Mercadona’s Steinburg beer maker soared its sales just before the Covid

Font Salem aims to consolidate itself as a multinational for private label.

Mercadona's Steinburg beer maker soared its sales just before the Covid

The Font Salem water bottling and soft drink packaging company, supplier of Mercadona’s beer brands, increased its turnover to reach 282.1 million in 2019, 10% more than a previous year, according to its accounts recently deposited in the Mercantile Registry.

Font Salem is owned by the Damm group, based in Barcelona, ​​and is one of the main beer producing companies nationwide, although it also has soft drinks and bottled mineral water. In addition to its own brand, it also manufactures for large distributors such as Mercadona, Carrefour or El Corte Inglés.

In fact, your sales are also boosted for the changes made in the Juan Roig chain. In August of last year, Mercadona took a radical turn in this regard. Thus, it expanded its total number of beer suppliers from 7 to 40, between national and international, with the incorporation, among others, of numerous local craft beer suppliers.

In this way, Juan Roig’s company went from working with six Spanish brewers and one French, to doing so with twenty-eight national brewers, among which stand out Mahou, Heineken, Damm, Estrella Galicia, La Zaragozana, Compañía Cervecera de Canarias, Font Salem, Tyris, La Sagra, Arriaca or La Virgen.

Challenges

Currently Font Salem faces the challenge of consolidate as a multinational for private labeland the co packing. For this reason, in 2019 Font Salem reinforced its international projection, especially outside the European continent.

The company increased its exports from 8.1% to 8.6%, increased its sales domestically from 78.3% to 79.9%, and reduced the proportion in sales to 13 European Union countries, 6% to 11.5%. However, it recorded a reduction in profits from 23.2 million to 21.8 million.

Distribution of the turnover of Font Salem.  Source: Mercantile Registry.

Distribution of the turnover of Font Salem. Source: Mercantile Registry.

Thus, Font Salem recalls that has three production centers located in strategic locations that allow a quick response to demand in the Iberian Peninsula at the lowest possible cost. Likewise, its proximity to the ports of Valencia and Lisbon represents a competitive advantage for exports, a market for which it is betting in its globalization strategy.

“The company continues in its work to strengthen these centers and increase operating profitability through the investment effort necessary to have the most appropriate technology and resources to continue on the path of growth in which the company is located”, as stated detailed in the audit of your accounts.