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Clean up / See talk page : This article is taken in full or in part or from the Wikipedia article in French entitled “Fauchon (traiteur)”
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====From 2003 to the present day: new developments====
====From 2003 to the present day: new developments====
During the summer of 2003, Fauchon went into serious debt to convert the Flo Traiteur delicatessens in Paris to Fauchon colors. Times were hard, whether from an economic, financial or real estate viewpoint. Six months later, in January 2004, Laurent Adamowicz left his CEO's office to Michel Ducros <ref> Source: Le Point, no. 1665, 17 January 2007, “Les nouvelles recettes de Michel Ducros” </ref>, when he sold his 51% stake in the capital to La Compagnie du Bois sauvage (CBS) <ref> Source: Sociétés en Portefeuille du Fonds Matignon Investissement & Gestion http://www.matinvest.com/content/view/117/45/lang,fr/ </ref>, the Swiss group Gonset Holding S.A <ref> Source: NeoRestauration.com, 18 May 2005, page visited on 7 October 2009 http://www.neorestauration.com/ </ref>, and Universal Capital Partners, headed by Pierre Besnainou <ref> Source: Le Figaro, 2 March 2004, “Pierre Besnainou s’invite chez Fauchon” </ref>
A former investment banker, Managing Director and Partner respectively of the French bank [[Paribas]] and of Rothschild & Cie, experienced in the field of luxury products as a former member of the Supervisory Board of [[Van Cleef & Arpels]], graduate of “École Supérieure de Commerce de Paris” ([[ESCP-Europe]]) and of the [[Wharton School]] (See article in the business newspaper [[Les Échos (France)|Les Echos]] on October 3, 2003<ref>Source: Les Echos newspaper, Issue #19002 of October 3, 2003, page 50, Distribution, Entreprise et Marchés, En Vue, [http://archives.lesechos.fr/archives/2003/LesEchos/19002-184-ECH.htm?texte=adamowicz Laurent Adamowicz]</ref>), Laurent Adamowicz introduces marketing at Fauchon with the first advertising campaign on the theme of fashion in 1999. He organizes the full repositioning of the brand, its image, its graphic identity, its logos, and the entire range of packaging. He launches the creation of 700 new products under the Fauchon brand, introduced on the market from 1998 to 2003, in particular the new flavored teas of the Four Seasons, the “Pure Fruit” range of preserves, the [[foie gras]] made with [[Szechuan]] peppercorns, the caramel milk jam, the strawberry preserve with rose petals (See the article in the Spring 2003 issue of the Wharton Alumni Magazine<ref>Source: [http://www.whartonmagazine.com/issues/347.php Wharton Alumni Magazine, Spring 2003, Issue 347]</ref>) He completes the repositioning of the Fauchon brand in its food universe of good products made simply and exceptionally and he also removes the brand from the [[mass-market]] retail channel and renovates the historical stores on [[Place de la Madeleine]]. Finally he launches the Fauchon commercial website for packaged goods and catering. As soon as the year 2000, under his management, Fauchon becomes a growing and profitable company again. Fauchon opens new stores in [[Japan]], in [[South Korea]], [[Taiwan]], the [[Middle East]], [[Europe]], and finally in the [[United States]] where it never had a store before.


From 2005 onward, Michel Ducros bought out most of the private and corporate shareholders: in 2005, he acquired all of the shares held by the Barclays Group, in 2009 the 36% stake owned by La Compagnie du Bois sauvage, then the stake held by Matignon Investissement & Gestion <ref> Source: Le Point, no. 1933, 8 October 2009, “Michel Ducros est propriétaire de plus de 90 % de son affaire” </ref>, and lastly the minority shareholdings <ref> Source: Le Point, no. 1933, 8 October 2009, “Fauchon version fashion” </ref>. At that point, Michel Ducros held 95% of Fauchon's capital <ref> http://www.lesechos.fr/entreprises-secteurs/service-distribution/actu/0203013062478-fauchon-pousse-les-feux-a-l-international-606833.php </ref>. “I am an entrepreneur, I invest in the long term,” he explained.
Prior to his purchase of Fauchon, Laurent Adamowicz had already announced his intent and that of his investor group to launch the company in the [[U.S.]] market in a very significant way. A press conference they held in early February 1998 made it official that their strategy was to invest 60 million French Francs ($14 million) over 5 years to conquer the [[United States]] market they called “the largest opportunity for the development” of Fauchon. See [[Les Échos (France)|Les Echos]] newspaper article on February 5, 1998<ref>Source: Les Echos newspaper, issue #17579, of February 5, 1998, page 18, [http://archives.lesechos.fr/archives/1998/LesEchos/17579-87-ECH.htm “Waldo veut développer Fauchon aux Etats-Unis” (Waldo wants to develop Fauchon in the United States)]</ref> and the article in [[Le Monde]], likewise: “The buyer of Fauchon, the company Waldo, wants to develop the brand in the United States”<ref>Source: Le Monde newspaper article, issue #16493, February 5, 1998, “La vente de Fauchon relance les grandes manœuvres sur le marché de l’épicerie de luxe. Le repreneur, la société Waldo, veut développer la marque aux États-Unis” (“The buyer of Fauchon, the company Waldo, wants to develop the brand in the United States”)</ref>
In February 2013 – ten years after Michel Ducros took over at the helm – Éric Vincent was appointed CEO, with a remit to develop the company on international markets <ref> http://www.lesechos.fr/entreprises-secteurs/service-distribution/actu/0203013062478-fauchon-pousse-les-feux-a-l-international-606833.php </ref>.


=====Selling off loss-making assets=====
“FAUCHON, the legendary Parisian market, has made its debut in New York. Its first American shop opened Monday at 442 Park Avenue, at 56th Street. For now, the glass display cases, shelves and free-standing consoles in the {{convert|3,600|sqft|m2|adj=on}} store are stocked with pink and gold packages of fancy jams, chocolates, crackers, mustards, oils, vinegars, pickles, sauces and 109 kinds of tea,” writes [[Florence Fabricant]] in The New York Times on August 16, 2000.<ref>Source: The New York Times, Article by Florence Fabricant, on August 16, 2000, [http://www.nytimes.com/2000/08/16/dining/fauchon-opens-a-market-in-midtown.html “Fauchon Opens A Market in Midtown”]</ref> She continues: “The candy counter is laden with chocolates, marrons glaces in four flavors, pates de fruit and marzipan creations. The jewel-like glace strawberries ($2 each) are not to be missed. Chocolate Eiffel Towers are $5 each. The pastry department is limited to delicious macaroons for the moment, and there are packaged cookies, and gradually other pastries, ice creams and sorbets will be added. It has taken Fauchon, which has 800 stores in 33 countries, this long to open in the [[United States]] because the company's emphasis was placed on establishing franchises in [[Europe]], [[Asia]] and the [[Middle East]]. When Laurent Adamowicz bought the 114-year-old company in 1998, he set his sights on the American market. The $3 million [[New York]] store is company owned.”<ref>Source: Ibid</ref>
The acquisition of the Flo outlets in Paris in 2002 and the opening of three shops in New York led to a very sharp rise in income between 1998 and 2004, but a decline in Fauchon's net profits <ref> http://fr.reuters.com/article/frEuroRpt/idFRL5N0HE1HG20130918 </ref>.


