By Carol Neshevich
As part of its emerging market growth strategy, Battle Creek, Mich.-based Kellogg Company has acquired a leading Egyptian cereal company.
Kellogg has agreed to pay approximately $50 million for Cairo-based Mass Food Group, a family-owned business founded in 1996. In less than two decades in business, Mass Food Group has grown into an $18-million business (sales) with 600 employees.
“As the number-one cereal company in Egypt, Mass Food Group is an excellent strategic fit for Kellogg,” says Chris Hood, President, Kellogg Europe. “The combination of Mass Food Group’s manufacturing capabilities, established local brands, and sales and distribution infrastructure, coupled with Kellogg’s product innovation, international sales knowledge, iconic brands and marketing expertise, will help unlock the growth potential of the cereal category in the key markets of Egypt and North Africa.”
Mass Food Group makes popular local Egyptian brands such as Temmy’s cereals and NutriFit cereal bars. The company also exports foods to more than 30 markets, including Europe, East Asia and Africa.
“On behalf of the El Bahay family, I would like to say how proud we are to have been acquired by Kellogg Company, the world’s leading cereal producer. With their know-how and expertise, we can emerge stronger together with a combined portfolio of brands to excite our consumers. We know the dedicated people of Mass Food Group, who have helped make this company a success, will continue to grow and develop under Kellogg’s leadership,” says Tamer El Bahay, vice-president of Mass Food Group.
Earlier this year, Kellogg acquired Bisco Misr, Egypt’s leading packaged biscuit company. Then in mid-September, Kellogg announced a joint venture with Tolaram Africa to develop snacks and breakfast foods for the West African market, as well as noodles across Africa, which are often eaten at breakfast. Kellogg also acquired 50 per cent of Multipro, a sales and distribution company in Nigeria and Ghana.
“Today’s announcement builds upon significant progress against our emerging market growth strategy announced earlier this year,” says John Bryant, Chairman and CEO, Kellogg Company. “We are building a strong foundation for emerging market growth.”