IN
GLOBAL MIAMI
Sponsored by
Avila l Colson Hicks Eidson l LATAM l MIA
Select Florida l World Strategic Forum l World Trade Center Miami
TABLE OF CONTENTS SPECIAL REPORT: SPAIN
THE SPANISH PRESENCE
As Greater Miami has developed since the 1960s into the U.S. business hub for Latin America and the Caribbean, Spain has strengthened that special relationship. Today, Spain has more companies in Miami-Dade County than any other overseas nation.
PUBLISHER
Richard Roffman
EDITOR-IN-CHIEF
J.P. Faber
SENIOR VP INTERNATIONAL
Manny Mencia
DIRECTOR OF OPERATIONS
Monica Del Carpio-Raucci
ASSOCIATE PUBLISHER
Gail Feldman
DIRECTOR, SALES AND PARTNERSHIPS
Sherry Adams
Amy Donner
Andrew Kardonski
Gail Scott
MANAGING EDITOR
Kylie Wang
ASSOCIATE EDITOR Yousra Benkirane
WRITERS
Doreen Hemlock
Joe Mann
Katelin Stecz
ART DIRECTOR
Jon Braeley
PHOTOGRAPHERS
Rodolfo Benitez Tiege Dolly
PRODUCTION DIRECTOR Toni Kirkland
CIRCULATION & DISTRIBUTION
CircIntel
DORAL AMBASSADOR
Pete De La Torre
BOARD OF ADVISORS
Ivan Barrios, World Trade Center Miami
Ralph Cutié, Miami International Airport
Gary Goldfarb, Interport
Bill Johnson, Strategic Economic Forum
David Schwartz, FIBA
EDITORIAL BOARD
Alice Ancona, World Trade Center Miami
Greg Chin, Miami International Airport
Paul Griebel, World Strategic Forum
Jerry Haar, Florida International University
John Price, Americas Market Intelligence
Tiffany Comprés, FisherBroyles
TJ Villamil, Select Florida
Global Miami Magazine is published monthly by Global Cities Media, LLC. 1200 Anastasia Ave., Suite 217, Coral Gables, FL 33134. Telephone: (305) 452-0501. Copyright 2023 by Global Cities Media. All rights reserved. Reproduction in whole or part of any text, photograph, or illustration without o\prior written permission from the publisher is strictly prohibited. Send address changes to subscriptions@ globalmiamimagazine.com. General mailbox email and letters to editor@globalmiamimagazine.com
A Legal Perspective Opportunities in the United States UNL CKING BUSINESS
– just look at the City of Coral Gables. These deep relationships forge a reliable foundation for successful business collaboration.
The International Section of the Florida Bar and the Madrid Bar Association recently co-presented “Invirtiendo en EE.UU.: Aspectos Legales” (Investing in the U.S.: Legal Aspects.) Alcides I. Avila, a 43-year legal veteran who works closely with Spanishowned businesses in the U.S., spoke in detail about the legal requirements and nuanced processes to establish a business in the U.S.
Choosing the right business structure
One of the first critical steps an investor must take when entering the U.S. market is to decide which business structure best suits their company. Foreign businesses may operate through a branch or a subsidiary, which can be organized as a corporation or a limited liability company (LLC). Corporations and LLCs are similar to the Spanish “sociedades anónimas” and “sociedades limitadas,” respectively. The choice is typically tax driven.
In a branch structure, a foreign company establishes their presence without creating a separate legal entity. The most significant challenge of a branch structure is that it directly exposes the parent company to potential civil liability in the U.S., making it the least desirable for most foreign entities.
A subsidiary can take the form of a corporation or an LLC, offer more favorable tax treatment, and protect the parent company from civil liability.
Corporations are separate legal entities, subject to corporate income tax. Generally, foreign shareholders (including the parent company) will not be required to file U.S. income tax returns. Most foreign entities who establish a subsidiary in the U.S. choose the corporation structure.
A limited liability company (LLC) is also a separate legal entity and offers similar protection from exposure to civil liability. An LLC is a disregarded entity for tax purposes - meaning it is not subject to federal income tax. Instead, the profits and losses “pass through” to the members or owners, who are required to file the tax return.
The most critical and significant difference between the different business structures is the level of protection they offer from civil liability.
Foreign entrepreneurs and entities entering the U.S. market must also consider liability insurance, trademark registration, compliance with a host of applicable state and federal laws, and other crucial factors. They should begin by gathering experts who understand their business goals, culture, and unique needs. Seasoned attorneys, accountants, financial advisors, and real estate brokers, among other professionals, can offer specialized advice and assist in determining the best course of action.
Why Miami
Many entrepreneurs and investors see Florida as a strategic gateway to the U.S. and Latin American markets. Historically, Spain has made significant investments in the banking, finance, construction, and food and beverage sectors in Florida.
About Alcides I. Avila
Mr. Avila is one of AVILA’s founding partners and has represented domestic and foreign clients in all aspects of international business transactions for over 40 years. He helps foreign banks, entities, and entrepreneurs establish business operations in the United States.
