For the mysterious billionaire Bethnier family, the latest recall of potentially dangerous baby formula made by their nearly century-old company brings with it an uncomfortable feeling deja vu.
Just eight years ago, the French family behind Lactalis GroupThe world’s largest dairy company and its third-generation chief executive, Emmanuel Besnier, have gone through a similar crisis after dozens of babies became infected with salmonella after eating formula produced at one of the company’s factories in western France. Lactalis has been criticized for moving too slowly and accused of failing to recall products, Deception and involuntary harm. The case is ongoing.
Now fears that baby milk powder is contaminated with toxic substances that could cause vomiting, diarrhea or worse are forcing Lactalis and more prominent food giants to nestle South Australia and Danone South Africa will be pulling the product from store shelves around the world over the past few weeks. French authorities are investigating whether two infant deaths were linked to consumption of Nestlé’s Guigoz brand.
According to recollection, Threat of lawsuit Accusations of regulatory failures filled the airwaves, with Nestlé and Danone punished on the stock market.
For Lactalis, which is held by a small number of people, Announce The recall of infant formula on January 21, about two weeks after Nestlé first began pulling its own products from shelves, turned the spotlight on its controlling family, raising questions about whether they acted quickly enough.
“As far as Lactalis is concerned, the ultimate responsibility is the family,” said Philip Bailey-ClarmoreAdjunct professor at HEC Paris, specializing in family businesses. “This could be an issue in crisis management.”
The current scandal involving infant formula manufacturers stems from the possible presence of asparagine, a toxin derived from contaminated arachidonic acid oil (ARA) from a Chinese supplier. Lactalis said the alert from the French trade agency prompted it to test its milk powder “immediately”.
Preliminary analysis showed that ARA ingredients and finished product were “compliant,” but subsequent testing of the prepared formula “revealed the presence of alginic acid,” the company said. The recalled infant formula, sold under the “Picot” brand and other labels, affects 18 of the 47 countries in which it is distributed. Lactalis told Bloomberg News that it has stopped using the Chinese supplier identified as problematic and has begun requiring other suppliers to provide guarantees that they do not contain alginate.
Both incidents have shone a spotlight on the Besniers and the vast dairy empire they have cobbled together through acquisitions over the years, giving them unparalleled influence in the industry but often miring them in controversy. As the number one player in the industry, the group produces cheese, butter, yogurt and other dairy products under brands such as President, Garbani, Parmalat, Yoplait and Kraft, and its sales have grown approximately sixfold in two decades to reach a record €30 billion in 2024 (latest data).
Yet for years, Emmanuel Besnil and his two siblings kept a low profile, rarely granting interviews or holding press conferences, even as recurring crises gave them a bad reputation. Their company has been regularly targeted by French farmers, who accuse it of not paying enough for raw milk. It has also become a focus for tax authorities. Besnier declined an interview request.
There is no sign that current events will dampen the family’s ambitions to make further inroads into the $51 billion global infant formula industry. A few months after the salmonella scandal, Lactalis announced a €740 million acquisition of Aspen Group’s infant formula business, allowing its Alula and Infacare brands to be sold in Africa, Asia and Latin America. It also said it plans to “grow the global infant nutrition business.”
While it’s unclear whether this is still the case after the recent health scare, the Besniers appear determined to remain dominant in the milk space. In a rare interview with French financial daily Les Echos last year, Emmanuel Besnier said commodities were the backbone of the company and that diversification was focused on expanding geographically and into related products such as yogurt.
“Lactalis is a long-time believer in the dairy space,” said Mary Ledman, a former strategist at Rabobank who now works at industry publications Daily Dairy Report. “They don’t have to worry about quarterly earnings, which certainly contributes to their success.”
Over the course of three generations, the Besniers family, based in northwest France, has expanded its original artisanal cheesemaking business into a multinational entity, selling its products in approximately 150 countries. The three brothers who own the group – Jean-Michel, 58, Emmanuel, 55, and Marie, 45 – now have a combined fortune of $18 billion, according to the Bloomberg Billionaires Index. Jean-Michel and Marie are directors of the family holding company BSA
The wealth of the media-shy trio illustrates the global influence of a group of French families who have managed companies that have grown from small businesses to industry giants through expansion and acquisitions. France dominant Companies such as LVMH, founded by billionaire Bernard Arnault, are entering the luxury goods industry; Hermès Internationalwhose controlling family is the richest in Europe. this Dassault heir Dominate the world in fighter jets and business jets, while the second-generation take over Controls the world’s third largest container shipping company, CMA CGM.
As far as Lactalis is concerned, Founder Andre Besnier In 1933, he made the first 17 varieties of Camembert under the brand name “Le Petit Lavallois” using milk collected near his hometown of Laval, where the company is still based today. Over the years, he expanded into products such as butter and cream. After Andre’s death in 1955, his son Michel took over, created the President brand, exported brie cheese to the United States, and made the group’s first acquisition. Michel died suddenly in 2000, leaving Emmanuel at the helm at the age of 29.
As CEO, he proved to be an aggressive dealmaker, overseeing some 124 acquisitions worth billions of dollars, from Italian mozzarella maker Galbani and Brazilian milk producer Itambe to General Mills’ U.S. yogurt business, which included Yoplait and Kraft Heinz Cheese brands like Cracker Barrel.
“If they see a target and want it, they’re likely to be buyers,” Lederman said.
“Lactalis’ appetite for acquisitions appears insatiable,” Rabobank said in its 2025 ranking of the world’s 20 largest dairy companies, citing its global dominance and a comfortable lead over second-place Nestlé.
While these deals make Lactalis a major player in the industry, there’s also some bad news for the group. Repeated clashes with French farmers over milk pricing have taken their toll. 2016 dispute It was particularly noisy and fell into a war of words, leading to government intervention and Lactalis making concessions and raising rates. The strategy is similar for food inflation caused by the pandemic.
The Lactalis and Bernier families also find themselves at odds with French tax authorities. In 2024, the company agreed to pay 475 million euros to the government as part of a dispute over international financing through entities in Belgium and Luxembourg, according to a filing. The settlement comes as political debate over France’s tax policy on the wealthy intensifies, causing net profits to fall to 359 million euros in 2024. According to Bloomberg data, the debt of the family holding company BSA is 12 billion euros.
Bailey Kramore said that despite all the troubles, the family had maintained an aloof silence, something that people can again look to as they go through their current predicament.
“The Besniers have long maintained a culture of opacity,” he said. “Their roots are far away from Paris and other big cities, which helps them remain cautious.”