Lineage Logistics has chosen Spain as the base from which to coordinate its activities in Southern Europe
The idea to create Lineage Logistics came about in 2008, when its investor Bay Grove recognised the potential of the fresh and temperature-controlled food logistics industry, both in America and worldwide. In 2009, they saw a viable opportunity to turn the idea into an independent company in the United States.
The company has been growing ever since. In 2017, it opened up in Europe following the purchase of a company in Benelux. Despite the challenges posed by the pandemic, the company has since performed a total of 75 integrations.
Positioned in the logistics and cold chain sector, Lineage Logistics specialises in the transport and storage of perishable products, with a focus on logistic solutions at controlled temperatures. Its storage, distribution and transport services ensure the integrity and quality of the products at all times. Its objective is to help its customers with distribution throughout the world, minimising as far as possible any food and energy waste at all stages of the process.
The company arrived in Spain just two years ago and has recently opened its Southern European headquarters here. Was this a planned development?
Lineage has significantly increased its acquisitions in Spain, France and Italy, with the aim of significantly increasing our presence in Europe. This led us in 2021 to divide Europe into five regions. One of these regions is Southern Europe. It was then that we started the search for a headquarters for our regional office that would take the sensitivities and particularities of each of the three countries mentioned above into account. We chose Spain because it is a key market in the region, and it is a strategic location from where we can serve our customers in Europe. This office’s mission is to coordinate our operations in Southern Europe, strengthen our presence in the Spanish market and expand to other countries in the region.
How important is Spain for the company's strategy?
Spain is hugely important for Lineage Logistics’ strategy. A significant amount of traffic heads to the rest of Europe from Spain, transporting both fruit and vegetables and fish. This means that the Spanish market has a solid food industry, and that the logistics sector has undergone significant growth.
How was Lineage Logistics received by the market In 2021?
We have to remember that we entered the market during the recovery period of the pandemic. For our specific sector, COVID-19 has been very important and has hugely disrupted both the businesses of our customers and logistics companies themselves. Like all of society, we were massively affected. That said, recovery has been good, and we have made various investments over the months to get to where we are today.
You have one line of business for temperature-controlled logistics solutions and another for real estate assets. Can you explain this division?
The division into temperature-controlled logistics solutions and real estate assets is strategic for Lineage Logistics. The first allows us to offer specialised handling of products that require specific temperature conditions, such as frozen foods, pharmaceuticals and other perishable goods; and the second is focused on acquiring and developing storage and distribution facilities. In Spain, we have modern infrastructure and a diverse fleet of vehicles to satisfy the needs of our customers in the two divisions.
You have made various acquisitions, including the Fuentes Group. What have been your most important investments in Spain to date?
In Spain, we have merged the Fuentes Group and Frinavarra. They are both leading companies in the sector, and what this means for us is that we have entered the market with an important presence for the future. Right now, the important thing is to integrate and develop our strategy together, which should lead to possible expansions.
How many employees do you have in Spain?
It’s difficult to say an exact figure because we depend to some extent on seasonality, but at the moment we could say we have around 900 employees in Spain.
What is your customer profile?
Our customers in Spain span different sectors such as the food industry, pharmaceuticals and fresh and frozen products, to give just some examples. We work with companies of different sizes, from SMEs to major corporations, and we offer tailored solutions adapted to specific needs.
What projects do you have in mind for the medium and long term?
As I said before, we are talking about company integration. This means that the short-term focus is on that single image we want to have, which means we have many issues to address such as uniforms, systems and ways of working. In light of this, and having analysed our customers’ needs together with them, we are going to set out the medium- and long-term investment strategies, focusing on providing a better service, competitiveness and maximum quality. This will show us what expansion needs we will have, and it will generate future investment requirements in terms of newly constructed warehouses and other possible mergers in the Spanish market or in Southern Europe.
Photos: Lineage Logistics