Subsidiary Companies


PANRICO SA (Spanish Subsidiaries)

Lyons interests in European markets had tended to be concentrated on the EEC and hitherto they had not involved themselves to any great extent in Spain (Spain was not a member of the EEC until 1986). Nevertheless, with a population of nearly 40 million, management were impressed with the rate of industrial growth and the commercial prospects in that country and accordingly in the autumn of 1973 acquired a 50 per cent interest in two linked enterprises, Panrico and Panificio who were engaged in the business of cake and biscuit related products including the long-life products of: grissini (bread sticks) biscotti fetine (toast), packaged cakes and creme caramel. In January 1974 Lyons subsequently made a further move by the acquisition of a 50 per cent interest in each of six doughnut manufacturing companies all of which operated under a franchise of the Groups DCA subsidiary. The companies were:

Donut Corporation de Barcelona SA

Donut Corporation de Malaga SA

Donut Corporation del Norte SA

Donut corporation de Sevilla SA

Donut corporation de Valencia SA

Panificadora Guixolense SA

Although the Spanish business were slow to show profit they did accelerate far faster than the UK bakery market and were in much better shape than their UK counterparts by the 1980s. Their largest joint-venture with Panrico went from strength to strength achieving a notable 35 per cent compound increase in profits over five years. By the early 1990s Panrico was the bakery sector's main source of profit outstripping those based in the UK. Their doughnut business had 85 per cent of the Spanish market and Bollycao (a bread roll with chocolate filling) 90 per cent. So great was demand for sliced bread that a new bread-making plant had to be installed in Madrid and Barcelona while another opened in Portugal. The Spanish acquisitions had delivered up what management anticipated in 1973.


© Peter Bird 2004