From 2004 onward, the new shareholders adopted a strategy that aimed to boost profits by selling off those assets they deemed to be non-strategic, closing stores in Russia and the United States <ref> Source: New York Times, 20 May 2005, by Elaine Sciolino, “Fauchon’s Food Empire Cedes Territory to a Rival” </ref> <ref> Source: New York Times, [http://www.nytimes.com/2006/04/23/nyregion/23chocolate.html </ref> <ref> Source: New York Times, 11 June 2004 [http://www.nytimes.com/2004/06/11/nyregion/metro-briefing-new-york-manhattan-fauchon-closing-2-of-3-stores.html], “New York: Manhattan: Fauchon Closing 2 Of 3 Stores”, page visited on 11 October 2009 </ref> ; selling their ready-prepared meal tray business to the Fleury Michon group <ref> Source: Les Échos, no. 19268, 19 October 2004, “Fleury-Michon acquiert les plateaux-repas de Fauchon” [http://www.lesechos.fr/19/10/2004/LesEchos/19268-107-ECH_fleury-michon-acquiert-les-plateaux-repas-de-fauchon.htm], page visited on 11 October 2009 </ref>; and finally transferring the Fauchon Paris stores to the company's rival Lenôtre <ref> Source: Le Figaro, 19 May 2005, “L’épicerie de luxe vend neuf boutiques à Lenôtre. Fauchon a perdu la bataille de Paris” [http://archive.wn.com/2005/05/19/1400/figarobusiness/], page visited on 8 October 2009 and official Lenôtre website </ref> <ref> Source: L’Express, 9 August 2007, page 44-46, “Quand Ducros se jette à l’eau » [http://www.lexpress.fr/actualite/economie/quand-ducros-se-jette-a-l-eau_475936.html], page visited on 9 October 2009 </ref>
With a diversified investor group that included Michel Deroy and Jean-Francois Toulouse, former owners and managers of Dock de France [[supermarkets]] that they sold in 1996 for 18.5 billion French Francs ($4.2 billion); the investment fund Matignon Investissements et Gestion; the publicly listed [[UK]] fund [[Intermediate Capital Group]]; and [[Barclays]] Capital Development France, the company had the means of its ambitions to finance the desired expansion of Fauchon in the [[U.S.]] market. See article in [[Les Échos (France)|Les Echos]] newspaper on April 2, 1998: “The new [[Chairman]] and [[CEO]] of Fauchon wants to bring the company to the [[United States]]”<ref>Source: Les Echos newspaper, issue #17619, of April 2, 1998, page 19, [http://archives.lesechos.fr/archives/1998/LesEchos/17619-69-ECH.htm “Le nouveau PDG de Fauchon veut implanter l'entreprise aux Etats-Unis” (“The new Chairman and CEO of Fauchon wants to bring the company to the United States”)]</ref> and in [[La Tribune]] newspaper on the same day: “The gourmet epicerie Fauchon wants to conquer the American market”<ref>Source: [[La Tribune]] newspaper, April 2, 1998, article page 11, “L’épicerie fine Fauchon veut conquérir le marché américain” (“The gourmet epicerie Fauchon wants to conquer the American market”)</ref>


Within the space of six years, Fauchon cut back its workforce from 700 to 200 people <ref> Source: L’Express, 17 January 2008, page 75 “Fauchon, L’épicier chic et choc”, by Corinne Scemama </ref>
[[Barclays Private Equity]] France, a subsidiary of the [[Barclays plc]] Group, backed Laurent Adamowicz in his takeover of Fauchon to participate in its development in France and abroad. As can be read in the annual report of [[Barclays Private Equity]] France: “Laurent Adamowicz took the Fauchon destiny in his own hands and started the restructuring right away. His first actions included closing all the restaurants in the [[Place de la Madeleine]], [[Paris]] store and replacing them with a “Salon de thé” (Fauchon Tea Salon) and the largest [[wine cellars]] in [[Paris]]. He also increased international brand presence with the opening of similar Fauchon Tea Salons in [[Asia]] and in [[New York]] on [[Park Avenue (Manhattan)|Park Avenue]], followed by a second store on [[Madison Avenue]].<ref>Source: Web site [http://www.barclays-private-equity.fr Barclays Private Equity France], [http://www.barclays-private-equity.fr/sites/v/index.jsp?vgnextoid=dd302b9bc991f010VgnVCM1000001413410aRCRD&vgnextchannel=0ee0ce736de3c010VgnVCM1000002e14480aRCRD&_searchQuery=fauchon Page seen on October 8, 2009]</ref>


=====International development=====
After the [[pastry chef]] [[Pierre Hermé]] and his pupil, Sébastien Godard, both left the company, Laurent Adamowicz trusted a very young [[pastry chef]] promoted from within, in 2000, to lead the pastry department at Fauchon: Christophe Adam. Still in charge today, Christophe Adam led up to 70 Fauchon [[pastry chefs]] after the takeover of the [[Paris]] stores purchased by Fauchon from Groupe Flo.


Despite the lack of success in the United States and China <ref> Les Échos, no. 20541 29 October 2009, page 19, “Fauchon revoit ses plans après des déconvenues” [http://www.lesechos.fr/29/10/2009/LesEchos/20541-106-ECH_fauchon-revoit-ses-plans-apres-des-deconvenues.htm] </ref> Fauchon had some 60 stores and restaurants around the world in 2013, and international sales represented 80% of the group's business <ref> http://www.lsa-conso.fr/fauchon-accelere-son-developpement-a-l-international,147551 </ref>
The brand renewal is particularly noticed with the reopening of the historic Tea Salon in [[Paris]], followed by its replicas in [[Tokyo]] and [[New York]]. Of the more than 100 varieties, there is Soir de France, a blend of China and Sri Lanka teas flavored with apricot and blood orange and sprinkled with orange peel and petals of rose and sunflower.<ref>Source: [http://www.whartonmagazine.com/issues/347.php Wharton Alumni Magazine, Spring 2003, Issue 347]</ref> The two references created then upon the launch of the tea salon, Soir de France and Un Après-Midi à Paris (An Afternoon in Paris) have both become Fauchon classics, among the best selling references today. During the year 2000, Fauchon also launches a noticeable innovation for tea-buffs around the world, the crystal [[tea bag]], a ultra-fine [[nylon]] pouch that provides a better quality [[infusion]], hence a better aroma for [[tea]]. Holly Finn, the [[Financial Times]] writer, signs an article on the new Fauchon Tea Salon under the title “Tea with Sympathy”. She writes: “For those weary of coffee and couture and in real need of something soothing, the Salon de Thé recently opened at the legendary Fauchon food emporium in [[Paris]], is worth a winter visit. There, on [[Place de la Madeleine]], the emphasis is not on fast-forwarding, either one’s heart rate or one’s fashion status. It’s about stopping – taking a deep breath and a long sip. No matter how rudely random Parisians have treated you that morning, you’ll soon feel better about the whole Franco-thing. A slice of Tarte au thé Darjeeling (a specialty of the house) restores confidence not just in your ability to translate, but in the civility of left-seat drivers, all sorts of things…. A reminder of the bond between tea and sympathy.”<ref>Source: The Financial Times, Article of January 22–23, 2000, by Holly Finn “Tea with Sympathy”</ref>
Fauchon is now aiming to have 100 outlets by 2017, most of which will be franchises, its chosen modus operandi. Only five stores carry the company name <ref> http://www.lesechos.fr/entreprises-secteurs/service-distribution/actu/0203013062478-fauchon-pousse-les-feux-a-l-international-606833.php </ref>


===== The 2003 Crisis=====
=====Brand redeployment=====
Michel Ducros revised Fauchon strategy with all its suppliers in all product categories, as the Paris-based purveyor of gourmet foods no longer wants to be a general store, but a multi-specialist. Fauchon has developed a product strategy, which entails setting up specific partnerships with its suppliers and sub-contractors <ref> L'Est-Éclair, 23 March 2010 page visited on 12 April 2010 [http://archive.wikiwix.com/cache/?url=http://www.lest-eclair.fr/index.php/cms/13/article/434187/Fauchon_et_Pascal_Caffet_juste_pour_le_meilleur__&title=Page%20vue%20le%2012%20avril%202010]
Comes the crisis of Spring-Summer 2003: First there was the war in [[Iraq]] with the invasion and the fall of the [[Saddam Hussein]] regime in April 2003; followed in May 2003 with a worldwide scare due to the [[epidemic]] of the [[Severe Acute Respiratory Syndrome]] (SARS) virus; then came the frightening heat wave in [[Europe]] that hit [[France]] particularly hard with over 15,000 dead in August 2003; finally, the economic turbulences due to the collapse of the tourism market that year. Fauchon was very dramatically affected by the combination of all these events, especially at the time it had just converted to the Fauchon brand all the new Parisian stores it had just acquired.
</ref> and developing and making Fauchon products to strict specifications and Fauchon recipes.

