Picard is trying to reassure its customers that its frozen salmon products are safe to eat after a national TV program in France honed in on pesticide use in Norwegian salmon farming.
Originally aired on France 3 in late June, “Pièces à conviction” highlighted the use of the delousing agent diflubenzuron to control sea lice in Norwegian salmon farms.
“We guarantee that our fillets and steaks come from farms that do not use diflubenzuron to fight sea lice,” stated the high-end frozen-food retailer last week. Picard has “commercialized Norwegian salmon for more than 20 years, and we select the supply chains that share our values.”
The “Pièces à conviction” documentary caused quite a stir and swiftly sparked a dialogue between French Fisheries Minister Bruno Le Maire and his Norwegian counterpart, Lisbeth Berg-Hansen. According to the minister’s office, as soon as Bruno Le Maire found out about the documentary he contacted Berg-Hansen asking for guarantees about her country’s salmon production.
In turn, Berg-Hansen replied: “You can reassure French consumers as far as the quality and innocuousness of seafood products from Norway.”
The controversy over the use of diflubenzuron comes as Picard is about to enter the portfolio of private equity fund Lion Capital. The company recently announced that it has entered into exclusive negotiations with Picard’s current owner, private equity fund BC Partners, to acquire the 820-store chain. Lion Capital expects the deal to be completed in the fourth quarter of 2010.
The retailer — which carries an array of specialized frozen seafood products, including ready-to-serve whole salmon stuffed with scallops and herbs — generated revenues of EUR 1.5 billion last year.
While a tough economic climate in recent years has slowed private equity deals across all sectors, activity in the food sector seems to be picking up as investment funds turn to relatively recession-resilient and cash-flow rich food firms. For example, Birds Eye Iglo bought Findus Italy from Unilever for EUR 805 million last month.
