Towards the end of July Italian animal nutrition company, Mazzoleni announced that it had reached an agreement to acquire Società Italiana Veterinaria Agricola Milano SpA (Sivam), a feed supplier based in the north of the country. Now that the dust has settled slightly since the announcement, we were invited to check in with the leaders of both businesses for a behind-the-scenes look at what’s been happening since the deal was announced and what this development means for both Mazzoleni and Sivam.
What follows below in this Industry Perspectives is our chat with Andrea Mazzoleni, the owner and CEO of the Mazzoleni Group, and Silvio Ferrari, the President and Managing Director of Sivam and now Board Member and Partner at Mazzoleni Group. In it we find out how the relationship between the two companies started, how the acquisition came about, what both leaders hope this will mean for their respective customers, the decision to keep the two brands and their salesforces separate, international expansion plans in the face of a European energy crisis, and more.
[Feedinfo] Mr Mazzoleni & Mr Ferrari, for our readers who are not familiar with your businesses, can you please give us a brief history and summary of your main activities.
[Andrea Mazzoleni] Mazzoleni was founded in 1984 as a distributor of products for livestock and was the brainchild of my father, Efrem, who understood how important supplements were to livestock nutrition and decided to specialise in the market.
Since then, the company has grown to include a range of nutritional and management solutions to help improve animal welfare and performance.
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Silvio Ferrari (left), the Managing Director and President of Sivam with Andrea Mazzoleni, CEO of the Mazzoleni Group. |
In 2010 I began working for the company and my first project was a vital reorganisation of processes and product lines. This resulted in the creation of five business units for on-farm assistance, organised by species and by type of need.
In 2012 my main strategic and operational focus was the creation of a new manufacturing facility in Cappella Cantone, in the province of Cremona. This facility is still considered one of the most modern in the whole of Europe today and is able to produce up to 400 tons per day.
In 2021 we decided to further expand our logistical capabilities in order to respond to market needs more rapidly. This was followed by the acquisition of Sivam earlier this year.
[Silvio Ferrari] Sivam got its beginning just over 90 years ago and was created to provide supplements (vitamins and minerals) to farm animals. Since then, the company has evolved and developed thanks to its dedication to innovation and the development of products and services to optimise crop production, animal welfare and farmer productivity. Today it serves over 10,000 customers throughout Italy and is a leader in helping farmers to monitor all aspects of their operations, from crops to animal performance, production and beyond.
[Feedinfo] Can you tell us how the Sivam acquisition came about? What were the reasons behind acquiring that business? Why did it make business sense?
[Andrea Mazzoleni] Sivam is a legacy brand with great historical value that we have always admired and respected. During the pandemic we learned that Sivam, which was located in the heart of the “red” pandemic zone (where all productivity had been halted), was having production difficulties. And seeing as we are geographically somewhat neighbours, we contacted them and offered the possibility to continue production at our plant instead. That’s when we started our relationship of mutual respect and appreciation and became more and more aware of our complementary activities. We realised that with Mazzoleni’s production technology and flexibility, and Sivam’s national distribution network and know-how on specific products – like salt blocks and crop seeds – we could create a winning mix of offerings and added value for the market.
[Feedinfo] It’s now been a little more than four months since the deal was announced. What were the main operational priorities for both businesses since the announcement?
[Andrea Mazzoleni] These last few months have been dedicated to conducting deep-dives into both businesses and creating joint guidelines for manufacturing and for the sales teams to enable efficient and effective production and go-to-market processes. The deal was officially completed on November 9th, and we are now diligently working on the industrial plan for the Mazzoleni Group which, besides Sivam, includes several other brands: Vitasol, Martens, Nutriforce and ADFood.
[Feedinfo] Mr Ferrari, what does Sivam hope to accomplish for its customers with Mazzoleni’s backing that it couldn’t before?
[Silvio Ferrari] Sivam is particularly enthusiastic about the shared value of innovation and the dynamic go-to-market approach that characterises Mazzoleni. The combination of our strengths will enable customers to access a wider range of proposals to optimise their business, and the knowledge that our commitment to innovation and solutions will be enhanced and translated into tangible value.
[Feedinfo] Mr Mazzoleni, what can Mazzoleni customers around the world look forward to with the addition of Sivam to the Group?
[Andrea Mazzoleni] Sivam has been enjoying a largely local presence here in Italy whereas Mazzoleni is present in more than 40 countries. As we prepare to grow out footprint around the world, Sivam’s activities will help us unlock more market segments to grow within. Sivam is not only active in animal nutrition and monitoring, but also in the agricultural sector where they develop and commercialise products for farmers, from seeds and crop protectors (innoculi) to farm and stall hygiene products. This is part of the supply chain where Mazzoleni is not present, and this poses an opportunity for the group.
This also means that the Group can provide customers with a more complete, “field to farm” offering that will be built on all our shared R&D and product development intelligence.
[Feedinfo] Why was it so important to keep the two brands (and their sales forces) separate and distinct from one another? What business strategy does this serve?
[Andrea Mazzoleni] We believe that it is strategically important to guarantee continuity to our respective customers and maintain the identities and positioning of the two companies. In fact, we are approaching this project with five key themes in mind:
- “Mutual benefit” – meaning that both companies must gain competitive advantages
- “Respect” of their differences and complementary value added
- “Continuity” to protect the respective identities and market positioning of both businesses
- “Italian roots” –we want to approach foreign markets with enthusiasm and a great sense of pride in bringing Italian-made products to the international stage
- “Investment in new and also young talent” – both companies have a strong conviction that today, more than ever before, it’s important to invest in the talent that will create our future
[Feedinfo] Some industry players in Europe are concerned about the looming energy crisis and the rising costs of inputs. Is this something that you are concerned about and how does this impact the possible international expansion plans you mentioned here and in the July acquisition announcement?
[Silvio Ferrari] The energy crisis came about during the time when we were negotiating our deal. We evaluated that the impact of the increased cost of energy could be mitigated by certain investments – some, which are already underway, including the rationing of production and alternative energy sources. In the international markets, at the moment, we are identifying and evaluating those initiatives that will enable us to maintain our competitiveness.
[Feedinfo] Now Mr Mazzoleni, you recently shared the fact that you will be entering the live yeast segment with a new product in 2023. How long has it been in development and when exactly in 2023 can we expect it to be available? Where are you in the process of bringing it to market?
[Andrea Mazzoleni] Our new live yeast additive, which has been registered by EFSA, has been in development at Mazolleni for the past four years and it’s a point of pride for our company. For many years we have been an important reference point for the sale of live yeasts and now we will have our own strain with unique proprietary technology. In terms of when exactly in 2023 it will be available on the market, we will share that information a little closer to the time.
[Feedinfo] Looking ahead, what can we expect from Mazzoleni and Sivam? What other exciting developments do these businesses have in the pipeline for the future?
[Silvio Ferrari] One of the key drivers characterising this deal is the innovation in products and services. Our best talents will be made available to both organisations in order to achieve this, while still maintaining separate and distinct brand identities on the market. Sivam and Mazzoleni’s human assets will be our main competitive advantage for future growth.
Published in association with Mazzoleni
