The groups Union des distilleries de Méditerranée (UDM), based in Vauvert, and GrapSud, based in Cruviers-Lascours, are coming together “in a context of severe and deep crisis in the wine industry”.
The Gard groups UDM and GrapSud, main players in wine distilling in France, are joining forces to create the largest global group in the specialty. Bruno Guin and Denis Mayol, their respective presidents, intend to bring “a common vision”intended for the “implementation of an ambitious partnership project”.
This rapprochement takes the form of pooling their joint capabilities, in order to “respond as effectively as possible to the needs of all their members and contributors”. It is structured around three major elements. The first: the creation of a union which allows the two cooperatives to “pool their contribution of materials”such as marc, lees and wines.
“Optimize collection logistically”
The goal is “to optimize collection on a logistical level, to rationalize their transformation within the industrial tools of the two groups and to support their valorization through joint marketing”. Second effect of the merger: the establishment of “cross shareholdings” within their subsidiary Distillerie Romann and Distillerie du Beaujolais.
The objective is to “develop a strong industrial center in the North-Eastern quarter of France, capable of serving the needs of all the wine-growing areas in which the two groups operate”, namely Alsace, Champagne, Jura, Burgundy, Beaujolais, Massif Central and Savoie. Finally, the third element is the development of a “cooperation on the activity of production of rectified concentrated musts”. It involves UDM’s participation in Gardovial, GrapSud’s industrial tool based in San Clemente, Spain.
“Take the next step”
“Historically, our two groups have always had relationships, engaged in synergiesexplains Frédéric Guinle, general director of GrapSud. “It has now been decided to take a further step to join forces.” “We do the same job in a cooperative formadds Hugues Maignan, general director of UDM. In addition, we have a location very focused on Languedoc.”
The crisis facing viticulture has accelerated the rapprochement. “Distillation is suffering from this economic crisis. We must take more structural measures to deal with the grubbing-up plans, which, for us, constitute a loss of raw materials”, insists the latter. In addition, both groups must respond to environmental issues. “We will better meet the needs of our members in terms of depollution, with 100% recovery of waste from viticulture”continues first.
No industrial rapprochement
The merger will officially take effect on August 1. Until then, everyone will have to carry out a necessary consultation with their authorities, who must now decide on this rapprochement. UDM is today the leader in collection in France, with around 110,000 tonnes of marc processed each year. GrapSud processes 65,000 to 70,000 tonnes annually. “At this stage, there is no question of a transfer of industrial tools, nor of employees within the new entity”insists Hugues Maignan.
