Chairman (effectively CEO / PDG) and controlling shareholder, Groupe Lactalis
Entrevista Emmanuel Besnier
About Emmanuel Besnier
Emmanuel Besnier, chairman and controlling shareholder of Groupe Lactalis, appeared before the French National Assembly's Economic Affairs Committee on February 6, 2018, to answer questions about the company's practices following a contamination crisis. During the hearing, he addressed concerns about the outsourcing of self-checks (autocontrôles) and the reassurance of milk producers. Besnier stated that the company's sanitary control plan is based on risk analysis and is submitted to the relevant state authorities for approval, and that the company has a training plan for its employees who conduct daily sampling across its facilities. Besnier also commented on the broader regulatory framework, saying, "It is not at all a question of outsourcing all controls, which would make the industrialist irresponsible, that would be ridiculous. On the other hand, it is also a question of reviewing the means of the State, which have decreased very clearly." He noted that the company had met with milk producers to assure them there would be no issues related to the crisis.
Transcript (16 segments)
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Interviewer0:00
Good morning Mr. Besnier, good morning. You wished this morning to address all the employees of the Group, so on their behalf I thank you. Then before talking about our news, I recall that you have been chairing Lactalis for over 20 years. What first feeling comes to mind when you think about these 20 years?
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Emmanuel Besnier0:20
First of all, the group is completely different from what it was in the 2000s. It is a much more complete group, present in all dairy categories, being one of the world leaders in each of our categories. It is also a much more international group, present in 51 countries compared to 7 at that time. France represented 60% of our activity and now we are at less than 20%. So the group is at least six times larger than it was then. But we achieved this growth while preserving the values I hold dear: a family dairy group, committed and ambitious. And the objective is to continue in this dynamic.
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Interviewer1:04
Let's come back to 2021. What assessment do you draw from this year?
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Emmanuel Besnier1:09
There are two important things about 2021. First, we continued our growth and integrated new great companies: Kraft for the natural cheese part in the United States and Leerdammer in Europe, companies that have been integrated and open up prospects for 2022. The second thing is that financially, we continued our growth with a turnover of more than 22 billion euros for the 2021 fiscal year, and the success and satisfaction of having achieved our financial objectives and delivered the budget in this difficult period. So I wanted to congratulate all the group's teams for reaching this goal.
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Interviewer1:53
So let's come back to the departure of Philippe Palazzi. What can you tell me about that?
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Emmanuel Besnier2:00
Yes, first of all I would like to tell you that it was a departure that we discussed together and that we calmly decided to part ways. We disagreed on certain strategic directions of the group and we both concluded that it was better to separate. I would like to both thank Philippe for his commitment during this year 2021 and also wish him the best for the rest of his career.
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Interviewer2:27
So a question many are asking: the group has evolved a lot in the last two years. Do you wish to continue the ongoing transformations?
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Emmanuel Besnier2:38
This is an evolution that I had wished for. I had already outlined the principles more than a year ago when I spoke of moving from a profitable growth model to a profitable and responsible growth. So the executive committee worked to define this evolution towards much more responsibility for the group by defining three major pillars around carbon, packaging, and animal welfare. These pillars have been presented to the group and will be widely disseminated to all employees in the coming weeks and months. So this transformation is obviously sustainable and will continue. The other transformation in recent years is a greater openness to the outside world. For several years, the group has been participating and expressing itself much more on a number of subjects, whether green issues, agricultural problems, but also on various topics with our different stakeholders. The last point is that the group must continue to keep its values: quality and cost control, performance management, which are and remain essential in our business.
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Interviewer4:02
So how do you now wish to organize the new governance of the group?
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Emmanuel Besnier4:07
First of all, I have decided to get more strongly involved in the leadership of the group. I am currently sharing this new evolution and a new organization for the group with the different members of the executive committee, and I think I will be able to present this new organization quite soon.
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Interviewer4:22
So we are starting a new year. What are your concerns for this year 2022?
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Emmanuel Besnier4:26
Well, 2022 is shaping up to be very difficult because we have never experienced such inflation. Our purchase costs in general – whether raw materials, energy, transport, packaging – are all going in the same direction with a sharp increase. So the issue for 2022 is to pass on all these costs to our customers, to pass them on while continuing to make savings to offset some of them. We are also in a situation where the results trends are worrying and the first figures for 2022 are quite bad, so we will have to mobilize to turn this situation around.
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Interviewer5:11
To end on a positive note, what are your hopes for this new year?
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Emmanuel Besnier5:15
My hopes are to continue this beautiful profitable and responsible growth that defines the group well, and so I know I can count on all our teams to be fully engaged in defending this objective.
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Interviewer5:29
Thank you very much, Mr. Besnier, for granting us this interview. Can we count on you to do this exercise again in some time?
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Emmanuel Besnier5:36
With pleasure, and I also thank you.