Swedish agri-food group Lantmännen has significantly increased its investment in the local company SimSuFoodS, now acquiring a majority shareholding in the food and drink business.
Founded in 2019, SimSuFoodS specializes in dry vegetable products and has been a part of Lantmännen’s investment portfolio since 2021. This latest move raises Lantmännen’s stake in the company from approximately 25% to “just over 50%.”
Lars-Gunnar Edh, an executive vice president at Lantmännen, emphasized that this strategic decision aligns with the company’s commitment to enhancing investments in plant-based ingredients and bolstering Sweden’s food supply chain.
A spokesperson for Lantmännen elaborated on the strategic rationale behind the increased investment, stating, “Growth in dry vegetable products continues to be strong, both in Sweden and the rest of Europe, and we see an opportunity to grow and broaden the business together in the coming years.” This optimism reflects broader food and beverage industry trends aimed at meeting changing consumer demands.
Lantmännen highlighted that SimSuFoodS seeks to “simplify the value chain” from raw agricultural materials to finished products. Notably, the company’s offerings can be easily prepared by combining them with water, cooking oil, and spices to create popular dishes such as steaks, strips, and falafel.
Targeting commercial kitchens and the public sector, SimSuFoodS products are designed to provide “long” shelf life and space efficiency. Additionally, the company markets its products directly to consumers, including specialized packs for hikers and an online “crisis box.”
The spokesperson remarked, “Increased attention to national food preparedness and growing demand for both emergency rationing meals and aid shipments of food are all factoring into the decision to continue to invest in SimSuFoodS.” This focus aligns with current food and drink consumer trends emphasizing sustainability and preparedness.
SimSuFoodS operates its headquarters and production facility at a Lantmännen site in Kimstad, near Norrköping. The remaining shares of SimSuFoodS are held by its founders, Andreas Gundberg and Niklas Hellsing.
While specific financial performance figures for SimSuFoodS have not been disclosed, Lantmännen remains confident in the company’s future potential. As a startup, the emphasis is on the opportunities that lie ahead. The spokesperson stated, “As it is a start-up, we are more inclined to look at the potential and the promising future ahead.”
When discussing the possibility of acquiring full ownership, the spokesperson confirmed, “As of now, our joint focus is on the company’s exciting growth journey, rather than the shares.”
In a related development in the food and beverage industry, Lantmännen’s meat and charcuterie division, Scan Sverige, recently entered an agreement to acquire Swedish counterpart Lindvalls Chark, aiming to expand its business portfolio.
Just as these strategic investments underscore the importance of adaptability in the food and drink business, they also present opportunities for companies to capitalize on emerging trends and consumer preferences.
