Does anyone has experience with the Spanish Food Industry?
September 17, 2024
by a searcher from IESE Business School in Madrid, España
Hello Searchfunder community,
I’m currently exploring opportunities in the food industry in Spain and would love to hear from anyone with experience in this sector. Specifically, I’m interested in understanding the key challenges that may arise when acquiring and operating a food-related business in the Spanish market.
If anyone has experience or insights, I would greatly appreciate your input!
Thanks in advance for your help.
from IESE Business School in Barcelona, Spain
Thanks for your question.
When you say food business, are you talking about service, distribution or industry?
I haven’t acquired a business in this industry yet. But I’ve consulted with companies in both distribution and industry
I am not sure there are challenges that are very specific to the Spanish market, as I have consulted with other companies outside of Spain.
Perhaps, a challenge/opportunity is related to good local products that are not well marketed enough to seek growth through more lucrative markets in Europe or US.
Perhaps this is related to inertia from the current management of these companies, especially if they are boomers, risk-appetite and the lack of expertise in marketing & product positioning. But I have anecdotal evidence of a change happening with new managers.
To summarize, Spain, in comparison to its other EU counterpart, has strong IP in the food industry, but it’s undervalued at this moment, and the internal market is a bit of a cut-throat one, unless the company has established its niche with loyal customers, served through strong business ties with founder and his family members, and this something to watch for, especially if you acquire a small company ie how much change can you afford to bring and whether that would be successful… but not sure this is something unique to Spain or the food industry.
from IESE Business School in Madrid, Spain