New Zealand dairy giant Fonterra partners with Egyptian based Arab dairy
Fonterra Brands M.E, the world’s largest dairy exporter, signed a partnership with Arab Dairy Products Co., one of Egypt’s leading dairy companies, to manage the franchising, distributing and co-packing of Fonterra’s star brand Anchor, throughout Egypt. This agreement was sealed recently between Mr. Amr Farghal, General Manager, Fonterra M.E and Mr. Khaled El Sadek, Managing Director, Arab Dairy during the Gulf Food Exhibition.
Arab Dairy will be licensed to produce and market Fonterra’s highest selling brand, Anchor. Initial stages of production will be of mainly processed and jar cheese. The partnership also covers distribution rights for various cheese and milk powder products.
Arab Dairy is currently responsible for co-packing Fonterra’s processed cheese portions; the mentioned partnership will extend packaging rights for other cheese forms within the Anchor portfolio. Currently Arab Dairy packed products are sold throughout the GCC, North Africa, Sub Sahara, East Mediterranean, and Commonwealth of Independent States (CIS) countries.
“North African expansion is an integral contributor to our strategic plan. Egypt with a population in excess of 80 million is a market that offers great potential for the Anchor brand. We are honoured to partner with a company like Arab Dairy; besides sharing the common bond of ‘local heritage’, our vision of quality, ethics, and success go hand in hand. We are confident that this partnership will build the Fonterra brand and its portfolio within the Egyptian market,” said Mr. Farghal.
Fonterra, headquartered in Dubai, UAE, holds over 30 years of heritage in the GCC region. The company, a cooperative of more than 11,000 farmers, entered the region as the New Zealand Dairy Board before realigning as Fonterra in 2001. Its main consumer brands include the Anchor range of milk powders and cheeses, the adult bone health milk, Anlene, and the Chesdale cheese brand. In addition to its extensive brand portfolio, Fonterra’s foodservice business is earmarked for major growth on the back of rapid expansion in the region’s hospitality and shopping mall sectors.
“Fonterra brands are known globally for their purity, nutritional value and taste, these are the qualities we look for in a partner.” said Mr. El Sadek. “We have grown exponentially over the past 20 years, and we are one of the top dairy manufacturers in Egypt. Adding the Fonterra brands to our portfolio is a strategic move for us that we are confident will be welcomed with open arms within the Egyptian market. “
Established in 1985, Arab Dairy was by a group of Egyptian entrepreneurs. Now, the majority shareholders are the Kamal Adham Establishments and Sekfi Groups. Arab Dairy has witnessed tremendous growth since its launch, making it the second largest local player and exporter of cheese. Total investments in 2008 alone averaged at 16 million US dollars.