Campbell France SAS

Best in France Case Study Best in France Case Study : Campbell France SAS

Martin DESTAGNOL Jean François GAUCHE Ambroise STAGNARA Guillaume THIEBAULT Sébastien VILLAUME 1

Best in France Case Study : Campbell France SAS

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Campbell France Overview

The French Business Implantation in France Interactions with Campbell Soup Conclusion

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1-1 Campbell France Overview : Facts & Figures

Best in France Case Study : Campbell France SAS  Campbell Soup  World Leader on the soup market   Sold in 120 countries 24’000 employees worldwide  $6,7Bn US turnover in 2003  Campbell France  French Subsidiary  530 employees  Liebig, Royco & Lesieur (dressing)

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Best in France Case Study : Campbell France SAS

1-2 Campbell France Overview : History

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1997

Birth of Campbell France Liebig / Delacre takeover to Danone  

1998

Delacre transfer to United Biscuits  

2001

Royco and Lesieur takeover

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1-3 Campbell France Overview : Implantation Grande Synthe

- Factory Executives - Production - Maintenance - Cost control - R&D Best in France Case Study : Campbell France SAS

Boulogne Billancourt

- Board - Finance - Marketing - Commercial - Information Systems - Customer Service - Procurement - Sales Forecast

Monteux

- Despatch - Warehouse

Le Pontet

- Factory Executives - Production - Maintenance - Cost control - R&D - Quality - HR

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Best in France Case Study : Campbell France SAS

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Campbell France Overview

The French Business

Implantation in France Interactions with Campbell Soup Conclusion

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Best in France Case Study : Campbell France SAS

2-1 The French Business : Market

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Retailers Hegemony

 Discounters development is delayed  Retailer’s and first-price brands are underdeveloped 

Consumer specificities

 French people prefer liquid soup  No market for canned and frozen soup  Immature market : high potential growth

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Best in France Case Study : Campbell France SAS

2-2 The French Business : Products

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Localized brands

 Products distributed only in France  Marginal foreign industrial market sales for no-name products 

Innovation as a key factor

 12% of French turnover with yearly products  New recipes developed by “Grand Chef”

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Best in France Case Study : Campbell France SAS

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Campbell France Overview The French Business

Implantation in France

Interactions with Campbell Soup Conclusion

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3-1 Implantation in France : Group Strategy

Best in France Case Study : Campbell France SAS  Corporate decision to settle in Europe  Reduce business risks linked to highly concentrated activity in the US  Important potential of growth in Europe  France seen as part of the European market, not as a strategic area  Implantation through takeovers  Products ill-adapted to the French market  Liquid soup technology not mastered

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Best in France Case Study : Campbell France SAS

3-2 Implantation in France : Values

 No incompatibility between French & Group values  Slight differences in standards…  France     Entrepreneurship Creativity Enthusiasm Open-minded  Group    Analytical Profit-minded Discipline 

… but same values :

“Passion for food”, “Winning team”, “Passion for growth”

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3-3 Implantation in France : Management

Best in France Case Study : Campbell France SAS  Massive recruitment after takeovers  Eased change management for Group values integration  Adaptation to French values with local recruitment (vs. US recruitment)  Team building through 2 major challenges  The millennium bug  New bottled soup project : a 10-month breakthrough

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Best in France Case Study : Campbell France SAS

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Campbell France Overview The French Business Implantation in France

Interactions with the Group

Conclusion

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4-1 Interactions with Campbell Soup : France - US

Best in France Case Study : Campbell France SAS Headquarter International Europe … France UK …  France integrated in a European board located in Paris  Large autonomy of country subsidiaries as long as objectives are achieved

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4-1 Interactions with Campbell Soup : France - EU

Best in France Case Study : Campbell France SAS  No competition between European subsidiaries  France as a pioneer in the European development  Europeanization offers great opportunities  Converging standards  European-wide supply  …

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Campbell France Overview The French Business Implantation in France Interactions with the Group

Conclusion

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Best in France Case Study : Campbell France SAS

5 - Conclusion

 Global portfolio strategy   No cultural cost/opportunity analysis for France, the market size is a justification

per se

Implantation through takeovers  Successful integration   No contradiction between French and Group values Large autonomy of the French subsidiary, thanks to good performances  Europe as a new deal?

 Any European market convergence will be driven by consumers, not companies

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Best in France Case Study : Campbell France SAS

We thank…

We thank :  Jean-Luc PARDESSUS    PDG of Campbell France Tel : 01 55 19 48 00 Mail : [email protected]

 Vincent Brena    Industrial market and retailer brand Director

(Directeur des marchés industriels et Marques de Distributeurs)

Tel : 01 55 19 48 00 Mail : [email protected]

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Best in France Case Study : Campbell France SAS

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