Fauchon continues to produce most of its own breads, cakes, pastries and delicatessen products on its premises (in the Paris suburb of Courbevoie for cakes and pastries). Events, such as Eclair Week, are organized around the world regularly, to promote the brand's culinary know-how. <ref> http://www.lexpress.fr/styles/saveurs/l-eclair-week-electrise-fauchon-du-3-au-7-septembre_1277949.html </ref>
In January 2004, Laurent Adamowicz gave away control of Fauchon to Compagnie du Bois Sauvage, the [[Belgian]] company listed on the [[Euronext]] market in [[Brussels]], also the owner of the [[Chocolatier Neuhaus]] and [[chocolatier]] Marcolini, as well as a vast portfolio of real estate and financial holdings, including a large shareholding in [[Fortis Bank]]. Compagnie du Bois Sauvage takes over Fauchon along with the investment fund Matignon Investissement & Gestion, based in [[Paris]], also a shareholder of CBS Finance (a banking subsidiary of Compagnie du Bois Sauvage);<ref>Source: [http://www.matinvest.com/content/view/117/45/lang,en/ Portfolio of companies owned by Matignon Investissement & Gestion]</ref> and with Michel Ducros, a businessman based in [[Monaco]] and residing in [[Yens]] in [[Switzerland]]<ref>Source: Mémorial, Journal Officiel du Grand-Duché du Luxembourg,
[http://www.etat.lu/memorial/memorial/2009/C/Pdf/c1620218.pdf C — N° 1620 of August 21, 2009]</ref><ref>Source: Le Point magazine, Issue #1665, Article published on January 17, 2007, “Les nouvelles recettes de Michel Ducros” (The new recipes of Michel Ducros)</ref> who participates as a shareholder in Fauchon through several [[Luxembourg]] based companies, mostly through his 100% owned company, Levira Holdings S.A., that is being liquidated in 2009.<ref>Source: Mémorial, Journal Officiel du Grand-Duché du Luxembourg, [http://www.etat.lu/memorial/memorial/2009/C/Pdf/c0879244.pdf C — N° 879 of April 24, 2009, Page 42174], “LEVIRA HOLDINGS S.A., Dissolution ; la partie comparante, en sa qualité d'actionnaire unique de la Société, a décidé de procéder à la dissolution anticipée et immédiate de la Société et de la mettre en liquidation”</ref> Michel Ducros becomes chairman and [[CEO]] of Fauchon in January 2004 and invites to participate in the capital of Fauchon on the one hand, the company Universal Capital Partners, owned and managed by Pierre Besnainou, founder of the web access company Liberty Surf and President of the [[European Jewish Congress]] in 2005<ref>Source: Site [http://www.Lechef.com Le Chef.com], Article of March 2, 2004, [http://www.lechef.com/data/02032004/02032004-111842.html Page seen on October 7, 2009]</ref> and on the other hand the Swiss group Gonset Holding S.A.<ref>Source: Website [http://www.NeoRestauration.com NeoRestauration.com], Article of May 18, 2005, [http://www.neorestauration.com/article/page_article.cfm?idoc=58100&navartrech=3944&id_site_rech=19&maxrow=6779 Page seen on October 7, 2009]</ref>

In March 2004, Pierre Besnainou invites himself at Fauchon, says the French newspaper Le Figaro.<ref>Source: Le Figaro, Article of March 2, 2004, “Pierre Besnainou s’invite chez Fauchon”</ref> He will hold 10% of Fauchon. His arrival at Fauchon follows the departure of Laurent Adamowicz due to difficulties with his partners. He ended up giving up his 51% control ownership and abandoned his Chairmanship seat to Michel Ducros.<ref>Source: Ibid, “Pierre Besnainou s’invite chez Fauchon. Il détiendra ainsi 10% du groupe d’épicerie fine ; son entrée dans Fauchon (80 millions d’Euros de chiffre d’affaires, 900 salariés), fait suite au départ en January du patron et actionnaire majoritaire, Laurent Adamowicz, dont les rapports avec ses partenaires étaient tendus, Celui-ci a fini par leur céder ses 51% du capital, abandonnant son fauteuil de PDG à Michel Ducros.”</ref>

=====The Ducros Era=====
Michel Ducros, born in [[Kehl]] in [[Germany]] in 1949, is none other than one of the sons of Gilbert Ducros (1928–2007), the founder of the Ducros spice business that he sold in 1992 to the Italian group Ferruzzi, for 1.6 billion French Francs ($360 million) following family infighting and financial difficulties. (See article in the magazine [[Le Point]] on January 17, 2007<ref>Source: Le Point magazine, Issue #1665, Article published on January 17, 2007 “En 1992, le groupe Ducros et Fils est numéro un des épices en Europe, et la famille ne résiste pas à l'offre de rachat mirifique (1,6 milliard de francs - soit pratiquement le chiffre d'affaires) que lui fait l'italien Ferruzzi avant sa retentissante faillite.</ref> and of L’Express magazine on August 9, 2007<ref>Source: L’Express magazine, [http://www.lexpress.fr/actualite/economie/quand-ducros-se-jette-a-l-eau_475936.html Article of August 9, 2007, page 44-46, “Quand Ducros se jette à l’eau” (When Ducros takes a dive)], Page Seen on October 9, 2009</ref>) “I ended up a luxurious jobless at 43” (“Je me suis retrouvé chômeur de luxe à 43 ans”), says Michel Ducros. “With a huge mid-life crisis”, he ads.<ref>Source: Ibid</ref>

After many years of debacle, the Ferruzzi group went bankrupt and the Ducros spice business is now owned by [[McCormick & Company]] since 2002.

As for Michel Ducros, at Fauchon, he follows into the steps of his predecessor in terms of the brand image, its renewal started in 1998 with the introduction of the first advertising campaigns in 1999, the renovation of the stores, the new packaging, and the marketing efforts. However on the financial front Ducros took a radical departure. Fauchon has been losing millions under his management. Also, Michel Ducros incarnates the return of the [[Jet set]] era at Fauchon, in a radical twist against current recessionary trends;<ref>Source: TourMag.com, Page seen on October 10, 2009, [http://www.tourmag.com/Monaco-un-Club-Wine-Business-pour-la-SBM_a31436.html Ouverture très ‘people’ à Monaco,…. Club Monégasque et Michel Ducros]</ref> champagne abounds again at Fauchon like it did during the era of the Prémats in the 80’s, today at Monaco Marine S.A., the [[Luxembourg]]-based boat repair and maintenance company owned by Michel Ducros, as related by the writer Nathania Cahen, in her article in the magazine L’Express on Michel Ducros and his “three big nights, successively reserved for the clients, partners, and personnel of Monaco Marine, all with Fauchon champagne flowing; Fauchon is the other business owned by the old king of spices, who decidedly navigates easily on the markets of luxury.”<ref>Source: L’Express magazine, Article of August 9, 2007, pages 44-46, [http://www.lexpress.fr/actualite/economie/quand-ducros-se-jette-a-l-eau_475936.html “Quand Ducros se jette à l’eau”(When Ducros takes a dive), “trois grandes soirées successivement réservées aux clients, aux institutionnels et au personnel de Monaco Marine. Le tout arrosé... au champagne Fauchon, l'autre business de l'ancien roi des épices, qui, décidément, navigue avec aisance sur les marchés du luxe”], Page seen on October 9, 2009</ref>»

Another press title sums up the situation at the company: “Michel Ducros : Des épices, des yachts et Fauchon” (Michel Ducros: Spices, yachts, and Fauchon)<ref>Source: Le Figaro Entreprises magazines, Article of Monday January 19, 2004, “Michel Ducros : Des épices, des yachts et Fauchon” (Michel Ducros: Spices, yachts, and Fauchon)</ref> “Personally, I only have a tiny fraction of the capital of the company. I have no intent of becoming the majority owner of Fauchon”, says Michel Ducros to the magazine [[Le Figaro]] Entreprises. “I only got appointed at the helm because I am the only industrial partner in the roundtable and the only one with spice experience. I am only a conductor.”<ref>Source: Ibid “A titre personnel, confie-t-il au Figaro Entreprise, je n’ai qu’une infime part du capital de Fauchon. Je n’ai pas vocation à devenir majoritaire. Mes amis m’ont mis aux commandes parce que je suis l’unique industriel dans le tour de table et aussi le seul épicier. Je ne suis qu’un chef d’orchestre.</ref>

In figures, the Ducros era can be summarized at Fauchon as 56 millions Euros ($ 84 million) of cumulative losses in 5 years from 2004 to 2009, under the management of Michel Ducros, based on the annual reports published by the main listed shareholder, Compagnie du Bois Sauvage.<ref>Source: [http://www.bois-sauvage.be/rappen/RAPPANNU.htm Annual Reports from 2000 to 2008], Compagnie du Bois Sauvage, Page seen on October 10, 2009</ref><ref>Source: [http://www.bois-sauvage.be/rappen/CBS2005UK.pdf Annual Report 2005, Compagnie du Bois Sauvage], Page 31, Page seen on October 10, 2009</ref><ref>Source: [http://www.bois-sauvage.be/rappen/CBS2006UK.pdf Annual Report 2006, Compagnie du Bois Sauvage], Page 33, Page seen on October 10, 2009</ref><ref>Source: [http://www.bois-sauvage.be/rappen/CBS2007EN.pdf Annual Report 2007, Compagnie du Bois Sauvage], Page 34, Page seen on October 10, 2009</ref> Although when he took the job, Michel Ducros was quite confident in his ability to manage the Fauchon business. “After an 11 million Euros loss, Fauchon is going to break even this year” said Michel Ducros in an interview to the newspaper [[Le Figaro]] on Wednesday April 21, 2004.<ref>Source: Le Figaro newspaper, Issue #18571, of April 21, 2004, “Fauchon vise l’équilibre cette année”</ref> It went on: “Three months after taking full command of Fauchon, Michel Ducros commits to balancing the books this year.” “Losses are not as preoccupying as they appear”, he said<ref>Source: Ibid</ref> But then, after nearly six years, Michel Ducros keeps announcing the return to profitability, to no avail. To the point the situation between him and the other shareholders has considerably deteriorated and he bought back almost all of them.

