How did the company begin?
Nicolas Ruth: In 1998, my family bought a farm in the Drôme Provençale region. The farm specialised in lavender, which it sold at gift shops around the Mediterranean in small bags made from Provencal fabric.
On this basis, we worked on expanding the product range into the wellbeing market, offering scented products for the home (scented candles, room sprays, fragranced bags) and natural cosmetics (skin and body care, perfumes).
Why did you decide to take on manufacturing as well?
N.R.: To ensure complete control of the quality of our products. Our R&D work uses plant extracts from our lavender, rose and poppy plants, as well as camellia. We also have our own production plant and logistics platform. We even go direct to the end consumer, as in addition to conventional retail (home decor and gift shops, garden centres, department stores, online sales), we now have around 50 stores worldwide.
So you have a very strong international presence?
N.R.: We generate around half of our sales outside France: in Europe, Asia, more specifically in Japan, and the Middle East.
Does this international dimension mean that you have to adapt your product range?
N.R.: Yes. Asian customers prefer light, floral and more citrus scents, while in the Middle East consumers go for strong scents. They want a more lingering and intense effect.
What are your main development focuses at present?
N.R.: We are hoping to strengthen our international presence with new stores and are continuing with our innovation strategy. We are positioned in lucrative markets but which are also highly competitive, requiring a very pro-active stance in terms of the products we offer.
What role does Crédit Mutuel EquityC play?
N.R.: Crédit Mutuel Equity (formerly CM-CIC Investissement) became an investor in Durance in 2010 to support our store opening strategy. As the partner to other family-owned companies in our sector, we benefit on a regular basis from its contacts and it has no hesitation in coming up with new ideas for synergies.
What the partner says
Crédit Mutuel Equity became an investor in Durance in 2010 at the time of a transaction to strengthen its capital base with a view to financing its expansion.
However, against the backdrop of a tougher consumer spending climate, Durance has managed to continue to achieve profitable growth thanks to the ongoing efforts of its management team and marketing policy in keeping with the market.
Over the last few years, Nicolas Ruth has expanded the product range thanks to a high level of innovation – we would cite in particular the Marvellous Fragrance Lamp and car air fresheners. Its production capacity and procedures have also been improved. Lastly, the visuals for certain ranges and the store concept have been updated.
This investment illustrates Crédit Mutuel Equity's ability to help successful family-run SMEs to pass on to the next generation.
Durance in brief
500 products
120 employees
3600 sales outlets worldwide