Dairy: Less Competitors in Costa Rica

Seven years after entering the market with the commercialization of milk under the Mú! brand, Florida Ice & Farm decided to sell the brand to Grupo Lala.

Tuesday, June 18, 2019

In early October 2012, the announcement was made that after purchasing a dairy cooperative, Florida Ice & Farm Co. (Fifco) was launching its Mú! milk brand, which would also compete in custard, ice cream, yogurt and cream.

Seven years later, after Fifco sold the Coopeleche plant in San Ramón de Alajuela and the Mú! brand to the Mexican group Lala, it was found that more than investment was needed to compete in the Costa Rican dairy market, dominated by Dos Pinos.

Data from the National Chamber of Milk Producers state that the industrial sector receives 1.9 million liters of milk a day, of which 73% are processed by Dos Pinos, 9% by Sigma Alimentos, 2% by Lala and the remaining 16% by other competitors.

You may be interested “Dairy: Regional Market up to September 2018"

Jorge Pattoni, ex general manager of Dos Pinos, explained to Elfinancierocr.com that "... The milk business and the beer business are very different, they (Fifco) are extraordinarily good brewers, but that didn't automatically make them good milkmen."

The article adds that "... Staying in the dairy market implies an extensive and close work in the management of the farms, the collection of the milk, the production of products from this liquid, in the distribution and the treatment with the clients."

According to reports from CentralAmericaData between the first nine months of 2017 and the same period in 2018, trade in milk and dairy products between Central American countries registered a 1% slight increase, rising from $237 million to $240 million.

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More on this topic

Increased Competition in the Dairy Market

May 2017

The Mexican company Lala plans to invest $14 million in the expansion of its plant in Alajuela and to start selling milk and ice cream in the Costa Rican market, starting from 2018.

The investments being made in Central America by companies in the dairy industry reflect the growth potential of this business in the region, where per capita consumption of milk and dairy products has been growing during the last years. 

Grupo Lala Buys Dairy Plant in Costa Rica

July 2016

The Mexican company has acquired a dairy production plant in Alajuela and through an agreement with Florida Bebidas will produce and market its products in the country.

The announcement comes days after Nicaraguan authorities blocked entry of Costa Rican dairy products, after Costa Rica denied a permit to the firm Lala to export products from Nicaragua.

Nicaragua: Grupo Lala Announces Purchase of La Perfecta

January 2016

The Mexican group has agreed to acquire 100% of the shares of the Nicaraguan company which has sales of $46 million a year.

From a statement issued by Grupo Lala:

Mexico City, on January 28, 2016 - Grupo LALA, SAB de CV, a Mexican company focusing on the healthy foods industry (BMV: LALA B), reports that it has entered into an agreement to acquire 100% of the capital shares of Productos Lácteos La Perfecta, S.A.

Costa Rica: More Competition in Milk

October 2012

After buying a dairy cooperativas, Florida Bebidas has launched its brand of milk Mu!, and also will be competing in sour cream, ice cream, yogurt and cream.

The new products will be launched next Monday. The milk product Mu! will be offered in two forms, in a long life plastic bag and in Tetra Brik.

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