Spanish Presence The
STATUE OF JUAN
IN DOWNTOWN
DONATED BY THE GOVERNMENT OF SPAIN IN 1976. PONCE
1513 AND, CLAIMING THE LAND FOR SPAIN, NAMED IT FLORIDA (LAND OF FLOWERS).
PONCE DE LEON
MIAMI,
DE LEON ARRIVED IN
No other overseas nation has more companies in Greater Miami than Spain
BY DOREEN HEMLOCK
Ever since Spanish explorers landed 500 years ago in the peninsula they named “Land of Flowers,” Spain has shared a special relationship with Florida. Spaniards in 1565 founded the first European settlement in what’s now the United States in north Florida’s St. Augustine. Spain ruled the land for two centuries. As Greater Miami has developed since the 1960s into the U.S. business hub for Latin America and the Caribbean, Spain has strengthened that special relationship. Today, Spain has more companies in Miami-Dade County than any other overseas nation – roughly 400 which call Miami home, according to the Spain-U.S. Chamber of Commerce. Those businesses run the gamut from food and wine sellers to tile makers, construction giants, banks, retail, airlines and, recently, many tech startups.
IBERIA AIRLINES FLIGHT ARRIVING AT MIAMI INTERNATIONAL AIRPORT
Spain at a Glance
Sources: Government data, interviews
POPULATION: 48.3M, a bit more than twice Florida’s population AREA: 195,365 sq. miles, almost three-times Florida’s area
ECONOMIC OUTPUT (estimate in purchasing parity): $2.3 trillion, nearly double Florida’s
UNEMPLOYMENT: Roughly 12 percent, vs. three percent in Florida
ECONOMY: Joined what is now the European Union in 1986. Output is diversified, with more than 60 percent from services, including tourism, 20 percent from industry, and less than three percent from agriculture. The Madrid and Barcelona/Catalonia communities each contribute some 20 percent of national output.
Overall, Florida counts the United Kingdom as its top foreign investor. But in Miami-Dade, Spain ranks No. 1 by far, thanks mainly to Miami’s sturdy links with Latin America. Many Spanish companies expand first out of Europe to South and Central America, building on their common Spanish language and cultural ties. Once those businesses set up in Latin countries, many then create a Latin American headquarters in Miami to manage the regional operations, with their top executives flying comfortably out of Miami International Airport across the Latin region.
“It’s much easier to be based in Miami and travel around Latin America than to be based in Latin America and try to travel around. That cannot be overstated,” says Ilona Vega-Jaramillo, who heads up international business for Miami-Dade County’s economic development group, The Beacon Council.
The depth of Spain-Miami links was clear in June when a Miami-Dade delegation attended Madrid’s South Summit tech conference. Delegates encouraged more Spanish ventures to set up in Miami, much as Madrid-based MedUX did two years ago to expand its business measuring telecom networks. “Miami has always
been a bridge between Spain, the U.S., and Latin America, but now it is also a regional reference for entrepreneurship and innovation technology through the #MiamiTechMovement,” CEO Luis Molina said in opening MedUX’s Miami home in 2021, building on its three Latin American offices.
Of course, every country has its idiosyncrasies, and Spanish companies must also adapt to major differences in the U.S. market compared to their Iberian homeland. For starters, the U.S. market is much larger, more competitive, and lots pricier than Spain’s. Advisors suggest newcomers start small, perhaps in a co-working space or shared warehouse, and focus first on one U.S. area. And they suggest budgeting big, noting too many entrants underestimate U.S. salaries, legal fees, and costs using Spain as their reference.
“To make it in the U.S., you need more than a solid business. You need financial muscle and reserves to fund the new market expansion, because it may take two or three years to become profitable,” advises Juan Carlos Pereira, executive director of the SpainU.S. Chamber, who formerly worked as the country manager for a Spanish renewable energy company in the United States.
CATALONIA ARAGON
MURCIA
MADRID
VALENCIA
CASTILLA - LA MANCHA
CASTILE & LEON
ANDALUSIA
CANTABRIA
ASTURIAS
NAVARRE
BASQUE COUNTRY
GALICIA
LA RIOJA
EXTREMADURA
It’s much easier to be based in Miami and travel around Latin America than to be based in Latin America and try to travel around. That cannot be overstated...
ILONA VEGA-JARAMILLO (ABOVE), MIAMI-DADE COUNTY, THE BEACON COUNCIL
Here’s a look at the trends, players, and best practices that nurture the Spain-Miami business already crucial to Miami-Dade’s global strength.
SPANISH BUSINESS ARRIVING IN WAVES: BANKS, BUILDERS, AND MORE
Spanish businesses have been crossing the Atlantic Ocean for decades, especially since Spain joined what is now the European Union in 1986. The first big wave came after many state-owned companies were privatized. Some buyers with expanded holdings felt emboldened to go overseas, especially banks such as BBVA, which was created from the privatization of state-owned Argentaria. Next came construction companies. Many were strengthened
A New Game in Town
Spain’s business influence now extends to a sport taking off in Greater Miami: Padel. At least two dozen courts for the racket-based game have opened in recent years, including three at The Ritz-Carlton Key Biscayne resort, which offers Padel camps for couples and groups.
