The recent acquisition by poultry group LDC of Groupe Routhiau, a company specializing in meat and plant-based products in France, has received approval from competition authorities. This decision was announced by France’s anti-trust body, the Autorité de la Concurrence, on December 20. The authority concluded that “the transaction is not likely to harm competition.”
In January, LDC, known for its aggressive acquisition strategy, disclosed that it had entered “exclusive negotiations” to acquire the family-owned Groupe Routhiau, located in the Vendée department of western France. With a workforce of 360 employees, Groupe Routhiau offers a diverse range of products, including cooked meats, beef carpaccio, plant-based ready meals, and French desserts, catering to both retail and foodservice channels. The company operates well-recognized brands such as Jean Routhiau, Tendance Créative, Les Trois d’Asie, and Végétal from its facilities in Saint-Fulgent, Chanverrie, and Châteaugiron.
In evaluating the acquisition, the regulator found no indications that the deal would adversely affect competition in the processed poultry and delicatessen markets where both entities operate. The Autorité stated, “Following a careful examination, which led to consultations with the customers and competitors of LDC and the Routhiau group, the Autorité did not identify any anti-competitive risk on the main markets on which the companies compete.”
The authority also assessed the vertical implications of the transaction due to LDC’s involvement in the upstream market for poultry collection and slaughter. It concluded that there was no risk of LDC’s competitors being deprived of access to poultry. Furthermore, the assessment ruled out any possibility of competition harm stemming from bundled offers or range discounts in the delicatessen sector or prepared poultry product marketing.
Since announcing the acquisition of Groupe Routhiau, LDC has actively pursued multiple strategic moves. Most notably, in October, LDC acquired a majority stake in the Germany-based European Convenience Food (ECF Group), a critical supplier for the retail and foodservice sectors. Additionally, LDC has entered into agreements to purchase local salad and tabbouleh manufacturer Pierre Martinet and has initiated a deal for the Konspol brand in Poland, along with a factory in Nowy Sącz.
Headquartered in Sablé-sur-Sarthe, LDC reported a 6% increase in turnover, reaching €6.2 billion ($6.4 billion) in the 2023-24 financial year, highlighting resilience in the food and beverage industry. Poultry accounted for 72% of this revenue, with the balance generated from convenience foods. Notably, the company’s EBITDA remained stable at €550.2 million, compared to €547.4 million the previous year, while net profit surged to €17 million from €2.5 million. LDC’s brand portfolio includes Loué, Le Gaulois, Maître CoQ, Doux, Marie, Traditions d’Asie, Drosed, and Nature et Respect.
Overall, LDC’s commitment to growth amidst evolving food and drink consumer trends underscores its strategic positioning within the competitive landscape of the food and drink business. For businesses and stakeholders in the food and beverage sector, keeping abreast of such developments is essential to navigate current and future industry trends.
