On June 15, during the general assembly of the Central association of dairy coops of Charente and Poitou, Alain Lebret and Guy Maingret, the respective presidents of Le Glac and Eurial, announced the merger project of their two coop groups.
After six months of negotiations, the offices of the two coop groups have decided to start the process which will lead to the merger of their activities into a single entity. The two sides gave themselves 18 months to complete the merger.
This decision has for its primary purpose a better long term future for the economy of these large milk producing regions, as the industry (milk producers and processors) is faced with deregulation and the fluctuation of world markets.
By uniting their activities, Eurial and Le Glac will create the second largest player of dairy coops in France. The two merged groups will have numerous opportunities of operational synergies.
As of now, two priorities are on the table for 2011: the rationalization of milk collection and increased R & D.
From an industrial level, the size of the group will permit rapid access to each others expertise to reach European norms at all its different sites.
The new group will also reinforce its capacity to respond quickly to demands from its clients (supermarkets, wholesalers, artisans, industrials, export) through an increased and better adapted product selection.
The group will rely on a strong regional presence, on a leadership of goat cheese and authenticity of its production, as represented by AOP butter Charente Poitou and 3 AOP in goat cheese.
A few key numbers for the new group:
- A sales turnover of 1.3 billion euros ( $ 1.56 billion)
- Milk production of 1.6 billion liters of cows milk (400 million gallons) and 300 million liters of goat milk (75 million gallons)
- More than 2600 employees.
Primarily located in Charente Poitou, but also present in South Brittany, in the Loire Valley and in Auvergne, the group will have more than 20 plants specializing in all aspects of milk processing ( cow and goat cheeses, milk, butter and cream, milk ingredients).
The new group wants to be a leader in the regional dairy sector and build a brighter future for its coop shareholders, its employees and its coop partners.
Source: Eurial and Le Glac