CêlaVíta's bankruptcy sent shockwaves through the potato sector, but it wasn't a bolt from the blue. In June, it was already clear the company was in dire straits, and even then, they were still hopeful of finding a new direction. They sought this opportunity in the fresh fries market, but the overcrowded market proved impossible. Tensions with Albert Heijn and the unions ultimately led to the company's demise.
Former stakeholders and experts say that bankruptcy CêlaVíta's decline is regrettable. The company was founded in the 60s by (the predecessor of) Agrico with the aim of creating a market for primarily undersized seed potatoes. This proved a resounding success, making CêlaVíta a growth engine that generated good margins. Other players in the potato sector later copied this strategy. At the beginning of this century, Agrico faced a choice: either invest heavily or divest. The latter was chosen. Since then, the company has changed ownership several times, and market conditions have become increasingly challenging.
Structurally shrinking sales market
CêlaVíta's bankruptcy is a toxic cocktail of internal and external factors, for which there were ultimately no solutions or ways out. Take the table potato market, which has been shrinking for years. Not only CêlaVíta, but also its competitors are struggling. The recent merger of Schaap Holland and Landjuweel is a case in point; both companies openly admitted that this was necessary to secure their future. The merger of the table potato divisions of Nedato, Agrico, and Agrico subsidiary Leo de Kock into PotatoNext also demonstrates this. Although the product ranges differ, market conditions dictate this.
Deal with Albert Heijn collapsed
In 2024, investor Nimbus acquired CêlaVíta from McCain, which saw no future in the chilled potato market. Nimbus describes itself as a company specializing in turning around financially struggling companies. About a year and a half later, it appears that this attempt has failed. The direct cause of CêlaVíta's problems is the collapse of a deal with Albert Heijn. Since April, 200 tons of sales have been lost per week, both under its own brand and private labels. This represents approximately 20% of total sales, which is, of course, a significant cost.
It's striking that Albert Heijn more or less denies canceling these orders. They say CelaVita is still supplying products and regret the bankruptcy of their supplier, as they stated in their response. Boerenbusiness They're not revealing whether there have been any changes in volume since April. The truth likely lies somewhere between zero and a hundred. In any case, CêlaVíta couldn't find new buyers so quickly, claiming they were sometimes up to a quarter (!) more expensive than the competition in tenders. And that wasn't because they received overpriced potatoes at the factory. Incidentally, after the acquisition, the supply of approximately 120.000 tons per year still came from McCain, meaning the Canadian company is likely also sharing in the pain of the bankruptcy.
Internal turmoil
Internally, things are creaking and groaning. This is partly due to the outdated factory in Wezep, which has a maintenance backlog, resulting in numerous malfunctions. From a distance, it all seems to be the result of postponed investments and budget cuts. Furthermore, CêlaVíta has been unfortunate because labor costs in the Netherlands have skyrocketed in recent years. Employees, through the unions, demanded a storage which CêlaVíta couldn't possibly afford. The unions wanted wage increases of 5%, but CêlaVíta couldn't and wouldn't go any further than 1,5%. The bankruptcy suddenly left the employees' future uncertain, something they likely didn't anticipate.
Fritesmarkt proves to be no way out
CêlaVíta recently presented a way out of the crisis, with which they will return in 2026 breakeven They thought they could turn a corner and eventually become profitable again. The shrinking table potato market had to make way for the growing French fry market. They invested in a production line for fresh fries and potato pasta. Unfortunately, this didn't offer them a solution. The French fry market was overcrowded during this period, with the extremely low prices of free-range French fry potatoes as a clear example.
In a market with large surpluses of French fries, there's simply no room for new entrants at the moment. Due to the large acreage, market conditions are likely to remain poor. This also meant there was no longer any prospect for the already faltering CêlaVíta. Experts say that CêlaVíta would only have a right to exist if its finances were significantly tightened. Investor Nimbus likely has no desire to continue absorbing the losses and has therefore let the company go under.
Restart?
For now, the curtain has fallen for a relatively small potato producer with a rich history and a matching product range. The fate of CêlaVíta now rests in the hands of the receiver, who is considering its next steps. A fresh start without the ongoing high financial burden is a logical scenario, according to the former stakeholders.