The Group’s business subsidiaries
Cristal Union is a major player on the markets for sugar, thanks to its business subsidiary CristalCo, for traditional, vinic and ethyl alcohol through its subsidiaries France Alcools, Ethanol Union/Holding and Deulep and for dehydrated products for animal feed through Désialis.
After three years of pooling its sugar businesses into Eurosugar, Cristal Union acted on changes in European regulations and announced the reintegration of its businesses into its newly created business subsidiary, CristalCo, on 1 January 2010. While the 2006 reform gave rise to business opportunities in the sugar industry throughout Europe and in particular in poor regions, the “reform of the reform” of the common organization of the sugar market in 2008 substantially changed the European sugar map. Significant quota reductions in Germany, and to a lesser extent in France, and protection granted for traditional refining methods, thus limiting the initially planned transfer of this business to certain beet sugar refineries, contributed to the restructuring of the sector.
“The three-year business partnership with Nordzucker and EDF Man was very positive for our Group,” stated Alain Commissaire, CEO of Cristal Union. “The years spent implementing the Reform are now behind us. We were able to satisfy both our customers and our beet producers throughout this period of adaptation to the new sugar regulations, while reinforcing our business expertise at the European level. The termination of Eurosugar’s activities will not compromise the current development of our Group and its projects under way. On the contrary, the launch of Cristal Union Group’s new subsidiary, CristalCo, promises to bring fresh vitality to the sale of our products.”
Cristal Union holds a 51.44% stake in France Alcools. Its sales total close to 2 million hectolitres in France, the European Union and beyond.
The continued increase in the dollar and sharp rise in oil prices caused a drop in duty-free imports and the production of synthetic alcohol. As a consequence, France Alcools sales grew in volume by 18% on the previous year. However, this improvement resulted in only a modest rise in sales prices as of 2000.
A large-scale business line on the French dehydration market
Leaders and key players in the lucerne and beet pulp dehydration business, Alfalis and Deshy France sealed a common future by uniting to form Désialis. The purpose of this new union, created on 1 February 2004 with a global offer of 1,500,000 tonnes of dehydrated products, is to ensure the future, safety and performance of the pulp and lucerne dehydration business. As our clients come together, focus efforts and form increasingly significant purchasing groups, we are also joining forces to expand our global offer.
We understand how to capitalize on the image, experience and know-how of Alfalis and Deshy France. Synergies will be encouraged by pooling human, technical and financial potential and by combining our complementary strengths.
We will be able to develop and broaden our scope, while integrating and anticipating changes in our market and thus ensuring a secure future for our business.
The size of our Group and our extended range of products will enable us to grow and improve our performance given expectations of necessary cost reduction and higher environmental standards.
Through research and development, Désialis will be better equipped to anticipate market shifts and bring our businesses greater added value and a brighter outlook for the future.
The CAP and WTO are challenging us with opportunities and development potential that only the strongest players will be prepared to harness, by being the most responsive, the most efficient and the most organized. Our strategy positions us to take on these new challenges and provides us with the keys to success.
With the strength, consistency and clarity of our merger, our shareholders and our farmers can find an encouraging future in Désialis. Our clients will enjoy the security of supply, and civil society will benefit from the compliance with food and environmental safety requirements.
