Mercadona has become the queen of Spanish food. And in the process it is making gold for some suppliers

The forecast was shocking. So much so that it generated a considerable stir. In spring, during the presentation of Mercadona’s annual report, Juan Roig predicted that in a matter of 25 years, kitchens will disappear from homes because people will eat outside the home or eat ready-to-eat dishes. That conviction (which Roig preaches since at least 2019), added to the commitment to white label and local stores, has turned Mercadona into a heavy weight of the retail sector, with a market share that is close to 30%.

Not only that. By the way, the Valencian firm is making gold from a few companies that have become allies of its food strategy.

One figure: 150 million. Its name may not tell you much, but if you shop frequently at Mercadona (for food) it is quite likely that you have tried the products of Martinez Family. The company is made up of Embutidos Martínez, Platos Tradicionales, Cinco Tenedores and La Pila Food and is a key supplier to Mercadona, basically in its prepared food offering. The group (Also of Valencian origin) manufactures lasagna, gratins and roasts.

So far nothing exceptional. The curious thing is that recently Familia Martínez revealed which will invest a whopping 150 million euros between this and next year to reinforce the Platos Tradicionales facilities and keep up with Mercadona. To be more precise, he wants a larger surface area for barbecues, for which he will gain 20,000 m2 in Buñol; and provide a 3,500 m2 logistics center in Torrent, a space for distribution and storage with capacity for 1,000 pallets.

Why is it important? For several reasons. The main one is what it reveals to us about both Familia Martínez and Mercadona. And in turn what that tells us about consumer trends. The commitment of the Valencian supplier coincides with the growth of the offer of ready meals and the so-called “fifth range“, processed, cooked and packaged foods. As a reference, the Spanish Association of Prepared Dish Manufacturers (Asefapre) calculates that the consumption of its products rose 6.6% last year in Spanish homes.

“These investments are not just figures, they are a sample of our commitment to accompany the growth of our great client,” confirm the CEO of Familia Martínez, Raúl Martin Calvo. And in Mercadona (around 85% of your business) the bet is clear. Juan Roig’s chain takes years expanding its “ready to eat” section, with foods already prepared for consumption. The last annual report from Mercadona shows that in 2024 the service was available in 1,200 stores in Spain and 60 in Portugal, an expansion that “has not stopped growing”.

Is it a special case? Familia Martínez is not the only one that is growing thanks largely to Mercadona’s tailwinds. The Country posted this saturday an article about Ozturk Quebapa firm based in Toledo, founded in 2015 and specialized in the production of kebab and meat products. Again, its name may not sound familiar to you, but if you like the traditional Turkish meat that Mercadona sells, you have probably tasted its creations. Ozturk is a supplier for the Hacendado brand for a few years.

Its history predates the pact with the Valencian chain, but as they admit in Ozturk “with Mercadona everything changes.” The company saw its activity increase and acquired a second plant. Now it also sells to countries such as the United Kingdom, Switzerland, Finland and France. According to precise The Countrylast year it had a turnover of close to 64 million and its forecasts are to exceed 75 this year, a scenario that does not seem unattainable if one takes into account that it reached 37.8 in the first semester.

Add and continue of names. Familia Martínez or Ozturk are examples of companies that are growing driven by Mercadona’s strategy in food, but not the only ones. The sushi offer of the Valencian chain gave wings for example to the Norwegian Leroy Seafood Group.

In May Info Retail informed that its subsidiary Leroy Processing Spain It closed 2024 with a turnover of 122.5 million euros and its objective is to reach 160 in 2025, with a growth of 30%. The firm landed in Spain more than a decade ago and began making sushi and Japanese food long before 2021, but even so Mercadona has played a strategic role the last few years.

Profand, Panamar and Tarradellas. Three other relevant names in Mercadona’s food supply. The first, the Galician fishing company Profand, is an integrated supplier to the Valencian supermarket chain, which has helped it market a whopping 78 million trays of fish throughout last year, with a growth of 13%. The signature itself stood out that nuance in a statement in which he celebrated having overcome the 1 billion of cash.

In 2023 Panamar too saw rebound its turnover after becoming a supplier of bread to the Valencian chain and Tarradellas House wave Estiu refrigerator They have found in it a valuable pillar. Everyone benefits from the formula that is driving the Roig chain: its ability to gain market share in a sector highly disputedthe commitment to white label and local stores and the conviction that domestic kitchens actually have the years counted.

Images | Mercadona

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