Portuguese companies Cerealis and Better Foods have decided to merge their milling operations to form a new jointly owned enterprise. This strategic partnership aims to enhance competitiveness within the food and beverage industry, particularly amid shifting dynamics in the Iberian market.
The agreement encompasses Cerealis Moagens alongside the milling units of Better Foods, which include Ceres, Germen, Carneiro Campos, and Granel. This collaboration will see the establishment of a company split evenly, with each group holding a 50% stake.
Financial specifics regarding the merger have not been disclosed. According to Better Foods Group’s website, it is recognized as the largest milling organization in Portugal, specializing in flour and food ingredient production.
Founded in 1919, Cerealis was acquired in August 2021 by investment firms Tangor Capital and Teak Capital. It produces an extensive range of products, including breakfast cereals, pasta, cookies, and frozen meals, while also being a key supplier of flour.
In a united statement, the companies expressed that this merger seeks to “strengthen the competitiveness and industrial capacity of the Portuguese milling sector at a time of rapid transformation in the Iberian market.” They noted that it also addresses the growing consolidation of the value chain within Portugal and the wider Iberian Peninsula, contributing to the sustainability of the national flour industry and ensuring a reliable, efficient, and competitive supply critical to the food and drink business.
Pedro Moreira da Silva, CEO of Cerealis, stated, “The new scale of the main Iberian operators is redefining the competitive environment in which we operate.” He emphasized that the merger will enhance operational efficiency, investment capacity, and innovation.
Armando Miranda, CEO of Better Foods Group, added, “We believe that this merger will accelerate industrial modernization and improve our ability to serve the market, benefiting customers, employees, and partners.”
The deal must receive approval from Autoridade da Concorrência, the Portuguese competition authority.
Better Foods Group, established in 2018, comprises four milling companies, a deep-frozen food segment, and two logistics facilities for storage and distribution both locally and internationally.
Cerealis boasts 11 brands, including Nacional, Milaneza, and Napolitana, employing over 760 individuals and processing upwards of 440,000 tons of cereals annually across four certified production centers. Its product offerings span over 130 items sold across five continents.
Notably, Cerealis completed the acquisition of Europasta in 2024 for an undisclosed amount, solidifying its market position; it already held a 58.33% interest in the Czech Republic-based firm.
In conclusion, this merger signifies a pivotal moment in addressing current food and drink consumer trends and enhancing the operational landscape of the Portuguese milling sector.
