Parmalat

OVERALL
Owned	FRA
Rating

Food and beverages (especially dairy)

The company was restructured in 2005 to aid recovery from the 14 billion euro fraud uncovered in 2003. French dairy giant Lactalis increased its stake in Parmalat from 29% to 83% in July 2011.

Company Ownership

Parmalat Finanziaria SpA	ITA	website	email
Lactalis Group       owns 96% of Parmalat Finanziaria SpA	FRA	website	email		twitter
Dairy product manufacturer World's largest dairy company with 250 production sites in 50 countries. Founded in 1933 by Andre Besnier; his descendants still own and oversee the company. Increased its stake in Parmalat from 29% to 83% in July 2011. Bought Lemnos Foods in 2010 and Jindi cheese in Nov 2012.

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Company Assessment

PRAISE	CRITICISM	INFORMATION
Parmalat Finanziaria SpA
		Corporate financial fraud Criticised for massive financial fraud 'one of the largest ever' of between 4 and 8 billion EUR ($10bn) and illegal business practices. Following judicial inquiries in December 2003, the company went into bankruptcy, but was not split up but rather restructured. [Source x][More on Finance]
Lactalis Group
	0% in Forest 500 Rankings The Forest 500 identifies, ranks, and tracks the governments, companies and financial institutions worldwide that together could virtually eradicate tropical deforestation. Rankings are based on their public policies and commitments and potential impacts on tropical forests in the context of forest risk commodities (palm oil, soy, beef, leather, timber and paper). This company received a score of 0%. [Source 2019][More on Forests] Access to Nutrition rating The Access to Nutrition Index (ATNI) is a global initiative that evaluates the world's largest food and beverage manufacturers on their policies, practices and performance related to undernutrition and obesity. Of the 22 companies ranked this company came last. [Source 2018][More on Product Safety] Farm animal welfare The 2017 Business Benchmark on Farm Animal Welfare (BBFAW) report ranks global food companies on how they are managing and reporting their farm animal welfare policies and practices. This company appeared in tier 6, "No Evidence that on the Business Agenda", with tier 1 being the best, and tier 6 the worst. [Source 2018][More on Animal Rights] Soy scorecard - WWF This company received a score of 2 out of a possible total of 24 in the WWF Soy Scorecard 2016, which rates companies on their use of responsible soy, grown without damaging the environment and harming people. [Source 2016][More on Forests] Unsustainable palm oil use This company scores Ethical Consumer's worst rating for their use of palm oil, signifying they are using no or minimal certified palm products, and with no or minimal positive commitments. [Source 2019][More on Palm Oil] Irresponsible Marketing This company is named and shamed in IBFAN's 2017 report, 'Breaking the Rules, Stretching the Rules 2017', evidence of violations of the International Code of Marketing of Breastmilk Substitutes, compiled from June 2014 to June 2017. The report covers 792 Code violations from 79 countries and by 28 companies. [Source 2017][More on Irresponsible Marketing]	Palm oil scorecard - WWF The WWF Palm Oil Buyers Scorecard 2019 assesses 173 companies on the commitments they have made, and the actions they have taken, to ensure that there is no destruction of nature including no deforestation along their supply chains; and support a responsible and sustainable palm oil industry beyond their own supply chain. This company failed to respond to WWF's requests for information. [Source 2019][More on Palm Oil] Water pollution In 2010 US-based Lactalis subsidiary Sorrento Lactalis paid the United States a $315,000 penalty for excess discharges in violation of its wastewater permit levels. The company discharged the excess pollutants into Mason Creek from its factory operations in Nampa, Idaho, in violation of the Clean Water Act. The company repeatedly violated its National Pollutant Discharge Elimination System (NPDES) permit over a period of three years from December 2005 to September 2008. [Source 2010][More on Habitats] Joint venture with Nestle Lactalis and Nestle created a dairy products joint venture in 2006 called Lactalis Nestle Chilled Dairy, which operates in nine European countries. Nestle is the target of a boycott call. [Source][More on Governance] Sustainability claims This company has a number of sustainability claims on its website including improvements in the areas of water and energy consumption, waste management and packaging reductions. [Source 2013][More on Sustainability Reporting] Underpaying dairy farmers in France Five hundred French dairy farmers are to take Lactalis to court over the price they were paid in 2014 for their milk. [Source 2015][More on Finance]

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Related News

Fonterra offloads Tamar Valley to Parmalat
17th Dec 2015 — The world's biggest dairy exporter, Fonterra, has sold its Australian yoghurt and dessert business for an undisclosed sum to shore up the profitability of its local operations and improve returns for farmers.

Fonterra will offload the yoghurt business, which includes the Tamar Valley and Ski brands, to Italian dairy giant Parmalat, which moves these products up the Shop Ethical ratings from an F to a C

Read more about Parmalat on their Shop Ethical! company page.

Parmalat buys Harvey Fresh
2nd Apr 2014 — Family-owned Western Australian fruit juice and dairy processor Harvey Fresh was sold to Italian dairy group, Parmalat for $120m in April 2014. Parmalat is 83% owned by French dairy giant Lactalis, who bought Australia's Jindi Cheese last year.  [source]