Sumol Compal plans US expansion

Portugal’s fruit juice company Sumol Compal has “ambitious plans” for the US, where it seeks to launch through a partnership for the production and distribution of its products.

Europe is also in its sights, with “news expected soon” regarding a new market as part of a strategy to increase the share of sales outside Portugal.

In an interview with business daily Negócios, CEO Diogo Pereira Dias states that the major challenge will be standing out on supermarket shelves amidst the wide variety of products available.

Currently exploring the right “entry hook,” the Carnaxide-based company aims to launch in the US by 2028.

Last year Sumol Compal enjoyed a record year and plans for a businesses turnover of €500 million overall by 2028.

Portugal represents 80% of the company’s turnover and the company aims to increase the international share of its sales to 25%.

“We have been studying the US market for a few years. It is a massive market with a vast supply, where any single niche is arguably the size of the domestic market. We are exploring the right entry point and have projects in the works”, said Diogo Pereira Dias.

“We are talking about a phased plan that begins with a cooperative project—specifically, an initial partnership for production on a service-provision basis, without investing capital in a factory. What will likely happen is that we gain access to production through third parties; that is, without owning the factory—something I doubt will occur during this strategic cycle.

At present, the company’s presence in the United States is limited, selling both Compal and Sumol mostly to the Portuguese Diaspora, but the company has ambitious plans to enter the wider US market.

Source: Negócios