Sovena Group: Olive for the world (Abridged)

In 2010, and in less than 8 years, the Portuguese Sovena Group had changed from being a diversified food manufacturer, but with virtually no international presence and little growth opportunities, to become the second biggest producer and bottler of olive oil in the world. The case describes the uncertainties facing Antonio Simões, the Group’s CEO, in the challenge of consolidating the position and improving profitability. How to access higher value segments, beyond the private label and bulk businesses where the group developed a greater part of its activity? Should they develop or acquire strong consumer brands? Which markets should be prioritised and with which strategies? Which strengths should Sovena leverage and which capabilities needed to be acquired or developed?