In the dynamic landscape of the European dairy industry, Granarolo S.p.A., an Italian dairy conglomerate, has consistently demonstrated strategic foresight and adaptability. Founded in 1957, Granarolo has evolved from a local cooperative into a significant player in the global dairy market. Its journey is marked by a series of strategic acquisitions and expansion, innovative product development, and a commitment to sustainability.
Strategic Acquisitions Fueling Growth
Granarolo’s expansion strategy has been characterized by targeted acquisitions aimed at diversifying its product portfolio and strengthening its presence in international markets. In 2015, the company acquired Gennari S.p.A., a Parma-based producer specializing in Parmigiano Reggiano and Prosciutto di Parma, enhancing its footprint in the premium cheese segment. The following year, Granarolo expanded into the organic and plant-based sectors by acquiring Conbio, a leading Italian producer of vegetarian and organic foods.
The company’s international ambitions were evident in its 2016 acquisition of a Chilean dairy company, now operating as Granarolo Chile S.p.A., marking its entry into the South American market. This move was complemented by the acquisition of European Foods Ltd in New Zealand, broadening its reach in the Asia-Pacific region. Further strengthening its European presence, Granarolo acquired Midland Food Group in the United Kingdom in 2018, facilitating access to the British market. In 2021, the company entered the U.S. market by acquiring Calabro Cheese Corp., a Connecticut-based producer known for ricotta, mozzarella, and burrata.
Innovations in Product Development
Innovation remains a cornerstone of Granarolo strategy and expansion. The company has invested in developing products that cater to evolving consumer preferences, including lactose-free dairy products, plant-based alternatives, and functional foods enriched with probiotics and vitamins. In 2017, Granarolo introduced a range of high-protein yogurts and beverages targeting health-conscious consumers and athletes. Additionally, the acquisition of San Lucio S.r.l. in 2016, known for its GrokSì! brand, allowed Granarolo to expansion by entering the baked cheese snack segment, offering consumers innovative and convenient dairy-based snacks.
Commitment to Sustainability
Granarolo has demonstrated a strong commitment to sustainability across its operations. The company has implemented measures to reduce its environmental footprint, including optimizing energy consumption, minimizing waste, and promoting sustainable packaging solutions. In collaboration with CEFA Onlus, Granarolo launched the AfricHand Project in Mozambique, aiming to develop a sustainable milk supply chain in the Beira region. This initiative reflects the company’s dedication to social responsibility and supporting agricultural development in emerging markets.
Financial Performance and Granarolo Market Expansion
In its 60th anniversary year of 2017, Granarolo reported a turnover of €1.27 billion, marking a 7.8% increase from the previous year. While EBITDA experienced a slight decline to €70.1 million, the company’s strategic focus on exports was evident, with revenues from international markets rising from 17% to 20% of total turnover. This shift underscores Granarolo’s successful efforts to mitigate domestic market saturation by pursuing growth opportunities abroad.
Recent Developments
In October 2023, Granarolo’s Board of Directors approved a strategic plan for 2024-2027, outlining investments exceeding €300 million. This plan follows a €160 million capital increase finalized in March 2023, which saw the entry of Patrimonio Rilancio – Fondo Nazionale Strategico (National Strategic Fund) and Ente Nazionale di Previdenza per gli addetti e gli impiegati in Agricoltura (ENPAIA) into Granarolo’s shareholder structure. These developments signal the company’s commitment to sustained growth and innovation in the coming years.
