April 2016 EUROPE SNACKS and CM-CIC Investissement A partnership to be savoured
Currently, over 50% of the salted snacks sold private label in France (crackers, snacks etc.) are made in Europe Snacks factories. CEO Christophe Fenart told us about the strategy that has enabled this company, based in the Vendée region of France, to become the leading player in its market in only five years. Christophe Fenart
EUROPE SNACKS and CM-CIC Investissement: a tasty project. How is Europe Snacks positioning itself in the salted snacks market? Christophe Fenart: We are now the leading specialist in privatelabel brands with our «Me Better» strategy. That means that we don t simply copy branded products using a «Me Too» strategy, but we aim to compete with those brands in terms of the quality of our biscuits and packaging, in order to give French retailers products that offer better perceived value. We allow retailers to outdo branded products, and that s why we have become the leading player in the French crackers market. What resources do you use to distinguish yourself in this highly competitive market? C.F.: We are one of the few companies in the market to have an in-house R&D department. That gives us a major competitive edge, because we can develop industrial tools that allow us to achieve ongoing cost reductions while also improving the quality of our products. Our competitors are now facing serious technological barriers. We also have generated synergies between our various product ranges. Is your market affected by public health issues? C.F.: Odd as it may seem, no. In consumer s minds, salted snacks fall into the «treat» category. They know that snacks are not the most balanced type of food to eat, but they like sharing them on special occasions. They are also one of the few treat foods that are highly affordable. That also explains why the market has not suffered from the recent recession. Having said that, developing a range of healthy snacks is a strategic priority for us. What is a «healthy» snack? C.F.: It is a product that, still a treat, has added fibre or omega 6, for example. It will be easier to get those nutritional benefits by eating a snack than by eating a full meal. To establish our position in this healthy foods market, we are currently completing an acquisition. Are you also considering international expansion? C.F.: Yes. We want 50% of our revenue to come from export markets in 10 years time. We are focusing particularly on stacked crisps, which represent a market of 1 billion
in Europe, but only 10% of those sales come from retailer own brands as opposed to 30-35% in other products. We are also developing licensing agreements with brands such as Marvel and PSG, allowing us to target very specific groups of consumers while avoiding the heavy marketing expenditure that would be required to develop a brand from scratch. What is CM-CIC Investissement s role with respect to Europe Snacks? C.F.: CM-CIC Investissement bought into Europe Snacks through an LBO in 2013. I have been working with their people for a long time, because of their reputation as reliable partners who support businesses over the long term. 102 million of revenue 15% from exports 12% average annual growth since 2006
EUROPE SNACKS as seen by Badri Ben Grine, CM-CIC Investissement. We knew this company when it was very young, and now it s all grown up! We have been shareholders in Europe Snacks on several occasions in the last 15 years, and that s how we developed our partnership with this excellent medium-sized business. We initially supported the founding family, before investing again alongside Christophe Fenart and his management team in the LBO led by Apax in late 2013. Badri Ben Grine Europe Snacks is a leading producer of savoury biscuits sold under retailer own brands. It has a strong culture of product innovation and a very firm grip on production processes. It is also led by an ambitious team, which has made expanding abroad and broadening its distribution channels a priority. We found the company s clear road map very attractive, and since we bought into Europe Snacks again in 2013, its growth has been impressive.
CROIRE EN VOUS, C EST CAPITAL. Explorer de nouveaux territoires, aller plus haut, aller plus loin... Chez CM-CIC Innovation, nous croyons aux chefs d entreprise Exploring new qui territories, osent. Quels flying que higher, soient travelling leurs objectifs further... At de développement, CM-CIC Innovation, nous we believe accompagnons, in business leaders sur who dare fonds to take propres risks. et We dans provide la long-term durée, les support projets and equity technologiques financing to facilitate de plus the de technology projects of over 30 high-potential companies with a range 30 of sociétés development à objectives, fort potentiel, as part dans of genuine le cadre partnerships d un based véritable on partenariat mutual trust. basé sur la confiance mutuelle. TheLINKS.fr - RCS Nantes B 328 330 717-150840 - Avril 2016 - Crédits photos : Getty Images - EUROPE SNACKS. CM-CIC Investissement - Capital & Transmission 28 avenue de l Opéra 75002 Paris Tél 01 53 48 52 90 www.cmcic-investissement.com Paris - Lyon - Nantes - Lille - Strasbourg - Bordeaux - Montréal Head office 28 avenue de l Opéra 75002 PARIS