Portfolio
Nature of Business
La Sirena is a leading specialist food retailer in Spain. Founded in 1984, La Sirena has grown consistently every year with over 244 stores by the end of 2010. 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 main 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 best 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 their range of frozen food, both branded and own branded.
Investment Overview
3i led the buyout of La Sirena for €77m in 2006. 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 introduced several food and retail experts to the Board.
Over the past four years the company has opened a number of new stores, including a further twenty in Madrid, with a clear strategic focus on its expansion into the Madrid market. We have been working actively with the management team to increase performance. In 2006-7 we conducted a balance sheet optimisation exercise including the sale of a processing plant and the sale and lease back of the store network. During 2009 we introduced Richard Baker (former Alliance Boots CEO) as strategy 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.
A new head of logistics has been appointed which is leading 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.
