The Spanish company acquired a majority stake in the Chilean firm Alicomer, which supplies retail giants like Walmart and Oxxo.
Europastry, a Spanish company, acquired a majority stake in a joint venture that combines its Chilean operations with those of Alicomer, a company owned by Felipe Castaño and known for producing ciabattas and sourdough breads under the Pan de Origen brand.
The goal is to strengthen the business in Chile and expand frozen bread operations across South America. Europastry, which has also partnered with Grupo Alsea in Mexico, aims to complement Alicomer’s production capacity with its distribution expertise. “We have purchased a majority stake in the new company,” said Jordi Gallés—a second-generation member of Europastry’s founding family—to Diario Financiero.
The operations complement each other. In Chile, Europastry has a distribution network focused on the hospitality industry, artisan bakeries and retailers. It sells products such as croissants, donuts, cookies, and muffins. Meanwhile, Alicomer brings local production capacity and a range of artisanal and rustic breads, along with clients including Walmart and Oxxo.
“This partnership is very important to us because it will enable us to grow significantly in the Chilean market,” says Gallés.
The Spanish company sees a business opportunity in the low penetration of frozen baked goods in our country. According to Gallés, frozen baked goods make up less than 10% of Chile’s fresh bread market, compared with about 40% in Europe.
Changing consumer preferences—along with rising demand for convenience and variety—could drive growth in this market. Gallés proposed a hypothetical scenario in which frozen bread could account for 20% of the Chilean market within 10 years, even as total bread consumption declines from nearly 90 kilograms per person per year.
By producing in Chile, the joint venture aims to shorten delivery times and reduce reliance on imports. The initial focus is on Chile as the target market. If the business takes off, the partners plan to replicate the model in other South American markets.
Europastry’s story began in 1987, when Gallés’s father found a solution for his own bakeries: pre-baking the bread, freezing it and finishing the baking process at the point of sale. What began as a way to meet his own needs eventually became a business supplying other operators.
Nearly four decades later, the company continues to expand its capacity. In June, it allocated 700 million euros to increasing production at its U.S. plant.
Source: The Clinic.