Saint Louis Business Essay

319 Words2 Pages
The firm Saint Louis was created in 1865, in Marseille. It was a cane sugar refinery. Then, the group as we know it nowadays come from the merge of three sugar firm, the Compagnie Nouvelle des Sucreries Réunies, the Sucreries et Raffineries Bouchon et Pajot, and Société Industrielle des Raffineries de Sucre Saint Louis (cane sugar refinery of Marseille) . In 2001, Saint Louis Sucre was bought by the European leader in sugar industry: the German firm Südzucker Group, which produced 4,2 million tons of sugar in 2010. Saint Louis isn’t on the stock exchange so it doesn’t need to publish its account. Südzucker Group’s turnover amount 6,1 billion euro in 2010, and their made a profit of 519 million euro. Saint Louis Sucre is a leader firm of the sugar market in France, which employs around 1100 employees along the territory. Indeed it’s the third biggest sugar group in France, behind Begin-Say and Daddy, and the biggest cube sugar exporter. Its turnover reaches 15 210 020€ in 2010. The Südzucker subsidiary produced each year between 150 000 and 250 000 tons of sugar from its refinery in Marseille, made thanks to cane sugar importation. That represents 1/5 of its total production. Consequently, the firm is dependant of importations and global market. Sugar market is highly competitive and Saint Louis, as European firm, benefits of the European Union subsidies to help the industry with local production and exportations. With the Common Agricultural Policy (CAP) program, sugar producers are helped to modernize their production system, in order to be competitive in few years. However the CAP reform plans to stop the quota policy in 2015. That means that European sugar producers will have to confront directly with worldwide competitors, who have a lower exploitation price. Saint Louis will have to do its best to decrease its costs. Sources :

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