Dutch food group, Wessanen, has acquired Spanish organic food manufacturer Biogran from Nazca Capital for a cash and debt free consideration of €67 million (US$71 million).

Headquartered in Toledo, Spain, Biogran is a leading producer and distributor of fresh and dried natural and organic foods, including soy-based meat alternatives, spreads, jams, rice cakes, cereals biscuits, cakes, breads, and organic seasonings, and is owner of brands Ecocesta and El Granero – the leading organic brand in Spain.

“The acquisition of Biogran broadens our geographic footprint and is a further step in the execution of our strategy and vision of becoming the leader of organic and sustainable food in Europe,” said Chirstophe Barnouin, CEO of Wessanen, in a company statement.  

The Repositioning of Wessanen

The vision of becoming the leading supplier of organic and sustainable food in Europe has been the center of Wessanen’s strategic plan in recent years, as it has been phasing out parts of its business that do not align with its new sustainability benchmarks, reports Food Navigator.

Change does not come easy however, and the re-positioning and divestments have brought the company’s turnover from €4 billion in 2000 down to €434 million in 2014. But with the addition of UK based gluten free company Mrs. Crimble and organic tea and coffee maker Ineobio, Wessanen began rebuilding its portfolio in a new direction that it hopes will make it a major player in the European health and wellness space.

Despite the setbacks resulting from its retrenching, Wessanen’s new direction has the potential to generate significant growth and returns for the company.

Since the mid-1980s organic farmland acreage across Europe has increased steadily to 10.3 million hectares as of 2014 according to the report, Organic in Europe, Prospects and Developments 2016 by IFOAM EU Group, FiBL, and Marche Polytechnic University and Naturland.

This increase in organic acreage coincides with an increase in demand for organic foods by EU consumers. The report indicates that this increasing demand is reflected by growth in the EU market for organic products of 7.4 percent in 2014 – compared to an annual growth rate in mainstream grocery retail markets of between two and three percent between 2006 and 2012. Additionally, organic retail sales in the EU have now reached a value of €24 billion (€26.2 billion in Europe), making it the second largest organic market in the world after the U.S.

More specifically, however, this deal now gives Wessanen a leading position in the particularly dynamic organic market in Spain.

“Biogran gives us broad access to the growth potential in one of the most dynamic countries in the European organic market: the Spanish organic market has grown at double digit rates over the last few years,” said Barnouin. “The acquisition of Biogran represents a major growth opportunity for Wessanen to develop our business in the country.”

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Lynda Kiernan