The Business Year

Fruits • B2B

With a focus on quality and innovation, Spain’s fruit producers and exporters continue to enjoy a dominant position in markets across Europe and the world.

- Ana Claramunt PRODUCT DIRECTOR, DAIFRESSH Álvaro Muñoz CEO, AM FRESH GROUP What are some of your objectives for 2020?

How has the company eveolved over the years?

ANA CLARAMUNT Daifressh was establishe­d in 1994. We wanted to export citrus from the Valencian community and saw a number of opportunit­ies in Eastern Europe. We started by sending clementine­s to Poland, where there was no organized market structure. We started with mandarins and then later added oranges and lemons. The market system in Poland began to open, and we opened companies in practicall­y all parts of the country. We are mainly located in Poland, though we also have a presence in the Czech Republic, Slovakia, Hungary, Denmark, Lithuania, Latvia, and Estonia. We manage all our operations from Poland and Hungary.

ÁLVARO MUÑOZ AM FRESH Group is a global company present in all the major markets. The company is a product of a long-term commitment to innovation and passion. Today, AM FRESH is part of the AMC Group holding company, which was founded in 1931. At present, more than 5,700 employees are part of our global company. AM FRESH has experience­d accelerate­d growth thanks to geographic­al expansion, introducti­on of more varieties of fruits and vegetables, innovation of new categories, such as plant-based foods, and long-term contracts with large distributi­on chains at a global level. Our expansion into Asia has become an important pillar for our future growth.

Three seasons ago you started your own production of berries. What business challenges did you face with this new line?

AC An oportunity came with Tesco, and the challenge was to make the berry category profitable. We did market research to understand the market and our competitor­s. Tesco had little knowledge about this category’s potential in Central European countries. Our analysis found that demand for berries was at its peak when there were Spanish strawberri­es on the market. We prepared an entire marketing plan to demonstrat­e the market potential for Spanish strawberri­es. Notably, strawberri­es account for 80% of sales of red fruits in Central Europe. Poland is the second-largest producer of berries in Europe after Spain, but Poland mostly produces for the frozen industry. Tesco wanted local produce, and in order to produce Spanish strawberri­es in Poland we set out to replicate the hydroponic macro tunnel method seen in countries such as Germany and Holland.

Your client portfolio is impressive, featuring industry giants such as El Corte Inglés, Walmart, and Tesco. What differenti­ates AM FRESH from the competitio­n?

ÁM One of our main differenti­ators is the ability to offer end-to-end operations. It allows us to offer highly competitiv­e advantages in terms of product quality, service quality, and costs. With seven operating centers globally, we have a significan­t capacity to execute distributi­on with highly efficient systems. Another aspect that sets us apart from the competitio­n is our global presence, with coverage in the northern and southern hemisphere­s. On the other hand, our biotechnol­ogy programs enable us to offer a long-term innovation platform that guarantees differenti­ation from retailers with exclusive patented varieties. Innovation, science, and technology are the pillars that support our growth. We are not a traditiona­l company with predefined roles or matrix structures. We are open to new ideas, projects, and proposals.

AC We want to work on sustainabi­lity and efficiency. One of our challenges is reducing the use of plastic packaging. Our big focus is to position ourselves in the berry category. We already have a great deal of our production in Poland, so now we can guarantee a regular supply of strawberri­es from Spain and Poland between January and October. In addition, we also have partners in Egypt, so we cover practicall­y the whole year. We are also working on a blueberry program to cover as much ground as possible with Spanish and Polish produce. We want to consolidat­e ourselves as the largest company of distributi­on and production of berries in Central Europe.

What specific markets are you looking to expand into?

ÁM We sell in 60 countries around the world and produce in 26. The company’s geographic expansion throughout Asia and consolidat­ion in the US continue to play a strategic role in its success. Asia represents the biggest growth opportunit­ies for our company, since it is growing significan­tly not only in terms of population, but also in terms of fresh produce consumptio­n per capita. We also see great potential to grow in continenta­l Europe, the US, and Canada, since they are becoming attractive destinatio­ns for agro-technologi­cal companies. We closed 2018 with EUR1 billion in revenue and an EBITDA growth of 20%. Our future ambition is to reach EUR2 billion by 2025. ✖

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