A mash-up of tennis and squash considered easier to learn and play than both, Padel is typically enjoyed with doubles in a wall-enclosed court. Players use a racket with no strings to hit a ball across the net, or as in squash, off the walls. Compared to tennis, the court and racquet are smaller and the ball less bouncy. Scoring is the same, but rules differ. For instance, Padel does not permit overhead serves.
Real Padel Miami was the first public center to open in South Florida nearly a decade ago, offering four courts designed in Spain. Wynwood Padel Club debuted in 2019 and now calls itself the largest Padel club in the U.S., offering eight courts, a cafeteria, pro shop, and other facilities.
The sport traces its roots to Acapulco, Mexico in 1969. There, businessman Enrique Corcuera adapted a court in his home, adding walls and using paddles to play ball more comfortably with family and visitors. A Spanish friend liked the game so much he opened two courts at an upscale tennis club in Marbella in southern Spain in 1974. The sport evolved until 2005, when, with hundreds of Padel clubs in Spain alone, it spurred an international championship.
Today, more than 25 million people are estimated to play Padel in 90 countries, including British tennis star Andy Murray, who’s invested in a company building courts in the United Kingdom. In Miami, fans include such top athletes as Miami Heat basketball’s Dwayne Wade and Jimmy Butler, and Inter Miami soccer’s David Beckham and Lionel Messi. Superstar Messi picked up Padel during his years in Barcelona.
Innovating with Cuisine
Spain’s best-known chef in America is taking his talents to a new spot – South Beach. The José Andrés Group, named for famed chef and founder José Andrés, is set to lead food and beverage operations at The Ritz-Carlton South Beach resort starting Oct. 20. The hotel restaurant will be re-branded Zaytinya by January, offering a Mediterranean “mezze” menu inspired by Turkish, Greek, and Lebanese cuisines. It will be the third location for Zaytinya, a play on the Turkish word for olive oil, joining locales in Washington, D.C., and New York.
Keen on cooking since childhood, José Andrés started culinary school at age 15 in Barcelona. He soon met Ferran Adria, the chef renowned for his molecular gastronomy, and worked three years with Adria’s acclaimed El Bulli restaurant before moving in 1990 to New York.
In the U.S., Andrés is credited with popularizing “tapas,” or Spain’s small plates, while leading Jaleo and other eateries in Washington, D.C. He’s also helmed cooking shows on TV, written books, and taught university classes, aiming to “change the world through the power of food.”
Globally, José Andrés is perhaps most admired for starting the nonprofit World Central Kitchen (WCK), which mobilizes chefs, volunteers, and funders to provide meals after disasters. WCK has helped after Haiti’s brutal 2010 earthquake, Puerto Rico’s hurricane Maria, and Hawaii’s recent fires in Maui, for example. Amazon founder Jeff Bezos gave José Andrés and WCK $100 million for their humanitarian work.
In Miami Beach, Andrés ran Bazaar restaurant at the upscale SLS Hotel for a decade, until early 2023. Bazaar offered such innovations as coffee rubbed-churrasco in passionfruit sauce and key lime daiquiri with toasted meringue. The busy chef has said he loves “the food, the culture, and the sexiness of the city.”
I have meetings virtually every week with Catalan startups looking to the U.S. and exploring Miami as an option...
MARCOS GONZALEZ (ABOVE), AN INTERNATIONAL BUSINESS CONSULTANT FOR THE CATALONIA TRADE & INVESTMENT OFFICE, BASED IN CORAL GABLES
by European funding to boost infrastructure in Spain, subsequently heading into Latin America, often to work on large government projects or private-public partnerships. They were encouraged in part by Spanish banks active in the region. Those builders then suggested their suppliers set up in Mexico, Argentina, and other Latin American markets, says Francisco Javier Garzon Morales, Spain’s trade commissioner in Miami. As those suppliers succeeded in the Americas, they in turn motivated other small- and mid-sized Spanish companies to expand west out of Europe.
Today, the United States ranks as the top destination for foreign investment from Spain with Miami the main gateway, especially for smaller Spanish firms, says Garzon Morales. Tech now makes up the largest wave from Spain, with ventures in such emerging fields as cleantech and offshore wind energy.
Madrid-based engineering firm Esteyco, for instance, recently opened a Coral Gables office to pursue U.S. Department of Energy contracts to create floating platforms for giant wind turbines in
A
sampling of some Spanish companies in Miami-Dade, by sector
deep sea waters. Esteyco is designing two massive nesting rings, one floating deeper inside the other and together weighing some 7,000 tons, to keep the skyscraper-sized wind turbines steady at sea – with no pillar connecting them to the ocean floor. Plans call for testing the design off Spain’s Canary Islands in 2025. “I expect that [the offshore platform] will help us to change our world,” Esteyco’s energy director Ramon Lopez Mendizabal told Florida24TV recently, “and to the next generations, pass a better world.”
