Interview with Ramon Alsina Cornellana, CEO, bonÀrea Group

15 Jan Interview with Ramon Alsina Cornellana, CEO, bonÀrea Group

What key factors have contributed to the significant growth of Catalonia’s agrifoods sector?

Catalonia’s agrifoods sector is a crucial part of the region’s economy. It represents 20% of our gross domestic product — amounting to nearly €50 billion — and employs more than 175,000 people. It is a highly dynamic sector, and we believe it is a reference point at the European level in certain aspects. Catalonia is a leader in meat production, fresh and dried fruit production and high-quality oil products. Our award-winning oils are recognized across Europe. Catalonia is becoming a hub for the creation of good and healthy food. Gastronomically, Catalonia has been home to some of the best restaurants in the world. In eight of the last twenty-two years, the world’s best restaurants have been located in Catalonia; our restaurants have consistently ranked among the top 50 globally. Catalonia excels in producing high-quality and safe traditional foods. Our top priority is food safety followed by quality. At bonÀrea, we play an essential role in improving our society’s quality of life. Historically, Catalonia is an entrepreneurial region. Many of the largest Spanish companies that emerged in the last century began in Catalonia before expanding to other regions. Our entrepreneurial mindset is a key factor in the success of the local agrifoods industry.

Due to their proximity, Catalonia and Aragón have been our main regions of focus. The Spanish coastline — particularly the Mediterranean — is also a strong player in the agrifoods sector, especially given the influence of the Mediterranean diet. Galicia is another success story in the meat production sector. We combine tradition, modernity and entrepreneurship and are driven by a strong business spirit. There is a great deal of diversity in our small and medium-sized enterprises. Outside of our seven or eight large groups of companies, there are also hundreds of small and medium-sized enterprises producing extraordinary and high-quality products.

What major challenges do food producers face in 2025?

Energy costs remain a significant issue. The war in Ukraine exacerbated these costs as Russia was a major supplier of gas and Ukraine was a key provider of cereals and raw materials for Europe. While energy prices have now returned to normal levels, attracting talent remains a critical challenge. Young people are drawn to opportunities offered by large cities where future prospects are immense. However, smaller rural areas have other unique attractions and a promising future. We are working hard to ensure the future of the agricultural and livestock sectors, particularly at the generational level. It is essential we make agricultural and livestock operations more appealing to young people economically and professionally. Our mission has always been to improve the economy of families in the sector. In terms of energy, we are increasingly relying on renewable sources like solar power. Our region faces water scarcity and has implemented significant policies and measures to optimize water resources.

Can you provide a brief overview of bonÀrea’s mission and core business segments as it enters 2025?

We experienced decreased revenues in 2023 due to the invasion of Ukraine and rising energy prices. We operate 70 service stations, selling close to 1.5 million liters per day, which has high energy costs. Additionally, raw material costs have decreased. We maintain our pricing policy based on costs and strive to preserve our margins per kilogram. We are focused on applying technology to our food production operations to reduce costs, with savings passed on to the final customer. Our company was founded in 1959 by my father to support the precarious economy of local farmers. At the time, there was significant migration from rural areas to cities. Being relatively close to Barcelona, many farming families from our area moved to establish small agricultural operations — mainly from laying hens — to supply food to the growing city population. This was an essential economic complement for these families. In essence, we were born in the rural world to support local economies and provide fresh, high-quality food to city dwellers. Our growth since we were established has been tremendous, and we are very proud of it. Over the years, major companies have expressed interest in working with us. We ask them to present a 100-year plan for production and ensure our operations remain rooted in the region. Securing the future of our community and providing opportunities for future generations to work and stay here is a significant part of our responsibility.

We operate in several Spanish regions, but our main limiting factor is logistics. As a vertically integrated company, we manage everything from production to delivering the product to final consumers, including running our stores. Currently, our logistics framework is limited to a 300-kilometer radius of our production center. To expand, we are building a new production base in Épila that will allow us to supply areas such as Madrid, Valencia and the Basque country. Our strategy is focused on long-term objectives and significant investments. We have invested around $136 million annually over the past five years. Our focus is not on short-term results but on sustainable, long-term growth.

Our stores are designed to be local and convenient and serve as neighborhood pantries. Customers can purchase what they need just a few meters from their homes. Our primary goals are to guarantee food safety, ensure quality and make products affordable. We have managed to thrive in a highly mature market dominated by very strong local players and European leaders from Germany and France. Our products are of equal or better quality at more competitive prices. Our main objective is to make high-quality food accessible. One of our key missions is to democratize access to our products across all social classes; we want to make products that were once exclusive to wealthier classes available to all.

Bon Área is a company with more than 4,000 shareholders, with a family serving as the primary reference point. The management operates as a family business, and ownership is largely held by farmers and ranchers who produce the food and employees of the company itself. We believe that sharing the company’s wealth with our local community ensures our people become real enthusiasts and stakeholders in the giant project that is bonÁrea. If an opportunity were to arise for US participation, for example, we would certainly be open to discussions and agreements — provided they remain committed to the region. The future of our rural community depends on our commitments.

What steps is bonÀrea taking to develop circular economies within its operations and combat climate change?

This is a matter of great concern to us. We live where our factories and farms are located; this is our environment, and we take care of it as if it were our backyard. Environmental sustainability is a responsibility we take on ourselves because failing to do so would harm us directly. As mentioned, we have been implementing significant measures to reduce energy and water consumption. Over the past two years, we have reduced water usage by 11.5%, which equates to nearly a 3% reduction per kilogram of food produced. On the energy front, we are making substantial investments in solar energy and are installing solar ports at all our plants and farms.

