CSM Strengthens Position in North Africa Through Joint Venture

Tunisian based GIAS has a leading position in Bakery Ingredients and Fats in North Africa and exports to a number of African countries through its distribution organization

1/17/2011 --- CSM has entered into a 50/50 joint venture agreement with the Tunisian based company GIAS s.a., that has a leading position in Bakery Ingredients and Margarines in North Africa. Furthermore, this joint venture that will operate as CSM-GIAS gives CSM access to a distribution network to a number of African countries and allows CSM to sell its full bakery product portfolio into this market.

The news came as political tensions mounted in Tunisia, as President Zine El Abidine Ben Ali fled the country following a month of protests. CSM spokesperson Eva Lindner told FoodIngredientsFirst that the timing was purely coincidental, however. "This is a completely unrelated long-term investment," she stressed.

GIAS (Générale Industrielle Alimentaire Slama) is a manufacturer of bakery ingredients and margarine that are sold under leading brands such as Vanoise, La Délicieuse, Feuille d’Or, etc. GIAS is part of the Tunisian based SLAMA group, founded in 1950, which is also active in the olive oil and vegetable oil business in (North) Africa.

GIAS has a leading position in Bakery Ingredients and Fats in North Africa and exports to a number of African countries through its distribution organization (including Libya, Algeria, Mauritania, Guinea Conakry, Gabon, Congo, Angola). Its ambient distribution activities include a partnership with Kraft Foods. GIAS was founded in 1983, has an annual turnover of €30 million and employs some 500 people.

CSM's strategy is geared towards reinforcing its global leading market position, including expansion to emerging markets, in which this joint venture is another step. The transaction will not have a material effect on CSM's financials.

The move is CSM's first entrance into the North African region. "This is a growing market and one of our strategies is to expand to find emerging opportunities. This move gives us access to a distribution network for our whole portfolio," Lindner noted.