Spain is Europe's largest agrifood exporter, yet most of its food companies are family-owned SMEs with strong products and underdeveloped distribution. For international buyers and domestic founders, this article explains how food and beverage company transactions work in Spain and what creates — or destroys — value.
If you own a food or beverage company in Spain — a winery, an olive oil producer, a charcuterie business, a preserves manufacturer, a dairy, a brewery or any other food processing operation — you are operating in a sector that the world wants.
Spain is the European Union’s largest agrifood exporter. Spanish Iberian ham, extra virgin olive oil, Rioja wine, artisan charcuterie and high-quality preserves are in the finest delicatessens in Paris, London, New York and Tokyo. The global demand for Spanish food products is strong and growing. Consumers are prepared to pay premium prices for authenticity, provenance and quality.
And yet the paradox is acute. Most of the companies producing those world-class products are family-owned SMEs with revenues between €2 million and €30 million, that distribute through a broker or importer who holds all the negotiating power, and whose family business owners face a succession question, and that lack the capital to develop their own international sales channel.
That gap between product strength and structural weakness is exactly what makes these companies so attractive to growth capital and to sector consolidation strategies.
The Spanish agrifood sector is undergoing consolidation across virtually every sub-sector — olive oil, wine, meat processing, preserves, dairy, fresh produce. The number of operators is declining and the average size of surviving companies is growing.
The drivers are multiple. Pressure from large retail chains, which prefer suppliers with sufficient scale to guarantee supply consistency and product homogeneity. Growing regulatory requirements around traceability, food safety and sustainability, which favour operators with the resources to comply. And international competition, which forces Spanish companies to achieve scale to compete effectively on export markets.
In this context, well-positioned mid-sized companies — with recognised brands, proven product quality and experienced teams — are highly sought-after assets for international strategic buyers, private equity funds building sector platforms, and domestic operators seeking to complement their range or expand geographically.
Spanish agrifood company valuations typically fall between 5 and 8 times normalised EBITDA, with significant variation based on the business profile.
The business model defines the multiple. A company selling own-brand product through proprietary distribution with direct export presence will be valued at the upper end. A company producing in bulk or under private label for large retailers, with no proprietary channel, will be valued at the lower end or potentially below that range.
The brand is a real asset. In the food sector, the brand has value that extends well beyond the accounting records. A brand with history, with recognition in its category, with international awards or a linked protected designation of origin can add substantial value to the sale price. The buyer is not just acquiring current EBITDA: they are acquiring the capacity of that brand to generate future EBITDA in markets where it is not yet present.
The export channel is a multiplier. Companies with developed export channels — direct sales in five or more international markets, a commercial team with language capabilities and presence at international trade fairs — are systematically valued above those that export opportunistically through intermediaries.
Certifications add value. IFS, BRC, ISO 22000, protected designation of origin, certified organic production: each additional certification opens markets and gives the buyer confidence in the company’s capacity to meet international regulatory requirements.
When we speak with food company owners who have spent decades building their brand, the most frequent concern is not the price. It is: what will happen to my brand after the sale?
It is a legitimate fear. There are cases where a buyer — particularly a strategic competitor — has acquired a brand specifically to eliminate it or absorb it into their own brand. That strategy makes sense from the buyer’s perspective, but it destroys what the seller built.
At Blue Mountain, our approach is the opposite. When we invest in a food company, we do so precisely because we believe in the value of that brand and want to develop it. Our interest is in growing that brand’s sales in new markets and channels, not diluting it. And we have the capital to do it: to invest in packaging improvements, in international trade fair presence, in opening new export markets.
Any sophisticated buyer of a food company will conduct specific food safety due diligence. This covers the review of HACCP systems (Hazard Analysis and Critical Control Points), audit histories and identified non-conformities, any product recall incidents in recent years, and production system traceability.
Having no food safety incidents in recent years is the minimum expected. What distinguishes the better-valued companies is the quality and depth of their control systems, which give the buyer confidence that production can be scaled without increasing risk.
Raw material supplier dependency will also be examined. An olive oil producer that depends on a single cooperative for all its olives has a different risk profile from one that sources across multiple production zones. A winery that owns its own vineyards has supply security that one dependent entirely on purchased grapes does not.
The distribution problem is one of the most common constraints on Spanish food SMEs with excellent products. They have the brand, the quality, the production capacity. But the distribution channel is weak: they depend on a distributor who holds all the power in the relationship, they sell predominantly in their region of origin, and their online presence is token.
Before initiating a sale process, it is worth analysing whether there are channel diversification actions achievable in twelve to eighteen months that could materially improve the valuation. It is not always possible given time or resource constraints, but when it is, the impact on the price can be very significant.
When we invest in a food company, distribution strategy and channel development is one of the first areas we address. It is one of the most powerful value creation levers in the sector.
Selling a food company has particularities that distinguish it from other sectors. Production cycles, inventories of finished goods and raw materials, seasonality, certifications and registrations: all of this adds complexity to due diligence and transaction structuring.
A typical process for a company between €5 million and €30 million in revenue takes five to ten months. It begins with the preparation of presentation materials and financial normalisation, continues with the identification and approach of potential buyers, and concludes with negotiation and closing.
For a food company, the market presentation must clearly highlight brand value, the potential for distribution channel expansion and product differentiation. It is the growth narrative that generates offers at the upper end of the valuation range.
If you own a food or beverage company in Spain and are considering your options, we invite an initial conversation. Blue Mountain understands the sector and has the capital to support the growth of companies with genuine potential. Contact us.
Dirk Manuel Martens Jiménez Founder, Blue Mountain Capital
By Blue Mountain Capital
By Blue Mountain Capital
By Blue Mountain Capital
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