Chief Executive Officer, InVivo Group (parent of Soufflet), Groupe Soufflet (part of InVivo Group since 2021)
"There will be inflation on cereals" (Thierry Blandinières, InVivo)
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About Thierry Blandinières
Thierry Blandinières, chief executive of InVivo Group and president of the rugby club CA Brive, discussed his career and the challenges of the garden retail business during a recent appearance. He described his early professional experience at Procter & Gamble as a period that helped him structure his approach to marketing and sales, and noted that he left the company to avoid becoming "sclerotic." He also recalled his time as head of Madrange in the 1990s, where he helped launch the "jambon Véronique" communication campaign, and his decade as vice-president of the Mont-de-Marsan rugby club, which he described as a club with a smaller budget than Brive that consistently fields competitive teams. Blandinières addressed the performance of the garden retail sector, which he said generates most of its annual results in just two months. He noted that last year's poor spring weather was "catastrophic" for garden centers, while this year's conditions are returning to normal. He added that the business is difficult because it requires carrying inventory for a short sales window, and that the company waits until June 30 to determine whether it has had a good year.
Transcript (51 segments)
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Interviewer0:00
The 1819 program presents. You are listening to 1819 with your guest. So it's Thierry Blandinières, the CEO of InVivo. Good evening, Thierry Blandinières.
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Thierry Blandinières0:16
Good evening, Edwich.
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Interviewer0:17
Thank you for being here. It's been a long time. Times are complicated for you. Tell us how you are coping. You are a cooperative group with 200 cooperatives, the French and European leader in agriculture, cereals, trading, bakeries, malt, and garden centers. 11.4 billion in revenue, 15,000 employees, present in 38 countries. I wanted to discuss the oil shock from the Strait of Hormuz blockade and the emerging fertilizer crisis. France imports 100% of its fertilizers. Currently 20–21 ships are blocked. What can you do? We depend on Russia.
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Thierry Blandinières1:38
We experienced a similar shock with the Ukraine war and Russia. There was a fertilizer shock alongside a cereal price shock. We are serene because we have experience. The fertilizer produced in those countries goes to Asia and China, so no volume rupture for Europe as we source from Morocco and the US. But prices will affect farmers. At our board meeting, cooperative presidents said they are 80% covered on prices for spring, except corn in the southwest at 50%. Uncovered farmers face big problems. They may either not produce or switch to less fertilizer-intensive crops, impacting cereal volumes and potentially causing global inflation.
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Interviewer3:15
Yes, because there is a million tons blocked in the strait.
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Thierry Blandinières3:18
Exactly. Due to potential production shortfalls, we will see significant cereal inflation by fall.
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Interviewer3:28
So price increases for consumers and processed products by end of year or January. The amount is unknown. Over three years we had 15% cumulative inflation. So 15% on fertilizers ends up on food.
On food products in the end.
Do you think we will have that scenario? It depends on the war in Iran. If it doesn't stop, there is no reason not to have that level of inflation.
So you are saying there will be inflation from fertilizers, greater than from energy.
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Thierry Blandinières4:22
Exactly. Fertilizers can have a more lasting effect than speculative cereal price spikes. Global cereal stocks are high, so markets aren't tense now. But in six months supply and demand will deregulate, causing price inflation. I don't know by how much. Three years ago fertilizer reached 800–1000 euros/ton; now it's 500. We are not at the peak yet, but it all depends on the war.
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Interviewer5:03
Yeah.
Russia, the top producer, may profit again and reinforce its power. Could you import Russian fertilizers again, or on a European level?
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Thierry Blandinières5:33
There is a geopolitics of fertilizers. Russia can supply former clients of Iran and the war zone, gaining new African clients. That gives Putin an extra weapon. For France, Europe must protect farmers by removing tariffs on imports from Morocco and the US (8–16%) and carbon taxes (up to 60 euros/ton). We need a clear European moratorium. Spain has already announced 22 euros/ton compensation, but that destabilizes the Common Agricultural Policy. Europe must take charge quickly.
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Interviewer6:36
So we need a one-year moratorium on fertilizer taxes, including carbon taxes, and a European-led solution.
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Thierry Blandinières7:34
There is awareness, discussions are ongoing with unions and cooperatives. But the Ministry of Agriculture is cautious. The minister announced measures that some call 'small measures'. It's not massive enough. They don't fully grasp the crisis.
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Interviewer8:04
So it's a snowball effect: fertilizers affect cereals, then processed products. If farmers stop producing, we have inflation, so better to help them with tax breaks than to let production fall.
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Thierry Blandinières8:33
An ecological solution would be to use less fertilizer, but that reduces production and causes inflation.
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Interviewer8:41
Yes, but could green fertilizers work?
I thought we could find more green fertilizers.
