France is the world’s largest market for foie gras (duck or goose liver), which is one of the most popular delicacies in French cuisine. Foie gras is an up-market festive and fine food product and is very popular for special or festive occasions. Due to increased availability, its consumption is now enjoyed throughout the year. Foie gras is sold whole, or offered as an ingredient in various diverse recipes and presentations.

Foie gras and duck products account for 18.5% of Alfesca’s sales. All over the world, foie gras is an ambassador of French cuisine.

Labeyrie is sourcing its ducks from farmers on the basis of yearly contracts, which makes for very good control and a good view of the price over the year.

One of Labeyrie’s most powerful assets is the Labeyrie brand which is recognised as a premium and festive brand, enjoying a market-leading position. Innovation is the second driver explaining Labeyrie’s success.

Market trends

The company’s sales of foie gras are predominantly in branded products. Labeyrie is the undisputed leader on the foie gras market, with a market share of 25%.

Foie gras benefits from the growth in trends for indulgence and fine food in many countries all over the world . The key countries for the consumption of foie gras are mainly in Europe, where there are important and fast-growing markets (France, Spain and Benelux), and in Asia (Japan).

France is the world’s largest market for foie gras and foie gras is the most festive product of the well-known French cuisine. Like champagne, its consumption is very closely associated with the celebration of all the key feasts of the year: Christmas and the New Year, of course, but increasingly with anniversaries or simply the desire to have a feast for no special occasion. These new behaviours explain the development and the reduced seasonality of foie gras consumption. In the past year the market has experienced growth of 7.4%.

The foie gras market grew stronger in Spain and Benelux, with foie gras being undisputedly recognized as the finest delicacy, with the possible exception of caviar. New countries, such as Russia, Italy, and China, have also recently become foie gras lovers.

Labeyrie is also selling a wide range of added-value meat products. The aim of this activity is to create more value for this pillar and also to counterbalance the seasonality of the foie gras sales during the festive periods.

Duck meat has followed the growth of foie gras. This easy-to-prepare meat, which is very similar to beef in terms of colour and texture, is much appreciated by gourmets, the breasts are either roasted or smoked and the duck legs are cooked in grease. Both are a delicacy for connoisseurs.

Outlook

Despite the difficult market conditions with increased competition and high raw material prices, Alfesca’s foie gras pillar is in a good competitive position. Its brand is strong and will be further strengthened with investment in marketing campaigns and product innovation in the most profitable segments of the market, in order to secure margin and market share.

There are opportunities for growth by developing international operations and distribution channels, both in Europe and world-wide. Spain, where the Labeyrie brand has been sold by Vensy for some time, could be an important market for foie gras and now measures have been taken to give the sales effort in Spain a boost. Alfesca has gained an important foothold in the growing Italian market over the past few years. The acquisition of D&F in Italy will strengthen Alfesca’s position and help accelerate the development of the company’s sales in the Italian market.