NETWORKS HELP SPANISH BUSINESSES GROW
Spain-Miami business links are so ingrained that an ample support network has emerged to encourage and foster those ties. Spain’s central government not only keeps a key trade promotion office in Miami but also a consulate that helps facilitate business. And several regions in Spain – known as autonomous communities – also have representatives in the Miami area.
Catalonia, which counts Barcelona as its capital, was the first region to open a Miami office more than 20 years ago. It mainly helps U.S. companies invest in the region but also helps Catalan firms expand in the U.S., says Marcos Gonzalez, the international business consultant who leads the Catalonia Trade & Investment office in Coral Gables. The office now also supports Catalonia’s recent push to become an innovation hub for southern Europe in tech, robotics, and more, “transferring knowledge back and forth,
AVIATION: Iberia, Air Europa
BANKING/FINANCE: Abanca, Sabadell, Santander
BUILDING MATERIALS/TILES: Compac, Cosentino, Riva Spain, Roca, Porcelanosa
MEDIA: EFE News, Hola TV
CONSTRUCTION/INFRASTRUCTURE/ENGINEERING: ACS, Acciona, Dragados, Esteyco, FCC, Sacyr
FOOD/BEVERAGE: 5 Jotas, Damm, Osborne, Pescanova
HEALTHCARE/PHARMA: Grifols, Sanitas Keralty
RETAIL: Areas, Inditex (Zara)
SERVICES: Eulen, Prosegur.
TECH/TELECOM: Factorial, Climate Trade, Hiberus, Ironhack, MedUX, Telefonica, TheVentureCity
because if you don’t focus on innovation now, it will be hard to be relevant in international business later,” he says.
Among innovative Barcelona-based companies now active in South Florida are Grifols, a healthcare provider that develops plasma-based medicines and had $3 billion-plus in global revenue in the first half this year, and Factorial, a tech “unicorn” valued at more than $1 billion, which makes software for human resource functions and set up its North American headquarters in Miami this year.
“I have meetings virtually every week with Catalan startups looking to the U.S. and exploring Miami as an option,” says Gonzalez. Some firms in bio-sciences opt to set up in Boston. “In Miami, many startups say they can network faster, use Spanish to make contacts, and expand into Latin America more easily.”
Florida groups also provide support. The state’s international business promotion agency (now called Select Florida) has an office in Madrid for outreach in southern Europe, while Miami-Dade’s Beacon Council connects with Spanish firms to develop their businesses within the county.
“Spain has always been a very strategic market for us, because there are more Spanish subsidiaries in Miami than in any other city throughout the U.S.,” says the Beacon Council’s Vega-Jaramillo. The Council typically sends a large delegation of business and government leaders to Spain every other year, usually to the capital or another big city, followed by a smaller city. A cadre of Council staff then travels to Spain the next year for follow-ups and to plan the
Here in the U.S., it’s ‘Show me the money.’ Employees say, ‘I’m leaving tomorrow.’ In Spain, that’s inconceivable. You have to give a month’s notice...
JUAN CARLOS PEREIRA, EXECUTIVE DIRECTOR OF THE SPAIN-U.S. CHAMBER
next big visit. Last year, a large delegation visited Madrid and then Vigo in northwest Galicia, meeting there with executives of banking group Abanca, among others.
The Greater Miami Convention and Visitors Bureau often joins these Miami-Dade delegations, keen to woo more Spaniards to the county. In 2022, Spain became the No. 2 country of origin for European visitors to Miami-Dade, surpassing Germany and trailing only after the United Kingdom, says Joe Docal, the Bureau’s director of travel industry sales for Europe. Some 35 flights per week now link Miami with Madrid and Barcelona on three airlines – Iberia, American, and Air Europa – making travel easier.
The first Miami group focused on Spanish business was the Spain-U.S. Chamber of Commerce, now the largest binational chamber in Florida, says executive director Pereira. The Chamber was formed in 1980 when a local lawyer realized that many of his clients were Spanish banks and other firms operating in the Americas, all facing similar concerns and opportunities. Cuba-born attorney Raul Valdés-Fauli stepped up as the first president of the group that now represents more than 500 companies in Florida.
BEST PRACTICES IN THE U.S., SO DIFFERENT THAN SPAIN
Still, Spanish companies face challenges in the U.S., the world’s most competitive market. Not only are costs often multiples higher than in Spain, but regulations differ too, such as labels required in ounces – not liters – and the type of electric plugs used. It can take years and big cash outlays to obtain some needed U.S. approvals, as exporters of Spain’s prized Iberico ham learned.
“The most common concerns we hear are about non-tariff barriers: labels, phytosanitary regulations, and issues with Customs,” said Angel Asensio, president of the Madrid Chamber of Commerce and Industry, during a recent visit to Miami to promote Spain’s international tourism fair FITUR. The strict and sometimes unexpected U.S. regulations contrast with the image of America as a free, open market.
