Grupo Alimentario Citrus (GAC), an expert in the production and preparation of fresh foods, invested 7.5 million euro in 2017 to consolidate its company model. This transformation process, which started in 2015, will allow it to continue growing with new clients, in new channels and new markets. In 2017, the company brought its ready-to-use products for the first time to the Spanish and Portuguese markets under the Sun & Vegs brand and began commercializing product references in the Horeca channel that are adapted to the tastes and needs of new customers.
The company has been adapting its processes and structures since 2015, when it made an international leap from the agricultural business units (direct products of the field) and nutrition (baby food pouches and pots). In the last 3 years (2015-2017), GAC has made a total investment of 27 million euro and currently its products reach more than 30 customers in 20 countries around the world.
"2017 has been the turning point of our transformation process. We have undergone an investment, adaptation, and effort stage that, I am sure, gets us closer to achieving our goal of becoming the company of fresh products that consumers prefer," said Rafael Boix, the general manager of Grupo Alimentario Citrus.
Sun & Vegs products on a supermarket shelf in Portugal
In 2017 GAC reached a joint turnover of 253 million euro, i.e. 5.5% more than in the previous year, and its production volume registered a 7.3% increase. The business unit that has experienced the highest growth is the IV range, with a turnover of 139 million euro (+8.6%). The Nutrition business unit has obtained sales of 26.5 million euro (+7%). In turn, the Agricultural business unit has increased its turnover by 1%, reaching 88 million euro.
"Despite the moderate increase in turnover in 2017, the opening of our products to new markets and channels represents a huge opportunity in terms of innovation and growth for the Group," stated Boix. "Our new fresh products label, Sun & Vegs, will allow us to continue to grow with an innovative assortment of healthy and fresh products that sets trends in the food sector.
New markets and new channels in the IV range
Most of the investment made by the company during the last year (3.7 million euro) has been allocated to the business unit of the IV range, fresh products ready to be consumed. The Aranda de Duero plant (Burgos) has adapted its processes to boost production destined to new markets and channels, and has installed new equipment for the development of the company's most innovative products, such as the Micro dishes or Super salads."
The center of Antequera (Malaga) has expanded its facilities for the preparation of ready-to-eat salads, almost tripling its production capacity.
More than 100 new references in a year
The GAC invested more than 3 million euro in innovation in their transformation process. During 2017, the company launched more than 100 novelties that meant the introduction of new products, formats, and recipes to the market. One of last year's most outstanding innovation projects was carried out with the company's main client, Mercadona, and it allowed the company to renew its fresh products line with the introduction of more than 20 new references.
The 'its oatmeal' functional snack by Sun & Vegs, produced in Carlet (Valencia), was the company's first patent.
According to Boix, "our innovation allows us to understand the main trends in food and create novelty products that anticipate consumer demand and are exclusive in the market." During the last year GAC has reached new audiences with innovative products, such as the 'its oatmeal' functional snacks, which are suitable for vegans, or the ready to heat ethnic flavored Micro dishes.
Investment to keep growing
The main investment made in the innovation area was used to develop the new 'its oatmeal' product line, marketed under the Sun & Vegs brand. To manufacture it, the company installed a new production line adapted to the specific process of elaboration of these products, a process patented by the company, in the group's Nutrition plant in Carlet (Valencia); which involved an investment of 3.1 million euro
To meet the growing demand of its international customers, the Nutrition plant has also installed a new production and packaging line of fruit and dairy desserts.
The Nutrition unit's international sales already account for 20% of the company's turnover. The company's baby nutrition and smoothie products now reach 14 customers in 12 countries on different continents.
Optimization of resources in agricultural processes
In the last year, the Agricultural business unit focused its efforts to improve its efficiency and the optimization of water resources. The goal was mainly to improve the infrastructure for the optimization of irrigation and greenhouse facilities. Among other measures, the company adopted new forms of cultivation that reduce water consumption by up to 30%.
The Agricultural unit's international sales accounted for 29% of the company's turnover in 2017. The vegetables grown by the company are distributed to more than 30 customers in 20 countries across Europe.