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Parmalat

OVERALL

Owned
FRA
Rating
Criticisms

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 became majority owners in 2011.

Company Ownership

Parmalat SpA   ITA     website   email      
  Lactalis Group   
   owns 96% of Parmalat 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.

> About the Ratings

Company Assessment

PRAISE CRITICISM INFORMATION
Parmalat SpA
Business Ethics 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: Corpwatch, The Corporate Library (2004)
Lactalis Group
Environment 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: Forest 500 (2020)
Social 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: Access to Nutrition Foundation (2018)
Environment 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: WWF Soy Scorecard 2016 (2016)
Environment 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: Ethical Consumer (2020)
Social 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: IBFAN (2017)
Animals Tier 5 in farm animal welfare rankings
The 2020 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 5, "On the business agenda but limited evidence of implementation", with tier 1 being the best, and tier 6 the worst.
Source: BBFAW (2020)
Environment 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: WWF Palm Oil Buyers Scorecard 2019 (2019)
Environment 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: EPA (2010)
Business Ethics 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: company website (2006)
Business Ethics 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: news article (2015)

> About the Icons

Company Details

Type Subsidiary
Revenue 6.4 billion EUR (2015)
Employees 27,596 (2015)

Contact Details

Address Parma, Italy
Email info@parmalat.net
Website www.parmalat.net

Products / Brands


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