The U.S. labor market often proves thorny, requiring greater focus on salaries, benefits, recruiting, and training. In Spain, jobs typically are harder to find and more coveted, employees more likely to stay near their family, and labor laws more employee-friendly. Employee turnover is generally lower there.
“Here in the U.S., it’s ‘Show me the money.’ Employees say, ‘I’m leaving tomorrow.’ In Spain, that’s inconceivable. You have to give a month’s notice,” says Pereira. To keep top talent in the U.S., firms must typically pay employees more than in Spain, an issue that can be contentious in talks with headquarters staff in Iberia. Advisors recommend that Spanish firms entering the U.S. send a top exec with the ear of headquarters honchos back home, so they can best get across those U.S. needs.
Also challenging is building a U.S. client base. U.S. executives often ask Spanish newcomers about their other U.S. customers. To get started, some advisors suggest entrants build on their overseas network. If a Spanish company worked with a multinational overseas that also has a U.S. division, it can leverage that relationship for a reference or U.S. introduction. Initial U.S. jobs may require competitive bidding, too.
What’s indisputable is the need for research to understand the U.S. market. “You can be a good business in Spain, but that doesn’t mean you’ll do well internationally,” says Gonzalo Arance, Select Florida’s consultant in Spain. He says too many small- and midsized Spanish firms skip detailed market studies and under-invest in marketing their services to stand out in the crowded U.S. market.
Mastering the U.S. ropes requires humility too, since the process takes time. “The U.S. market is tough and sophisticated,” says Catalonia’s Gonzalez. “Some newcomers see ‘El Dorado’ and approach it with an excess of self-esteem.”
Opportunities remain huge, however, with some 400 Spanish companies already working in Miami-Dade. Among the newest entrants: software maker and consultancy Hiberus, which set up a Miami hub this year to expand across the Americas. l
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An Overview of Spanish Companies in the U.S.
An interview with Spain’s Miami-based Trade Commissioner
BY DOREEN HEMLOCK
For Spanish companies looking to set up in Florida, one key resource is Spain’s Trade Commission in Miami. It’s part of the Spanish government’s network of trade offices worldwide aimed at helping businesses from Spain expand overseas and promoting investment into Spain.
Francisco Javier Garzon Morales leads the Miami office that oversees Florida as well as Alabama, Arkansas, Georgia, Louisiana, Mississippi, Oklahoma, Texas, and Tennessee. He previously worked on competition policy in Spain, led the Trade and Investment Agency of Spain, and served at Spain’s trade commissions in Mexico and Brazil.
Here are excerpts from our recent interview with Garzon.
Tell us about Spain’s international trade office in Miami. We’re part of Spain’s Ministry of Industry, Commerce, and Tourism, which has some 100 trade offices worldwide. In the U.S., we have five trade offices – in Miami; Los Angeles; Chicago; Washington, D.C.; and New York – each covering a different geographic region. From Miami, we handle the U.S. southeast.
Our office is one of the busiest in the U.S. because there are more than 400 Spanish companies operating in Florida, with at least 350 in Miami-Dade. And we’ve seen lots of interest recently in business in Texas, especially in construction and energy projects.
Where do you see the greatest opportunities for Spanish business in Miami and across Florida?
I see a great match between the priorities of U.S. federal, state, and local governments and what Spanish companies have to offer. The U.S. Bipartisan Infrastructure and Inflation Reduction laws, for example, focus on sectors where Spanish companies have extensive knowledge and expertise.
One such area is renewable energy. Spain is a world leader in solar and wind energy, and we’re exporting lots of our technology and expertise to Latin America and other regions now. Spanish companies have invested more than $7 billion in wind energy in the U.S. since 2015.
Another area is infrastructure. Many big construction companies started coming to the U.S. decades back and are now well-positioned for growth, especially in public-private partnerships and concessions. They’re having success both with U.S. companies they’ve bought or subsidiaries they’ve opened here. I’d estimate 30 percent of bids open to foreign companies for infrastructure projects in the
U.S. now have some Spanish company presence. Our construction and engineering companies are very adaptable and flexible. Miami stands out as a hub for Spain’s building materials, items like tabletops and countertops for kitchens and bathrooms, tile, and stone. They’re heavy to transport and typically are sent by ship to PortMiami, which is one of the main U.S. seaports for imported stone and tiles.
I also see opportunities involving technology, education, and innovation. Spanish tech ventures are very interested in South Florida’s ecosystem. Spanish universities are developing projects in Miami, and Spanish firms offer solutions in such cutting-edge areas as urban mobility, smart cities, and cleantech that can help tackle challenges across the U.S.
What misconceptions might people have about Spain and Spanish business?
Some people still think our culture is all about long lunches and afternoon naps, but Spaniards have become more practical and direct. Spain has not been paella and siestas for a long time now. Today, Spain is more about innovation, technology, and a very international approach to business.
