Brands & Companies

Mercadona: Spain’s Efficiency-Led Grocery Leader and Private-Label Pet Potential

Mercadona's supplier-deepening model and dominant Spanish market share make it a high-bar but rewarding private-label pet channel.

By GlobalPetIndex Editorial August 20, 2026 8 min read
Mercadona: Spain’s Efficiency-Led Grocery Leader and Private-Label Pet Potential

Mercadona moves more pet food, litter and accessories through its aisles than almost any competitor, but the number that should interest a supplier is the compliance and logistics machine standing behind the shelf.

Mercadona: Scale, Format and Footprint

  • Founded: January 1977, in Tavernes Blanques near Valencia, Spain, as an eight-store grocery operation growing out of the family butchery business Carnicas Roig.
  • Founders: Francisco Roig Ballester and his wife Trinidad Alfonso Mocholi. Their son Juan Roig acquired the business with his wife Hortensia Herrero and siblings in 1981 and remains President; he is the architect of the modern company.
  • Headquarters: Tavernes Blanques, Valencia, Spain, with the group’s high-profile Co-Innovation Centre in the Fuente del Jarro industrial park at Paterna, Valencia.
  • Ownership: Private and family-controlled. Juan Roig holds the majority stake, with Hortensia Herrero and Fernando Roig holding substantial minority positions. There is no external listing and no activist shareholder pressure, which allows unusually long planning horizons.
  • Scale and revenue: Consolidated 2025 turnover of EUR 41,858 million, up 8 percent, comprising EUR 39,766 million in Spain and EUR 2,092 million in Portugal. Net profit reached a record EUR 1,729 million, up 24.9 percent, for a net margin of 4.52 percent, the company’s best profitability figure in its history.
  • Stores: 1,672 supermarkets at the end of 2025, of which 69 are in Portugal. Only five stores in the entire estate were loss-making.
  • Workforce: 115,000 direct employees, comprising 107,500 in Spain and 7,500 in Portugal, after creating 5,000 new jobs during 2025.
  • Customers and market position: Spanish market share of 28.5 percent at the end of 2025, up 0.6 percentage points. Sales volume reached 15,067 million kilo-litres, up 4 percent. Online sales were EUR 1,061 million, equal to 2.5 percent of turnover.

Everyday Low Price, Engineered

Mercadona runs a total-quality model in which the customer, referred to internally as “the Boss”, sits at the centre of every decision. The commercial expression of that model is a deliberately narrow assortment. Juan Roig has argued publicly that shoppers find excessive choice difficult, and that it is the retailer’s responsibility to pre-select the right option. In practice this means far fewer references per category than a hypermarket operator would carry, with the great majority of shelf space allocated to own brands.

The four historic private labels were all launched in 1996 and remain the backbone of the business: Hacendado for food, Bosque Verde for household and cleaning, Deliplus for personal care and cosmetics, and Compy for pet products. The company’s stated purpose is to meet a household’s complete food, cleaning, hygiene and pet care needs, which is why pet care is treated as a core pillar rather than a peripheral category.

Supply is organised through the interproveedor model: a limited group of specialist manufacturers who work with Mercadona on long-term, co-developed programmes rather than annual price tenders. Around 2,000 suppliers work with the company, and 85 percent of the products it sells originate in Spain and Portugal. In 2025 those suppliers and specialist interproveedores raised their own investment by 31 percent to EUR 1,700 million, building and modernising factories and creating more than 5,200 jobs. Mercadona spends almost nothing on conventional advertising, eliminates packaging cost that adds no customer value, and reinvests the savings in price and wages.

The Pet Aisle at Mercadona

Compy is Mercadona’s own-brand pet line and covers dry and wet food for dogs and cats, treats, litter, and pet care accessories. Because Compy has existed since 1996 alongside Hacendado and Deliplus, it carries genuine shopper trust rather than being a recent margin experiment, and it benefits from the same price-quality positioning that has made Mercadona’s own brands the default choice for a large share of Spanish households.

The category context is favourable. The European pet food industry federation FEDIAF has projected pet product sales growth of around 4.1 percent in Europe into 2026, and the wider European Union pet care market is estimated in the region of EUR 42 to 47 billion at retail. Supermarkets remain the single largest volume channel for pet food in Europe, moving an estimated 43 percent of pet food volume, and private-label penetration in Spain sits within the 25 to 30 percent band that characterises the largest European markets. With 28.5 percent of Spanish grocery spend and 1,672 stores, Mercadona is effectively the largest single private-label pet gatekeeper in the Iberian market.

The supplier opportunity therefore concentrates on Compy manufacturing and development rather than on brand listings. Realistic entry points include dry kibble and wet pouch or can production, functional and life-stage recipes, treats and dental chews, cat litter, and hard-goods categories such as bowls, beds, collars, leads, toys and grooming tools where local Iberian capacity is thinner than in pet food. Mercadona’s strong preference for Spanish and Portuguese origin means that non-Iberian suppliers are most competitive in hard goods, accessories and specialist inputs rather than in bulk wet and dry food.

