EXCLUSIVE: The new owner of Eataly in Brazil | Business

SouthRock has just acquired the Brazilian operation of Eataly. The fund circumvented Panza&Co, the other interested party who came to consult Cade in February about the transaction. With the acquisition, for an undisclosed amount, Eataly USA and the holding company Hortus — which still controls St. Marche and Empório Santa Maria — no longer participate in the Brazilian business.

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“Our growth and expansion plan for Brazil are the main reasons that led us to seek a new strategic partner,” Nicola Farinetti, Eataly’s global CEO, told Pipeline. “After the successful construction and consolidation of the brand in the last seven years, we intend to reach other markets in new cities in the country. Having SouthRock as a local partner will help us leverage the operation, with their proven experience in commercial real estate management, marketing, technology and operational excellence.”

Eataly joins brands such as Starbucks, TGI Fridays, Subway and Brasil Airport Restaurants (BAR) in the portfolio of licensees that SouthRock operates in the country. The fund now holds exclusivity in the operation and development of the Italian brand in Brazilian territory. Since arriving in the country in 2015, Eataly has only opened its São Paulo unit — weekly, the space receives around 20,000 visitors.

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“Our plan is to increase the brand’s presence in the market and continue to seek new markets to expand our services and dining experiences”, says Kenneth Pope, CEO of SouthRock. brand in the country. It is a strategic agreement for Eataly in Brazil and aims to deepen the company’s broader international growth strategy.”

Kenneth Pope, CEO of SouthRock: Italian brand in the portfolio that already includes Starbucks and TGI Fridays — Photo: Disclosure

Pipeline found that the conversation with Panza&Co, the company that has in its portfolio the operation of Café Suplicy and The Fifties hamburger, ran into financial guarantees. Eataly has not specifically commented on this. “The search for a new partner/operating investor for Eataly included several potential companies that arrived at various stages of the process. Only one of them came to an end”, summarized Farinetti about the deal, which did not go ahead.

From now on, the executive Luis Felipe Campos takes over as the new general director of Eataly in Brazil. A graduate of Les Roches in Switzerland, Campos has more than 20 years of experience in hotel and food and beverage companies, such as Spoleto and the Indian company Oyo Hotels, which belongs to Softbank. He is also the founder and CEO of Chef Express.

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The deal still awaits approval from Cade. Eataly’s local shareholders and parent have led the conversations together over the last year, advised by the Hunter boutique.

Like the entire food and service industry, Eataly felt the impact of the store closed in the pandemic, but managed to react with delivery and sale of wines, driven by lives and reinforcement of content on social networks. The post-pandemic inflationary escalation does not scare Farinetti.

“Brazil is always an exciting market to be in, regardless of macroeconomic cycles and the sector. Despite the global macro pressure in the short term, our consumers continue to frequent Eataly for the consistency of value we deliver”, says the Italian. “Inflation is a reality that the Brazilian market has always lived with, while the rest of the world is adapting to it. As we import most of our products directly, we have the ability to weigh exchange rate variations and absorb short-term effects. inflation, if necessary, to minimize the impact to customers.”

Nicola Farinetti, global CEO of Eataly and son of the founder: bet on expansion in Brazil — Photo: Disclosure

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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