These are the companies behind Mercadona’s success

Mercadona It is the most famous supermarket in Spain. The company created by Juan Roig is the company with the highest turnover in our country, according to the latest available data, for 2020 (those for 2021 are not yet available), with revenue of 24,500 million euros.

The pandemic undoubtedly boosted the supermarket firmWell, for several months the only thing we could physically buy in Spain was food. Thus, it has become a national giant (it only sells in Portugal besides here) employing more than 90,000 people, which enjoy some better working conditions than the rest of the sector, generally.

He just raised their salary by 5% To try to keep up with the rampant inflation in Spain, it closes all its supermarkets on Sundays, when its competitors do not, and last year it gave them a bonus for the effort made by the entire workforce during the worst of the pandemic.

We talk therefore of a business success model bluntly, because it is has a market share of almost 25%In other words, one out of every four products sold in Spain is from Mercadona. Although this is not only a merit of Juan Roig. The entrepreneur has known very well how to choose who his allies are, who make each new launch a best-seller. We talk about your suppliers, let’s get to know them.

A win-win strategy

The main difference between Mercadona and its competitors, and a good part of the reason for its success, is that it enhances its white brand over that of a distributor. On their shelves most of their products are his. Hacendado, Deliplus … are already known names to most and refer to their different ranges of products.

And it is that its white brand has a high quality, which I have done that has the support of customers, thus making their product portfolio ever greater. There is almost nothing that Mercadona does not do. Well, not Mercadona, but its suppliers.

What companies are behind this sales success? Many of them already work exclusively for the Valencian firm, who has become your best customer.

One such company is Jealsa, a Galician canning company that supplies canned fish and seafood to supermarkets. This company increased its profits by 65% ​​in 2020 despite being a very complicated year for its sector thanks to Mercadona, whose coffers 316 million come from the more than 700 million it invoiced.

So, he just announced that is going to build its own technology center with an investment of 10 million. A biofactory that aims to improve production processes, making them more sustainable and, at the same time, improving the quality of its fish.

Another of its star suppliers is Entrepinares, which is behind its famous cheeses. This Valladolid firm allows you to sell high quality cheeses at very affordable prices, something that was also reflected in its turnover in 2020, with an increase of 8% that allowed him to reach his income record (360 million euros).

Sovena, for its part, is its oil supplier, a Portuguese company that has been collaborating with Mercadona for 10 years. Until 2016 exclusively, But from that year on, it opened the door to other companies in the sector, although it continues to be one of the most important.

Industrias Cárnicas Loriente Piqueras (Incarlopsa) stands behind its ham and other meat products. The firm in Tarancón (Cuenca) is totally family-owned and employs a good part of the town. They have been working with Mercadona since the 90s, which has made them grow and improve their techniques and quality, making 65% of its production go to Valencian supermarkets.

One of its most important suppliers and that may surprise you, because it is well known, is Casa Tarradellas. The Catalan firm manufactures its famous pizzas, of a quality very similar to the originals but at a lower price. The same thing also happens with part of your sausage. In this way, thanks to its double aspect (supplier and manufacturer of its own brand) it is one of the best-selling brands in Spain in the field of consumption.

Another of its flagship partners is Importacoco Casa Pons, which is behind its nuts, which generate addiction. So much so that during the confinement his pipes were exhausted for several days, as it was one of the products that the Spaniards bought the most in their confinement. It is a Valencian house that has been in alliance with Mercadona for 15 years and that in 2020 it also saw its turnover grow.

The exeption

But not everything is perfect, and for there to be winners there must also be losers. It is the case of Ceralto Siro, from the famous biscuit group Siro. This firm has suffered a hard setback because of Mercadona, according to themselves they attribute. The firm is looking for an investment partner that will allow it to face its debt of more than 200 million and can continue with its activity.

According to a confidential document that was leaked to the media, Siro blames Mercadona for this situation, since since 1998 it began to produce its pastry products exclusively for the Valencian company, undertaking a high investment for this. Until 2018 all were benefits for both, but when Mercadona decided to stop its territorial expansion, it lowered the prices at which it buys its products but demanding more quality and safety.

Thus, this company would find itself in a complicated situation that would be motivated by a change in the conditions of Mercadona, a company with enough force to set the rules of the game for its suppliers.


Source: El Blog Salmón by www.elblogsalmon.com.

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