court over the price they were paid in 2014 for their milk.
Source: news article
(2015)
Company Details
Type:
Subsidiary
Revenue:
6.4 billion EUR
(2015)
Employees:
27,596
(2015)