French food industry giant Groupe Danone has signed a partnership agreement with the Egyptian Rachid Group for the distribution of its three core products—fresh dairy goods , biscuits and beverages. The Group has already developed a strong presence in the region with investments in Morocco, Tunisia, Turkey, Israel and Saudi Arabia.
The joint venture, in which Groupe Danone initially holds a 51 percent interest, is to expand on a regional basis through acquisitions and greenfield projects. The partnership's first project will be the launching of a biscuits operation in Egypt, under the LU brand, a press release confirmed. With 65 million inhabitants, 35 percent of whom are below the age of 15, Egypts market demand is estimated at 80,000 tons of biscuits annually, offering a strong growth potential.
The new partnership confirms the Group's strategic interest in the Middle East, where it has recently expanded its presence. In 2001, Danone increased its shareholdings of the Moroccan Centrale laitiere, from 20 percent to 29 percent and established a partnership with ONA in respect to bottled water. Also in 2001, the Group acquired a 51 percent stake in Algeria’s Djurdjura Company, a fresh dairy product vendor. — (menareport.com)
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