The organic sector in Spain is booming

Veritas has established itself as the most important organic supermarket chain in Spain. The company opened its twentieth branch in Barcelona in February 2010, with a sales area of 400 m². Cooperatives in Spain have also started to market their products  - for example Del huerto a mi casa in Ecija, which is located between Sevilla and Cordoba. Ecoilla is selling their products in a shopping centre in Palma de Mallorca, and the long-established health food chain Terra Verda has opened its first store in Mallorca. (Picture: Ignacio Pons des Dalmases, marketing manager to the left, Silvio Elías de Gispert, co-owner to the right) 

The first tender shoots of an organic movement in Spain emerged as early as the 1970s, when farmers sold their produce direct to the new wholefood shops. In the late 70s, organic stores began to appear. Rolling organic markets and some organic wholesalers started to operate in the 80s. In the 90s, when more producers adopted organic guidelines, organic associations appeared and encouraged the sector to restructure. This became an incentive for some supermarkets to enter the market. Since 2002, supermarkets have been marketing their own brands. Consumption has increased slowly but steadily and organic production, aimed mostly at export, has expanded significantly, with the result that now around 70 % of Spanish products are exported. Imported products are mainly processed goods that come from Italy, France or Germany.
 

Table: Retail channels selling organics

Source: Specialised Organic Retail Report 2008

Conventional supermarkets in Spain have been slow to take the organic route, but they are beginning to increase their product range. Although organics still constitute a fraction of their turnover, they are growing between 15 % and 20 % per year. El Corte Inglés started to sell organics in 2002, and the share of organic food in its total food turnover is now 1.5 % (non-perishable goods). The range consists of 500 organic products, with eggs, olive oil and fruit and vegetables being the most important items sold. In the case of Carrefour, that started its organic business in the same year, organics make up only about 0.1 % of the annual turnover. Its organic range consists of 100 products, mainly dairy, canned vegetables and drinks. The organic product range in supermarkets has consisted mainly of processed goods, but the current trend is to increase supply from local producers through direct contracts or via national wholesalers and/or distributors.
 

Veritas has stores in Barcelona, San Cugat, Granollers, Castelldefels, Manresa and Sitges. The main goal of the company is to open the first Veritas market in Madrid in 2012, even though it also takes other locations along the Mediterranean coast and on the Balearic Islands into consideration. "In Barcelona and surroundings, we could open at least another ten markets, but our main goal is to outgrow Catalonia in 2010, which would enable us to double our branch network in 2013", Silvio Elías de Gispert explains. The chain regards it as important that customers are able to do one-stop shopping. Their comprehensive range consists of 4,000 items – fruit and vegetables, meat, bakery products and general food, as well as perfumes and cosmetics. The only product they do not stock is fresh fish. The assortment is constantly checked and new products are added as required. The Veritas brand has been available since 2002 and comprises more than 300 basic products like olive oil, yoghurts, coffee and juices and convenience products such as fries. The most important organic product groups sold are bread, eggs and milk.  (Picture: Fruit and vegetables at Veritas)
 

The company has 160 employees and expects a turnover of 19.5 million euros for this year, which would mean an increase of 15 % on 2009.  As Ignacio Pons des Dalmases, the marketing manager at Veritas, told Organic-Market.Info in an exclusive interview, the company is going to introduce new bamboo bags to replace all plastic bags. Veritas is pleased with this decision – even though it will be more expensive for them, they are convinced they have to do their best to help the planet, and this is a contribution they can make. In 2009, Veritas concluded many contracts with catering companies, especially to take their organic bread. These are companies that mainly supply schools, so they can say that the children of Barcelona are now being fed much better than in 2008. In 2009, the company also launched the Veritas magazine, a 24-page publication containing interviews, news, reports and in-depth articles about suppliers and products, that is greatly appreciated by its customers. (Picture: products of the Veritas brand)

The specialised organic retail sector has retailers whose assortments cover fresh organic produce like dairy, fruit and vegetables, and organic food makes up at least 50 % of the turnover. Health food stores sell organics, but also herbal teas and aromatics, cosmetics, books and other items. These are mainly single, local stores. Terra Verda is an exception, with 11 outlets in Valencia, two in Alicante and one which has just been established in Palma de Mallorca. The company behind Terra Verda, J. Navarro, started its business as long ago as 1771.

Today, the stores in Valencia have a sales area covering more than 1,500 m2, where all types of herbal, dietary and natural products are successfully marketed. The company has the opportunity to grow even more because the target audience is very broad, due to the wide variety of products on sale like dietetics and organic food – paying particular attention to fruit and vegetables, herbs, baby food, bakery, and special items for food intolerances (diabetics, celiacs, macrobiotics, etc.). In addition you can buy books, records, clothes, kitchenware, tea accessories, and sports foods. (Picture: Terra Verda)

Terra Verda has created its own brand for herbs, dietary products and macrobiotic foods totalling 400 items. Bio Cesta is another of the company’s brands (food and chilled food) with about 325 references. Terra Verda's brand Codonyer & March covers 210 products and is dedicated to tea, coffee and honey, as well as to cosmetics based on bee products. Noneglu is the company's brand for people with celiac disease, with 67 different items. Aloe Vera is a brand under which cosmetic products – based on the plant - are marketed. There are about 30 products listed. J. Navarro (about 130 items) is their brand for honey, herbs and spices.


