Tereos Aims to Become One of the Global Leaders in the International Distribution of White Sugar
06 Nov 2014 --- Tereos, France's leading sugar group and number five worldwide, aims to become a major player in white sugar distribution. With its solid industrial footing in Europe and Brazil - two of the world’s most competitive regions for white sugar production – and its presence in East Africa, Tereos seeks to carve out a 15% market share in white sugar distribution worldwide by 2020.
With the reform of the sugar market regime in 2017, the European Union will once again be free to export to an expanding global market enjoying an annual growth of 2 to 3% driven by emerging countries. With Tereos Commodities, the Group is offering its customers a broad portfolio built around a sustainable value chain. Patrick Dean will head up this Sugar Merchandising and Distribution business.
“With the creation of Tereos Commodities, we are confirming our commitment to offer our customers solutions that meet their needs in order to support them in the markets in which they develop with quality products, from a sustainable and effectively managed supply chain. To implement this project, Tereos will rely on strong assets: its competitive industrial sites around the world, its unique commercial offering and the outstanding team put in place”, declares Alexis Duval, Tereos’ Chief Executive Officer.
Tereos is a major player with a long history in the French sugar industry and over the span of just a few years has become one of the world’s leading sugar producers. The group already boasts one of the industry’s most complete and innovative portfolios of sweeteners, in addition to production capacities in 12 countries and 4 continents (Europe, America, Africa, Asia) delivering the highest food safety and quality standards. Tereos has now broadened its product range to better serve its customers and establish strategic partnerships with them.
Driven by an increase in population, the world’s consumption of sugar is growing at a rate of 2 to 3% annually, especially in Asia and Africa. Consumers meanwhile face greater volatility in the price of foodstuffs and have expressed greater needs in terms of food safety, traceability and sustainability. Tereos firmly believes that its ability to support its customers as they grow internationally by offering them quality products and ensuring an effectively managed supply chain will be essential assets for meeting their needs.
Competitive production structure with a focus on exports Tereos has leading industrial positions in Europe and Brazil, as well as sites in Africa, a region where consumption is growing at a strong rate. In Europe, Tereos operates 12 of the continent’s most competitive sugar factories and leverages strong relationships with its 12,000 cooperative growers. This favorable position will enable it to fully capitalize on the ending quotas and the freedom European producers will once again have to export starting in 2017. Having led the world in white sugar exports for many years, the European Union saw its exports capped at 1,350,000 tons beginning in 2005. This set the stage for Tereos’ recent announcement that it would increase its production by 20% in Europe by 2017.
In Brazil, the world's number one sugar exporter with a market share of nearly 50%, Tereos is the third largest producer and already one of the main white sugar exporters thanks to its seven sugar factories, which are also some of the most competitive in Brazil. In the Indian Ocean region, Tereos is the market leader in Réunion. In Africa, Tereos has an industrial presence in Mozambique and a strategic investment in Tanzania. In all regions where it has a presence, the Tereos Group has developed privileged partnerships with local agricultural producers, who are helping to drive agricultural progress and ensure quality products from a sustainable value chain.
The offer developed by Tereos is in response to the urgent needs from clients and consumers for a more integrated supply chain, from agricultural production to areas of consumption, ensuring transparency and efficiency. The way in which the Group’s production technologies, raw materials and sourcing origins all dovetail will also enable it to offer a broad range of solutions for its clients, while meeting their needs for flexibility. In this environment, the Group’s goal is to represent 15% of international white sugar trade by 2020 in order to meet its clients’ expectations and become one of the leading operators.
Patrick Dean will be joining the Group to head up Tereos Commodities’ Sugar Merchandising and Distribution business. Patrick Dean has vast experience in the global sugar market, especially in Africa and the Middle East. As a British national, Patrick Dean grew up in South Africa. After working on these markets for Tate & Lyle in London and Bangkok, he joined Louis Dreyfus as head of white sugar trading and later responsible for the global sugar distribution.
The world's fifth-largest sugar group, Tereos is specialized in processing sugar beet, sugar cane and cereals. The Group also has leading positions on the markets for alcohol (No. 1 in Europe and No. 3 in Brazil) and starch (No. 3 in Europe). Tereos has 42 industrial sites and employs 24,000 people across four continents. In 2013-14, the Group recorded 4.7 billion euros in revenues. A cooperative group, Tereos unites 12,000 cooperative growers around a long-term vision: adding value to agricultural raw materials and contributing towards the supply of quality food.
