SMU Boosts Private Label Brands with The Sucseed Acquisition | Expansion Strategy 2026-2028
Chilean supermarket holding SMU, controlled by Álvaro Saieh, has quietly acquired The Sucseed, a strategic outsourcing firm, in a move designed to bolster its private label brands and expand its global sourcing capabilities. The acquisition, completed over a year ago, was deliberately low-profile to avoid alerting competitors although SMU integrated the firm into its operations. This strategic purchase underscores a broader trend within the retail sector: a growing emphasis on private label brands to improve margins and reduce reliance on major suppliers.
The Sucseed was founded by Gustavo Zúñiga, a former Cencosud executive instrumental in developing the retailer’s successful Cuisine &. Co private label brand, alongside Alfredo Bustamante, an ex-Invertec executive. The firm specializes in sourcing products globally under a client’s own standards, offering a comprehensive solution from brand creation and specification development to logistics, and delivery. According to sources familiar with the transaction, SMU’s offer was the most aggressive among several bids, driven by a desire to strengthen its negotiating position with manufacturers worldwide. DF MAS reports that the deal was structured to integrate The Sucseed as an internal engine for SMU’s various supermarket brands, including Unimarc, Super 10, Alvi, and Maxi Ahorro.
A “Chinese Wall” to Protect Competitive Interests
The Sucseed maintains a global presence with operations based in Delaware, Chile, China, and the United States. A key element of the integration has been maintaining The Sucseed’s independence to serve existing clients, some of whom are direct competitors to SMU. To prevent the sharing of sensitive commercial information, a strict “Chinese wall” has been implemented, physically separating teams and restricting data access. SMU confirmed this arrangement, stating that The Sucseed operates with an independent management team, a dedicated board of directors, and legal processes overseen by competition law experts. This separation ensures compliance with antitrust regulations and maintains the integrity of client relationships.
The move comes as SMU aims to significantly increase the contribution of its private label brands to overall sales. Currently, private labels account for 13% of SMU’s total sales, lagging behind Cencosud’s 17.7%. Investing.com reports that Cencosud achieved a record penetration of 18.9% for its private labels in the fourth quarter of 2025. SMU’s strategic plan for 2026-2028 targets a 16% share for private labels within the next three years, requiring a substantial increase in new product launches.
SMU’s plan involves launching approximately 600 new products over the next three years, building on the introduction of over 500 items between 2023 and 2025. The company is shifting its focus towards mid-range and premium quality products, moving beyond basic offerings like its Merkat line. Current private label brands include Amada Masa (bakery), Tento (prepared meals), Fundo Sur (meat), and Smart Clean (cleaning products). This strategy reflects a broader industry trend towards offering consumers higher-quality private label options that rival national brands.
Expanding Sourcing to Asia, Europe, and North America
The integration of The Sucseed is now bearing fruit, with SMU actively pursuing product sourcing opportunities in North America, Europe, and Asia. The Sucseed’s expertise in navigating international supply chains and negotiating favorable terms with manufacturers is expected to be crucial in achieving SMU’s private label growth targets. The firm’s model extends beyond simple ingredient trading; it offers a comprehensive outsourcing solution, encompassing brand development, technical specifications, packaging design, and logistics. The Sucseed’s LinkedIn profile highlights a portfolio of over 1,500 SKUs across various categories and channels.
Despite the acquisition, The Sucseed continues to serve clients outside of the SMU group, demonstrating its value as an independent sourcing partner. This dual role is managed through the aforementioned “Chinese wall” to prevent conflicts of interest and protect confidential information. SMU has indicated that It’s open to further acquisitions that could enhance its purchasing efficiency, suggesting a continued appetite for inorganic growth in this area.
The recent launch of SMU’s 2026-2028 strategic plan signals a commitment to expanding its private label offerings and strengthening its position in the competitive Chilean retail market. The company’s success will depend on its ability to effectively leverage The Sucseed’s expertise, navigate global supply chain challenges, and deliver high-quality products that resonate with consumers. The company’s recent restructuring, costing approximately $12.5 million (US$14.4 million), suggests a broader effort to optimize operations and support this strategic shift.
Looking ahead, SMU will be closely monitoring its progress towards the 16% private label target. The company’s ability to execute its sourcing strategy, introduce innovative products, and maintain a competitive cost structure will be key determinants of its success. Further details on the rollout of new products and the expansion of sourcing activities are expected to be provided in future earnings reports and investor updates. Cencosud’s investor materials highlight the long-term lifecycle of private label brands, suggesting a sustained commitment to this strategy across the industry.