Swedish agri-food group Lantmännen has increased its stake in local company SimSuFoodS to a majority shareholding.
SimSuFoodS, founded in 2019, specialises in dry vegetable products. Lantmännen first invested in the company in 2021. It has now taken its position in SimSuFoodS to “just over 50%” from around 25%.
According to Lars-Gunnar Edh, an executive vice president at Lantmännen, the move fits with the company’s “existing investments in plant-based ingredients and strengthening Sweden’s food supply”.
Explaining the rationale for the increased investment, a Lantmännen spokesperson told Just Food: “Growth in dry vegetable products continues to be strong, both in Sweden and the rest of Europe and we see an opportunity to grow and broaden the business together in the coming years.”
In its statement, Lantmännen said SimSuFoodS aims to “simplify the value chain” from agricultural raw materials to finished products.
The company’s products are combined with water, cooking oil and spices to prepare dishes such as steaks, strips, and falafel.
SimSuFoodS products are primarily aimed at commercial kitchens and the public sector, offering “long” shelf life and space efficiency. It also sells products consumers, with a pack for hikers and a “crisis box” available online.
The Lantmännen spokesperson added: “Increased attention to national food preparedness and growing demand for both emergency rationing meals and aid shipments of food are all factoring into the decision to continue to invest in SimSuFoodS.”
The company operates its headquarters and production facility at a Lantmännen site in Kimstad, near Norrköping.
The remaining shares in SimSuFoodS are held by the company’s two founders, Andreas Gundberg and Niklas Hellsing.
While SimSuFoodS’ financial performance were not disclosed, Lantmännen is focused on its potential.
“As it is a start-up, we are more inclined to look at the potential and the promising future ahead,” the spokesperson said.
Addressing the possibility of acquiring full ownership, the Lantmännen spokesperson added: “As of now, our joint focus is on the company’s exciting growth journey, rather than the shares.”
In February, Lantmännen’s meat and charcuterie division, Scan Sverige, entered an agreement to purchase Swedish counterpart Lindvalls Chark, aiming to “broaden its business portfolio”.
