Spain: Apis development strategy

 
According to information published in the Spanish press last February, Apis ended its latest marketing year (2016) on an increase of its turnover and double-figure growth for the volumes of its sales. This has allowed the company to program extra investments of EUR 200 000 in 2017 for industrial equipment in order to reinforce these dynamics. An equal amount was invested last year (2016) in order to improve and expand the capacity of the company's production lines for Horeca products.
In a detailed breakdown, Apis sales generated EUR 10 million in 2016, which represents an increase of close on 17% compared to the 8.5 million recorded in 2015. In terms of volume, the company sold 16 000 metric tonnes of finished products (whole tomatoes, crushed tomatoes, chopped tomatoes), all of them under the Apis brand, which represents a progression of 24.5% and approximately 3 200 metric tonnes more than the previous year's result.
 
In the context of its strategy to reduce the proportional importance of private labels in the company's list of clients, Carnes y Vegetales (which owns the Apis brand) endeavored last year to limit volumes of tomatoes used for products intended for private labels to 20% of the volumes processed annually, against 31% in 2015. As for marketing and distribution, major chain supermarkets remain the primary sales channel (Carrefour is a major client), concentrating 91% of sales, followed by the Horeca sector (7%) and traditional channels (2%). The company is also testing e-commerce through its own online shop as well as through the world's biggest electronic sales platform, Amazon.
 

In 2017, the company is counting on an increase in sales that should take the turnover to approximately EUR 33 million (against 31.87 million in 2016), and a gross operating income of EUR 2.6 million, which is a 13% progression compared to 2016.
 
During September, Carnes y Vegetales (Apis) updated its commercial development plan for 2018, in order to identify strategic targets that should allow it to pursue its growth on the market.
Firstly, the manufacturer of sauces, processed meats and juice, which operates two factories in Mérida and Montijo, has decided to give a decisive impetus to its presence abroad, and is counting on doubling its exports over the next marketing year.
With this in mind, the company has explained that it is working on "the development of priority markets, like Portugal, the United Kingdom, Morocco, China – a country where it has already shipped several containers of 'Fruco' juice – the United States, Canada and Eastern Europe, thanks to new business opportunities under its own brand and, possibly, under private labels for its different product categories."
In terms of products, this commercial development will be based on sauces in glass jars, on industrial pack canned tomatoes and a variety of processed meat products. In total, Carnes y Vegetales intends to generate a turnover outside of the country's borders of approximately EUR 500 000 by the end of 2017.
 

Secondly, the company wants to stimulate business in the hotel-restaurant-café industry, an area where it has recorded 30% growth and in which it has recently signed a major "alliance with one of the distribution leaders of the sector."
Until recently, the hotel and catering industry has absorbed 2% of the volumes distributed by Apis, mostly a variety of tomato products, pâtés and products in the most recent range of single-portion sachets (25 g portions), presented in 2014, which is composed of tomato-based recipes as well as a number of typical Spanish meat products. On this market, for the past year, Apis has also been offering a line of juices called "Fruco" conditioned in glass jars.
By ramping up its efforts aimed at the Horeca sector, Carnes y Vegetales is hoping to attenuate the impact of a potential drop in volumes or loss of contracts for private label products, a business sector that currently absorbs more than 90% of its production. For this sales channel of private labels, this year, the company has renewed and extended its "tomate frito" range, whilst also developing "a referencing business plan to promote its best products to its main clients."
Finally, innovation is the third pillar of this strategy, focusing on nutritional improvements and the high quality of raw materials. Before the end of the year, Apis will be promoting a new line of pisto (ratatouille), "made with same season tomatoes", as well as new products in the processed meat ranges of the company.
 
Sources: Alimarket, http://apis.es/

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