News / Hellmann sets out to extend its footprint in perishables

Hellmann Worldwide Logistics is looking to strengthen its presence in the perishables arena, despite already being a market leader in air shipments of fruit and vegetables.

But any expansion is likely to focus on organic growth rather than M&A, according to Natasha Solano, appointed to the new position of global airfreight director perishables almost a year ago.

She had considerable experience in the vertical, including almost 12 years in a similar role at Kühne+Nagel.

“Hellmann has been active in perishables sector for well over 25 years and since then has invested regularly in the expansion of its network,” she told The Loadstar.

Ms Solano would not be drawn on the volumes of perishables Hellmann handles annually, or its share of the German family owned firm’s global turnover – some €5bn in 2022. But she said: “It’s up there with our major verticals, such as automotive, fashion and renewables.”

Perishables is, rightly, singled out as one of the main growth drivers of air cargo, she added.

“If you look at the databases, like Seabury, for example, one can see a strong increase in volumes last year, while most other verticals stagnated or decreased. Perishables by air is a resilient market, even in times of crisis such as Covid. Consumers are accustomed to be able to buy certain products all year and, in addition, there are new markets emerging.”

She highlighted India as one, due in large part to more and more retail and supermarket chains opening up. She added: “Traditionally, India is a country with a lot of small grocery retailers, but supermarket and hypermarket chains are becoming increasingly prominent.

“While it is obviously self-sufficient in a large number of fruit and vegetables, we see these chains driving demand for a range of gourmet foodstuffs from Europe; dairy products such as French and Italian cheeses or Spanish ham.

“However, that’s not going to happen tomorrow, demand will gradually grow, similar to the development in China 15 years ago, and parallel with the rising income of the middle class.”

South-east Asia, Thailand and Vietnam is another growth market for gourmet foodstuffs, as are – and have been for many years – the GCC countries. she added.

In China, a major importer of live seafood like crab by air, Ms Solano said data showed an industry-wide dip in volumes being flown at the moment, compared with in the previous decade, with Covid and the slowdown in the Chinese economy perhaps being contributing factors.

With expansion in perishables in mind, Hellman took sole ownership of its joint-venture in Peru in 2022, providing scope to cover the entire Americas, and in September last year, it purchased its Milan-based Italian partner, whose activities include perishables.

On the organic growth front, she said Latin America had been a recent focus.

“For example, we’ve begun a joint-venture in Colombia and Ecuador, which saw Hellmann make further strides into a segment that had not been a priority in the past – cut flowers – one in which it plans to grow significantly in the coming years.”