Portfolio
Nature of Business
La Sirena is a leading specialist food retailer in Spain. Founded in 1984, La Sirena has grown consistently with over 240 stores by the end of 2011. Its model is based on small (typically 150 to 250 square metres) shops located in close proximity to its customers. La Sirena offers more than 600 own-branded products. Fish and seafood represent nearly half of its sales. The other key categories are vegetables, pre-cooked food, ready meals and ice cream.
La Sirena’s positioning and main competitive advantages are: the specialisation in frozen food retail, year-round availability and good price, the range and quality of its product offering, the convenient location of its stores and the quality of its sourcing and purchasing, particularly for fish products. Its model competes against supermarkets and hypermarkets that also offer a range of frozen food, both branded and private label.
Investment Overview
We led the buyout of La Sirena with a €77m investment in 2006.
In 2006-07 we conducted a balance sheet optimisation exercise including the sale of a processing plant and the sale and lease back of the real estate store network.
From the beginning of our investment we were able to bring experience from more mature frozen food markets such as the UK and France to the business. We also introduced several food and retail experts to the Board. In 2009 we introduced Richard Baker (former Alliance Boots CEO) as strategic advisor to the company. Peter Robinson (ex M&S head of online, now same position in Selfridges) has worked with the company on their online strategy.
Over the past five years the company has opened a number of new stores, with a clear strategic focus on its expansion into the Madrid market. We have been working actively with the management team to increase performance. A new head of logistics has been appointed which has led to significant savings. Two new heads of purchasing have been introduced to the company, suppliers have been reviewed and a more aggressive approach to purchasing is paying off.