Kellogg’s has expanded its emerging markets footprint with the acquisition of Egypt’s largest cereal company.
The US cereal giant has bought Egypt’s Mass Food Group for approximately $50m.
Founded in 1996, Cairo-based Mass Foods was the first firm to introduce cereal to Egyptian consumers and has grown into a business with $18m in annual sales and 600 employees.
“As the number one cereal company in Egypt, Mass Food Group is an excellent strategic fit for Kellogg,” said 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.”
Tamer El Bahay, Vice President, Mass Food Group commented: “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.”
The acquisition comes just weeks after Kellogg’s signed a joint venture agreement to develop snacks and breakfast foods for the West African market and acquired a 50% stake in a Nigerian/Ghanaian distributor Multipro.
Earlier this year, Kellogg acquired Bisco Misr, Egypt’s leading packaged biscuit company.
“Today’s announcement builds upon significant progress against our emerging market growth strategy announced earlier this year,” said John Bryant, chairman and CEO, Kellogg Company. “We are building a strong foundation for emerging market growth.”