Danone, Arcor Form Dairy JV in Argentina
Global dairy major Danone and Argentina’s Arcor Group have announced the formation of a joint venture to strengthen their position in the Argentine dairy market, combining Danone Argentina’s dairy business with Mastellone Hermanos’ operations—including flagship brand La Serenísima—and their shared logistics arm, Logística La Serenísima.
The integrated entity will be jointly controlled by both companies under a 50:50 structure, aiming to accelerate innovation, improve operational efficiency, and expand commercial reach across the dairy category. The joint venture will leverage a network of 11 production plants producing a wide range of products including milk, cheese, butter, creams, yogurts, desserts, and dulce de leche, with a strategic focus on growing high value-added dairy segments.
This move builds on a partnership spanning over two decades, with roots dating back to the 1990s and previous joint investments in Mastellone Hermanos. The new structure is designed to create a fully integrated dairy platform, enhancing scale, innovation capabilities, and distribution efficiency in a highly competitive and inflation-impacted market.
Argentina remains a key market for Danone in Latin America, alongside Mexico, Brazil, and Uruguay, but ongoing economic volatility and hyperinflation have impacted profitability, including a €82 million negative impact on net income in the previous financial year. The joint venture is expected to help stabilise operations and mitigate risk through synergies and cost efficiencies.
The transaction is subject to regulatory approvals and customary closing conditions, but once completed, it is set to reshape Argentina’s dairy landscape by creating a stronger, innovation-driven player focused on premium and value-added categories in a challenging economic environment.
Source: Dairynews7x7 26th March, 2026 Read full story here
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