Strategic mergers with tech-enabled distribution platform providers are one solution to progress the just-in-time transformation in the global grocery industry. Capstan Capital (Switzerland) has been advising the board & shareholders of Switzerland’s largest independent online B2C food distributor Farmy AG since 2022 on strategic options during their restructuring phase.
As e-commerce matures, large grocery chains and purveyors of fresh food have struggled to develop their own e-commerce platforms that could compete with fast moving and well-funded VC firms in the space. On the other hand, many smart VCs hit barriers due to lack of size while large off-takers with varying demands (think catering firms for restaurant-, airline- or cruise ship customers) frequently face expensive supply bottlenecks.
Farmy AG entered into this transformational transaction where their tie-up with Pico was not only driven by internal synergies, such as shared back office functions and logistics but also by the aim to grow an important sales channel for local farmers and food producers. Efficiency will also see a significant boost from using idle night-time capacity and excess fresh groceries of Farmy’s e-commerce platform to supply on-trade businesses during off-peak. For many companies, there is tremendous value in seeking new partners to transform the business model and pull away from competition.