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Veritas: The First "Real Food" Supermarket
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In January 2016, Silvio ElÃas, co-founder and CEO of Veritas, Catalonia's leading organic supermarket chain, headed to a meeting with the company's board to present the alternative options to enter in Madrid. At that time, Madrid was thriving like no other Spanish region and stood out as an attractive market for expansion. Most of all, operating in the nation's capital accounted for an instrumental step forward on the path to accomplish ElÃas' overriding vision: turning Veritas into Spain's organic food leader. Nonetheless, Spain's organic food retailing landscape was changing very rapidly, with increased, fierce competition from a diverse range of players. Against this competitive backdrop, ElÃas wondered if Veritas should approach Madrid by opening their own stores, following the same strategy it had used to rise as industry leader in Catalonia. Eroski, a conventional supermarket chain, had also reached out to ElÃas to offer Veritas an opportunity to display some of its private label products at Eroski's stores in Madrid as they did in Catalonia. ElÃas needed to make the final decision on his recommendation to the board.