Pedro Soares dos Santos, Chairman & CEO of the Jerónimo Martins Group, shares his vision on the first ten years, from 2014 to 2024, of the Groups’ agribusiness.
WHY DOES A FOOD DISTRIBUTION GROUP DECIDE TO MOVE INTO A SECTOR AS DIFFERENT AS THE AGRIFOOD BUSINESS?
We started by trying to understand how our business would develop naturally over time in more mature markets and how we could make a difference in these markets in the years ahead. By moving into the agrifood business, we realised we could do different things: there was a lot we could do to innovate, to protect supply chains and to ensure food safety, which I see as one of the most important challenges of the century. Either we found ways of continuing to evolve or sooner or later we would pay the price for failing to do so. And as we are born pioneers, we got down to work.
PEDRO SOARES DOS SANTOS
CHAIRMAN & CEO OF THE JERÓNIMO MARTINS GROUP
WHAT WAS YOUR TAKE ON THE WORLD SOME TEN YEARS AGO AND WHAT LED YOU TO BELIEVE IT WAS THE RIGHT TIME TO MOVE INTO THIS BUSINESS AREA?
What led us to look at this business was an issue that is now on everyone’s lips but wasn’t at the time, which is called sustainability. A Company which is essentially geared towards selling fresh produce has to be mindful of this principle: for produce to be fresh, it has to be local. And to be sure of local supplies, we have to able to energise the market. So we became a significant player in the sector.
“To sell the freshest products, we need to be close to production.”
OVER THE PAST TEN YEARS, JERÓNIMO MARTINS AGRO-ALIMENTAR HAS BUILT UP A HIGHLY DIVERSIFIED PORTFOLIO, ON LAND AND AT SEA. WHEN YOU LOOK BACK AND THINK OF EVERYTHING YOU’VE BEEN ABLE TO DO IN THIS SECTOR, WHAT ARE YOU MOST PROUD OF?
I’m proud of building up our internal know-how, greater internal expertise, mainly in people who have moved from retail into this business area. A lot of staff from the retail Companies joined Jerónimo Martins Agro-Alimentar and it’s wonderful to see how quickly they adapted and understood the dynamics of this new business. bringing a greater wealth of ideas to the Group. That’s what I’m most proud of. It’s the expertise that enables us to continue innovating.
HOW DO YOU SEE THE NEXT DECADE FOR THE GROUP?
The decade ahead will be very challenging for us. The context of economic uncertainty in the European market, where we are a major player, means we are convinced we will have to step up investment in protecting our supply chains, as we continue to grow in retail operations. It won’t be easy, but I’m confident it will be worth it.
