The large Chinese community in the UK demands suppliers for its traditional products. In the case of Asian vegetables, the Spanish company Primaflor has found a niche that has already become its largest foreign market and in which it focuses many of its efforts.
The Spanish group, based in Almeria, invoices about 150 million Euro a year. Of that total, Cecilio Peregrín, corporate director of the company, explains that 45% comes from outside Spain and expects this percentage to continue increasing. The weight of the international market is even greater when looking at the volume, as about 70% of everything grown is shipped overseas.
In this international expansion, the UK plays the main role. "Right now, we are in negotiations to get hold of a new company in England," explains Peregrín. In that market, the company already has its own lettuce production on a 70 hectare farm since last summer. Moreover, it also sells different products to that country from Spain, such as the already mentioned Chinese vegetables, following the proposal of an Asian entrepreneur.
In that market, it has distribution agreements with Sainsbury's and Asda, the country's second and third largest supermarket chains. In the retail sector, the company also has agreements with other industry giants, like Coop in Switzerland, Lidl in Germany or Ica in Sweden.
"Supermarkets have trust in our products and choose them for their store brands, thus putting their reputation on the line with them," he assures. In Spain, it also works closely with retailers. "We work with practically all chains, except for Eroski and Mercadona, which have a different relationship with their suppliers," points out the manager.
But it is on the foreign market where Primaflor's strategic plan is focused. "We have a policy of growing slowly, but we want to reach a 200 million turnover by 2020," announced the manager of the company, which employs around 2,000 people. "If we see the chance, we may even consider making some other purchases," he adds. Last year, the company earned 6.7 million Euro in profits, multiplying fivefold the result of the previous year.
In this context, Peregrín acknowledges that there have been funds showing interest in becoming shareholders of the company, which is currently owned by three families. "They come from Asian and Arab countries, but for now we are not considering that option. We have a good financial situation and prefer to do things at our own pace," states the head of the group.
The group controls the entire production chain, from seed to packaging and marketing. Virtually all the farmland it owns is in Andalusia, although at different altitudes. "That way, we are able to produce for longer periods of time," explains Peregrín. They have also made some acquisitions in Leon, where they have already started to produce, and they also own lands in Albacete.
What started in the eighties as a company devoted almost exclusively to iceberg lettuce is currently a group with a broader portfolio. In Spain, much of its work goes into the production of ready-made salads to be sold in supermarkets, but it also manufactures sauces, gazpacho and even juices. "The latest thing we are working on is fruit salads," said Peregrín. "In the UK, there is plenty of demand, although they are not as common here," he affirms.
"We travel a lot around the world: China, the US, Europe... We analyse consumer trends in different markets," points out the corporate manager of the group. "Much of our investment goes into research and innovation; each year, we test 300 different species," assures Peregrín, who adds that they usually do this while taking the needs of its customers into consideration. "What we want is to diversify our product range to suit all tastes and thus continue growing."
Fuente: Cincodias.com
