UFIC and Lactalis sign a partnership deal in GCC

Saudi Arabia’s United Food Industries Corp. (UFIC) and Groupe Lactalis of France have signed a partnership deal where Lactalis became the majority stakeholder with 52% of UFIC shares. The deal, completed in the past few weeks, represents a significant entry of the French giant dairy and cheese producer into the Saudi and GCC market. For UFIC, it represents growth potential for the region and beyond.

UFIC is recognized as a leader in KSA’s food processing and packing industry. As a result of its unique strength and capabilities to process and pack processed cheese, UFIC has witnessed tremendous growth and success in the last 8 years. UFIC established the first sliced cheese lines in Saudi Arabia. It produces different products under its own brand (Pride) and also co-packs under many local and international brands. Additionally, UFIC caters to major Food Service customers like McDonald’s (over 250 stores supplied in the Middle East), Herfy’s, Burger King, Fuddruckers and Hardee’s among others. UFIC’s latest addition to its portfolio is a ketchup sachets line specifically targeting QSR companies in the region.

On the other hand, Lactalis is considered to be the #1 cheese maker and #2 dairy processor in Europe. It is also regarded as the seventh largest industrial dairy company in the world, with 20,000 employees globally and a turnover of €5,65 Billion. Some of Lactalis’ prestigious brands include President (present in over 149 countries), Bridel, Lactel and Societe, Sorrento among others. The corporation has 65 production facilities in France, 37 production facilities abroad and 14 international subsidiaries. While mastering quality and food safety, Lactalis is highly known for producing a complete range of traditional and innovative dairy products, that are well adapted to the consumers' and suppliers' needs.

"Our desire is to partner with an elite company that shares our values and traditions. By joining forces with Lactalis, we can ensure the best products and services to our customers and can aggressively grow locally as well as regionally" said Ahmad Hajj, President of UFIC. "The partnership between our companies will allow both companies to achieve it’s goals in the region" clarified Hajj.

"By capitalizing on the strengths of both companies, this partnership will open a new and very substantial market for Lactalis" added Michel Nalet, Lactalis's Deputy General Director. "The new deal will enable UFIC to market their products more effectively, and will establish Lactalis products in the region as premium brands. It goes without saying that the UFIC management team will benefit from Lactalis international experience allowing the business to grow and develop well beyond KSA. In turn, instead of launching its products in the Kingdom from zero, Lactalis will benefit and strategically penetrate the Saudi market with this partnership," added Nalet.

"We believe the deal signifies the importance of the Saudi market to International players like Lactalis. It additionally is a great confirmation of the level of success that UFIC has reached within the last few years, and its unique position which was attractive to Lactalis" clarified Walid Hajj, Group Managing Director of UFIC. "The key to this partnership’s success is the open relationship that both companies share. UFIC and Lactalis are both family owned businesses with small management teams, and both are extremely responsible towards their customers and employees" he added.

United Food Industries Corp. will continue to be run by its existing management team, and will have close support and supervision from Lactalis. "Any changes brought from Lactalis will be positive and carry benefits for both.", Said Mr. Hajj. He expects the new company to grow to be the # 1 player in the cheese market in the region within the next 5 years.