Danone and Arcor have completed a new dairy joint venture in Argentina by combining Danone’s regional dairy operations with Mastellone Hermanos.
(Image: Danone/Wim Kempenaers)
Danone and Arcor have completed a major dairy joint venture in Argentina, strengthening their position in a market where competitors are scaling back or facing financial challenges
Danone and Arcor have finalised the creation of a dairy joint venture in Argentina, combining Danone’s regional operations with local dairy supplier Mastellone Hermanos under a jointly controlled structure.
The transaction, first announced in March 2026, gives Danone and Arcor equal ownership of the new business.
Danone and Arcor previously owned a combined 49% interest in Mastellone Hermanos, one of the country’s best-known dairy producers, and will now acquire the remaining stake as part of the deal.
Logistica La Serenísima, the companies’ jointly owned logistics subsidiary, will also be fully integrated into the business.
The Danone agreement
Danone said the agreement builds on more than two decades of collaboration with Arcor and is intended to create a more integrated dairy platform capable of driving innovation and strengthening its commercial presence in Argentina.
When the deal was first announced, Arcor president Alfredo Pagani said the alliance would “accelerate growth through an integrated strategy focused on the development of high value‑added products”.
The companies said combining Danone’s global dairy expertise with Arcor’s extensive local market knowledge and distribution capabilities would support future growth across the category.
The deal builds on a long-standing relationship between Danone and Arcor that already includes Bagley Latin America, a joint venture focused on biscuits, cereals and alfajores.
Danone LATAM strategy
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.
The new joint venture is expected to strengthen Danone in the region, particularly as major competitor Saputo has now sold a majority stake of its Argentina business.
SanCor, once a top producer and exporter, is also now in long-term financial difficulties which as resulted in a dramatic fall in the company’s processing capacity.
