Fonterra announced it has signed an agreement with Arab Dairy Products Co., one of the leading dairy companies in Egypt, to manage the franchising, processing and distribution of Anchor throughout Egypt. 

 

The partnership includes the manufacturing, 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 the agreement represents a great growth opportunity for Fonterra, and Arab Dairy's infrastructure will position Fonterra to reach the large market through the Anchor brand.

 

Arab Dairy is currently responsible for co-packing Fonterra's processed cheese portions which are sold in GCC 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.

 

Following the signing of the agreement, Arab Dairy has also agreed to invest a further NZD25 million (US$14.3 million) in expanding its capacity.

 

Farghal added Fonterra was also excited about the opportunities this partnership might have beyond just Egypt.

 

''Egypt has signed free trade agreements with a number of countries in the Middle East and Africa, so our partnership with Arab Dairy could open up a gateway to a further one billion consumers.''

 

Fonterra's entry into Egypt follows news that the company has also recently signed a memorandum of understanding (MOU) with Saudi Arabia's leading food distribution company, Arrow, to distribute Fonterra's Foodservice products throughout Saudi Arabia.

 

''Saudi Arabia is Fonterra's most important market for consumer brands in the GCC. This deal will now allow us to establish a strong Foodservice footprint in Saudi Arabia's bakery, hotel, restaurant and catering channels.''