Isla Délice expands EU footprint with German halal meat firm acquisition

Halal meat brand Isla Délice Group has acquired Gürkan’, a premium halal business based in Germany specializing in the beef product Pastirma. The move has increased the group’s sales to over €155 million (US$161.6 million), notes the French company.

Germany is one of the main halal markets in Europe with attractive growth prospects, particularly in modern trade, notes Isla. In 2022, the country’s halal food market was valued at approximately US$12.44 billion and is projected to reach US$18.97 billion by 2032.

“The Gürkan acquisition opens the German halal market to Isla Délice. The German Muslim population is the second largest in the EU, with attractive growth prospects, in particular in modern trade,” Eric Fauchon, Isla Délice’s CEO, tells Food Ingredients First.

“The halal market is experiencing strong growth but still offers significant opportunities for development in Europe. Driven by favourable demographic trends, its growth relies on expanding the product offering and improving product distribution to make them more accessible to consumers.”

John Gallagher, investment director at Perwyn, which acquired Isla in July 2018, and board member of Isla Délice, views the acquisition of Gürkan as a strategic step to expand Isla Délice’s market presence.

He highlights that it brings “access to a new market as well as new product capabilities and a premium brand” to the portfolio.

“With a presence in six international markets in addition to our core French market, Isla Délice has become the clear European halal champion,” he adds. The Group is now present across seven European markets.

Eyeing global markets

Isla Délice manufactures branded fresh and frozen halal meat products distributed across France’s modern trade as well as in specialized retailers. Perwyn, having completed 13 add-ons across its portfolio last year, acquired Isla in July 2018.

CEO Eric Fauchon sees the EU halal market as underdeveloped, citing a lack of modern products and investment.“Isla Délice offers the widest range of halal products in Europe, with over 250 items available in the fresh, frozen, and now also in the grocery section,” says Fauchon. The company offers recipes that are not available in German halal aisles including poultry bacon, beef chorizo, 100% beef burgers, cordon bleu, and other snacks.

“Halal consumers look for more variety in halal shelves, and we are confident Isla Délice’s new recipes will meet their expectations,” notes Fauchon.

Meanwhile, Isla Délice Group has been expanding its global presence with meat business acquisitions over the last few years based on favorable market dynamics. 

In 2019, it snapped up halal meat product manufacturer Hoca in Belgium, where it operates from two production facilities near Kortrijk.

This was followed by purchasing a production site in Saint-André-sur-Vieux-Jonc, France, in 2020 from Bell France, which manufactures “dry charcuterie” or dried cured meats.

The company then added the UK to its existing core markets of France, Belgium and Spain by acquiring British halal brand Takul last September.

Enhancing halal meat trade

For Fauchon, Gürkan’s “clear market position in Germany,” will help the company bring innovation to German halal consumers. The majority of these include Muslims,  who account for nearly 6.6% of Germany’s total population, according to the German Islam Conference, an initiative for fostering dialogue between the government and the Muslim community. 

However, he says that the halal market is “still largely underdeveloped” in Europe due to the lack of a wide and modern product offering and insufficient investment in the sector. 

“The halal offering is still very limited in some countries and with certain major retailers. This situation is changing year after year but there is still a lot of distribution to gain across Europe.”

To overcome these challenges, Isla Délice is investing in R&D and in its production capacities, by launching nearly ten new products each year, he adds. The company also engages with consumers by highlighting new consumption habits enabled by its diverse product range.

Muslims form nearly 6.6% of Germany’s total population, presenting significant opportunities for the halal food market.Meanwhile in the US, halal and kosher foods are viewed as “niche markets.” Still, the German market offers significant opportunities for US exporters of these products, according to a report by the US Department of Agriculture (USDA).

“Millions of Muslims live in Germany and the market for halal food could be a multi-billion-dollar business. According to estimates, the market potential for halal food in Germany easily exceeds US$5 billion,” reads the report. 

However, it states that there is “some backlog in the marketing of halal food in Germany.” For instance, the major German food retailers only have a few halal-certified products on their shelves, and there are no uniform standards for “halal” products that are checked during certification to date. 

“Consequently, there are numerous different ‘halal’ labels from traditional or manufacturer-oriented certifiers on the market. This reduces transparency and undermines the trust of consumers in such labels.”

In such a scenario, the USDA suggests working with the importer to choose the preferred certifier or collaborate with a prominent international or US label.