February 8, 2013

 

Germany's DMK launches baby food brand in Middle East

Germany's largest dairy cooperative, DMK, is launching its baby food brand Humana in the Middle East market with an initial investment of EUR30-35 million (US$40-47 million).

 

Humana is a leading international brand in the infant and baby food sector, while its parent company DMK develops and produces food.

 

"Humana, as part of DMK, is in the perfect position to achieve growth in this marketplace. We entered the Middle East due to our access to local partners who have knowledge, experience and credibility in the healthcare sector," said Stefan Eckert, CEO of Humana.

 

Aside from its home market Germany, Humana is also present in Vietnam, Italy, Spain and Portugal.

 

"After our launch in the UAE, Humana will further expand to Kuwait, and then other regional countries like Qatar, Lebanon and Bahrain," added Eckert.

 

With a turnover of around EUR4.6 billion (US$6.2 billion), DMK is widely regarded as a leader in the European dairy industry. Under its umbrella brand over 11,000 milk producers supply 6.8 billion kilogrammes of milk, while the cooperative's 23 factories produce fresh dairy products, cheese, baby food, nutritional supplements, health products and ice cream. DMK currently employs over 5,500 people.

 

Humana has tied up with New Medical Centre (NMC) in the UAE and with The Principals MENA (TPM) in Saudi Arabia. BR Shetty, the co-founder of NMC, said, "This is an excellent opportunity for NMC and DMK, as we will distribute their products to high-class supermarkets and pharmacies."

 

As one of the largest distributors in the country, NMC will be stocking Humana products even during the opening of its first maternity clinic in Abu Dhabi on April 1, Shetty added.

 

DMK's main distributor in Saudi Arabia will be the SAR3 billion (US$800 million) company, TPM, which has distributorships with more than 500 pharmacies and tie-ups with over 40 companies.

 

Mohammed Abul Hawa, vice president, The Principals MENA, said, "While Humana provides the products and research, we are investing in the Middle East market by servicing healthcare professionals and educating consumers about infant nutrition." Though he did not reveal the amount of investment his company would make Hawa revealed that it was "substantial".

 

It is noteworthy that in Saudi Arabia the SAR4-5 billion (US$1.1-1.3 billion) baby food market is rising by 5% yearly. Globally, the baby food industry is around US$20 billion and growing due to increasing consumption patterns and an expanding population.