In March, Tikehau Capital acquired a controlling stake in Spanish spice specialist Juan Navarro García (JNG) – a leading processor and distributor with a strong focus on paprika, oleoresins, and cayenne. The acquisition was made through Tikehau Capital’s private equity strategy focused on regenerative agriculture – an emerging market expected to grow to $16.8bn by 2027, with a CAGR of 14.0%, Markets and Markets reports.
Developed in partnership with Unilever and AXA, the strategy provides equity at scale to companies that help preserve natural resources and promote environmental sustainability. It is structured around four verticals: inputs, equipment, ingredients, and transversal enablers, with JNG fitting into the ‘ingredients’ vertical.
According to David Martin, Tikehau Capital’s Co-Head of Iberia and Co-Head of the Private Equity Regenerative Agriculture Strategy, the acquisition was driven by two converging market trends. The first is the surging global appetite for ethnic and spicy foods, a segment Future Markets Insights forecasts to grow from $98.3bn to $208.5bn over the next decade. The paprika market itself was valued at $513.34m in 2023 and is set to grow to $850.42m by 2032, at a CAGR of 5.8%, according to Skyquest Technology Group.
The second is growing consumer demand for products where suppliers can guarantee full traceability from soil to shelf. According to PwC’s 2024 Voice of the Consumer survey, consumers are willing to pay an average premium of 9.7% for sustainably sourced or produced goods.
“What’s shifting this landscape is consumer behaviour, not regulation, with younger generations redefining how and what they consume,” he says. “How we’ve eaten for the past 30 to 40 years will look nothing like the patterns we’ll see in the next 10 to 20 years.”
As a result, food conglomerates are working to reorient their supply chains, and JNG is ideally positioned to capture this momentum, Martin says.
The basics
Founded in 1865 in Spain, JNG has built a reputation for sourcing, processing, and distributing high-quality spices. The business specialises in natural ingredients used for flavouring and colouring food products.
“JNG has been pioneering bio-based solutions for two decades. They were ahead of the curve when they developed organic paprika 20 years ago,” says Martin.
Furthermore, with an established global client base, the business already serves as a strategic partner to blenders, mixers, and food producers, with a supply chain spanning Spain, Asia, Africa, and Latin America.
“At its core, JNG connects upstream producers with downstream manufacturers, ensuring the entire value chain is in sync,” Martin adds. “They know exactly what kind of support and tools their suppliers need.”
Geography also plays a part in JNG’s reputation. Murcia, where it’s based, is internationally recognised for processing and supplying top-quality ingredients that comply with the world’s strictest food safety standards. EU legislation shapes Spain’s agri-food sector, supporting both productivity and operational efficiency, while a recent national law further reinforces fairness across the food supply chain.
Prior to Tikehau Capital’s acquisition, JNG was owned by members of the founding family – now in their sixth generation – and lower mid-market private equity fund Queka Real Partners. Both parties will continue investing alongside Tikehau Capital to support the company’s growth and international expansion.
Doubling down
In September 2023, Tikehau Capital backed Belgium-based Biobest – now Biofirst Group – a global player in the pollination and integrated biological pest control space.
The investment, which falls under the input vertical, took place in the context of Biobest’s acquisition of Biotrop, a Brazilian company specialising in biological solutions for crop nutrition and protection in open fields. In Martin’s view, the role of the investor here is twofold.
First, to help the company reach its goals. In Biofirst’s case, that meant providing the capital needed to strengthen its go-to-market strategy and accelerate international growth. The company now has reach across both the Northern and Southern Hemispheres.
Second, to support its journey toward carbon neutrality and broader ESG targets. This can be seen through the development of Biofirst’s sustainability strategy, with 2026 goals that include: becoming carbon neutral across its operations; achieving over 75% waste separation; ramping up use of reused, recycled and biobased materials; improving safety awareness and communication; launching local initiatives focused on natural capital; and rolling out a range of community-driven programmes.
The success of the regenerative agriculture strategy hinges strongly on management team priorities, Martin says.
“There’s no need to evangelise; they get it. They see ESG and purpose not as a nice-to-have, but as a lever for value creation. There’s full alignment when it comes to investing resources, building solutions, and making sure the roadmap we agreed on actually gets delivered over the next five to six years.”
Why does regenerative agriculture matter to Tikehau Capital? Martin outlines three key statistics: nearly 40% of the world’s land is degraded; 95% of food comes from soil; and a 70% increase in food production will be needed by 2050 to meet population needs.
These facts make one thing clear: the food system must adapt. Protecting biodiversity is not optional – without healthy soil, the food supply itself is endangered, he says.
With its regenerative agriculture strategy, Tikehau Capital’s goal is to build an ecosystem of companies across all four verticals, supporting the entire value chain, not just a single segment.
“At the end of the day, we show our investors that we can provide a nice return and a strong impact.”