The Ducros strategy has been drastic: closing all the newly opened stores in Russia; then closing two of the three stores in [[New York]] as announced in [[The New York Times]] article on June 11, 2004: “Fauchon, the Paris-based luxury-food company, will close two of its three [[Manhattan]] stores today. The company will maintain its store at 442 [[Park Avenue (Manhattan)|Park Avenue]], at 56th Street, but is closing the store at 1000 [[Madison Avenue]], at 77th Street, the former site of the Sant Ambroeus coffee shop and restaurant, and the one at 1383 Third Avenue, at 78th Street.<ref>Source: The New York Times, [http://www.nytimes.com/2004/06/11/nyregion/metro-briefing-new-york-manhattan-fauchon-closing-2-of-3-stores.html Article of June 11, 2004, “New York: Manhattan: Fauchon Closing 2 Of 3 Stores”], Page seen on October 11, 2009</ref> He then proceeded to sell the Fauchon catering business to the French company Fleury Michon in 2004;<ref>Source: Les Echos newspaper, Issue #19268, [http://archives.lesechos.fr/archives/2004/LesEchos/19268-107-ECH.htm Article of October 19, 2004, “Fleury-Michon acquiert les plateaux-repas de Fauchon”], Page seen on October 11, 2009</ref> and then, in a surprising strategic move, Ducros sold all the Fauchon stores in Paris to his competitor Lenôtre the gastronomy stores founded by the world-famous [[pastry chef]] [[Gaston Lenôtre]] and now a subsidiary of the Accor hotel conglomerate. As a result, Lenôtre becomes the number one catering chain in Paris, a market that had been dominated by Fauchon until then. The article in [[Le Figaro]] sums up the situation: “Fauchon a perdu la bataille de Paris” (Fauchon has lost the battle of Paris). Michel Ducros admits: “We have been unable to manage all those stores and employees at the same time. We were unable to make them profitable.”<ref>Source: Le Figaro newspaper, [http://archive.wn.com/2005/05/19/1400/figarobusiness/ Article of May 19, 2005, “L’épicerie de luxe vend neuf boutiques à Lenôtre. Fauchon a perdu la bataille de Paris.” “Nous n’avons pas su gérer tous ces magasins et tous ces salariés à la fois, nous n’avons pas su les amener à la rentabilité, confesse Michel Ducros”], Page seen on October 8, 2009</ref> “I am not a manager but only an investor-entrepreneur” explains Ducros in the magazine L’Express in another interview<ref>Source: L’Express magazine, [http://www.lexpress.fr/actualite/economie/quand-ducros-se-jette-a-l-eau_475936.html Article of August 9, 2007, Pages 44-46, “Quand Ducros se jette à l’eau” (When Ducros takes a dive) “Je ne suis pas un manager, mais un investisseur-entrepreneur, résume-t-il], Page seen on October 9, 2009</ref> Corinne Scemama wrote in L’Express magazine recently: “After dumping his other departments and its Paris stores (sold to Lenôtre in 2005), after reducing the number of its employees (from 700 to 200), the new management of Fauchon has been shaking its image to place it into a glamour universe, reserved to the wealthy, the fashion victims, and French [[Boho chic]].”<ref>Source: L’Express magazine, Article of January 17, 2008, page 75, “Fauchon, L’épicier chic et choc’, by Corinne Scemama</ref>

In 2005, [[Elaine Sciolino]], the [[United States|American]] journalist who was the [[Paris]] bureau chief of [[The New York Times]] from 2002 to 2008, writes a detailed article on Fauchon at the time of the retreat: “Fauchon’s Food Empire Cedes Territory to a Rival”<ref>Source: The New York Times, Article of May 20, 2005, by Elaine Sciolino, “Fauchon’s Food Empire Cedes Territory to a Rival”</ref> “Of all the luxury food emporiums of [[Paris]], none is better known than Fauchon. Founded in 1886 at the [[Place de la Madeleine]] by a pushcart grocer named Auguste Félix Fauchon, the company has built its reputation on signature products like its champagne mustard, marrons glacés and strawberry and rose water preserves. Tiny pink Fauchon purses serve as boxes for two Fauchon chocolates. About 120 teas, 50 vinegars, 131 jams, 30 forms of foie gras and 50 honeys are offered by Fauchon. But hélas, Fauchon is in trouble. Michel Ducros, its president and chief, announced earlier this week that he was selling 9 of Fauchon's 12 satellite shops in [[Paris]] to the rival gourmet food chain Lenôtre. The sale price is being kept confidential. A 10th store is being sold to another buyer; the two other stores in [[Paris]] were sold last year. "You won the battle of Paris," Mr. Ducros told Patrick Scicard, the president of Lenôtre, at a news conference in the tearoom of Fauchon's flagship Place de la Madeleine shop. "And we will reorganize ourselves as a result." The article goes on: “On a trip to Paris, just a few weeks ago, I noticed Fauchon was empty, while the department stores were booming.”<ref>Source: Ibid</ref>

“Fauchon is not going out of business, despite some reports last year that it was skirting bankruptcy. It will keep its restaurant, renovate its flagship store and focus more energy on developing its overseas markets, including its 10 stores outside France (among them its [[Park Avenue (Manhattan)|Park Avenue]] store in Midtown [[Manhattan]])”, writes [[Elaine Sciolino]].<ref>Source: Ibid</ref>

Yet, little did she know, in a continued retrenching strategy, Ducros went on to close the remaining store that Fauchon had opened in fanfare in 2000 in [[New York]], while cashing out $4 million on its [[Park Avenue (Manhattan)|Park Avenue]] lease. (See article in the New York Times: “Demolition Plans Pit Developer Against Chocolatier”<ref>Source: The New York Times, [http://www.nytimes.com/2006/04/23/nyregion/23chocolate.html Article of April 23, 2006, “Demolition Plans Pit Developer Against Chocolatier”], Page seen on October 11, 2009</ref>).

In total, the Ducros management eliminated over 700 jobs at Fauchon. It went from 900 employees in 2004 to 200 employees in 2009.

=====New Developments =====
[[File:Paris Fauchon Christmas.jpg|thumb|The Paris location of Fauchon dressed up for Christmas, 2004]]
In spite of the 5 years of recurrent losses under his management ($84 million cumulative losses) and in large part due to the wealth bought about by the sale of his father’s spice business sold for 240 millions Euros ($360 million) in 1992,<ref>Source: Le Point magazine, Issue #1665, Article published on January 17, 2007, “En 1992, le groupe Ducros et Fils est numéro un des épices en Europe, et la famille ne résiste pas à l'offre de rachat mirifique (1,6 milliard de francs - soit pratiquement le chiffre d'affaires) que lui fait l'italien Ferruzzi avant sa retentissante faillite.”</ref> Michel Ducros bought out most of the other shareholders, private and institutional. This includes his buy out of [[Barclays Private Equity]] France in 2005. Then more recently, he smartly takes advantage of the extremely difficult situation that Compagnie du Bois Sauvage finds itself embroiled into, to buy them out as well. Compagnie du Bois Sauvage and its [[CEO]], Vincent Doumier are being investigated for [[insider trading]] on the sale of their respective shares of [[Fortis Bank]].<ref>Source: Website www.mediargus.be [http://www.mediargus.be/flanderstoday.admin.en/rss/23189878.html?via=rss&language=en Holding Bois Sauvage involved in insider trading: Fortis executives alleged to have tipped Brussels holding company] Page seen on October 17, 2009</ref> “Brussels holding company Bois Sauvage threw 3.6 million Fortis shares onto the market on October 3, 2008, just before the bank's second bail-out. During the following weekend, the Belgian government concluded a deal with [[BNP Paribas]] on the sale of Fortis. Judicial authorities in the capital say that they now have indications that the holding company ditched its Fortis shares on that day with prior knowledge.”<ref>Source: Ibid</ref> See the online article in the [[Wall Street Journal]] as well<ref>Source: www.online.wsj.com, [http://online.wsj.com/article/BT-CO-20090911-702002.html Bois Sauvage CEO Detained Over Alleged Fortis Insider Trading], Page seen on October 17, 2009</ref><ref>Source: www.flanderstoday.eu [http://www.flanderstoday.eu/aggregator/sources/3?page=2 “Vincent Doumier, CEO of the Brussels holding Bois Sauvage, has been detained and has come under suspicion of insider trading of Fortis shares for the second time, on his own account.”]</ref><ref>Source: La Libre Belgique newspaper, Article of September 11, 2009, Page seen on October 11, 2009, [http://www.lalibre.be/economie/actualite/article/528069/holding-bois-sauvage-vincent-doumier-en-prison.html “Holding Bois Sauvage: Vincent Doumier en prison. Le patron du holding Bois Sauvage a été l'objet, jeudi, d'un mandat d'arrêt. Au menu : délit d'initié, faux et usage de faux. Dans le dossier Fortis.”]</ref>

