As announced, the SMERemediumCap and Inspiring Earth groups are joining forces to create a powerful new format in the Cretan olive oil market.
Through the merger of the companies, significant synergies will be created both in cost formation and in the flexible commercial policy of a wide range of products.
The new group has multi-year agreements that guarantee access to the best quality and most important olive oil productions in Crete (Rethymno, Sitia) and the Peloponnese.
The main objective of the new group is the expansion of the brand in the Greek and European markets, but also the further development in the markets of North America (USA, Canada), South America (Brazil), Asia (Japan) and Oceania, which are also the regions with the largest global imports of olive oil.
The total investment amounts to €10 million. The strength of the new funds and additional bank financing will support a commercial growth policy to achieve the group’s strategic objectives. These objectives concern its geographic spread, the development of complementary products and its verticalization with partnerships and investments in target markets and companies to increase turnover and profitability.
Nikolaos Karamouzis, Chairman of SMERemediumCap, said: “We are particularly pleased and optimistic about our entry into an industry where our country has a stable and significant global presence, as well as our efforts to financially consolidate companies with a dynamic outlook that will benefit local economies, workers and the country. Greek olive oil has great room for growth and needs bigger, stronger and more outgoing companies. I would also like to thank the banks and service providers involved for their cooperation and for accepting our proposals for financing and reducing the company’s overall liabilities.”
Konstantinos Antonopoulos, President and CEO of Inspiring Earth, said: “With our ten years of experience in the olive oil sector, we see that in a period of turbulence in global production, this collaboration is the right step towards the emergence of a new format with a leading role, which will be able to respond to the great challenges and opportunities of the international market. An important role will be played in this effort by the executives of the companies, especially of “LATZIMAS SA” which is the largest company of the new group in which the Kotzampasaki brothers have done an excellent job.”
Latzimas SA is one of the most important Greek companies in the sector, with a strong presence in the Greek and European markets. It is headquartered in Rethymno and has a complete and vertically integrated production infrastructure, while having access to private olive groves, which contributes to the competitiveness of its products.
“Siteia Oils-LASITIA SA” was founded four years ago, standardizes and markets the internationally recognized and sought-after POP olive oil. Sitia is the producer of agricultural cooperatives in the region and has bottling facilities with the capacity to standardize 90 tons per day.
“Olympian Green International SA” standardizes the extra virgin olive oil of the Western Peloponnese with emphasis on PGE Olimpia olive oil. The Company is among the five Greek brands with the most prestigious awards and distinctions, having won more than 60 international awards.
SMERemediumCap, as the majority shareholder of the joint venture, will contribute to the financial restructuring of the group companies and ensure access to new financing tools and loan funds.
The management of the new group will be taken over by the executives of “Inspiring Earth”, with Mr. Konstantinos Antonopoulos as CEO. This is a group with many years of experience in the branded extra virgin olive oil market.
The retention of the founding executives of “Latzimas” and the executives of “EAS Sitia” in the new scheme is also particularly important for the presence and strong role of the new group in the local communities where the companies operate, since the main objective of the group is to work to strengthen and empower local producers.