COVER STORY
Some changes in the air
Photo courtesy of Olesia Shadrina via gettyimages.com
Unlike previous years, this year’s Dairy 100 rankings reflects changes in the market — with some new companies joining the list and others experiencing major growth or declines.
By Barbara Harfmann, managing editor
How we compiled the list
We began our research by contacting all of the company’s on last year’s Dairy 100 list to request information, including their 2021 (or most recent) revenues and any other updates. We also requested information from companies that almost made last year’s list or underwent a growth spurt in 2021. For public companies that did not respond to us, we relied on publicly available information regarding revenues. For private companies and cooperatives that did not respond, we estimated revenue — relying, in part, on company news and sources that include but are not limited to reports from Forbes and other publications.
As summer fades into fall, leaves start to change color and the days get cooler. This year’s Top Dairy 100 also reflects some companies “cooling” down in sales in the midst of supply challenges, while others, like Mars Ice Cream, are red-hot.
In fact, Burr Ridge, Ill.-based Mars Ice Cream, No. 80 last year, moved up in 16 spots in the ranking, taking the No. 64 spot with estimated 2021 revenue sales of $376.8 million. Mars announced a record year of sales performance for its single-serve bars, multipacks and tubs which grew 57% at convenience stores and independent retailers, it reports.
Top 10 in 2022
1. Dairy Farmers of America Inc.
2. Land O'Lakes Inc.
3. Saputo Inc.
4. Nestlé, Zone North America
5. Lactalis Group, North American operations
6. Danone North America
7. Savencia Fromage & Dairy, U.S. operations
8. Agropur
9. Kraft Heinz Co.
10. Schreiber Foods Inc.
Top 10 in 2021
1. Nestlé, Zone Americas
2. Saputo Inc.
3. Dairy Farmers of America Inc.
4. Danone North America
5. Agropur
6. Kraft Heinz Co.
7. Schreiber Foods Inc.
8. ConAgra Brands
9. Unilever, North American operations
10. Land O’Lakes Inc. and California Dairies Inc. (tie)
On the ice cream side, Mars announced a record year of sales performance for its single-serve bars, multipacks and tubs, which grew 57% at convenience stores and independent retailers, it reports.
Some cheese processors didn’t fare as well. For example, Valley Queen Cheese Factory Inc., Milbank, S.D., No. 94 last year with estimated net revenue of $170 million, cut its net revenue almost in half to $58 million and is now listed at No. 100.
This year’s Dairy Top 100 also includes a few newcomers: So. Burlington, Vt.-based Ben & Jerry’s, a brand of Unilever plc with an estimated $935 million in sales; Stonyfield Organic, Londonderry, N.H., a brand of Lactalis Group, with an estimated $437 million in sales; and Sovos Brands Intermediate Inc., with such products as yogurt and frozen yogurt gelato, seeing an estimated $211.5 million in 2021 net revenue. DF
Note: Click on the arrow above the Dairy 100 chart that follows to advance the chart.
Changes are coming
A notable recent divesture and a few notable acquisitions could makes some big differences to next year’s list, however. The biggest of those is Kraft-Heinz Co.’s 2021 divesture of many of its cheese businesses to Lactalis American Group. According to Kraft Heinz, the transaction included its natural, grated, cultured and specialty cheese businesses in the United States, as well as its grated cheese business in Canada and the entire international cheese business outside of those two countries.
Although sales for those cheese businesses — and estimated $1.8 billion — are included in this year’s rankings for Kraft Heinz because we rely on 2020 sales data, the company could very likely drop out of the top 10 next year. On the flip side, Lactalis Group’s North American operations, No. 18 on this year’s list, could very likely move up to the top 10.
On the acquisition front, Saputo Inc. continues to make noise. The processor, No. 2 on our list both this year and last year, recently announced three strategic acquisitions that could see it slide ahead of No. 1 Nestlé, Zone Americas in next year’s rankings.
In May, Saputo said it completed the acquisition of Bute Island Foods Ltd., a manufacturer, marketer and distributor of a variety of cheese alternative products for both the retail and foodservice markets under the award-winning vegan Sheese brand, alongside private label brands. The business is located on the Isle of Bute, off the West Coast of Scotland, and employs approximately 180 people.
Also in May, Saputo said it entered into an agreement to acquire the Reedsburg, Wis., facility of Wisconsin Specialty Protein LLC. This facility manufactures value-added ingredients such as goat whey, organic lactose and other dairy powders and employs approximately 40 people. The acquisition will enable Saputo to broaden and increase the value of its ingredients offering, enhancing its portfolio in the United States and internationally.
And in July, Saputo said it entered into an agreement to acquire the activities of Wensleydale Dairy Products Ltd. The business, which will join Saputo Inc.’s Dairy Division (UK) under its Europe Sector, operates two facilities located in North Yorkshire, England, and employs approximately 210 people.
Wensleydale Dairy Products manufactures, blends, markets and distributes a variety of specialty and regional cheeses, including Yorkshire Wensleydale cheese, which Saputo said will complement and broaden the company’s existing range of British cheeses, including Cathedral City and Davidstow cheddars.
AUGUST 2022 | dairyfoods.com
AUGUST 2022
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