Not only did he purchase the entire 36% Fauchon stake of Compagnie du Bois Sauvage, but Michel Ducros also bought out the shares held by Matignon Investissement & Gestion investment fund. As of now, he holds over 90% of the share capital of Fauchon.<ref>Source: Le Point magazine, Issue #1933, Article of October 8, 2009, “Michel Ducros est propriétaire de plus de 90 % de son affaire”</ref> “I invest on the long term as an entrepreneur”, says Michel Ducros. “To prove it, this year, Michel Ducros just purchased shares from minority investors tired of financing the deficits”, says the magazine [[Le Point]].<ref>Source: Le Point magazine, Issue #1933, Article of October 8, 2009, “Fauchon version fashion”, “Michel Ducros vient encore de racheter cette année les parts d'actionnaires minoritaires lassés d'essuyer des deficits”</ref> “An act of faith” says the boss; “I am very confident” answers Pierre Besnaïnou, the former founder of Liberty Surf and still a minority shareholder of Fauchon <ref>Source: Ibid</ref>

New development on Wednesday, January 30, 2013: “Michel Ducros, was indicted recently”
“The boss of luxury goods shops Fauchon, Michel Ducros, was indicted recently in Marseille (Bouches-du-Rhone) for "influence peddling", confirming a report in the daily La Provence. According to the daily, the heir of spices Ducros is suspected of having bribed 500,000 euros ($670,000) in 2010 as part of a housing project and a retirement home in the town of La Ciotat. This close to Alexandre Guerin, brother of President PS General Council of Bouches-du-Rhone Jean-Noel Guerini, but also Bernard Barresi, figure presumed crime Marseille, is said to have received money in cash in Switzerland, where Mr. Ducros is.”<ref>Source: Cielj.net on Wednesday, January 30th, 2013, “Marseille boss Fauchon indicted in one aspect of the case Guerin” [http://www.cielj.net/marseille-boss-fauchon-indicted-in-one-aspect-of-the-case-guerin/]</ref>

“Michel Ducros recognized the facts. The heir of the famous brand of spices is indicted by judge Duchaine to have made a cash bribe of 500,000 € ($670,000) to Patrick Boudemaghe. While being incarcerated and in front of the judge, Michel Ducros recognized the facts.”<ref>Source: La Provence, January 30, 2013, “Affaire Guérini : le patron de Fauchon mis en examen” [http://www.laprovence.com/article/actualites/affaire-guerini-le-patron-de-fauchon-mis-en-examen]</ref>

===== New Horizons =====
[[Morocco]], [[Switzerland]], and [[China]] are the new territories targeted by Fauchon. Michel Ducros just announced the soon-to-be-opened Fauchon store in [[Casablanca]];<ref>Source: Fauchon official website</ref> and the opening of a Fauchon store in [[Geneva]] where Fauchon had already opened a store under the Prémat management that had been closed a few years after it opened, due to mounting losses. China is also targeted as a very promising development with the announcement, in October 2007, of 13 stores<ref>Source: Le Figaro newspaper, Article of October 14, 2007, “Fauchon veut ouvrir treize magasins en Chine”</ref> to be opened by the Chinese company, [[Beijing Hualian Group]], a leading chain of supermarkets, on the model of the large store it opened in a mall in [[Beijing]] near the [[Olympic Stadium]]. Two years later, two of the three floors of the [[Beijing]] store have already been closed, explains [[Les Échos (France)|Les Echos]] in a severe article of October 29, 2009.<ref>Source: Les Echos newspaper, issue #20541 of October 29, 2009, page 19, [http://www.lesechos.fr/info/conso/020194301649-fauchon-revoit-ses-plans-apres-des-deconvenues.htm “Fauchon revoit ses plans après des déconvenues” (“Fauchon must reassess its plans after its failures”)]</ref> “Fauchon must reassess its plans after its failures to balance its books due to its local losses”. Adds Isabelle Capron, Chief Operating Officer of Fauchon: “[[China]] may be the future [[Japan]], but not for right now”<ref>Source: Les Echos newspaper, issue #20541 of October 29, 2009, ibid, “la Chine est sûrement le futur Japon, mais ce n'est pas pour tout de suite” (“[[China]] may be the future [[Japan]], but not for right now”)</ref>

To help in the development of the new Fauchon projects, Michel Ducros created a new company, Fauchon Trading S.A.,<ref>Source: Mémorial, Journal Officiel du Grand-Duché du Luxembourg, [http://www.etat.lu/memorial/memorial/2009/C/Pdf/c1620218.pdf C — N° 1620 of August 21, 2009], Page seen on October 11, 2009, and [http://www.etat.lu/memorial/memorial/2007/C/Pdf/c253708B.pdf C — N° 2537 of November 8, 2007], Page seen on October 8, 2009</ref> an anonymous company (“société anonyme”), based in Luxembourg like most of the other companies of his group, generally Luxembourg-based (like Jazz S. à. r. l.,<ref>Source: Mémorial, Journal Officiel du Grand-Duché du Luxembourg, [http://www.etat.lu/memorial/memorial/2003/C/Pdf/c0834138.pdf C — N° 834 of August 13, 2003], Page seen on October 11, 2009</ref> Stratinvest S.A.,<ref>Source: Mémorial, Journal Officiel du Grand-Duché du Luxembourg, [http://www.etat.lu/memorial/memorial/2002/C/Pdf/c169727B.pdf C — N° 1697 of November 27, 2002], Page seen on October 11, 2009</ref> Drum S.A.,<ref>Source: Mémorial, Journal Officiel du Grand-Duché du Luxembourg, [http://www.etat.lu/memorial/memorial/2003/C/Pdf/c0834138.pdf C — N° 834 of August 13, 2003], Page seen on October 11, 2009</ref> Eucelia Investments S.A.,<ref>Source: Mémorial, Journal Officiel du Grand-Duché du Luxembourg, [http://www.etat.lu/memorial/memorial/2005/C/Pdf/c120815B.pdf C — N° 1208 of November 15, 2008], Page seen on October 11, 2009</ref> Gedena Société Anonyme,<ref>Source: Mémorial, Journal Officiel du Grand-Duché du Luxembourg, [http://www.etat.lu/memorial/memorial/2003/C/Pdf/c0968199.pdf C — N° 968 of September 19, 2003], Page seen on October 11, 2009</ref> Luxembourgeoise de Financement S.A.,<ref>Source: Mémorial, Journal Officiel du Grand-Duché du Luxembourg, [http://www.etat.lu/memorial/memorial/2001/C/Pdf/c0561247.pdf C — N° 561 of July 24, 2001], Page seen on October 11, 2009</ref> Physiocée International S.A.,<ref>Source: Mémorial, Journal Officiel du Grand-Duché du Luxembourg, [http://www.etat.lu/memorial/memorial/2002/C/Pdf/c145208A.pdf C — N° 1452 of October 8, 2002], Page seen on October 11, 2009 and [http://www.etat.lu/memorial/memorial/2001/C/Pdf/c100614B.pdf C — N° 1006 on November 14, 2001], Page seen on October 11, 2009</ref> GENSAT S.A.,<ref>Source: Mémorial, Journal Officiel du Grand-Duché du Luxembourg, [http://www.etat.lu/memorial/memorial/2004/C/Pdf/c0670306.pdf C — N° 670 of June 30, 2004], Page seen on October 11, 2009 and [http://www.etat.lu/memorial/memorial/2002/C/Pdf/c0675025.pdf C — N° 675 of May 2, 2002], Page seen on October 11, 2009</ref> J.H.F. Holding S.A.<ref>Source: Mémorial, Journal Officiel du Grand-Duché du Luxembourg, [http://www.etat.lu/memorial/memorial/1997/C/Pdf/c0922602.pdf C — N° 99 of February 26, 1997], Page 4400, Page seen on October 11, 2009</ref> AB INTERNATIONAL S.A.,<ref>Source: [http://www.etat.lu/memorial/memorial/1999/C/Pdf/c100929C.pdf Mémorial, Journal Officiel du Grand-Duché du Luxembourg, C — N° 1009 of December 29, 1999], Page seen on October 21, 2009 and [http://www.etat.lu/memorial/memorial/2004/C/Pdf/c102213A.pdf Mémorial, Journal Officiel du Grand-Duché du Luxembourg, C — N° 1022 October 13, 2004], Page 49053, Page seen on October 21, 2009</ref> CAPOFFICE Société Anonyme,<ref>Source : [http://www.etat.lu/memorial/memorial/2001/C/Pdf/c084003A.pdf Mémorial, Journal Officiel du Grand-Duché du Luxembourg, C — N° 840 of October 3, 2001], Pages 40279-40282, Pages seen on October 21, 2009</ref> AGRINVEST EUROPE S.A., a company in which Compagnie du Bois Sauvage is a shareholder as well<ref>Source: [http://www.etat.lu/memorial/memorial/2004/C/Pdf/c0822118.pdf Mémorial, Journal Officiel du Grand-Duché du Luxembourg (Official Journal of the Luxembourg government), issue C — N° 822, August 11, 2004, pages 39430 to 39432], pages seen on November 14, 2009</ref>) or sometimes based in other tax heavens, like for instance the [[British Virgin Islands]].<ref>Source: Source: Mémorial, Journal Officiel du Grand-Duché du Luxembourg, [http://www.etat.lu/memorial/memorial/2003/C/Pdf/c0082281.pdf C — N° 82 du January 28, 2003], Page 3897, Page seen on October 11, 2009</ref> Michel Ducros is also the majority shareholder of a French lighting fixture retailer, Laurie Lumière, and of two Campanile hotels in [[Brussels]] and [[Luxembourg]]<ref>Source: Le Figaro Entreprises magazine, Article of January 19, 2004, “Michel Ducros : Des épices, des yacht et Fauchon” (Michel Ducros: Spices, yachts, and Fauchon)</ref>

