Oligopoly brief: Parmalat
Parmalat, now embroiled in financial scandals that rival Enron's, is one of the world's leading dairy producers. Founded in Italy in 1962, the company has spread to several others European countries (Spain, Hungary, Romania, Russia). It is a major player throughout South America. More recently, it has bought into the North American market. It is the #2 dairy company in Canada, and the #3 cookie maker in the US. It has a leading position in the Australian dairy industry, and is also spreading to Asia and Africa.
Parmalat is most famous for its shelf-stable, or UHT, milk. But it also produces a range of dairy products, juices, desserts, and biscuits. While Parmalat and Santal brand names are widely used, most of the other brands are local to one country.
Parmalat has grown quickly through acquisitions, all financed by credit now clearly based on fraud. The company will very likely have to dispose many of its assets. Speculation is running high on which companies will snap up what. Groupe Danone has stated that they are not interested in any part of Parmalat's holdings. In Australia, #1 dairy company NatFoods is said to be interested in snapping up some or all of the Parmalat assets. New Zealand food company Fonterra, which owns part of NatFoods, is reportedly interested in other Parmalat assets. Nestle is reported to be interested in buying Parmalat's Brazil operations, where Nestle is already #1 in dairy, and Parmalat #2. Forbes reports that Dean Foods may be interested in buying US dairy assets, or expanding abroad. And both Kraft and Kellogg are interested in the US cookie business.
While few or none of these assets may go up for sale soon, Parmalat is finished as a contender in the world food oligopoly. It may be that the company's misfortune has made its flagship brand name less valuable, and that competitors will simply redouble their efforts to compete. In either case, even more worldwide consolidation seems the likely result.
Parmalat brands
| Category |
Brands |
| Milk |
Parmalat (Italy), Bonlat (Italy), Clesa (Spain), Lactaid (Canada), Lactantia (Canada), Farmland (US), Welsh Farm (US), Sunnyvale (US), Peelers (US), Skim Plus (US), Pauls (Australia), Trim (Australia), Rev (Australia), Skinny Milk (Australia), Pure Organic (Australia), PhysiCAL (Australia),, Zmil Lactose Free (Australia), Bonnita (South Africa), La Campina (Venezuela) |
| Cream |
Parmalat, Chef, Clesa (Spain), Ucal (Portugal), Lactantia (Canada) |
| Yogurt, sour cream |
Parmalat, Kyr (Italy), Clesa (Spain), Letona (Spain), Ucal (Portugal), Astro (Canada), Beatrice (Canada), Lactantia (Canada), Yogurbelt (Argentina), Fandara (Argentina), Vaalia (Australia), Pauls (Australia), Pure Organic (Australia),, PhysiCAL (Australia), Mamiferogurt (Chile), Bonnita (South Africa), La Perfecta (Nicaragua), Yoka (Venezuela), Frigurt (Venezuela) |
| Dairy drinks |
Parmalat, Clesa (Spain), Cacaolat (Spain), Sandy (Argentina), Ganadara (Argentina), Shake (Argentina) |
| Soy milk and drinks |
Soya (Portugal), Sensational Soy (Canada), Soy Life (Australia) |
| Cheese |
Parmalat (Italy), Lactantia (Canada), Black Diamond (Cheese), Balderson (Canada), Sargento (Canada), Saavedra (Argentina), Ganacrem (Argentina), Warwicjk (Australia), Bonnita (South Africa) |
| Butter |
Parmalat (Italy), Clesa (Spain), Ucal (Portugal) Beatrice (Canada), Lactantia (Canada), Rika (Venezuela) |
| Juice and other beverages |
Santal, La Levantina (Spain), Beatrice (Canada), Breaka (Australia),, So Juicy (Australia), Rush (Australia), Ice Break (Australia), Bonnita (South Africa), PureJoy (South Africa) |
| Desserts |
Parmalat, Maulu (italy), Clesa (Spain), Gandara (Argentina), Chascomus (Argentina), Sandy (Argentina), Fity (Argentina), PetitLat (Chile), Manjar (Chile), Bonnita (South Africa), Geli (Venezuela) |
| Ice cream |
Royne (Spain), Gandara (Argentina), Aylesbury (South Africa) |
| Biscuits (cookies, crackers) |
Parmalat, Colonial (Canada), Archway(USA), Mrs. Alison's (US), Salerno (US), Mother's (US) |
| Soups and Sauces |
Pomi |
| Water |
Acqua Parmalat (Italy), Esker (Canada) |
| Margarine |
Parmalat, Lactantia (Canada), Parkay (Canada), Olivina (Canada) |
| Dietary Supplements |
Lactaid (Canada) |
6:03:16 PM 
|
|
