Cerealto and Siro: join together to form new food group

Madrid / ES. (ce) Grupo Siro and the multinational Cerealto have closed an agreement for the integration of both companies in the same multinational food group, Cerealto Siro Foods, dedicated to the manufacture of brands for third parties. The new Group presents estimated consolidated data at the close of the financial year 2018 exceeding EUR 600 million in turnover and production exceeding 400,000 tonnes. The Group currently has a team of more than 5,000 people distributed in 17 production centres located in Spain, Portugal, Italy, United Kingdom and Mexico, as well as a local team in the USA.

The aim of the new Group is to position itself in the global food market with an offer of products that respond to the needs of consumers in different markets, with a business model focused on quality, operational efficiency and innovation in products and processes. Specialised in the development of global categories and the manufacture of food products derived from the cereal for customers of the Retail and B2B sector, accompanied by a wide productive capacity in the multiple markets where the group is present.

To this end, Cerealto Siro Foods plans to concentrate its operational and financial resources in the categories of Biscuits, Cereals and Pasta, business lines with global product ranges and broad development potential in different markets. Siro brings knowledge and all its experience in the value chain in these categories, while Cerealto provides the international structure of its business, as well as its commitments to international clients.

The strategy of the new Group will allow it to continue being a specialist supplier of Mercadona in the Spanish market, and maintain the current portfolio of Cerealto customers, both in Spain and in other international markets.

In parallel, the new Group plans to divest in the categories of Bakery and Bread. Proceeding to the sale of these businesses and, specifically, will sell the Bakery factories located in Briviesca (Burgos), El Espinar (Segovia), Navarrés (Valencia) and Medina del Campo (Valladolid), as well as the Bread factories located in Antequera (Málaga) and Paterna (Valencia).

These business lines have experienced a remarkable growth in recent years and present excellent development prospects. However, they require a focus and local resources that no longer fit into the strategy of the new Group.

Specifically, the Bakery business will close with a sales volume of 74,000 Tn and growth of 4.9 percent, and the Bread business line will do it with a volume of 79,600 Tn and growth of 2.8 percent in terms of volume in 2018, while the market has recorded positive growth and are expected to close at around 2.7 percent and 2.4 percent, respectively. In this way, the distribution brand continues to lead both volume and value in both categories and in each of its segments and shows the greatest increase in sales.

The divestment process will always be carried out by ensuring the search for the best buyer, for which said businesses form part of the CORE of its strategy, guaranteeing the employment and working conditions of the people who work in these lines. Mercadona, the main client of these businesses, has been informed and supports the strategy of the new Focus Group in the Biscuits, Cereals and Pasta businesses, and the sale of the Bakery and Bread businesses.

The commitment of Mercadona with the new buyer will be to give continuity to the Bakery and Bread businesses, always within the guarantee of quality, efficiency and innovation.

The same spirit with a unique value proposition

The integration of both companies in the Cerealto Siro Foods Group is a unique value proposition to transform together the future of food globally. For consumers, with an offer of innovative, nutritious and healthy products that meet the specific needs of the different groups without sacrificing flavour. For the employees of the new Group, by making them protagonists of a cultural and organisational transformation to create the best place to grow and develop professionally, with a clear commitment to digitalisation that allows the connection and sharing on experiences and knowledge globally. For customers, adapting to their needs from a commitment to innovation, efficiency and quality to produce unbeatable products in quality and cost from the use of the latest technology applied to processes and products. And for society, with the firm commitment to remain sustainable and generate social value through the promotion of local communities in which the Group is present, favouring diversity and the integration of people at risk of social exclusion and care for the environment.

About Cerealto Siro Foods

Cerealto Siro Foods, born from the integration of Siro and Cerealto, is a multinational company that manufactures food products, with a strategy aimed at manufacturing food products derived from cereals for customers in the Retail and B2B sectors, with a focus on innovation and high development potential in multiple markets.

The new Group presents estimated consolidated data at the close of the financial year 2018 exceeding EUR 600 million in turnover and production exceeding 400,000 tonnes. The Group currently has a team of more than 5,000 people distributed in 17 production centres located in Spain, Portugal, Italy, United Kingdom and Mexico, as well as a local team in the USA.

With an accumulated investment in 2018 of more than EUR 13MM in product innovation, its business model is focused on the consumer, quality, innovation in products and processes and operational excellence. In addition to a strong commitment to the development of the communities where we are present and the integration of people at risk of social exclusion, which represent more than 12 percent of our workforce.