“The Bernard Hayot Group and the Cost of Living: A National Assembly Inquiry”

2023-05-17 20:08:15

The Bernard Hayot group (GBH), one of the most powerful in Overseas France, was heard on Wednesday May 17 by the National Assembly’s commission of inquiry into the cost of living in overseas territories. Managing Director Stéphane Hayot has refuted any monopoly and suspicions of excessive margins made in food distribution.

It was one of the hearings expected as part of the commission of inquiry into the cost of living in Overseas France: that of the representatives of the Bernard Hayot group. As its managing director Stéphane Hayot reminded us in his introductory remarks, this company created in 1960 in Martinique is present today in 17 territories, including Guyana, Guadeloupe and Reunion.

Above all, it covers several activities including the automobile, the production of rums and yoghurts, or even concrete. But it is above all the food sector that interested the overseas deputies this Wednesday. The latter questioned Stéphane Hayot on several occasions regarding the dominant position that the GBH group occupies in mass distribution.

This is particularly the case of the Reunion MP Karine Lebon. This quoted the report entitled Bolonyocte from the Observatory of Prices, Margins and Revenues “who denounced the creation of a Carrefour duopoly [géré par GBH sur l’île, NDLR] – Leclerc with potentially devastating effects in Reunion“.

“According to the Observatory of prices, margins and income, we are in the presence of a worrying weakening of local suppliers and an impoverishment of the diversity of the offer which is carried out to the detriment of consumers.“, she points a finger before asking Stéphane Hayot: “Your situation in fine does it not participate in the expensive life given the virtual absence of competition? And if, in your opinion, this is not the case, can you tell us how prices and margins are set?“

To her as to all the other deputies, GBH’s response is the same: the group is not in a dominant position, let alone a monopoly because “competition in Overseas France is very intense“, and if the customers are not satisfied, they go shopping elsewhere.

However, he acknowledges being the leader in Reunion with 26.8% market share, but claims to have a lower share than Casino in 2009, and to be closely followed today by Leclerc and Système U. In Guadeloupe, he advances the figure 12.6% market share which would make the Hayot group today the 4^e distribution player in the archipelago. In Guyana, the group would be 3^e with 19.7% market share. In Martinique, it would be 1^is with 25% market share.

The general manager therefore ensures that he fights to survive and develop in this competitive landscape by offering the most competitive prices possible. And when the Martinican deputy and rapporteur Johnny Hajjar said to him “what we need to know is the level of the different margins“, the director does not give any figures but highlights the investigations of the competition authority in 2009 and 2019.”I think that if there had been malfunctions, excessive margins, there would have been sanctions. There were none“, he asserts.

“The conclusions of these surveys all show that the price differences with mainland France do not come from bad corporate behavior but from structural constraints, the main ones being the size of the markets. […] and the geographical remoteness of our sources of supply“, insists Stéphane Hayot.

Christophe Bermont, director of GBH stores, also interviewed, gives the example of a container of pasta from France to Martinique. Between the maritime transport which weighs 5,000 euros, the dues of 9.5% on the island, the costs of central purchasing and platform, “you end up with a container of pasta that hits the ground in Martinique 46% more expensive than its starting price“, he assures, even before a wholesaler or a distributor takes a margin.

Figures difficult to verify since the group does not communicate its accounts. Reunion MP Philippe Naillet also recalled this point, citing a September 2022 report from the Observatory of Prices, Margins and Revenues. This indicated that the Hayot group was the only one to have refused “communicate the accounting results of [ces] distribution activities on Reunion Island“.

“Wouldn’t it be better to play the transparency knowing that the maintained opacity implies that you have things to hide?“, asks the chosen one.

To this question, Stéphane Hayot replies that “more than 50% of companies nationwide do not publish their accounts“. “The only reason is that they are trying to protect themselves, not to entrust their competitors with sensitive and important informationhe explains. But in reality, we are very transparent with the administration.”

The group also ensures that it will provide all the necessary documents to the parliamentary commission of inquiry.

The director also put forward six ways to reduce the cost of living, such as developing local production, improving import-export with nearby territories or reviewing taxation.

He thus proposes to eliminate the cost of freight and dock dues for nearly 2,500 basic necessities which would make it possible to lower their price “more than 20%“This shortfall would be passed on.”on less sensitive products“, such as televisions or smartphones by increasing the sea dues on them, for example.

If the deputies did not react on this point, we will know if they take this idea into account when the report is submitted on August 8th.

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