Nordic expansion: Barentz acquires Scandinavian Casmo Oy
The move strengthens Barentz’s position in the Nordic market’s meat industry
06 May 2019 --- Global ingredients distributor Barentz International has acquired Finland-based Casmo Oy, a specialized distributor of casings, smoke condensates and flavors for the meat industry. The takeover builds on Barentz’s current wide range of products and allows the company a greater diversity of sources for delivering quality solutions within the meat industry. For Casmo, the move means that its suppliers and customers will benefit from the support and knowledge of Barentz’s local technical expertise and strong global network.
The acquisition comes amid a growth of meat-based products within the snacking sector. According to Innova Market Insights, meat-based products are enjoying growth in the snacking sector, with a strong 16 percent CAGR reported for meat snack launches (global, 2013-2017), while the US meat snacks market was worth an incredible US$1.4bn in 2017.
“Our strong technical presence in Finland and our local expertise, supported by technical teams and pilot plant facilities, represent a winning combination with Casmo’s current product portfolio,” notes Hidde van der Wal, CEO of Barentz. “This takeover is a natural fit that will create strong growth for Casmo’s customers and suppliers throughout Scandinavia.”
Barentz is a global provider of ingredients for the life sciences industries. It offers customers a comprehensive portfolio of specialty ingredients, including unique specialty ingredients and blends from Barentz-owned production companies, all supported by technical teams and application labs. Barentz operates in more than 60 countries, has a turnover of around €1.1 billion (US$1.2 billion).
Casmo Oy has a strong position in the Finnish market and is rapidly expanding its business operations in Sweden, Denmark and the Baltics. The company was established in 2006 and is located in Vantaa, Finland, while in 2017, Casmo successfully opened its first subsidiary in Sweden.
Barentz says that the acquisition will complement its broad product portfolio in the food industry, including the meat segment. The takeover is expected to generate rapid growth in business for both parties on the Scandinavian market, especially in Denmark and Sweden.
“Since its foundation, Barentz has aimed to create long-term relationships with suppliers and customers and to build on its prominent market position in Finland. The next step for the company includes further expansion in the Scandinavian market with new product launches. That’s where the quality of the Barentz network is crucial,” says CEO of Casmo Oy, Juha Luuppala.
The move comes at a time when the industry is seeing increased traction in meat and dairy alternatives, with consumers demanding more sustainable options. This highlights the need for more innovation in the meat industry and better partnerships that will boost its capabilities. An Innova Market Insights 2018 Consumer Survey found that one in two US consumers reports health as a reason for buying alternatives to bread, meat or dairy. Other key reasons listed for consumers to buy food alternatives were diet variety (36 percent), novelty (18 percent) and sustainability (17 percent).
Expansion tactics
Barentz has been steadily expanding its distribution reach with international partners. In November 2018, Roquette reconfirmed Barentz as the preferred distribution partner for its food product range in European markets including Belgium, Bosnia-Herzegovina, Bulgaria, Croatia, Czech Republic, Greece, Hungary, Luxembourg, Macedonia, the Netherlands, Poland, Romania, Serbia, Slovenia, Slovakia and Turkey. During December, the companies worked together to ensure optimal alignment in all countries. The phase of cooperation began on 1 January 1, 2019.
Last year Barentz also announced a joint venture with Tovani Benzaquen Ingredients in Brazil, to further aid its expansion into Latin America. The pair hope to generate “valuable synergies” by combining production solutions and creating “innovative concepts” for the “important” Latin American market. In addition, the company established a joint venture with Deltagen Group, a specialized food ingredients distributor headquartered on Curaçao, with local presence in Venezuela, Colombia, Ecuador, Chile and Peru.
Initiating its Nordic reign, in 2017, Barentz announced the acquisition of Finnish-based Leipurin’s meat industry unit. The acquisition widened Barentz’s ingredients portfolio dedicated to the meat industry and strengthened the company’s market share in the region. Through its Finnish daughter company MP-Maustepalvelu Oy, fully acquired in 2014, Barentz has positioned itself as the leading ingredients provider in Finland and is growing its market share in the rest of Europe.