A clear example of our commitment to sustainability and the circular economy is our effort to minimize waste generation and maximize reuse. We were one of the first major companies in the food sector to achieve zero-waste certification. We also have a significant advantage in understanding consumer behavior through our direct-to-consumer approach. Being both producers and sellers gives us a unique position as we know exactly what needs to be produced. This eliminates intermediaries and allows us to streamline processes and reduce costs. Instead of aiming to increase margins, we focus instead on improving prices for the end customer.

For example, we use a white plastic crate as part of our supply chain to deliver products to our stores. Each crate is used 50 times per year and has a lifespan of 10 years, replacing the equivalent of 500 cardboard boxes per crate. This initiative has resulted in annual savings of 25,000 tons of cardboard, 75 tons of stretch film and 36 million labels. Another critical initiative is our new project involving plastic packaging for food. While plastic packaging is currently the only way to ensure food safety, we are working to make these packages returnable and close the loop between stores and manufacturers. This innovative approach is patented and underscores our commitment to sustainability. We are deeply concerned about global warming. Our efforts aim to minimize greenhouse gas emissions from livestock production and ensure the lowest possible emissions per kilogram of food produced.

What milestones has bonÀrea achieved in digitizing its value chain?

We have had a strategic partnership with Siemens — a German leader in technology — for more than 10 years. We collaborate closely on the development and implementation of artificial intelligence and big data. We currently serve more than 2 million customers weekly. Access to continuous and real-time information through big data and artificial intelligence allows us to better understand our consumers’ preferences and anticipate future needs. This capability enables us to take proactive measures, such as offering discounts on products we predict may soon expire. This approach benefits the consumer by providing significant price advantages and helps our company reduce the volume of expired products. We are pioneers in implementing quick-response (QR) codes on food products. Through QR codes, end customers can access full traceability and information about the origin of their products. They can also find recipe ideas and other relevant details. The potential of QR codes is immense, and we are already integrating them across our operations.

How is bonÀrea collaborating with educational institutions to develop future industry leaders?

We are committed to supporting people from the age of three through our flagship project called La Llavor, which means the seed in Catalan. This initiative focuses on introducing children ages 3 to 15 to robotics, programming and technology. Launched in 2020, it provides educational opportunities to all school-aged children in the region. We have since expanded the model to other communities in Lleida. From 2020 to 2024, we have provided training to 1,700 children. This project is particularly impactful in rural areas where access to technology for children matches or even surpasses that of many university students across Spain and Europe. We are immensely proud of La Llavor, which we believe is the largest educational initiative of its kind in Spain.

We are now extending our efforts to high schools. bonÀrea was a pioneer in Catalonia in introducing the dual education model, which we adapted from Germany. This model fosters collaboration between high schools and businesses, tailors education to meet industry needs and provides practical training for companies. Our involvement spans several high schools, and our next focus is on universities. Catalonia is home to 12 faculties related to food science, agronomy and food technology; the region provides a robust university-level education in our sector. We maintain collaboration agreements with the University of Barcelona and other institutions. In Lleida, we participate in centers of excellence in the agrifoods sector alongside universities. Our reach also extends to Zaragoza, the wider Lleida area and northern Aragon, all of which are strong hubs for the sector. In terms of employee training, the company provided 50,000 hours of training to our staff in 2023 alone. This demonstrates our commitment to education and development from early childhood to our adult workforce.

What strategic targets has bonÀrea set for the future?

Over the next decade, our main project is to develop our new production base in Épila. We are excited to see it reach 60% production capacity, with the potential to produce food and supply 1,000 stores daily. This is a massive industrial undertaking. The project spans a 186-hectare site that measures 3.5 kilometers in length and 0.5 kilometers in width. The site will house 23 production units. At the center of the complex is the logistics hub, which is already constructed. This single-story building covers 108,000 square meters and connects all production units on the left and right through an underground tunnel. The tunnel, which runs 3.5 kilometers, facilitates the seamless transportation of finished products. From this logistics hub, we can serve areas as far-reaching as Madrid and San Sebastián. To achieve our 2035 goals, we need to open approximately 40 stores annually in the next decade — 400 stores in total. This presents a significant challenge as securing the necessary locations is critical to our success. Owning the store locations ensures long-term stability; if the locations are owned, no one can take them away from us.

Each of our stores serves an average of 4,000 customers weekly, and we cannot afford to lose that customer base. However, finding properties to purchase is more challenging than finding rental spaces. During recent real estate and banking crises, we saw opportunities to acquire locations. However, it has become more difficult in today’s market. Nevertheless, we remain optimistic about reaching our targets. Our ultimate goal is to create products that excite our customers; achieving this depends on our ability to interpret and act on the valuable information provided by our end consumers. We have a very promising future ahead, and one that depends on all of us. We are committed to using common sense and logic to provide end customers with what they truly want.

What milestones are you most proud of during your 25-year tenure as CEO?

We take great pride in all our accomplishments but above all in making high-quality products accessible to the majority of consumers in our community. Items once considered exclusive, such as Iberian ham, are now affordable for the broader population. Offering these products has been one of our major achievements. People are now able to meet their nutritional needs and find pleasure in eating. Another milestone we are immensely proud of is contributing to an excellent quality of life for people in our community. As a company, we operate a foundation that supports various initiatives, including care for the elderly. We provide 450 residential spaces with exceptional facilities, such as a heated pool, gym and a wide range of services for young and older generations. We also have a golf course that provides first-class recreational amenities to the community. These services exist because of us and generate wealth and opportunities for everyone.