Lactalis Canada has released its 2025 ESG Report revealing the completion of its cage-free egg transition, $10 million decarbonization investment, and circular packaging initiatives across operations. The dairy manufacturer, whose products reach 94% of Canadian refrigerators, advanced ESG priorities aligned with Lactalis Group’s global framework focusing on People & Communities, Authentic Products & Heritage, and Land & Resources.
“In 2025, despite ongoing economic uncertainty, Lactalis Canada remained firmly anchored in our purpose: to enrich and nurture the lives of Canadians through sustainable, responsible growth,” said Mark Taylor, president and CEO of Lactalis Canada. “We continued to deliver trusted products, strengthen partnerships across our value chain, and advance our ESG priorities in practical and measurable ways.”
Cage-free egg sourcing completion
Lactalis Canada achieved 100% cage-free egg sourcing across its product portfolio in 2025, completing transition to eggs from hens raised in barn or free-range systems rather than conventional battery cages. The milestone addresses animal welfare standards in dairy product formulations using eggs as ingredients, including cheese products, baked goods, and prepared foods.
Cage-free egg sourcing policies require companies to work with ingredient suppliers and distributors to verify production standards, establish traceability systems, and adjust procurement contracts specifying cage-free requirements. For food manufacturers using eggs as ingredients, the transition requires coordination with multiple suppliers across diverse product lines.
The completion positions Lactalis Canada among Canadian food manufacturers meeting cage-free commitments established in response to retail customer requirements, investor expectations, and consumer preferences for products meeting higher animal welfare standards.
$10 million decarbonization partnership
Lactalis Canada entered a $10 million decarbonization partnership with SOFIAC to improve energy efficiency and reduce emissions at Victoriaville and Laverlochère Quebec facilities. The investment targets operational emissions through equipment upgrades, process optimization, and energy system improvements.
SOFIAC (Société de financement agricole) provides financing and investment support for agricultural and agri-food businesses in Quebec, offering capital for projects advancing sustainability, modernization, and competitiveness objectives. The partnership structure enables Lactalis Canada to access funding supporting emissions reduction infrastructure while demonstrating a commitment to climate action.
Dairy manufacturing facilities generate emissions from thermal processes, including pasteurization, sterilization, evaporation, and drying, requiring substantial energy inputs. Decarbonization strategies include improving boiler efficiency, recovering waste heat, electrifying thermal loads, optimizing refrigeration systems, and adopting renewable energy sources.
The Oshawa, Ontario distribution centre earned the Canadian Grocer 2025 Impact Award in the sustainability category for sustainable design incorporating energy-efficient systems, optimized building envelope, and operational features reducing environmental impact.
Circular packaging initiatives
Lactalis Canada also advanced circular packaging initiatives, including the conversion of Balderson spreadable tub to a fully recyclable design and the replacement of foil on 45 million butter stick packs with a compostable parchment solution.
Spreadable butter and cheese tubs traditionally used multi-material constructions combining plastics with different properties, creating recycling challenges where sorting facilities cannot separate materials. Mono-material designs using single plastic types enable conventional recycling processing while maintaining product protection requirements.
Foil wrapping on butter sticks provides moisture and oxygen barrier properties protecting product quality, but creates disposal challenges where foil recycling infrastructure is limited.
Community investment and workforce recognition
Lactalis Canada contributed $3.4 million in community investment, supporting more than 125 organizations nationwide. The company delivered 2,400 employee volunteer hours, representing a 21% increase year-over-year.
Community partnerships include Kids Help Phone supporting youth mental health services, The Grocery Foundation addressing food security, and Second Harvest’s Food Rescue App connecting surplus food with charitable organizations. The collaborations address social challenges through financial contributions, product donations, and volunteer engagement.
Lactalis Canada earned recognition on Forbes’ Canada’s Best Employers 2025 list, reflecting workforce satisfaction, benefits, career development opportunities, and workplace culture. Employer recognition programs evaluate companies through employee surveys assessing compensation, training, advancement opportunities, work-life balance, and organizational values.
The company reinforced its commitment to local production through Buy Canadian initiatives, including consumer campaigns and an expanded use of the Blue Cow logo which helps Canadians identify domestically produced dairy products. The branding initiative supports Canadian dairy farmers while providing transparency about product origin.