Adding to the financial difficulties of the current crisis that hit luxury retailers very hard, and Fauchon in particular, a crisis of confidence appeared as well: The main supplier of Fauchon, the tea importing company, Dammann Frères, decided to develop its own brand of [[tea]] and now to open its own stores under the Dammann brand name. As written up in details by the French magazine [[Marie Claire]], Dammann Frères, “the most prestigious brand of French [[tea]] in a historical site”, launched its first Dammann [[tea]] store close to Fauchon’s competitor [[Mariage Frères]], on [[Place des Vosges]], in the [[4th arrondissement of Paris]].<ref>Source: Marie Claire Maison magazine, [http://www.marieclairemaison.com/,dammann-freres,200316,24328.asp “Dammann Frères : La plus prestigieuse marque de thés français dans un cadre historique], Page seen on October 8, 2009</ref> While presenting a product that is strictly identical to that of Fauchon, Dammann sells it tea at half the price as Fauchon on [[Place de la Madeleine]]. “Damman Frères is a family business that for three generations makes exceptional tea. Today, this house of tea offers itself to the public by opening on [[Place des Vosges]] its first store in a historic [[backdrop]], the old house of the [[Académie des Beaux-Arts]] that became a museum, then a historic [[landmark]] library”, says [[Marie Claire]] Maison <ref>Source: Ibid, “Damman Frères, c'est une entreprise familiale qui depuis trois générations excelle dans la fabrication de thé exceptionnel. Aujourd'hui l'excellence de cette maison s'offre au public, en ouvrant sur la place des Vosges sa première boutique dans un cadre historique (anciennement maison des Beaux-Arts appliqués, puis musée et enfin bibliothèque classée monument historique)</ref>

As a return to the errors of the years 1980-1990 described by the writer Jean-Michel Salvator,<ref>Source: Le Journal du Dimanche newspaper, February 8, 1998, “Fauchon veut retrouver son lustre d’antan” by Jean-Michel Salvator</ref> Michel Ducros in 2009, reintroduces the Fauchon brand at [[mass-market]] [[retailers]] like [[Carrefour]], 15 years after the fiasco orchestrated by the Prémats. [[Le Figaro]] newspaper explains: “A section reserved to the Fauchon products will be set up in the [[Carrefour]] store at Porte d'Auteuil, in Paris.”<ref>Source: Le Figaro newspaper, [http://www.lefigaro.fr/societes/2009/05/12/04015-20090512ARTFIG00312-carrefour-teste-des-hypermarches-sur-mesure-pour-ses-clients-.php Article of May 12, 2009, “Carrefour teste des hypermarchés sur mesure pour ses clients; Un espace réservé aux produits signés Fauchon va être aménagé dans le magasin Carrefour de la porte d'Auteuil, à Paris”]</ref>

At the end of the 1990s Fauchon had embraced distribution at [[mass-market]] retailers and had multiplied its selling outlets. “The increase in volumes diluted the brand’s value”, recognizes Michel Ducros in the recent article in L’Express magazine<ref>Source: L’Express magazine, Article by Corinne Scemama on January 17, 2008, page 75 “Fauchon, L’épicier chic et choc”; “L'augmentation des volumes a dilué la valeur de la marque, reconnaît Michel Ducros”</ref>

The Fauchon brand dilution follows the drastic strategy organized by Michel Ducros in every segment of retailing and distribution. A strategy that cost him personally some 25 million Euros ($38 million)<ref>Source: Le Point magazine, Issue #1933, Article of October 8, 2009, “Fauchon version fashion”; “Une promotion qui lui a coûté la bagatelle de 25 millions d’Euros”</ref> Lately, to redeploy the Fauchon of the 21st century all over the planet, Michel Ducros puts the final touch on his secret new pet project code-named “F 50”. “There could be 100 of these new stores in airports, 100 in [[China]], 20 in [[Korea]], 50 in [[France]]…. It may sound like [[euphoria]] to say that but I believe in it” says Ducros<ref>Source: Ibid, Le Point magazine, “Il pourrait y avoir 100 de ces nouveaux points de vente dans les aéroports, 100 en Chine, 20 en Corée, 50 en France... Cela peut paraître euphorique de dire cela, mais j'y crois”, confie Ducros</ref>

One must admit that after he has repainted the town in pink and bought out all the other shareholders, Ducros seems to be wearing pink glasses. “Few people internally will argue against his new bet: Michel Ducros is now the owner of over 90% of the business. But [[La Vie en Rose]] (Life in Pink), will have to be measured by the number of happy customers leaning on the windows.” So concludes the writer Domitille Arrivet in her full length article on Fauchon in Le Point magazine on October 8, 2009.<ref>Source: Ibid, “Peu de gens contesteront ce nouveau pari : Michel Ducros est propriétaire de plus de 90 % de son affaire. Mais la vie en rose, c'est au nombre de mines réjouies penchées sur les vitrines qu'elle se mesurera.” Article by Domitille Arrivet in [[Le Point]] magazine on October 8, 2009</ref>


== Fauchon in Figures==
== Fauchon in Figures==
On the verge of bankruptcy in 2004 (with losses of €30 million),<ref>http://m.lesechos.fr/redirect_article.php?id=0203123626811</ref> Fauchon made its way back to a smaller loss in 2009, and in 2013 posted an operating profit of €900,000 on sales of €50 million <ref>http://fr.reuters.com/article/frEuroRpt/idFRL5N0HE1HG20130918</ref>
On the verge of bankruptcy in 2004 (with losses of €30 million),<ref>http://m.lesechos.fr/redirect_article.php?id=0203123626811</ref> Fauchon made its way back to a smaller loss in 2009, and in 2013 posted an operating profit of €900,000 on sales of €50 million <ref>http://fr.reuters.com/article/frEuroRpt/idFRL5N0HE1HG20130918</ref>
The company however, has not yet returned a net profit since 2004 under the management of Michel Ducros. It was profitable in 2001, when it was run by Laurent Adamowicz.

From 1998 to 2003, the number of franchised Fauchon stores went from 450 to 650, the number of company-owned stores from 1 to 16 of which 3 in [[New York]] and 13 in [[Paris]] after the purchase by Fauchon of the Parisian stores of Groupe Flo<ref>Source: Le Figaro newspaper, Article of March 20, 2003, “Laurent Adamowicz redéploie Fauchon”</ref><ref>Source: Le Parisien newspaper, Article of October 1, 2003, ‘Fauchon s’installe chez Flo et mise sur la proximité”</ref> The number of licenses grew from 2 to 16 from 1998 to 2003, generating royalties that grew from 1.5 to 3 million Euros ($4.5 million) during the same period. In 2003, Fauchon had total sales of 90 million ($135 million) of which 30% export revenues for a profit of 5 million Euros ($7.5 million). (See the Article “Fauchon en Chiffres” – Fauchon in Figures – i.e. business newspaper [[La Tribune]])<ref>Source: La Tribune newspaper, Article of October 1, 2003, “Fauchon devient une enseigne de proximité ; Fauchon en chiffres”</ref>

