Grupo Alacant

GRUPO ALACANT

ICE CREAM MAKER HITS THE SWEET SPOT

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GRUPO ALACANT

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PROFILE

Grupo Alacant CEO Joaquín Lancis

With half-a-century’s experience of making ice cream, Grupo Alacant has strengthened its grip on the Spanish market with the acquisition of fellow producer Crestas La Galeta. A key focus for the union will be to maximise their presence in the vegan and allergen-free markets with their speciality brands, attests Grupo Alacant CEO Joaquín Lancis. Report by Andy Probert.

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Grupo Alacant

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he desire to serve up the best ice cream in Spain began in 1972 when 35 artisan ice cream makers came together to create the best recipes under one roof.

Fast forward 50 years and those diverse ingredients now form Grupo Alacant, which is not only the Spanish ice cream market leader but a tour-de-force in Europe.

Employing 700 people across four manufacturing sites, the business annually produces 100 million litres of ice cream and is expected to generate €160 million in revenue in 2022.

Grupo Alacant CEO Joaquín Lancis explained the company, which has 245 shareholders, including 182 ice cream parlour owners and 43 local distributors, has a portfolio of 14 diverse product groupings through its brands: Helados Alacant, Antiu Xixona and 4U Free From.

Grupo Alacant

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Grupo Alacant

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GRUPO ALACANT

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PROFILE

About 95% of its production is ice cream, including bulk ice creams, tubs, cones, sandwiches, desserts, moulded sticks, as well as slush fruit drinks, ice pops and extrusion sticks.

With 60 different flavours and other sub-categories, Grupo Alacant has been number one in the Spanish retail sector since 2009, with a healthy 35% market share, and dominates the Horeca sector as a leader in ice cream parlours.

Grupo Alacant’s primary production plants have traditionally centred in Alicante for its ice cream manufacturing and Murcia, specializing in frozen drinks.

Major Acquisition However, the company strengthened its grip on the Spanish market when, at the end of 2021, it acquired Crestas La Galeta SA, a firm with over 80 years’ experience in the ice cream sector, and owner of the Helados Somosierra and Royne brands.

With this purchase, Grupo Alacant will expand its presence in new channels and clients and accelerate national and international growth. Consolidating as an ice cream sector leader, it will see production capacity increase from 100 million to 150 million litres of ice cream annually.

In addition, Grupo Alacant will add Crestas La Galeta’s manufacturing plants in Madrid – in Leganés and Alcobendas. Mr Lancis commented: “This acquisition entails expanding our client portfolio, being present in new international markets and presenting a broader, more innovative and personalised commercial proposal to the market for our clients.

“This operation not only allows us to increase our production capacity. It also means integrating fully complementary product ranges, which facilitates the industrial specialisation of our plants.”

Export, vegan strength Speaking of the group’s prowess in the exports market, Mr Lancis revealed Grupo Alacant was primarily engaged in private label activities for retail giants such as Lidl, Tesco, Aldi, Morrisons, Dia, Spar, Walmart and Carrefour.

It is also utilised for such renowned international companies as Unilever, Frigo Restauracion, Wicked Kitchen and Dale Farm Ice Cream.

According to Michael Huettemann, Grupo Alacant’s Export Manager, 10% of all production is exported, with a 50/50 distribution split between vegan and dairy products.

“We export to most European countries, and we have business in the UK, US, Gulf and Asia,” he said. “The European and UK markets are our key strengths.”

Mr Lancis reflected that part of Grupo Alacant’s plan is to dedicate one of the Madrid plants to non-dairy products, allowing the business to specialise in vegan lines.

“If you have a non-dairy factory, in some way you are giving more added value and reassurance to the consumer, and there is no risk of any cross-contamination.”

Reflecting this confidence in the vegan market, Grupo Alacant acquired the vegan line 4U Free From in 2018 and through which 6

Grupo Alacant

it produces a wide assortment of frozen products that are vegan and free from six allergens.

The recent Crestas La Galeta buyout was complimented with the Somosierra and Royne ranges, which are present in the free-from category in gluten-, sugar-, and lactose-free ice creams.

Mr Lancis explained: “We believe the vegan segment is fully transitioning from a niche to a more fully-fledged mainstream market channel with enormous growth potential.”

The base of 4U Free From vegan products is a lupin vegetable protein, and has been a major success. The range guarantees all products are gluten-free, mil-free, egg-free, peanut-free, sesamefree, and free of nuts.

“The brand catered initially to people with allergies and food intolerances, but it has since grown much wider and offers delicious non-dairy options to those who follow a vegan diet.”

While acknowledging the potential union of the 4U Free From brands and Special Line of Royne, Mr Lancis noted that serious consideration was being given to renaming the 4U Free From as the brand “does not fully reflect where it is today and that the vegan market is much wider now.”

Going forward Mr Huettemann said that while Grupo Alacant’s primary target for 2022 was the unification of “cultures, industrialisation and departments” between Grupo Alacant and Crestas La Galeta, there was still a deep desire to continue growing new product lines.

He said: “Our R&D will continue forging ahead with new products and flavours that complement our established lines and aid expansion in Spain and abroad.”

While production was maintained throughout the pandemic, Mr Lancis said the main challenge facing Grupo Alacant now was to manage the “critical situation” of rising prices in raw materials, some of which had spiralled to more than 50%.

“We have been very R&D oriented since the beginning, and we have always been sensitive to the emerging trends, such as glutenfree and vegan products. Innovation is the heart of Group Alacant and the main differentiator from its peers,” Mr Lancis said. “We are never satisfied, and there is always improvement to be made.”

The group has also undertaken various environmental activities within the industrialisation sphere, including solar panels, minimising water and food waste levels, and developing a new packaging line to avoid using plastic.

While the company’s main aim was to build long-term relations with suppliers and customers in the market and “to share the successes”, Mr Lancis concluded: “We are filled with optimism for the future. While maintaining our leadership in Spain, we want to expand and become more recognised on the international stage.” n Grupo Alacant

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