 

Table: Product range in organic/health stores
 

Source: Specialised Organic Retail Report 2008

 

NaturaSì has two stores in Madrid. They stock about 4,000 products, and the most important product groups are eggs, vegetable juices and fresh fruit and vegetables. In addition, you find a wide range on sale:  fresh, chilled and frozen food, bread, fruit and vegetables, as well as non-food items, herbs, cosmetics and cleaning materials. Some important brands are El Enebral, El Granero, Vegetalia, Cal Valls, Luz de Vida, Natursoy, Valmasera, Biocop, La Finestra Sul Cielo, Ecor, Cantero de Letur, Horno de Leña, Biogredos, Ibereco, Finca Mojarama, Ecovian, Navarsotilo, Biobardales, Almacabio, Naturmas, Eladiet, Equo, Soria Natural, Dr. Hauschka, Weleda, Werz, Ecomil, Allos, Lima, Horizón, Machandel,and Sojade. 70 % of the range comes from Spanish producers and distributors and the remaining 30 % from abroad (mainly brands from Italy, Germany and the Netherlands). The company started their business in 2000 and sees increasing their client base and expanding the number of stores as their main challenges. The magazine Actualidad Económica gave an award to NaturaSì for the best creative and new ideas for products in 2006. 
 

BioNatura has two stores. BioNatura is the first and so far only store concept to be certified by CAAE and stocks more than 4,000 items. The store in Fuengirola has been operating for 13 years and has a retail area of about 100 square metres, while the store in Marbella (about 120 square metres) was launched 8 years ago. In addition, BioNatura runs an online shop. At first, mostly foreigners showed interest in the company’s organic products but the two stores are now also frequented by Spanish shoppers, who go there to buy organic products. According to  Pernille Dynesen (picture: Ms Dynesen holding up the CAAE certification), priority is fresh fruit and vegetables from Spain, as well as from other European countries.
 

BioSpace (500 square metres) sells food, dietary products, hygiene articles, cosmetics, cleaning materials, music, books, clothes, shoes and gifts. The food range consists of fruit, vegetables, meat, sausage, products based on vegetable protein, convenience food, frozen food, preserves, fish, milk and dairy products, bread, bakery products, sweets, cereals and mueslis, pasta, flour, legumes, coffee and teas, spices, beverages, dried fruit, baby food and animal food. BioSpace celebrates its 10th birthday this year. 

Del huerto a mi casa – from the garden to my home – is an association of organic consumers and producers located in Ecija, Seville. It was launched in May 2008 and is the first organic store in the area of Ecija. After a year full of initiatives, Del huerto a mi casa was certified by CAAE. The company was also involved in the local event BioEcija, a local organic fair, and in Ecija’s first Organic Week. Other involvement includes supporting the CAAE Ecological Week, technical seminars, the organisation of tastings, breakfasts and more. As a pioneer in the region, the company markets about 400 items, concentrating on fresh fruit and vegetables. It puts great emphasis on short supply chains. Customers can be categorised as follows: people concerned about their health, people who value high quality food, and ecological customers for whom the environment is a central issue.   Local markets also play a role in selling organics. These take place on a weekly basis, usually at the weekend, and offer a range of fresh organics. 

The proportion of domestic produce in total organic food sales is about 50 %. The best- selling domestic product groups on the Spanish market are olive oil, fresh fruit and vegetables, as well as dairy products. The best-selling imported product groups are dairy products, pasta and beer. The certification labels used for organics are the compulsory autonomous region organic label and the EU logo. (Picture: A typical small health food store: BioNatura in Fuengirola and Marbella also sell via internet)

Strong domestic food brands in stores are Natursoy, Vegetalia and Biocop, that are well-known because they have been present on the market over the last 20 years and are of high quality. Dr. Hauschka is successful as well. Soria Natural has a very good reputation for producing aromatics, teas and homeopathic medicines. Successful international brands include President, Sunval and Rapunzel from Germany and Pur Natur from Belgium. Regarding non-food brands, Ecover is the leader in household hygiene products. 
 

There are only a few organic distributors and wholesalers in Spain, since the demand for organics is still low. The market is supported by a short supply chain involving producers, retail outlets and/or the consumer directly. Retail outlets for organics have historically been the specialised stores but, if large retail stores increased their stock, the importance of wholesalers and distributors would no doubt gain in importance. Some important organic wholesalers are Natursoy, concentrating on vegetable proteins, dairy and bakery products, with a range of 800 items, Biocop, with about 650 organic products like dried fruits, cereal, bread and pastas, and Ecoalternativa, whose range consists of about 100 products like pasta, tomato products and juices.
 

Vegetalia has been completely committed to natural and organic food for 23 years. The company’s goal is to keep the balance between traditional craftsmanship and the use of the latest technology to ensure the highest quality – all this born out of the deepest respect for nature. Vegetalia, one of the leading Spanish producers of organic vegetarian foods and products, has just opened its second restaurant in the heart of Barcelona. The bar/restaurant offers a relaxed, air-conditioned and smoke-free atmosphere where the friendly staff serve a wide selection of food. A rich vegetarian menu is available, with appetizers, entrées, main courses and desserts. You can also enjoy organic wines, non-alcoholic beverages, coffees and tea. The menu indicates which dishes are suitable for vegans and which are gluten-free. 
 

All of Vegetalia's products are vegetarian, and some of those are also vegan. Of the approximately 1,000 products distributed, 400 are the company’s own brand. The products are sold mainly to Spain’s small health food shops but also to the supermarket chain Veritas. Its products are shipped to Portugal, France and the Netherlands too.