Down arrow button icon

Only eight years ago, the French clan was behind her Lactalis groupthe world’s largest dairy company, and its CEO – third-generation scion Emmanuel Besnier – were hit by a similar crisis after dozens of children who drank formula produced at one of its factories in western France were infected with salmonella poisoning. Lactalis was criticized for acting too slowly and was accused of failing to recall the product. Deception and involuntary injuries. The case is ongoing.

Now, fears that baby formula powder may be contaminated with a toxin that could cause vomiting, diarrhea or worse, has forced Lactalis and other well-known food giants to take action. Nestle Sa and Danone SA will be pulling the products from store shelves around the world over the past few weeks. French authorities are investigating whether the deaths of two children are linked to the consumption of Nestlé’s Guigoz brand.

As he remembers, Threats of lawsuits As the airwaves were filled with accusations of regulatory failure, Nestlé and Danone were punished on the stock market.

For closely held Lactalis, which Announce Nestlé recalled its infant formula on January 21 — about two weeks after Nestlé first began recalling its own products — with the spotlight turning to its controlling family, with questions about whether it moved quickly enough.

“In the case of Lactalis, the family is ultimately responsible,” he said. Philippe Pele Clamorassistant professor at HEC Paris business school who specializes in family businesses. “This could be a problem in crisis management.”

The current scandal involving infant formula makers stems from the possible presence of cerulide, a toxic substance traced to tainted arachidonic acid, or ARA, oil from a Chinese supplier. Lactalis said an alert from a French trade body prompted it to conduct an “immediate” test of its milk powder.

It said initial analysis showed that the ARA component and the final product were “compatible” but subsequent tests on the prepared formulation “revealed the presence of cereulide.” Its recall of infant formula marketed under the “Picot” brand and other brands affected 18 countries out of the 47 countries in which it is distributed. Lactalis told Bloomberg News that it has stopped using the Chinese supplier identified as problematic and has begun requiring other suppliers to guarantee the absence of Cerulide.

Both incidents helped put the Besnier family in the spotlight and the giant dairy-based empire they had cobbled together over the years through acquisitions, giving them unparalleled influence in the industry and frequently throwing them into the midst of controversy. The sector’s number one company, producing cheese, butter, yoghurts and other dairy products under labels such as President, Galbani, Parmalat, Yoplait and Kraft, the group has seen its sales grow nearly six-fold in two decades to reach a record €30 billion in 2024 – the latest figure available.

However, over the years, Emmanuel Benier and his two brothers have kept a low profile, rarely giving interviews or holding press conferences even when recurring crises have earned them bad publicity. Their company is a frequent target of French farmers who accuse it of not paying enough to buy raw milk. He was also in the crosshairs of the tax authorities. Besnier declined a request for an interview.

There is no indication that the current incident will dampen the clan’s ambition to push ahead in the $51 billion global infant formula industry. Just months after the salmonella scandal, Lactalis announced the acquisition of infant formula maker Aspen Group for €740 million, giving it brands such as Alula and Infacare sold in Africa, Asia and Latin America. She also said she plans to “develop a global infant nutrition project.”

While it is unclear whether this situation still exists after the recent health scare, the Besnier clan seems determined to remain dominant in the milk business. In a rare interview last year with French financial daily Les Echos, Emmanuel Besnier said the commodity was the backbone of the company, with diversification focused on expanding geographically and into related products such as yogurt.

“Lactalis has been a long-time believer in the dairy business,” said Mary Leidman, a former Rabobank strategist who now works for an industry publication. Daily dairy report. “They don’t have to worry about quarterly profits, and that has certainly contributed to their success.”

Based in northwest France, over three generations the Besnier family has expanded what began as an artisanal cheesemaking operation into a multinational entity with products sold in approximately 150 countries. The three siblings who own the group — Jean-Michel, 58, Emmanuel, 55, and Marie, 45 — are now worth a combined $18 billion, according to the Bloomberg Billionaires Index. Jean-Michel and Marie are directors of the family holding company BSA

The media-shy trio’s wealth illustrates the global reach of a group of French families who oversee companies that have been built from small operations into industry giants through expansion and acquisitions. France dominates The luxury sector through companies such as LVMH, founded by billionaire Bernard Arnault, and Hermes Internationalwhose controlling family is the richest in Europe. the Dassault heirs For global control of combat aircraft and business jets while the second generation Receiving Controlling the third largest container shipping line in the world, CMA CGM.

In the case of Lactalis Founder Andre Besnier He made his first 17 Camembert cheeses in 1933 under the “Le Petit Lavallois” brand, using milk collected near his birthplace of Laval, where the company is still based. It expanded over the years to include products such as butter and cream. After André’s death in 1955, his son Michel took over, creating the Presidente brand, exporting brie to the United States and making the group’s first acquisitions. Michel died suddenly in 2000 and Emmanuel took over the leadership at the age of 29.

As CEO, he proved a powerful dealmaker, overseeing some 124 multibillion-dollar acquisitions, ranging from Italian mozzarella maker Galbani and Brazilian milk producer Itambi to General Mills’ U.S. yogurt business that includes Yoplait and Kraft Heinz Cheese brands like Cracker Barrel.

“If they see a target and they want it, they’re more likely to be the buyer,” Leidman said.

“Lactalis’ appetite for acquisitions appears insatiable,” Rabobank said in its 2025 ranking of the world’s 20 largest dairy companies, pointing to its global dominance and comfortable superiority over No. 2 Nestlé.

While these deals have put Lactalis on the industry map as a major player, the group has also had its share of bad press. Repeated clashes with French farmers over milk prices led to huge losses. A 2016 He disputes It was particularly vociferous, sparking a war of words and leading to government intervention and Lactalis conceding a price hike. The rules of the game were similar for pandemic-induced food inflation.

Lactalis and the Besniers family also found themselves at loggerheads with the French tax authorities. In 2024, the company agreed to pay 475 million euros to management as part of a dispute over international financing through Belgian and Luxembourg entities, according to the filing. The settlement came as political rhetoric intensified around France’s taxation policies for the rich and helped cut net profit to 359 million euros in 2024. Family holding company BSA has debts of 12 billion euros, according to Bloomberg data.

Despite all its problems, the family maintained strict silence, something one would expect again while going through its current problems, Pele Clamour said.

“The Besnier family has long clung to a culture of obfuscation,” he said. “They are rooted far away from Paris and other major capitals, which helps them remain discreet.”