M&A in sausage companies to grow in the American market: Cañigueral and Espuña

"The United States is an interesting market for exporting sausages. Distribution is very fragmented, it is possible to sell at a price at which producers and distributors make money, and there are few Spanish exporters who have a long-term strategic plan to enter the USA. Moreover, there is a high sales potential because people want to eat different things".

Cañigueral buys Far to export ham to the USA

Cañigueralthe Catalan meat company that closed 2015 with sales of €480M, has bought Far Serrano Ham, a company from Les Preses (Garrotxa) with the capacity to produce between 6,000 and 7,000 hams a week.

With this operation, Cañigueral Group diversifies its business and enters into the export of cured ham, with its sights set on the United States. Through its main company, the slaughterhouse, the Frigorífics Costa Brava, Cañigueral already supplies raw hams to suppliers who market Serrano ham in the United States. Now, thanks to Far's acquisition, Cañigueral will be able to export ham directly to the United States, which will add value to its international activity.

Far Jamón Serrano will maintain its autonomy, but will now have two managers from Grup Cañigueral. They are Joaquim Planagumà, managing director and production manager, and Lluís Cañigueral, managing director and sales manager.

Espuña completes the purchase of Pata Negra Jan and consolidates its position in the USA and Canada.

Espuña, a sausage manufacturer based in Girona, bought in February 2016 the company Pata Negra Jan, owner of the American company Pata Negra LLC, specialised in the production of cured sausages, of which it already owned 20%. Espuña is thus making progress towards its objective: that within 3 years, 60% of its sales will come from the international market.

Espuña is thus speeding up its entry into the American market both with products manufactured in the US plant and by exporting those from Spain.

Although Pata Negra has so far only sold chorizo, it will soon also offer fuet, salchichón or salami, all made in the USA....

The company's manager, Xavier Espuña, stresses that "the potential of the American market is enormous" and recalls that, within a radius of 500 kilometres around the American plant, there are around 120 million people, "a demanding public who are interested in very high quality traditional charcuterie products".

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