New wave of investments reshaping Greek F&B industry, export prospects

A new wave of investments is boosting Greece’s food and beverage sector, positioning the industry for further export growth in the years ahead. Just since the start of the year, three major deals – in pastry and dough products, in meat manufacturing, and in olive oil – have extended the string of mergers and acquisitions that have reshaped the sector over the last five years.

At the same time, Greek food exports continue to grow. Some products, like Feta cheese, which accounts for as much as 10% of the country’s total food exports, have even set new records: last year, foreign sales of Feta reached €785 million, with global consumers devouring almost 100,000 metric tons of Greece’s most famous food product.

Those global growth prospects are bringing fresh interest in the sector. Since March, Greek-led private equity funds have invested in Evoiki Zimi, a Greek company producing phyllo sheets, dough products and sweets; in Megas Yeeros, Greece’s leader in pre-cooked rotisserie “gyros”; and in the acquisition of leading olive and vegetable oils brands Altis, Elanthi, Flora and Sol. Those deals complement a raft of others that have taken place in the last several years, including by big, foreign investors like CVC Capital Partners.

In each case, the deals reflect investor interest in the export prospects of the companies. In the case of Megas Yeeros, for example, more than 40% of the company’s sales come from exports and it is looking to expand its operations at its U.S. facilities, which it established ten years ago.

Despite difficult world trading conditions, Greek food exports continue to shine. In the four months through April, the food sector recorded the largest increase by sector – up 10.8% to €3.04 billion – confirming the dynamic growth of the industry and far outpacing the overall 4.9% increase in Greek non-petroleum exports.

Recently, Greek dairy producer Kri Kri – one of Greece’s leading dairy companies – detailed plans for €53 million worth of further investments to boost its production of Greek yogurt, among other products. Last year the company’s exports of Greek yogurt rose 39% to €40.5 million, accounting for more than 60% of Kri Kri’s total revenues. The company has seen particularly strong growth in the UK and in Italy, while it recently entered new markets in France and the U.S.