Lactalis Under Legal and Financial Scrutiny Amid Appellate Court Ruling Against Normandie Labeling
The French dairy giant Lactalis faces significant legal challenges and financial penalties, culminating in a ruling that prohibits the use of 'Normandie' labeling on its products.
French dairy company Lactalis has encountered a series of significant legal and financial setbacks, particularly following a January 10, 2025 ruling from the Administrative Court of Appeal in Nantes.
The court determined that Lactalis is no longer permitted to use the term 'Normandie' or the region's coat of arms on its industrial cheeses, particularly the widely consumed Camembert variety.
This decision marks a notable shift for the company, which has long leveraged the picturesque image of Normandy to market its dairy products, including Président brand cheeses.
The ruling comes amidst mounting scrutiny from French authorities, as Lactalis faces additional issues beyond labeling.
In December 2024, the firm was ordered to pay €475 million to the French tax authorities as part of a settlement regarding tax disputes.
Concurrently, Lactalis is under investigation by the National Financial Prosecutor's Office for alleged tax underreporting.
Furthermore, the company is implicated in a criminal investigation stemming from a salmonella outbreak linked to its infant milk products, with charges including aggravated fraud and involuntary injury.
In response to these pressures, Lactalis had made significant investments to enhance its production capabilities.
Two years prior, the company invested €70 million in a new 77-meter-long coagulator to double the production capacity at its Domfront facility.
This site produces approximately 550,000 Camembert cheeses daily, with around one-third of its output intended for international markets.
The implications of the court's ruling and the regulatory investigations present considerable challenges for Lactalis, a major player in the global dairy industry, as it navigates its compliance and operational strategies.
The court determined that Lactalis is no longer permitted to use the term 'Normandie' or the region's coat of arms on its industrial cheeses, particularly the widely consumed Camembert variety.
This decision marks a notable shift for the company, which has long leveraged the picturesque image of Normandy to market its dairy products, including Président brand cheeses.
The ruling comes amidst mounting scrutiny from French authorities, as Lactalis faces additional issues beyond labeling.
In December 2024, the firm was ordered to pay €475 million to the French tax authorities as part of a settlement regarding tax disputes.
Concurrently, Lactalis is under investigation by the National Financial Prosecutor's Office for alleged tax underreporting.
Furthermore, the company is implicated in a criminal investigation stemming from a salmonella outbreak linked to its infant milk products, with charges including aggravated fraud and involuntary injury.
In response to these pressures, Lactalis had made significant investments to enhance its production capabilities.
Two years prior, the company invested €70 million in a new 77-meter-long coagulator to double the production capacity at its Domfront facility.
This site produces approximately 550,000 Camembert cheeses daily, with around one-third of its output intended for international markets.
The implications of the court's ruling and the regulatory investigations present considerable challenges for Lactalis, a major player in the global dairy industry, as it navigates its compliance and operational strategies.