What advice do you give Spanish companies setting up in Miami?
I always insist: If you’re coming to Miami just to do business in the Spanish language with a similar culture to Spain, forget it. Come to Miami to do business with the U.S. If English is a problem, maybe you shouldn’t be coming. You need a solid U.S. market opportunity to make it. Language and culture help in Miami, but they’re not enough to succeed. l
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Carved in Stone
FROM HUMBLE BEGINNINGS IN SPAIN, COSENTINO IS NOW A GLOBAL POWERHOUSE
Grandfather Eduardo Cosentino surely would be proud. The family business he started in the 1940s to sell stone products has become a global powerhouse with sales nearing $2 billion yearly – and with patents on engineered mineral surfaces used as countertops in high-end homes and hotels.
Now, the Spain-based Cosentino Group is building its first factory in the United States: a $270 million complex in Jacksonville that will bring production closer to U.S. clients and reduce the carbon emissions that come from shipping its heavy wares across the Atlantic Ocean. Grandson Eduardo Cosentino, CEO for the Americas, runs the headquarters from Greater Miami.
“No other Spanish company in our sector has manufacturing in the U.S.,” says Cosentino, who considers the U.S. a second home for the business that derives 60 percent of its sales from North America.
Cosentino entered North America in the late 1990s, setting up an office in Houston, Texas, where its initial U.S. partner was based. By 2010, it had bought out that partner, and in 2017, it moved its regional hub to Miami-Dade County’s Coral Gables, aiming to serve the broader Latin American market, ease access to its home base in Almeria in southeastern Spain, and tap into the growing cluster of architectural and design firms in the Miami area.
Business has been booming since that move. In the Miami area, Cosentino has opened a showroom in the Design District as well as a logistics center in Fort Lauderdale. It now employs roughly 270 people in Florida, with some 200 in the Miami area. Its job count is set to top 450 when the group completes its railway-linked factory on a sprawling 330-acre site in West Jacksonville in 2028. Cosentino says the Miami area offers a strong, multicultural workforce that can easily serve markets across the Americas and Europe. Yet these days, “it’s hard to find talent, because there’s essentially full employment,” he says, with the official jobless rate hovering below two percent.
DOING BUSINESS IN THE U.S.
The Cosentino Group is known for its trademarked, engineered surface products. They feature Silestone, a pressed mix of minerals and resin developed in the 1990s to resist scratches and stains better than natural stone, often used for indoor countertops in kitchens and bathrooms. Dekton is a similar mix but without resin, which better withstands weather conditions and is often used outdoors for facades and flooring. The company now manufactures in six factories in Spain and one in Brazil, selling its goods in some 110 countries.
Tastes differ widely among those nations and even within countries. In the U.S., for example, the Midwest tends toward more traditional granite with darker colors and shiny finishes. New York instead likes more greys with matte finishes, while Florida likes whites that reflect the sunlight and “not much black,” Cosentino says. “The key is to adapt to the color, design, and taste in each market.”
At its Jacksonville factory, production will rely mainly on U.S. stone and other inputs, which likely will cost more than goods in Spain, but will help provide “faster service to U.S. customers,” says Cosentino.
Grandfather Eduardo could hardly have imagined such global
reach. Sales topped $1.8 billion last year, with net profits exceeding $128 million and nearly 6,000 employees worldwide. When he and wife Eduarda handed over their store to their children in the 1970s, the family business had just 14 workers.
Nowadays, the company also shines as a leader in sustainability. It has already installed one of Europe’s largest solar farms for a single user, with 37,000 solar panels able to produce up to 20 megawatts of energy for its main factory complex. It’s also implementing a five-year plan to cut its carbon footprint. l
TOP: EDUARDO COSENTINO, CEO FOR THE AMERICAS ABOVE: THE CANTORIA INDUSTRIAL PARK WITH ONE OF EUROPE'S LARGEST SOLAR PANEL INSTALLATIONS
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• Zantac MDL
• Camp LeJeune Contamination Claims
I was surprised by the legal differences. A loan contract in Spain is often two or three pages. Here, it can be 100 pages or more...
USA
Adapting to U.S. Banking
After the global financial crisis in 2008, the U.S. Federal Reserve Bank was picky about which international banks it would allow to start a branch in the U.S. to serve clients overseas. The first one it licensed in 10 years was Abanca, now Spain’s seventh-largest bank with some $120 billion in assets, growing fast under the helm of Spanish-Venezuelan entrepreneur Juan Carlos Escotet Rodriguez.
Abanca USA opened in Miami’s Brickell district in 2019, aiming to serve families and businesses mainly from Latin America and Europe, including many who were investing in U.S. real estate. Today, it has some 20 employees in Brickell, with nearly $1 billion in assets managed there.
