Positive signals for Egypt’s FMCG sector

Late September brought news that US-based food manufacturer Kellogg Company had acquired Egypt’s largest cereal producer, family-owned Mass Food Group, in a deal worth around $50m.

Founded in 1996, Mass was the first company to launch breakfast cereals in the Egyptian market and currently exports to more than 30 countries around the world, with annual sales of $18m.

In a press release announcing the sale, Chris Hood, president of Kellogg Europe, described Mass as “an excellent strategic fit” for the industry giant which – thanks to its established local brands – “will help unlock the growth potential of the cereal category in the key markets of Egypt and North Africa”.

The acquisition comes just months after Kellogg outlined its broader emerging market growth strategy. According to the company, the MENA region is pegged to play a central role in its plans, and Egypt, the region’s most populous country, represents a strategic market for the food producer.