Cairo, 10 December 2017
Edita Food Industries S.A.E. (EFID.CA on the Egyptian Exchange and EFIFq.L on the London Stock Exchange), a leader in the Egyptian packaged snack food market announced today it will directly enter the Moroccan snack food market through a greenfield investment with Morocco’s Dislog Group.
Edita signed a memorandum of understanding with the leading local distributor to form a joint venture, “Edita Food Industries – Morocco”, that leverages Edita’s manufacturing and technical industry experience and competitive products combined with Dislog’s extensive distribution network and logistical strength. The terms of the agreement stipulate that Edita will be majority owner of the venture with 51% stake.
Commercial operations will begin in early 2018 with exports of Edita’s products to Morocco, while the second stage will entail the establishment of a state-of-the-art manufacturing facility in 2019 with an initial investment estimated at around USD 10 million.
Dislog Group has substantial distribution muscle with over 65,000 distribution points across the kingdom and a fleet of more than 780 vehicles and 26 regional warehouses serving the demands of 35 million consumers nationwide. The group covers the full sales and distribution value chain from factory to consumer and is the trusted partner of global brands.
“Edita will share values and natural synergies in expertise with Dislog, whether it’s in our approach to business, our respective industry know-how or our growth ambitions. Morocco itself is a very attractive market due to its strong domestic demand and significant growth potential in the segments in which we operate,” said Edita Chairman and Managing Director Hani Berzi.
“This partnership is an exciting new step in our journey from a leading local manufacturer into a competitive regional player. As we enter the Moroccan market, we aim to capitalize on our successful track record and replicate a proven business model of marketing and manufacturing excellence, calling on the same expertise in research and development, production, and distribution that has seen us succeed in Egypt. We will continue to be aggressive in terms of delivering on our long-term strategy to maximize growth. I look forward to reporting on our progress in Morocco and other regional markets in the years ahead as we continue to grow and diversify our revenue streams and create value for all our shareholders,” Berzi added.
Egypt-based Edita is the leading provider of packaged snack food in North Africa’s largest consumer market and a growing exporter. It manufactures, markets and distributes a range of branded baked snack products while controlling a market-leading portfolio of proprietary brands.