Tell us about the origins of the company.
Pierre Schmidt: The story starts when my grandfather, Pierre Schmidt, first opened an artisanal butchers in the centre of Strasbourg. In the 1960s, my father, also Pierre, began to work as a wholesale business supplying a distributor (COOP d'Alsace). When I joined the company in the 1970s, we decided to step up this shift into industrial production to meet growing demand from the supermarket sector. This was a time when chains such as U, Inter and Cora were expanding rapidly. We took a major step forward in 1985 when we moved our factory from the city centre to the Weyersheim industrial zone. Since then our business has grown through a series of acquisitions. The most significant of these included Charcutiers d'Alsace in 1996, Roger Roposte (specialising in meat pies and pastries) in 1999 and Stoeffler in 2008. This last acquisition was our biggest to date, as this longstanding rival was a similar size to ourselves. Pierre Schmidt is now the leading supplier of Alsace specialities to cold meat delicatessen counters and N°1 in pre-packaged products in this segment.
What are your star products?
P.S.: We have a fairly large range, with over 280 references. Every year we produce 35,000 tonnes of finished products, split evenly between traditional charcuterie (knackwurst, smoked pork shoulder, etc.) and cold meat pies and prepared dishes such as choucroute, paté en croûte, cooked dishes and tartes flambées. These fresh tartes flambées, the famous Alsatian Flammekueche, are by far and away our leading product: we make 40 million every year. This represents 10,000 tonnes and more than 95% of French production. This is also our leading export product, with between 20% and 30% of our sales coming from abroad. These products have enjoyed great success in Germany and Belgium, but the Italian and Spanish markets, where we are stocked by Carrefour and Lidl, are also seeing very encouraging results.
Are international markets one of your priorities?
P.S.: Absolutely, even though sell-by dates impose geographical limits on us, as we are dealing with fresh products. We are lucky to be based in Alsace, which gives us easy access to markets in Germany, Belgium, Switzerland, the UK and Scandinavia. It is worth remembering that we are some 1,000km from Brest, but just 500km from Berlin! As well as Flammekueche, we are therefore looking to export other products, particularly cold meat pies and pastries.
Is this segment a priority for you?
P.S.: Yes, because the margins are bigger. What is more, cold meat pies and pastries represent an area where it is much easier to innovate. But we are also seeking to develop new ranges of Alsatian products such as Spätzle noodles, potato cakes and gnocchi, for which there is very strong demand.
What is your relationship with Crédit Mutuel Equity?
P.S.: We have been working together since 1998. At that time they provided support for our acquisition of Roger Roposte. We always seek to work with partners with a local presence, to ensure more direct contact. Our relationship since then has seen a series of withdrawals and then returns of capital, according to our needs, reflecting the trust between us.
Can we expect a fourth generation of the Pierre Schmidt family?
P.S.: It is already in place; my two children Pierre-Olivier and Alexia work for the company. It is still much too early to know whether or not they will one day want to take over. But I wholeheartedly hope that this family company will continue to thrive and grow for many years.
What the partner says
Crédit Mutuel Equity (formerly CM-CIC Investissement) has supported Pierre Schmidt and his eponymous company for more than 18 years now...
From being just one of a number of companies in the Alsatian charcuterie market in the 1990s, the Pierre Schmidt group has since grown, primarily through acquisitions, which allowed it to absorb new expertise and strengthen its competitive position. It is now the leading mid-sized food company in Alsace, and the guarantor of the quality and authenticity of the region's culinary heritage.
This strategy has been driven by the manager. Most notably, in 2008, it allowed the acquisition of the company's main rival, Stoeffler, which was acquired from PAI and saw us take a capital stake for the second time.
Most of its production is sold under its own brands: Pierre Schmidt and Stoeffler, as well as under the Maison d'Adam brand, which is dedicated to the convenience market. Stand-out products include the flagship Flammekueche, as well as choucroutes, cold meat pies and knackwurst.
The group's business plan is based on increased internationalisation and a policy of product innovation, for instance the move into fresh speciality Alsatian pasta. This plan has been developed by a high-quality management team, directed by Laurence Cahen, Chairman of the Board of Directors, supported by Pierre Schmidt.
For all of these reasons, in 2015 we were delighted to renew our partnership and further demonstrate our trust in the group in the form of a new investment in it. The Alsatian culinary tradition has so much to offer!
35000 otonnes annual production
840 employees
€146m of revenue