Belgian Wholesalers: Acquire or Be Acquired?

INSIGHT - After several years of mergers and acquisitions, the Belgian foodservice market remains fragile and fragmented. Consolidation, already well underway, could accelerate even further.

Years of restructuring have reshaped the food distribution landscape: the acquisition of Metro by Sligro, the merger of Upfresh and Franky Fresh Food under the Huppa banner, and more recently, the takeover of Al-Vis by Alfa Fish and the acquisition of GEPU by Sligro. Yet despite all this, the market remains highly fragmented – and thus vulnerable.

According to the latest analysis by Graydon Creditsafe, presented at the Gondola Foodservice Congress, the financial structure of the sector reveals its underlying imbalances: the 90th percentile in turnover stands at €4.36 million, while the average is €7.37 million – skewed upwards by a few major players. The median, however, sits at just €211,000, a clear sign that most companies in the sector remain small-scale operations.

Margins are tight: the median is 2.5%, while only those in the top decile approach 9.9%. Financial strain is evident: 22.35% of businesses report negative cash flow, and 18.38% have negative equity – conditions that, in theory, should lead to restructurings or dissolutions.

A Two-Speed Market

Graydon classifies 10.78% of wholesalers as “extremely fragile,” compared to around 6% across all Belgian companies. In total, 38.38% of the sector would not withstand a major economic shock. On the flip side, only 22% of companies display strong financial health and sufficient resilience – the very players expected to lead further consolidation.

The Belgian market is now increasingly split between two models. On one side are the large generalists like Solucious, Sligro, Bidfood, Trendy Foods or Conway, operating across multiple channels (restaurants, institutions, convenience stores). On the other are smaller, often family-owned wholesalers focusing either on a more specialized and in-depth product portfolio, or on hyper-localization service, offering highly personalized client support. Companies like CEGES, specialized in frozen goods, highlight the power of a well-defined niche.

As Veerle Carlier, Horeca Coordinator at Colruyt Group, and Olivier Dallemagne, CEO of CEGES, pointed out at our Congress, the real question is not which model will prevail, but how each player defines its unique value. Today, restaurateurs typically order from five to seven wholesalers, but are increasingly looking to streamline their supplier base. In this context, clear positioning and reliable service are becoming key strategic assets.

The Technological Turning Point

The next big challenge will be digital. To serve customers effectively, wholesalers must to invest in digitalization: online ordering, real-time inventory visibility, automation, and live data – while also enhancing customer experience and trust. In a sector with slim margins, smooth ordering processes, logistical precision, and transparency can make all the difference to profitability.

Consolidation is not a trend, but a necessity. The most robust 22% will be the buyers. Mid-sized players will need to specialize or form alliances. And for others, the best strategy may well be to sell – while they can still do so on their own terms.