“Fauchon finds the taste of profit”, says the Management magazine in 2003. “Laurent Adamowicz has succeeded. In 5 years, this ex-golden boy ([[Paribas]] and [[Rothschild]]) who does not hesitate to play salesman in his stores, was able to transform Fauchon. The venerable epicerie of luxury products he purchased in 1998 – that was nearly bankrupt – finally became a profitable company with 90 million Euros ($135 million) in sales and 5 million ($7.5 million) in EBIT for 2002. His last venture paid off too. The 12 Flo Prestige stores he bought from the restaurant group for 40 million Euros ($60 million) allowed to drive younger clients to the Fauchon brand while keeping the old-time regulars.<ref>Source: Management magazine, Article of December 2003, “Fauchon retrouve le goût des benefices; Laurent Adamowicz a réussi son pari. En cinq ans, cet ex-golden boy (Paribas et Rothschild), qui n’hésite pas à aller jouer les vendeurs dans ses magasins, a su transformer Fauchon. La vénérable épicerie de luxe qu’il a rachetée en 1998 – elle était alors fortement déficitaire – est enfin devenue une affaire rentable : 90 millions d’Euros de chiffre d’affaires pour un résultat d’exploitation de 5 millions en 2002. Et son dernier coup d’éclat a payé. Les douze magasins du traiteur Flo Prestige, repris il y a un an pour 40 millions d’Euros au groupe de restauration en difficulté, lui ont permis de rajeunir sa clientèle tout en conservant son public d’origine.</ref>


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Revision as of 15:22, 17 December 2013

Fauchon is an international gourmet food company, which sells a wide range of own-brand products including delicatessen, cakes and pastry, breads, confectionery. It also has a catering, reception and restaurant business. Fauchon is considered as a major reference in contemporary French gourmet foods.[1] Founded in 1886 in Paris, Fauchon employs 230 people (2013), operates 60 retail outlets and posts sales of €247 million (including sales by franchises), up by 45% over the past year, 80% of which on international markets.[2]

History

The origins

The founder of the Fauchon brand, Auguste Fauchon, was born in Calvados in 1856. He moved to Paris in 1880, where he began to work as a street vendor, moving on to become a wine and spirits merchant. In 1886, at the age of 30, he opened a fine foods outlet on Place de la Madeleine in central Paris's 8th arrondissement. This first shop still exists, and was totally renovated in 2005 [3] and again in 2007 by designer Christian Biecher.[4]

The quality of the products made by Fauchon and its numerous approved suppliers [5] quickly made it well-known internationally,[6] and it came to symbolize French-style luxury. In 1968, French radicals chose to raid Fauchon and distribute foie gras to the poor, according to Matt Miller in the Daily Deal [7] During the Second World War, restrictions and rationing made business difficult for the company. Auguste Fauchon died in 1945 and his children sold the company to the owners of Poulain chocolate (1952) [8]

From 1952 to the present day

From 1952 to 2003: opening up to new markets

In 1952, Joseph Pilosoff, the former owner of Chocolat Poulain, “Ciseaux d’argent” in Saint-Cloud and “Aux 100000 chemises” in Paris, took over Fauchon and built up a partnership with Air France. He also expanded the name abroad, opening new Fauchon outlets including in Japan in a Takashimaya department store in 1972. When Joseph Pilosoff died in 1981, his daughter took over at the head of the company. However, she too died soon thereafter, in December 1985, in a fire on the company premises. Her daughter Martine, then 33, and her husband, Philippe Prémat, became the owners of Fauchon.[9][10] Martine Prémat's management proved difficult. Turnover had been flat since the beginning of the decade at around 250 million French francs (some €38 million), with losses of FF5 million in 1991, FF4.7 million in 1993 and FF11.9 million in 1996, and debt standing at FF73 million (€11 million) and a negative net equity of FF4.9 million.[11] The company strategy to sell its products in mass-market superstore chains such as Carrefour and Auchan,[12] was sharply criticized, and the management was reproached with running the risk of spoiling the company image, making it commonplace.[13] Martine and Philippe Prémat were also criticized for making management errors, and building a yacht, “Le Fauchon”, on which they intended to promote French gastronomy6, and then making a FF12 million loss (€1.8 million) [14] when they sold it. Despite attempts to expand the group in the 1990s by opening shops in Geneva and Saudi Arabia – only to close them a few years later – or by sponsoring the Paris Dakar rally, Martine Prémat finally sold the company to Laurent Adamowicz for FF240 million (€36.6 million) [15] in March 1998,.[16][17] The sale price included the freehold of the buildings on Place de la Madeleine, sold the following year to the real estate group OGIC, headed by Jean Diaz.[18] Laurent Adamowicz positioned the brand on the gourmet foods market. He launched new products[19] and ad campaigns, renovated points of sale, and withdrew the brand from mass-market outlets. He maintained the partnership with Air France, and brought two leading pastry chefs, Sébastien Godard and Christophe Adam, on board when Pierre Hermé left. Fauchon opened in the United States, spending FF60 million (€9.2 million) in five years,[20] but also expanded in Japan, South Korea, Taiwan, the Middle East and Europe.[21][22][23] In France, the acquisition of Flo Presige for €39 million increased the number of outlets in Paris by 12 stores [24] In 2003, the Fauchon network included 650 franchises, 16 of its own shops, of which three were in New York and 13 in Paris with the takeover of the Flo Group's delicatessens [25][26]

From 2003 to the present day: new developments

During the summer of 2003, Fauchon went into serious debt to convert the Flo Traiteur delicatessens in Paris to Fauchon colors. Times were hard, whether from an economic, financial or real estate viewpoint. Six months later, in January 2004, Laurent Adamowicz left his CEO's office to Michel Ducros [27], when he sold his 51% stake in the capital to La Compagnie du Bois sauvage (CBS) [28], the Swiss group Gonset Holding S.A [29], and Universal Capital Partners, headed by Pierre Besnainou [30]

From 2005 onward, Michel Ducros bought out most of the private and corporate shareholders: in 2005, he acquired all of the shares held by the Barclays Group, in 2009 the 36% stake owned by La Compagnie du Bois sauvage, then the stake held by Matignon Investissement & Gestion [31], and lastly the minority shareholdings [32]. At that point, Michel Ducros held 95% of Fauchon's capital [33]. “I am an entrepreneur, I invest in the long term,” he explained. In February 2013 – ten years after Michel Ducros took over at the helm – Éric Vincent was appointed CEO, with a remit to develop the company on international markets [34].

Selling off loss-making assets

The acquisition of the Flo outlets in Paris in 2002 and the opening of three shops in New York led to a very sharp rise in income between 1998 and 2004, but a decline in Fauchon's net profits [35].

From 2004 onward, the new shareholders adopted a strategy that aimed to boost profits by selling off those assets they deemed to be non-strategic, closing stores in Russia and the United States [36] [37] [38] ; selling their ready-prepared meal tray business to the Fleury Michon group [39]; and finally transferring the Fauchon Paris stores to the company's rival Lenôtre [40] [41]

Within the space of six years, Fauchon cut back its workforce from 700 to 200 people [42]

International development

Despite the lack of success in the United States and China [43] Fauchon had some 60 stores and restaurants around the world in 2013, and international sales represented 80% of the group's business [44] Fauchon is now aiming to have 100 outlets by 2017, most of which will be franchises, its chosen modus operandi. Only five stores carry the company name [45]

Brand redeployment

Michel Ducros revised Fauchon strategy with all its suppliers in all product categories, as the Paris-based purveyor of gourmet foods no longer wants to be a general store, but a multi-specialist. Fauchon has developed a product strategy, which entails setting up specific partnerships with its suppliers and sub-contractors [46] and developing and making Fauchon products to strict specifications and Fauchon recipes. Fauchon continues to produce most of its own breads, cakes, pastries and delicatessen products on its premises (in the Paris suburb of Courbevoie for cakes and pastries). Events, such as Eclair Week, are organized around the world regularly, to promote the brand's culinary know-how. [47]

Fauchon in Figures

On the verge of bankruptcy in 2004 (with losses of €30 million),[48] Fauchon made its way back to a smaller loss in 2009, and in 2013 posted an operating profit of €900,000 on sales of €50 million [49]

Financial data in million euros[50] · [51] · [52] · [53]
Years 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Income 39.1 41.4 38.7 54.0 84.2 70.7 43.8 36.0 35.6 36.6 44.3 45.5 46.2
Operating profits 1.5 1.5 −3.1 −3.4 −10.2 −10.7 −5.8 −1.1 −1.1 −0.2 −0.1 −0.3 0.1
Net profitor loss 0.1 1.3 −1.4 −4.5 −33.5 −15.9 −5.8 −0.8 −5.4 −1.0 −1.0 −1.0 −0.5
CEO Laurent Adamowicz Laurent Adamowicz Laurent Adamowicz Laurent Adamowicz Michel Ducros (**) Michel Ducros Michel Ducros Michel Ducros Michel Ducros Michel Ducros Michel Ducros Michel Ducros Michel Ducros

(**)Closing of the books in 2004 was under the sole responsibility of Michel Ducros

Competition

Main competitors of Fauchon on the worldwide gourmet and luxury food products scene include Harrods and Fortnum & Mason in London and Mariage Frères, Le Palais des Thés, Dammann Frères, Kusmi Tea, Lenôtre, Pavillon Ledoyen, and Hédiard in Paris.