Doing business in the U.S. has proven very different than in Abanca's Spanish homeland, starting with regulation and compliance. The United States is “the most regulated banking market in the world,” with about twice the level of regulation as in Europe, says Monica Vazquez, the experienced Spanish banker who leads the U.S. operation. And regulators have a different approach, too. In Spain, regulation tends to come after-the-fact, more like an audit. In the U.S., regulators play a more preventive role, working with banks from the outset to help them understand and meet the requirements.
“I was very pleased by the support from the U.S. regulators, who really assisted us in developing the bank and are always available for consultations,” says Vazquez, who had 15 years’ previous experience in banking in Spain. “And I was surprised by the legal differences. A loan contract in Spain is often two or three pages. Here, it can be 100 pages or more.”
Starting up in Miami just a year before the COVID-19 pandemic hit was a “trial by fire,” for Abanca, Vazquez admits. Thankfully, the Spanish bank group has a strong in-house tech team that could quickly adapt systems and meet clients’ needs for greater remote access. But Vazquez also took a bold decision then: to keep the Miami bank open for in-person sessions and lend for new projects, seizing the moment as what she calls “a super opportunity for growth.”
Today, Abanca USA accepts deposits from overseas clients and offers personal and corporate banking services. Its real estate lending ranges from single-family homes to office towers and hotels, from construction to purchases. Loans typically run from $1 million to $50 million. Some clients choose the bank not only for funding U.S. real estate projects but also projects in Spain and Portugal, taking advantage of its online platform that allows access to the bank in Iberia.
Next up for the U.S. branch: expanding trade finance, especially for imports and exports from Latin America and Iberia. That should further build a Miami clientele that now often hails from Mexico, Spain, Chile, and Peru, says Vazquez.
Abanca has been accelerating growth under chairman Escotet Rodriguez, who was born in Spain, raised in Venezuela, and studied at University of Miami. Escotet began his career with Banco Union in Caracas, founded Venezuela’s Banesco financial group, and grew that group in Panama, Puerto Rico, the Dominican Republic, Spain, and the U.S. In 2015, he bought a majority stake in Spain’s NCG Banco, which was later re-named Abanca. Since then, his team has roughly doubled Abanca’s operations, with some 6,000 employees in 800 offices in 11 countries in Europe and the Americas. Growth has come partly through bank acquisitions.
To start up in the U.S., Abanca had considered a branch in New York City, the American financial capital. But Escotet’s team opted for Miami because of greater opportunities to attract clients from nearby Latin America, offering personalized service in Spanish and English. From Miami, Vazquez says, plans call for financing projects across the United States as well. l
HOW ABANCA BANK SUCCESSFULLY LANDED IN MIAMI
MONICA VAZQUEZ, MANAGER, ABANCA
Multi-Billion Dollar Hi-Tech Hub
No Slots/Curfews/Delays
Top Perishable Products Hub
Top U.S. International Freight Hub
Multi-Billion Dollar Pharma Hub
Top Latin American/Caribbean Hub
High Ranking Global Freight Hub
Major North American e-Commerce Hub
Closing the Tech Skills Gap
IRONHACK’S MIAMI-BASED HQ NOW TRAINS THOUSANDS IN THE U.S.
The idea surfaced from a mismatch. In the wake of the financial crisis in Spain, friends Gonzalo Manrique and Ariel Quiñones saw legions of youth without jobs, while tech companies couldn’t find enough software developers and qualified staff to fill thousands of vacant positions.
The two young entrepreneurs decided to help close that gap, developing education programs to train the employees that tech companies needed. Ironhack was conceived, graduating its first students in 2013.
Fast forward a decade, and the venture now counts more than 15,000 graduates, works with 600-plus partner-companies, and operates in 10 cities in Europe and the Americas. It’s raised more than $20 million from investors and employs some 190 people, including about a dozen in Miami, where it keeps its U.S. headquarters. Business is booming, partly because more students are turning to online training and more tech companies are footing the bill for education tailored to their needs, Quiñones says.
In South Florida, the venture has made a splash by teaming with eMerge Americas, the group promoting Miami as a tech hub, to create a $200,000 scholarship fund for students in courses given at the Miami Marlins baseball stadium. Scholarships cover up to $6,500 for Ironhack bootcamps that typically require 10 weeks of fulltime study in such fields as web development, UX/UI design, and data analysis. “For most of our graduates, it’s their first job in tech,” says co-CEO Quiñones.
The success is especially remarkable because the co-founders, who met while pursuing their master’s degrees in business administration at the University of Pennsylvania’s Wharton school, never worked in education before. Manrique, who hails from Madrid, trained as a civil engineer and long aimed to start his own business. Quiñones, the son of educators from Puerto Rico, studied political science at Harvard and then worked in investment banking. The two learned by doing, with help from the tech community.
Quiñones was the one to see Miami as a strategic hub. He’d visited the city when he was young, and after a decade in the U.S. northeast, yearned for a climate and culture more like his Caribbean homeland. In 2014, he visited and began meeting Miami’s tech advocates, including Manny Medina of eMerge and Brian Breslin of Refresh, and recalls conversations about the need for talent and builders.
