Fonterra enters into franchising and distribution deal with Arab Dairy
Published:13-April-2009
By Datamonitor staff writer
Partnership includes the manufacture; packing and marketing of Anchor triangle processed cheese and jar cheese
New Zealand-based dairy firm Fonterra has signed an agreement with Arab Dairy Products, a dairy company in Egypt, to manage the franchising, processing and distribution of its Anchor brand throughout Egypt.
The partnership includes the manufacture; packing and marketing of Anchor triangle processed cheese and jar cheese, as well as the future distribution of Anchor milk powder products.
Amr Farghal, general manager of Fonterra Middle East, said: "Egypt has a population of more than 80 million and has a processed cheese retail market that alone is valued at over NZ$350m. With Arab Dairy's infrastructure, we are well positioned to reach this market through our Anchor brand, which has been very successful in other parts of this region.
"Arab Dairy is the second largest cheese producer in Egypt and has a large, low cost processing and distribution infrastructure that we can tap into. The company also shares our standards on quality both from a product and marketing perspective, so we are confident that this will be a good foundation from which to build our brands in Egypt. Following the signing of the agreement, Arab Dairy has also agreed to invest a further NZD25m in expanding its capacity."
Arab Dairy is currently responsible for co-packing Fonterra's processed cheese portions which are sold in the Gulf Cooperation Council and Iraq. This new agreement will extend the partnership to include the manufacturing and packing of other cheese products within Fonterra's Anchor portfolio through a brand licensing arrangement.