Passing the Mercadona Gate

Mercadona does not behave like a transactional buyer, and suppliers who approach it as one will fail. The company selects partners for multi-year co-development and expects them to invest in dedicated capacity, continuous quality improvement and cost transparency. Suppliers should expect line-of-sight into their cost structure, joint work on specification and packaging, and a relationship managed through category and product specialists rather than through an annual negotiation.

Compliance expectations for pet food follow the European framework: Regulation (EC) 767/2009 on the marketing and use of feed, Regulation (EC) 183/2005 on feed hygiene, Regulation (EC) 1069/2009 on animal by-products, and the FEDIAF nutritional guidelines and labelling code that underpin nutritional adequacy claims. Practical documentation includes HACCP, GMP+ or FAMI-QS certification as applicable, ISO 22000 or an equivalent food safety management system, full traceability to approved raw-material sources, and analytical evidence supporting every declared claim. For hard goods, expect REACH conformity on chemicals, EN safety testing where relevant, and material declarations.

Two further requirements deserve emphasis. First, packaging. The European Union Packaging and Packaging Waste Regulation and national extended producer responsibility schemes are reshaping pet food packaging, which is unusually exposed because wet and semi-moist products need high-barrier multi-layer structures. Suppliers who arrive with recyclable mono-material or reduced-material solutions are pushing on an open door, because Mercadona has a long institutional history of stripping unnecessary packaging cost. Second, social and environmental audit readiness, since the company reports formally on the labour and environmental performance of its industrial cluster.

Minimum order quantities are not published, but the practical scale is national: a Compy listing must supply 1,672 stores continuously, so bidders need multi-line capacity, buffer stock capability and the balance sheet to fund it. The route in is to approach through the company’s supplier and innovation channels with a specific, costed product proposal and evidence of Iberian or near-Iberian production capability, rather than a general capability presentation.

2024-2026: Scale Meets Change

Mercadona described 2025 as a historic year. Turnover rose 8 percent to EUR 41,858 million against an original forecast of EUR 40,194 million and 3.5 percent growth, while net profit rose 24.9 percent to EUR 1,729 million, the fourth consecutive year of profit growth and the third above EUR 1 billion. Profit growth far outpaced sales growth on the back of a 4 percent gain in worker productivity, a 16 percent improvement in in-store order management and a 4 percent gain in energy efficiency. Of the profit, EUR 346 million was allocated to dividends and almost EUR 1,400 million to reinvestment.

The most consequential announcement for suppliers is “Store 9”, a complete upgrade of the supermarket model to be rolled out to every store by 2033 with EUR 3.7 billion of investment. Store 9 will be managed by process rather than by business unit, with more space for fresh products and a faster, simpler shopping trip. Any range architecture decision taken now will be executed inside that new physical framework.

Portugal has become a genuine second market rather than a pilot, contributing EUR 2,092 million from 69 stores and helping drive the 2025 result. Prepared food, chilled and frozen meals taken home now generate around EUR 3 billion, or 7.16 percent of sales. For 2026 the company plans to invest more than EUR 1 billion, create over 1,000 jobs and grow sales 3.5 percent to EUR 43.2 billion while holding profit at a similar level, with continued investment in logistics centres, new technology “Hives” and IT tooling. Management has also stated plainly that raw-material cost movements will be passed through to shelf prices in both directions.

A Realistic Entry Path

Target Compy, not a branded listing. Mercadona’s shelf is a private-label shelf, and the commercially realistic ambition for an international supplier is to become an interproveedor or a specialist component supplier inside the Compy programme. Build your pitch around what you can develop with them over three to five years, not around what you can ship next quarter.

Solve for Iberian proximity. With 85 percent of products sourced from Spain and Portugal, suppliers without regional production should either partner with an Iberian co-manufacturer, invest in local capacity, or focus on categories where local capacity is genuinely scarce, principally hard goods, accessories, specialist functional ingredients and premium formats.

Lead with cost transparency and productivity. Mercadona’s record margin came from measurable efficiency gains, not from price increases. Suppliers who arrive with quantified productivity, yield, energy and packaging improvements, and who are willing to share the arithmetic, align directly with how the company creates value.

Prepare for national scale from day one, and build packaging compliance into the first specification rather than retrofitting it. Finally, sequence your effort around Store 9: as fresh space expands and processes are redesigned through 2033, pet categories will be re-planogrammed store by store. Suppliers already inside the system when those decisions are made will capture the new space; those still presenting capability decks will not.

— Scott Zhu, Founder, GlobalPetIndex

Sources & Related Reading

Related on GlobalPetIndex

External Sources

GlobalPetIndex Editorial
GlobalPetIndex Editorial

Editorial lead at GlobalPetIndex, covering pet industry intelligence, market trends and company research.

💬AI Chat
GPI

GlobalPetIndex

Open the app for a smoother experience

Open Privacy