Are Spice Traders the Next Fallen Stars?

In my first full-time job at a German multinational back in 1995, I found myself smuggling cayenne powder into the canteen to enliven the otherwise bland offerings. Since then, a culinary revolution has swept through Germany supported in a wave of international flavors where once the humble Wurst reigned supreme. (It is hard to find a good one these days) This transformation owes much to the burgeoning spice trade, which catalyzed the growth of companies like Fuchs Group and Ostmann from modest beginnings in the 1960s to commanding revenues exceeding EUR 600 million recently.

Is  it going to continue?

Currently, we are advising an investor with a keen focus on the spice, sauce, and food ingredients sectors. Our extensive dialogues with over 150 companies in the DACH region reveal a consensus: the era of double-digit growth may be drawing to a close. Take, for instance, the Fuchs Group, which has seen only marginal growth in recent years, with profits dwindling to a mere 2.5% of sales—a margin mirroring that of many beleaguered automotive suppliers, clearly a fall star of the German economy.

If you have not got enough spice in your life, this is your chance. During our M&A explorations, we encountered five proprietors prepared to divest their spice enterprises. We can offer a brief profile of each, should you consider acquisition opportunities. Having engaged with approximately 80% of potential spice buyers in the DACH region, we are well-placed to provide insights into their acquisition criteria. Should you wish to delve deeper into what these buyers seek or hide, feel free to reach out to us.

 If you can’t find anything to your taste, have a look at our list of opportunities which contains approximately 300 other opportunities.


Have a spicy but not so hot week !

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