In Thomas Harris's book Hannibal (1999), the infamous fictional serial killer Hannibal Lecter, while on a flight from Europe to America, waits until everyone is asleep before producing a Fauchon food parcel of aromatic truffled pate de foie gras and Anatolian figs, as well as a half bottle of St Estephe which Harris says he favours.

In Cast Away, the 2000 movie directed by Robert Zemeckis, Chuck Noland, the FedEx executive (starring Tom Hanks) hands his colleagues before they board the plane, a Fauchon bag containing fresh baguette bread from Paris. The distinctive Fauchon logo of the bag stands out. Later in the movie, one wishes he had kept the bag.

References

  1. ^ Source: Le Nouvel Économiste "Fauchon, Hédiard : une histoire de goût”, 22 September 2011 [1]
  2. ^ "Fauchon veut doubler de taille en cinq ans" [2], Capital, 18 September 2013
  3. ^ http://www.prodimarques.com/documents/gratuit/53/fauchon-retour-berceau-nouveau-depart.php
  4. ^ http://retaildesignblog.net/2011/07/17/fauchon-food-shop-by-christian-biecher-paris/
  5. ^ http://www.temps-libre.info/article675.html
  6. ^ Source: Le Journal du dimanche, 8 February 1998, “Fauchon veut retrouver son lustre d’antan” by Jean-Michel Salvator
  7. ^ Source: The Daily Deal, 21 May 2002, by Matt Miller “Pass the foie gras”
  8. ^ Les Échos, 28 August 2006: Fauchon célèbre 120 ans de gourmandise. http://www.lesechos.fr/28/08/2006/LesEchos/19738-46-ECH_fauchon-celebre-120-ans-de-gourmandise.htm
  9. ^ Source: Le Figaro, no. 16643, 16 February 1998, interview with Martine Prémat
  10. ^ Source: “Martine PRÉMAT a démocratisé le luxe”, page visited on 8 October 2009 Source: “Martine PRÉMAT a démocratisé le luxe”, page visited on 8 October 2009 http://archive.wikiwix.com/cache/?url=http://www.annuaire-au-feminin.net/bioPREMATmartine.html&title=Page%20vue%20le%208%20octobre%202009
  11. ^ Source: Capital, May 1997, pages 54-55, by Eddy Murano, “Succès et Dérapages - Fauchon, un épicier fauché
  12. ^ Source: Capital, May 1997, pages 54-55, by Eddy Murano, “Succès et Dérapages - Fauchon, un épicier fauché”
  13. ^ Source: Gault Millau, no. 327, February–March 1998, pages 31-34, “Enquête : La vérité sur Fauchon”
  14. ^ Source: Capital, May 1997, pages 54-55, by Eddy Murano, “Succès et Dérapages - Fauchon, un épicier fauché”
  15. ^ Source: Capital, May 1997, pages 54-55, by Eddy Murano, “Succès et Dérapages - Fauchon, un épicier fauché”
  16. ^ Source: Le Figaro, 31 December 2005, “Fauchon, la Griffe gourmande”
  17. ^ Source: Europe 1 radio, Le Journal de l’Économie, 4 February 1998, 6:30 am, by Jean-Michel Salvator
  18. ^ Source: OGIC, promotion immobilière, page visited 11 October 2009
  19. ^ Source: Financial Times, 22–23 January 2000, by Holly Finn “Tea with Sympathy”
  20. ^ Les Échos, no. 17579, 5 February 1998, page 18, “Waldo veut développer Fauchon aux États-Unis” http://www.lesechos.fr/05/02/1998/LesEchos/17579-87-ECH_waldo-veut-developper-fauchon-aux-etats-unis-et-au-japon.htm
  21. ^ New York Times, Article by Florence Fabricant, 16 August 2000, “Fauchon Opens A Market in Midtown” http://www.nytimes.com/2000/08/16/dining/fauchon-opens-a-market-in-midtown.html
  22. ^ Les Échos, no. 17619, 2 April 1998, page 19, “Le nouveau PDG de Fauchon veut implanter l'entreprise aux États-Unis” http://www.lesechos.fr/02/04/1998/LesEchos/17619-69-ECH_le-nouveau-pdg-de-fauchon-veut-implanter-l-entreprise-aux-etats-unis.htm
  23. ^ La Tribune du 2 April 1998, page 11, “L’épicerie fine Fauchon veut conquérir le marché américain”
  24. ^ http://www.lhotellerie-restauration.fr/lhotellerie/articles/2841_02_octobre_2003/Les_enseignes_Flo_Prestige.html
  25. ^ Source: Le Figaro, 20 March 2003, “Laurent Adamowicz redéploie Fauchon
  26. ^ Source: Le Parisien, 1 October 2003, “Fauchon s’installe chez Flo et mise sur la proximité”
  27. ^ Source: Le Point, no. 1665, 17 January 2007, “Les nouvelles recettes de Michel Ducros”
  28. ^ Source: Sociétés en Portefeuille du Fonds Matignon Investissement & Gestion http://www.matinvest.com/content/view/117/45/lang,fr/
  29. ^ Source: NeoRestauration.com, 18 May 2005, page visited on 7 October 2009 http://www.neorestauration.com/
  30. ^ Source: Le Figaro, 2 March 2004, “Pierre Besnainou s’invite chez Fauchon”
  31. ^ Source: Le Point, no. 1933, 8 October 2009, “Michel Ducros est propriétaire de plus de 90 % de son affaire”
  32. ^ Source: Le Point, no. 1933, 8 October 2009, “Fauchon version fashion”
  33. ^ http://www.lesechos.fr/entreprises-secteurs/service-distribution/actu/0203013062478-fauchon-pousse-les-feux-a-l-international-606833.php
  34. ^ http://www.lesechos.fr/entreprises-secteurs/service-distribution/actu/0203013062478-fauchon-pousse-les-feux-a-l-international-606833.php
  35. ^ http://fr.reuters.com/article/frEuroRpt/idFRL5N0HE1HG20130918
  36. ^ Source: New York Times, 20 May 2005, by Elaine Sciolino, “Fauchon’s Food Empire Cedes Territory to a Rival”
  37. ^ Source: New York Times, [http://www.nytimes.com/2006/04/23/nyregion/23chocolate.html
  38. ^ Source: New York Times, 11 June 2004 [3], “New York: Manhattan: Fauchon Closing 2 Of 3 Stores”, page visited on 11 October 2009
  39. ^ Source: Les Échos, no. 19268, 19 October 2004, “Fleury-Michon acquiert les plateaux-repas de Fauchon” [4], page visited on 11 October 2009
  40. ^ Source: Le Figaro, 19 May 2005, “L’épicerie de luxe vend neuf boutiques à Lenôtre. Fauchon a perdu la bataille de Paris” [5], page visited on 8 October 2009 and official Lenôtre website
  41. ^ Source: L’Express, 9 August 2007, page 44-46, “Quand Ducros se jette à l’eau » [6], page visited on 9 October 2009
  42. ^ Source: L’Express, 17 January 2008, page 75 “Fauchon, L’épicier chic et choc”, by Corinne Scemama
  43. ^ Les Échos, no. 20541 29 October 2009, page 19, “Fauchon revoit ses plans après des déconvenues” [7]
  44. ^ http://www.lsa-conso.fr/fauchon-accelere-son-developpement-a-l-international,147551
  45. ^ http://www.lesechos.fr/entreprises-secteurs/service-distribution/actu/0203013062478-fauchon-pousse-les-feux-a-l-international-606833.php
  46. ^ L'Est-Éclair, 23 March 2010 page visited on 12 April 2010 [8]
  47. ^ http://www.lexpress.fr/styles/saveurs/l-eclair-week-electrise-fauchon-du-3-au-7-septembre_1277949.html
  48. ^ http://m.lesechos.fr/redirect_article.php?id=0203123626811
  49. ^ http://fr.reuters.com/article/frEuroRpt/idFRL5N0HE1HG20130918
  50. ^ Source : Rapports annuels de 2000 à 2008 inclus, de La Compagnie du Bois sauvage ; page vue le 10 octobre 2009.
  51. ^ Source : Rapport annuel 2005 de La Compagnie du Bois Sauvage, p. 31 ; vue le 10 octobre 2009.
  52. ^ Source : Rapport Annuel 2006 de La Compagnie du Bois sauvage, p. 33 ; vue le 10 octobre 2009.
  53. ^ Source : Rapport annuel 2007 de La Compagnie du Bois Sauvage, p. 34, vue le 10 octobre 2009.
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