Varandas de Sousa

Varandas de Sousa is the leading producer and distributor of fresh mushrooms, with a recurrent market share of over 85% in Portugal and a solid European export footprint, selling a wide variety of mushrooms (brown, white, portobello, shitake, etc.) with the highest quality. Varandas de Sousa benefits from a strong historical base of top-tier clients, which ensures recurrent and predictable revenue streams, operating a fully integrated business model which leads to resilient and high margins. Founded in 1989, the company operates three production units in the north of Portugal (Vila Flor, Vila Real and Paredes).

With an 85% market share and holding a dominant position in the Portuguese market (and as such considered as a price setter), the company is significantly undermanaged, with below average production per sqm, high loss rate and expensive integrated logistics, leaving room for operational improvements CoRe identified the opportunity to easily and rapidly implement measures to enhance productivity and capture market growth. CoRe owns a 90% equity control, giving 10% to its co investor Sugal (the main European producer of tomato paste and will inject up to €7.5 million of new money.