In the ever-evolving landscape of global food and retail, NewPrinces Group has emerged as a bold innovator, leveraging vertical integration to reshape its position in the Italian market. Over the past two years, the company has executed a series of strategic acquisitions that not only solidify its dominance in high-margin segments but also position it as a vertically integrated food and retail giant. For investors, the question is clear: Can NewPrinces sustain this momentum, and does its strategy offer long-term value creation? Let’s break it down.
The Vertical Integration Playbook
NewPrinces’ recent moves are textbook examples of vertical integration at its finest. By acquiring Kraft Heinz’s Italian infant and specialty food business in 2025, the company secured the iconic Plasmon brand and a state-of-the-art biscuit production facility in Latina. This acquisition wasn’t just about adding a high-margin product line—it was about locking in control over production, reducing per-unit costs, and ensuring quality consistency. The Latina facility alone produces 1.8 billion biscuits annually, a scale that translates directly into economies of scale and pricing power.
But the real game-changer came with the €1 billion acquisition of Carrefour Italia. By snapping up 1,027 stores, including 642 direct-operated outlets and 385 franchised locations, NewPrinces closed the loop on its supply chain, integrating production, distribution, and retail under one corporate umbrella. This move isn’t just about scale—it’s about eliminating intermediaries. By controlling the entire value chain, NewPrinces can pass savings to consumers while maintaining higher margins. The pro-forma consolidated turnover of €6.9 billion post-acquisition is a testament to the power of vertical integration in driving revenue growth.
Financials That Speak Volumes
NewPrinces’ financial performance in 2024 and early 2025 underscores the effectiveness of its strategy. In FY2024, the company reported revenues of €2.78 billion and a net profit of €142.3 million. Fast forward to Q1 2025, and the results are even more impressive: EBITDA surged to €28.9 million from €5.9 million in the same period of 2024, while net profit jumped to €13.5 million from a loss of €2.2 million. These figures suggest that the company’s vertical integration is already paying off, with cost efficiencies and operational synergies boosting profitability.
What’s more, NewPrinces is capitalizing on Italy’s regulatory incentives, including a 50% tax reduction for reshoring under Legislative Decree 209/2023 and tax credits for investments in 4.0 technologies. These incentives, combined with a 4% tax rate reduction for reinvesting in automation, have allowed NewPrinces to allocate 30% of its 2024 profits to digitalization and efficiency upgrades. The result? A leaner, more agile operation poised for long-term growth.
Market Position and Competitive Edge
The Italian food sector is no stranger to consolidation. Giants like Ferrero, Barilla, and Eurovo are aggressively expanding their global footprints, but NewPrinces’ vertical integration sets it apart. While competitors focus on geographic diversification, NewPrinces is building a fortress-like supply chain that insulates it from market volatility. By controlling production and retail, the company can mitigate supply chain risks, respond faster to consumer trends, and maintain premium pricing in categories like specialty foods and RTDs (ready-to-drink beverages).
The acquisition of Diageo’s Italian RTD operations in May 2025 further diversified NewPrinces’ portfolio into the fast-growing premiumization trend. This move created cross-functional synergies in R&D and logistics, enabling the company to launch innovative products across its Plasmon, Nipiol, and Dieterba brands. In a market where consumers are increasingly willing to pay for quality and convenience, this diversification is a strategic win.
Risks and Realities
No strategy is without its challenges. The Italian retail market is highly fragmented, and NewPrinces’ rebranding of Carrefour Italia to its Gs brand by 2028 could face resistance from loyal Carrefour customers. Labor unions have already raised concerns about employment repercussions, and regulatory hurdles may delay the integration timeline. Additionally, the €1 billion acquisition price carries the risk of overpaying if the synergies don’t materialize as expected.
However, NewPrinces has shown a disciplined approach to integration. The company has committed €200 million to logistics innovation and brand renewal, and its phased rebranding strategy—retaining the Carrefour brand in the short term—allows for a smoother transition. Investors should monitor EBITDA margins over the next 18 months to gauge the success of these efforts.
The Long-Term Outlook
NewPrinces’ vision extends beyond 2025. The company has set ambitious revenue targets of €3 billion in food and drinks by 2026 and €5 billion by 2030. With its vertically integrated model, tax incentives, and focus on premium segments, these goals appear achievable. The key lies in maintaining operational efficiency while scaling the Carrefour Italia network.
For investors, the question is whether NewPrinces can sustain its current trajectory. The company’s ability to innovate in omnichannel platforms, leverage regulatory tailwinds, and execute its rebranding plan will be critical. If successful, NewPrinces could become a European benchmark for vertically integrated food and retail operations, offering a compelling mix of growth and margin expansion.
Final Call to Action
NewPrinces’ strategic expansion and vertical integration present a compelling case for long-term value creation. While risks exist, the company’s financial discipline, regulatory tailwinds, and market positioning make it a standout player in the Italian food sector. For those seeking exposure to a high-margin, evolving market, NewPrinces offers a unique opportunity to invest in a company that’s not just adapting to industry trends—it’s leading them.
If you’re looking for a stock that combines strategic vision with tangible execution, NewPrinces is worth a closer look. The next 18 months will be pivotal, but for now, the signs are pointing to a strong finish line.
Dining and Cooking