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Thierry Blandinières8:52
There are green fertilizers and important research, but not enough volume to replace imports. This is the elephant in the room when we talk about food sovereignty. No one mentions fertilizers. We need to relocate production to Europe. We have a project called Fertil J for decarbonized fertilizers—500,000 tons in northern France by 2032, covering 15% of the market. If it works, more plants can follow. It brings industry back to France and supports food sovereignty. We have the support of the President and ministers. But it's a long-term vision.
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Interviewer10:39
That doesn't solve the short-term problem.
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Thierry Blandinières10:41
We need both. The short term is simply a matter of money and arbitration.
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Interviewer10:49
You are also very present in Ukraine—still 500 people there. How do you prepare for the post-war? You had a project for a port silo. Is it still on the table?
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Thierry Blandinières11:34
The silo we planned to take over was recently bombed. No one talks about what is happening in Ukraine, but the Russians are accelerating. That silo in Odessa was partially destroyed. Investment is impossible under these conditions. We are waiting for a ceasefire.
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Interviewer11:50
Yes, they just bombed a port tonight. The Battle of the Black Sea is essential. The Russians have lost many ships, but the Ukrainians don't control the sea.
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Thierry Blandinières12:05
So investing now is just not possible. We are waiting and hoping for a moratorium.
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Interviewer12:15
You are on many fronts—Ukraine, Middle East, Saudi Arabia, and a trade war with the US on tariffs. Will you change Invivo's strategy?
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Thierry Blandinières12:45
We adapt. I was recently in South Africa opening a new malt plant, and in India for another project. We continue to invest in growing markets. But in Europe we are reducing exposure and trying to maintain profitability under pressure.
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Interviewer13:14
Your malt business—you made major acquisitions in Australia and Soufflet, but it's slower than expected. Yet you think long term.
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Thierry Blandinières13:56
In India consumption is good; beer and whisky are moving upmarket with partners like Pernod Ricard. We build complete value chains. Brazil and Mexico are doing okay. We are patient where consumption is down.
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Interviewer14:30
Did you make money in the first half of fiscal 2025?
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Thierry Blandinières14:36
We have very profitable activities, especially malt. Industrial baking is growing worldwide; we will keep investing. Other segments are under pressure and we are adjusting costs.
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Interviewer15:09
So potential divestments?
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Thierry Blandinières15:12
Divestments or mergers. For example, our wine subsidiary Cordier just merged with Advini to face the wine crisis. We consider partnerships, majority or minority, depending on the sector.
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Interviewer15:40
Partnerships haven't always worked. But about garden centers: Jardiland and Gamm Vert. You face competition from large retailers. Are you considering a partnership or sale of Jardiland?
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Thierry Blandinières16:10
Gamm Vert is a brand federating French cooperatives, more agricultural, less exposed, and profitable because it's not 100% plants and has lower rents. Jardiland is more complicated: big stores with high fixed costs and falling consumption. We are converting 80 company-owned Jardiland stores into franchises to reduce costs.
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Interviewer17:04
On partnerships, you had the failed Casino bid with Teract, Xavier Niel, etc. Has the divorce been formalized? You launched a delisting.
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Thierry Blandinières17:30
We are in the delisting process. If all goes well, Teract will be delisted by end of May or early June. That means we will repay shareholders and partners. The buyout is at 3.12 euros per share.
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Interviewer18:11
What is the total cost?
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Thierry Blandinières18:13
I don't have the exact figure. It's a listed company; the price is 3.12 per share for the float. Then we will pivot to the franchised Jardiland model.
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Interviewer18:41
So you change gears. On Casino, you were first to work on it but didn't want to put a billion euros. You let it go.
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Thierry Blandinières19:01
I won't comment on the situation. The challenges we identified are playing out. Casino can overcome them, but they are considerable.
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Interviewer19:17
One more topic: the EU-Australia trade agreement signed despite France. The FNSEA says the Commission is dismantling our agricultural production. Do you agree?
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Thierry Blandinières19:55
These agreements are always difficult. Some sectors benefit, others suffer. Beef is always in the front line. I understand the unions' concerns. We need robust safeguard clauses that can stop imports if value degrades.
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Interviewer20:30
And currently those safeguards are not sufficient to reassure farmers.
Last question: cadmium exposure from cereals. The ANSES just published a survey saying we must act on soil and fertilizers. Are all French people contaminated?
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Thierry Blandinières21:09
I think we should reassure people. The ANSES communication was brutal and not very educational. For 10-15 years we have been making efforts. In France we apply EU regulations on heavy metals. We go further: Invivo created Fertilign, a label with three times lower limits. Our goal is for the new EU standard to be that label. We sell 1 million tons of fertilizers—20% of the market—and already 25% of our production meets that label. We are not starting from scratch. But we need to accelerate.
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Interviewer22:14
The agriculture minister says a decree is expected for a gradual reduction of thresholds. Should we go faster?
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Thierry Blandinières22:21
We are already ahead. We can deliver 25% of our production with the label. We should accelerate, but many positive things are being done.
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Interviewer22:40
Thank you, Thierry Blandinières, for explaining all these issues, particularly fertilizers and the challenges for Invivo. Thank you very much.