“I thought: 'Why not use Miami as the launchpad for the Americas?’” Quiñones says. In early 2015, he set up in the Pipeline co-working space in Brickell to start Ironhack east of the Atlantic.
Doing business in Miami has been far different than Spain, he says. In Madrid and Barcelona, the team had to spend time explaining the merits of tech training instead of more traditional education. Many people in Spain were not familiar with bootcamps. In the U.S., where bootcamps are common, the focus instead has been on what makes Ironhack different: the curriculum, methodology, and job placement opportunities, requiring the team to develop “a very sharp value proposition,” says Quiñones. “The U.S. market is, without question, the biggest prize in terms of opportunities, but it’s
The U.S. market is, without question, the biggest prize in terms of opportunities, but it’s also the most challenging, with the most competition...
CEO ARIEL QUIÑONES (ABOVE RIGHT), WITH GONZALO MANRIQUE (LEFT)
also the most challenging, with the most competition.”
Costs in the U.S. are also significantly higher, from salaries to rents and outlays for lawyers in a nation known for litigation. “In Spain, a lot of business is done on personal relationships and trust. In the U.S., everything needs to be properly documented. You need excellent and specialized legal counsel” from the start, because rivals use the law in their business strategy, sometimes threatening legal action to ward off competitors, Quiñones says.
Since the COVID pandemic, operations have changed on both sides of the Atlantic to feature online classes. Now, at least half of Ironhack’s students study remotely, and Quiñones hopes that soon most tuition will come not from students but from the companies contracting Ironhack to train the staff they need. With custom education, there’s no mismatch for jobs. l
Dry-Cured Gold
THE FERMIN FAMILY BRINGS SPAIN’S FAMED JAMON IBERICO TO THE U.S.
Credit Spain’s Fermin family for bringing the world’s most revered – and most expensive – ham to the United States: Jamon Iberico de Bellota de Pata Negra. The dry-cured pork is made only from 100 percent Iberian black-hooved pigs raised on acorns from oak forests on the Spain-Portugal border.
The family business founded by Fermin Martin invested a decade and millions of dollars to earn the first U.S. Department of Agriculture approval to sell the prized Spanish ham in the U.S. Now, Fermin’s grandson is starting his own chain of gourmet shops featuring the ham, with its first store in the Miami area.
What makes the Iberico de Bellota ham so special that it commands retail store prices topping $150 a pound and restaurant prices even higher (sometimes $35 for less than two ounces)? For starters, the ham takes more than six years to produce, including at least three years to cure the meat. It comes only from one breed of pig raised in only one mountain region where the animals roam the oak forests that produce the acorns they eat. That breed has an unusual ability to hold fat in its muscles, creating a wonderful marbling that helps the thinly-sliced ham melt in your mouth.
“Consider the four aces in gourmet food – truffles, caviar, foie gras, and Jamon de Bellota 100% Iberico. They’re all similar. They have animal-vegetable components. They’re hard to obtain. They’re made in specific conditions that greatly limit production. And a little taste goes a long way,” says Raul Martin, the former U.S. sales chief for Fermin who now is developing his own La Jamoteca gour-
met shops. “With just a small bit in your mouth, the satisfaction you feel is very elevated.”
The Bellota designation – named for the Spanish word for acorns – is so rare that just five percent of hams from Iberico pigs carry that insignia. Others come from mixed-breed pigs and eat foods other than acorns to double their size in their final months. And Bellota could become even more scarce, says Martin. Climate change is reducing rainfall in the dehesa oak forests where the pigs roam, limiting yields of the acorns that are key to their celebrated flavor.
For Fermin, developing a U.S. market for Bellota has been challenging. Martin says the decade-long process to obtain U.S. Department of Agriculture approval was “very complex” and involved “lots of trial-and-error” to standardize and document each step to export, from forest to factory and shipping. It’s also taken sustained and costly marketing to expose U.S. consumers to a new taste since 2008.
Chefs have helped raise awareness, including Spanish-American star José Andrés, whose restaurants often feature the delicacy. José Andrés says when Fermin’s Bellota “is under your nose, you know it - aromas of acorns, wet grass, and thyme… before you even taste it. Once the fat starts melting on your tongue, you get flavors of acorns, toasted hazelnuts, wet wood, and wildflowers – and then the fifth flavor, umami, adds a profound richness to round out the entire experience.”
Martin helped build Fermin’s U.S. distribution network, working from New York City, the country’s gourmet foods and luxury goods capital. He then opted to create his own retail business, starting in South Florida in 2018 with a kiosk in Dadeland Mall. Last year, he opened La Jamoteca gourmet shop on Miracle Mile in Coral Gables, offering what he calls “the largest display of Spanish hams in the U.S.” and other delights from Spain, including cheese, olive oil, wine and more. The shop’s small tasting menu highlights Bellota, or as Martin describes it, “the pride of Spain.” l
RAUL MARTIN IS DEVELOPING HIS OWN LA JAMOTECA GOURMET SHOPS.
