Weak Spanish Market Pushes Food Producers To Look For International Growth

The current weakness of the domestic Spanish market is an added incentive for well-capitalised local food producers to focus on international expansion and this is highlighted by two recently announced deals. First, Spanish dairy firm Kaiku announced the purchase of Tunisia-based CLM-Vitaliat, the country's second largest dairy producer with revenues of around EUR70mn. Secondly, Spain's largest food firm Ebro Puleva announced the acquisition of two pasta brands from US-based Strom Products in a deal worth EUR50mn. Spain's weak economic environment is likely to put pressure on consumption over our entire five year forecast period and firms with a stronger international

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