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Business Case

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LDC Group socio-economic impact

  • 1/ Context

    LDC Group is a major player of the food industry in France. With 15,500 employees and more than 85% of its sales, France remains at the center of its strategy, both at production and sales levels. Beyond its direct impact in the French food chain, LDC contributes to the national economy through its expenditures, salaries and taxes. The group therefore wished to measure precisely its impacts and the reach of the flows it injects in the French economy, sector by sector, and with a focus on its historical setting, Sablé-sur-Sarthe.

    In order to assess the socio-economic contribution of its activities in France, LDC Group has worked with Utopies to quantify its direct, indirect and induced effects.

    By decrypting how its activity influences job and wealth creation all the way down to the economic grassroots level, LDC Group improves on the comprehension of its business model.

  • 2/ Mission

    The direct impact, indirect impact (resulting for LDC Group’s supply chain) and induced impact (resulting from households consumption and government expenditure) of LDC Group’s activity in France have been estimated by the LOCAL FOOTPRINT® tool, developed by Utopies, which is the first model in the world enabling an analysis of socio-economic impacts on a global scale.

    The mission consisted in :

    • understanding the flows injected directly by LDC Group in the French economy (through its expenditures, salaries, taxes, and value added)
    • measuring the economic impacts of these flows, in terms of sectors and regions using the LOCAL FOOTPRINT® tool 
    • breaking down the economic consequences by of impacts (direct, indirect, induced) and in terms of two key indicators : number of job sustained and the contribution to GDP produced
    • focusing on Sablé-sur-Sarthe a major production territory for the group
    • assisting LDC Groupe in the comprehension and appreciation of its French and local socio-economic footprint
  • 3/ Results

    The study gives a clear and complete picture by going beyond the direct impacts of LDC Group activities: the socio-economic footprint also includes the economic impacts of the group on its supply chain and on the local economy…

    As such, this study allowed to quantify the different impacts of LDC Group as follows:

    • LDC Group contributes to sustain 96,501 direct, indirect and induced jobs and to produce 5,147Bn€ of GDP. Hence, for one job directly created by LDC, 5.5jobs are sustained in the French territory. For one euro of added value created by LDC, 5 additional euros of GDP are produced in the French territory.
    • 4 departments concentrate 33% of the jobs sustained: Sarthe (13% of direct, indirect and induced jobs sustained by the group), Morbihan (9%), Vendée (6%) and Loire Atlantique (5%). These three first also concentrate 25% of the GDP produced by LDC Group activity, with 11% in Sarthe, 8% in Morbihan and 6% in Vendée.
    • The group expenditures in 2014 amount to 2,845M€ and the raw products form agriculture and hunting represent 63% of the group total expenditures. This sector also concentrate 30% of all jobs sustained, and 18% of GDP produced. The industry of food, drinks and tobacco and public and defense services are both following, concentrating respectively 18% and 5% of sustained jobs and 20% and 5% of GDP produced.

    As for the territory of Sablé-sur-Sarthe in particular :

    • LDC Group injects 45M€ on the territory in 2014 and employs 2,574 employees.
    • The group activity sustains 3,289 jobs directly, indirectly, and in an induced way and contributes to produce 183.3 million euros of GDP.