Danone and confectionery maker Arcor Group have formed a joint dairy venture in Argentina to unlock growth in high-margin categories and bolster operational efficiencies.
The JV combines Danone Argentina’s dairy business; Mastellone Hermanos’ dairy operations (including flagship brand La Serenísima), and logistics unit, Logística La Serenísima.
The integrated business will be jointly controlled by Danone and Arcor with the aim to accelerate innovation, expand commercial reach, bolster efficiencies and grow high-value dairy categories such as cheese, butter, creams yogurts and desserts.
Antoine de Saint-Affrique, CEO of Danone said: “With this operation, we are delighted to take our long-term partnership with the Arcor group to the next level.
“Combining our assets will create a powerful growth platform with more opportunities for innovation, operational efficiency and greater reach.”
Alfredo Pagani, president of Arcor, added: “This alliance will accelerate growth through an integrated strategy focused on the development of high value‑added products. For Arcor, this is a strategic project that reaffirms our commitment to the country and strengthens our value proposition in the consumer food products market.”
Danone and Arcor’s partnership: from snacks to strategy
Danone and Arcor’s ties go back to the mid-1990s.
In 1994, the French multinational acquired regional snacking major Bagley Argentina, in which Arcor later become a shareholder.
In 2015, the two companies acquired, via Bagley, a 25% stake in dairy business La Serenísima (Mastellone Hermanos).
Danone and Arcor gradually increased their stake to 49% and later signed an agreement that would allow them to eventually acquire the rest of the company. (In 2025, Arcor attempted a one-sided takeover of Mastellone Hermanos, but its bid was rejected.)
The two food majors had been in talks over a jointly-led integrated business unit that would comprise Mastellone Hermanos’ dairy operations and Danone Argentina’s yogurt, desserts and chilled dairy business under a 50:50 control structure.
This plan has now materialised: though the transaction remains subject to regulatory approval.
Danone strengthens grip in Argentina
Argentina is one of the four core markets for Danone in Latin American, alongside Mexico, Brazil and Uruguay. The group is a market leader in infant formula and has a strong presence in dairy, plant-based kids products and medical nutrition.
But Argentina’s hyperinflationary environment has a major impact on Danone’s accounts, however – including a €82m negative impact on net income in the past financial year. This makes an integrated operating model attractive and one that could help stabilise cost structures and reduce risk.
The newly-formed JV significantly strengthens Danone’s hand in the region, particularly as major competitor Saputo sold a majority stake of its Argentina business. SanCor, once a top producer and exporter, is in a long-term financial crisis and is currently in bankruptcy protection while the company that produced its yogurts and flans was shut down at the end of 2025.
Domestically, Argentina’s consumer environment is defined by ongoing economic volatility and high inflation. According to USDA data, consumption is expected to strengthen gradually in 2026 but a demand surge isn’t on the cards, meaning that the anticipated increase in milk production will need to be directed at exports. The country is also benefiting from a strong grain harvest, supporting both exports and domestic demand.