October 2016 LÉA NATURE and CM-CIC Investissement A natural partnership
With more than 1,000 product lines covering food, cosmetics, dietary supplements, health foods and cleaning products, Léa Nature is now France s standard-bearer for natural and organic products. Charles Kloboukoff, the company s founder and CEO, explained how he reconciles economic performance with his very strong social and environmental convictions. Charles Kloboukoff
LÉA NATURE and CM-CIC Investissement: working together to cultivate well-being. What have been the main phases of Léa Nature s development? Charles Kloboukoff: Between 1993 and 1999, we started by creating and marketing dietary supplements, and outsourcing their production. The company s status and scale changed when we started processing organic food products. When dealing with organic food, we had to have complete control of the process for quality reasons. To achieve that, we acquired two companies that tripled our workforce from 70 in late 1999 to 200 in early 2002. We also set up our head office in La Rochelle. Next, we expanded several times, including some major investments in cosmetics in 2007. We reached a third milestone between 2010 and 2014, with several acquisitions and an alliance with Ekibio as part of a holding company called Compagnie Biodiversité, which enabled us to diversify our distribution networks to include organic food stores. Compagnie Biodiversité now consists of three entities: Léa Nature, Bioléa and Ekibio. You are aiming to double your revenue by 2020. What are your main growth drivers? C. K.: Our market is very buoyant. Headlines such as the Romanian horsemeat scandal, along with action taken by the public authorities (France s Grenelle environment forum, COP 21), have raised public awareness about the need to eat healthily. To deal with increased demand, we have embarked on a very large capital expenditure programme, with the aim of opening or expanding two or three plants per year in the next three years. For our environmentally friendly cosmetics and logistics operations, we are currently finalising the purchase of a 20,000 m 2 site close to our head office. We are also continuing to develop new businesses, such as our bulk division (seed dispensers in supermarkets), our range of lactosefree and gluten-free products and our aromatherapy division. We are also making significant efforts in processed fresh food, offering customers new meal solutions that are as healthy as they are practical. Are you also expanding outside France? C. K.: Yes, mainly in cosmetics and skincare, in which French companies have acknowledged expertise. These products are also high-value and compact, so they can be exported with a very reasonable carbon
footprint. That is usually not the case with food products. This CSR-focused approach is central to your values and your organisation. How do you put it into practice? C. K.: As well as taking a natural approach when designing and making our products, we focus on long-term investments in terms of our production set-up, the ecodesign of our buildings and our use of renewable energy. As a partner of «1% for the planet», we have donated almost 5 million to environmental projects. In terms of workforce relations, we have promoted employee share ownership, and our staff now own 5% of the company. You have also set up a Biopôle organic complex in La Rochelle. C. K.: Yes, the complex covers 4 hectares and will open in 2017. It will be a meeting place that as an organic restaurant, a sports hall, a conference hall, a beauty salon and nature trails, and is intended to promote organic farming. What is your relationship with CM-CIC Investissement? C. K.: They are our partners, and we started working together when we merged with Ekibio, in which they owned a stake. Rather than sell their shares, they decided to continue the journey with us. Their long-term investment approach fits with our philosophy. Although they are not omnipresent, our contacts are very willing to help and take a pro-active approach to giving advice, particularly when analysing projects. It s a relationship that works very well at the human level. + 50 % growth between 2014 and 2016 Forecasted 2016 revenue: Léa Nature: 230 million Compagnie Biodiversité: 300 million 12 organic production sites in France
LÉA NATURE as seen by Fabienne Mazières, CM-CIC Investissement. Fabienne Mazières CM-CIC Investissement took a stake in Ekibio s capital in 2003 and supported its growth until it merged with Compagnie Biodiversité in 2012. Since then, the combined group has expanded, both through acquisitions and organic growth, driven by consumption drivers such as environmental protection, quality and flavour of organic food, and ethical concerns. In the space of a few years, the group has become a medium-sized business with a national footprint, and the desire to grow internationally. Compagnie Biodiversite has had great success with both large-scale and specialist retailers. This is in large part a result of the strong supply chain, overall agility and the constant innovation with new products and optimization of operations. The company s operating environment is buoyant, and CM-CIC Investissement will be able to increase its investment to support its sustainable development as well as its efforts to consolidate the sector.
FULLY COMMITTED TO YOU Explorer de nouveaux territoires, aller plus haut, aller plus loin... Chez CM-CIC Innovation, nous croyons aux chefs d entreprise qui osent. Quels que soient leurs objectifs de Exploring new territories, aiming higher, going farther... At CM-CIC développement, nous accompagnons, sur fonds propres Investissement, we believe in business leaders who are entrepreneurs. et We dans provide la long-term durée, les support projets and equity technologiques financing to facilitate de plus the de 30 projects sociétés of over à 435 fort companies potentiel, with dans a range le of cadre development d un véritable objectives, as part of genuine partnerships based on mutual trust. partenariat basé sur la confiance mutuelle. TheLINKS.fr - RCS Nantes B 328 330 717-150840 - Octobre 2016 - Crédits photos : Getty Images - LÉA NATURE. CM-CIC Investissement - Lyon Espace Cordeliers - 2, rue Président Carnot 69002 Lyon Tél 04 72 56 91 06 www.cmcic-investissement.com Paris - Lyon - Nantes - Lille - Strasbourg - Bordeaux - Montréal Head office 28 avenue de l Opéra 75002 PARIS