At the beginning of 2002, Veritas opened in Barcelona the first supermarket of 100% organic and certified products. Behind this initiative were four partners, among them the Elías family, who at that time was a shareholder of Caprabo and wanted to transfer their experience in the organized distribution sector to the then tiny market of organic food. Their vision was to "democratize," that is, to make the consumption of eco products accessible to the general public and for them to stop being a rarity that could only be bought in small specialized stores and herbalists. Twenty years later, this goal has been achieved, but, really, their journey has only just begun, as the growth potential of the sector is enormous.
When Veritas was born, in Spain organic food represented a symbolic 0.5% of the total. Although this figure has multiplied by five in these two decades, up to the current 2.5%, it is a volume that is still very low, especially when compared to other European markets. It is estimated that the annual per capita spending on organic products in Spain is 50 euros, compared to 350 euros in countries like Denmark or Switzerland or 175 euros in France. "Are we really so different from the French? Veritas has a lot of growth potential and we believe that what is needed are stimulus measures from the Government to encourage consumption," explains the CEO of the chain, Silvio Elías de Gispert, in a conversation with The New Barcelona Post.
According to the businessman, the Government should lower the VAT on organic products as soon as possible, applying a super-reduced rate that allows increasing consumption and reducing the price differential that exists with food from traditional or non-organic agriculture or livestock. "Our seasonal organic tomatoes are not always more expensive, but in the case of chicken or pork, yes, there must necessarily be a price differential, since these are different products, they are animals that have been raised in a totally different way, with a slower growth cycle that increases costs," argues Elías.
This request for a VAT reduction has already been sent to the Government of Pedro Sánchez through the Spanish Association of Organic Processors and Marketers (Asobio), with the argument that this type of food "is not only organoleptically better, but also better for health and for the future of the planet." The CEO of Veritas also presents another compelling reason to fiscally incentivize this sector: the European Union has established that by 2030, 25% of the cultivated hectares in member countries must be organic in order to comply with the United Nations Sustainable Development Goals (SDGs). "Today, the organic surface is only 8%, so we must triple it in just eight years; clearly there must be some stimulus," he considers.
The CEO of Veritas is proud of the work done by the chain over these 20 years. "We have been transformative agents, protagonists of the growth experienced by the sector, and today we completely renew our original convictions to continue being drivers of this change for 20 more years," he emphasizes. According to Elías, Veritas has been driven by "tremendous enthusiasm" based on the will to "improve people's health" and contribute to "transforming the agri-food model." "We are a very passionate company, we have always wanted to lead change and be ahead, anticipating all regulations and with a titanic dissemination effort that we want to continue doing in the future," he stresses.
Silvio Elías: "We are a very passionate company, we have always wanted to lead change and be ahead, anticipating all regulations and with a titanic dissemination effort that we want to continue doing in the future"The Elías family founded Veritas with three partners who currently remain shareholders of the company: the Pont (from Borges) and Martí families and Esade professor Carles Torrecilla."We are still the same as from the beginning," explains Elías, who adds that the only new thing is that they are now also partners in the companyPello Aizpuruand his wife,Elisabeth Hofmann, the couple who founded the Valencian organic food chain Ecorganic, which was acquired by Veritas in mid-2019. According to the CEO, the chain's growth has been achieved, fundamentally, with its own resources and there are no plans to bring in partners or incorporate venture capital firms as travel companions. "With an annual investment of between five and six million euros, we can grow alone; for now, we are not looking for partners, but for the future, nothing can ever be ruled out," he points out.
With a network of 80 establishments ---including the online store---, Veritas closed the 2021 fiscal year with a turnover of 108 million euros, a figure that represents a growth of 1.2%, although in terms of volume of products sold, the increase has been 4%. The evolution compared to 2020 is moderate, considering that in that year sales grew by 8% due to the effect of the lockdown, which provided them with "three extraordinary months" in which they sold like never before. Thus, in 2020 online sales soared by 300%, a pull that last year moderated to 15%.
In the last year, the chain has gained two points of market share, now controlling around 10% of the sector (excluding fresh products), a figure that climbs to 25% in the case of Catalonia, according to Nielsen. The brand also operates in Madrid, the Balearic Islands, the Basque Country, Navarre, the Valencian Community, and Andorra.
New openings and reforms plan
Despite geopolitical complexity and issues such as the rise in fuel prices, Silvio Elías is very optimistic about the forecasts for 2022, a year in which Veritas aims to grow by 10% thanks to its plan to open between five or six new stores. The first two have already opened in Palma de Mallorca and San Juan (Alicante). In parallel, the company will renovate fourteen supermarkets that have become old to boost their sales and apply a new establishment model. One of the most significant reforms will be that of the store on Mandri Street, iconic for being the second one opened by the chain. In this process to adapt its network to new needs, Veritas has also opted to close four stores that were excessively small; two have already closed and two more will do so this year.
The new openings and renovations will require an investment of 6 million euros. According to Elías, Veritas's goal is to reach one hundred points of sale by 2025. During these three years, he trusts "to grow a minimum of 30%", which would raise the chain's turnover to 140 million. In this new expansion plan, Veritas's strategy is to open larger establishments, with an area of between 500 and 800 square meters and with parking. A novelty is the opening of stores with the stand-alone format or built from scratch to their specifications on a plot of land, a model that has already been launched in Palafrugell (Girona) and San Juan (Alicante).
Of the current network of 80 points of sale, about ten bear the Ecorganic brand, but according to Elías, the decision has already been made to unify the brands, so, in two years, only the Veritas brand will be used. The Barcelona-based chain currently employs 800 people directly and has a 10,000 square meter logistics platform in Lliçà d'Amunt. This infrastructure, launched in 2016, involved an investment of four million euros and, in addition to centralizing the distribution of organic products to all its stores, houses the company's workshops, the online order preparation center, and the headquarters of Anna Ecológica, the division for supplying organic ingredients to the hospitality and catering sector.
From Lliçà, Veritas manages more than 4,000 organic items and supplies 80 stores and about 300 schools. In the organic bread, pastry, and confectionery workshop, more than 4,000 pieces are made daily, both for its own establishments and for third parties. The complex also has a kitchen where prepared dishes and products resulting from the use of fresh food that can no longer be sold are produced, thus minimizing waste generation. The chain sources from 450 producers. 90% of purchases are made in Spain ---70% in Catalonia--- and 10% are imports, mainly of tropical fruits or items such as coffee. "We are the only supermarket that does not sell oranges in August and September; when the season ends, they end, we do not want to import them, our commitment to proximity is total," says the executive.
"Everything we do has a vocation to positively impact the planet", concludes Elías, after pointing out that Veritas has managed to renew its BCorp company certification for the third time.