The Colombian conglomerate of packaged food companies Grupo Nutresa recently announced an agreement to acquire Belina Nutrición Animal SA, a Costa Rican pet food manufacturer. The acquisition agreement meant a $ 28 million deal.
According to press sources, Belina sold approximately $ 34 million in pet food and pet food products in 2020, with 70% of sales coming from pet food. Belina currently has 225 employees in Costa Rica.
Given the reported sales, it is likely that the company’s pet food and feed production capacity is around 40,000 tons per year. Belina is known for the manufacture and sale of the pet food brands Balance, Superkan and Gourmet Mix.
According to Triplethree estimates, the Costa Rican pet food market is the eighth largest in Latin America while Colombia is fourth. This acquisition is not expected to affect any of the pet food markets, as the agreement does not provide for expansion capacities in the short term, nor does it change the market structure.
Why Belina and Costa Rica?
In Central America, Costa Rica is one of the largest pet food markets in the region and one with the best prospects as its economy is more solid than others.
However, the main reason for the takeover could be the geographical proximity of Costa Rica to Colombia and the better competitive environment in Costa Rica. Unlike other Central American pet food markets that are focused on just a few multinational brands, the country has a larger range of products, which means less market concentration.
In addition to the geographic advantage, the more competitive environment in Costa Rica allows the Colombian group to enter a relatively mature pet food market and grow with less restraint of competition.
In addition, Grupo Nutresa sells almost 10.2% of its total sales in Central America. Therefore, with this acquisition, the Colombian group is likely to strengthen its position in the region while entering a promising new market.
Iván Franco is the founder of Triplethree International and has contributed to hundreds of research projects for various consumer goods industries. He was named Global Consultant of the Year by Euromonitor International and is the author of the book 17 Market Strategies for Growth (in Spanish).
Source * www.petfoodindustry.com – * Source link