Danone and Arcor announce joint venture in Argentina’s dairy market

Danone and Arcor have strengthened their long-standing partnership with the creation of a joint venture focused on Argentina’s dairy market. The new venture brings together Danone Argentina’s dairy business and Mastellone Hermanos (co-owned by Danone and Arcor), creating an integrated platform that leverages the strengths and scale of both companies.

This alliance is set to drive innovation, enhance operational efficiency, and expand commercial reach across the dairy category in Argentina.

The venture comes as protein demand continues to boom — nearly 60% of global consumers are actively pursuing protein for overall health, with 48% preferring milk as their source, according to Innova Market Insights.

At the same time, the market researcher’s data shows that dairy is the leading category for plant-based product launches worldwide. Danone agreed to acquire vegan meal replacement brand Huel for €1 billion (US$1.2 billion) this week, signaling that the French F&B multinational is looking to cement its place in a diversifying protein market.

A powerful alliance in Argentina’s dairy market

Danone and Arcor’s strategic move unites two key players in Argentina's dairy sector: Danone, with over 30 years of presence in the country, and Mastellone Hermanos, a company with nearly a century of experience.

The joint venture also includes their shared logistics subsidiary, Logística La Serenísima, which will further streamline the supply chain and improve distribution efficiency.

As a result of this transaction, which remains subject to customary closing conditions, including regulatory approval, Danone and Arcor will hold equal control of the venture. Danone will reflect its 50% shareholding in its financial statements.

Building a stronger market presence

Antoine de Saint-Affrique, CEO of Danone, expressed his enthusiasm for the venture: “With this operation, we are delighted to take our long-term partnership with the Arcor group to the next level. This underlines our commitment to the Argentinian market and Latin America.”

“Combining our assets will create a powerful growth platform with more opportunities for innovation, operational efficiency, and greater reach. It’s all about bringing healthy, quality dairy brands to more consumers in Argentina now and in the future,” he says.

The joint venture’s focus on leveraging both companies’ assets could create new growth opportunities in Argentina’s dairy market. The venture will have 11 production plants in the region, manufacturing a wide range of dairy products, including milk, dulce de leche, cheeses, butters, creams, yogurts, and desserts.

Danone and Arcor’s new joint venture in Argentina combines over a century of dairy expertise, with 11 production plants set to drive innovation and expand market reach.

B2B impact: Efficiency and innovation

For the broader business community, this partnership opens up several B2B opportunities. By integrating their resources, Danone and Arcor are positioning themselves to drive faster innovation and operational excellence. Their combined production capacity and streamlined logistics will enable the companies to deliver high-quality products more efficiently across Argentina.

The creation of this joint venture signals a growing need for B2B collaboration within the dairy and food sectors. Suppliers of raw materials, ingredients, and packaging will likely see new opportunities to work with the joint venture as the companies expand their product lines and production capabilities. 

Additionally, the focus on high-value-added products will likely lead to new innovations, benefiting suppliers and distributors who support the companies’ efforts.

Arcor’s strategic commitment to growth

For Arcor, the joint venture is a decisive step toward expanding its footprint in the consumer food products market.

Alfredo Pagani, president of Arcor, says: “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.”

Arcor says the partnership demonstrates its continued dedication to investing in Argentina, reinforcing its position as a key player in the region’s food industry.

By combining their distribution networks, Danone and Arcor will be able to serve more consumers across Argentina, offering a broader range of products. This enhanced reach could be crucial for expanding market share in a competitive sector, and it will likely influence B2B relationships with local retailers and wholesalers.