Kellogg’s advances emerging markets growth strategy with acquisition of Egypt’s leading cereal company
The world’s largest cereal maker, Kellogg’s, is obviously on an expansion spree, owing to the number of acquisitions and partnership the company has embarked on this year. In January, the food manufacturing company completed acquisition of majority stakes in one of Egypt’s leading confectionery business in North Africa, Bisco Misr, for $125 million. Over a week ago, Kellogg’s partnered with Tolaram Africa foods, for a 50 percent stake in their Lagos based food sales and distribution company, Multipro, to the tune of $450 million.
Today, Kellogg Company announced it has acquired Egypt’s leading cereal company, Mass Food Group, for approximately $50 million, thereby advancing its emerging market growth strategy. “As the number one cereal company in Egypt, Mass Food Group is an excellent strategic fit for Kellogg,” said Chris Hood, President, Kellogg Europe.
— Todd R. Southwell (@ToddRSouthwell) September 28, 2015
Mass Food Group is a family-owned business headquartered in Cairo. Established in 1996, the company was the first to introduce breakfast cereal to Egyptian consumers. It also exports foods to more than 30 markets, including Europe, East Asia and Africa. “On behalf of the El Bahay family, I would like to say how proud we are to have been acquired by Kellogg Company, the world’s leading cereal producer. With their know-how and expertise, we can emerge stronger together with a combined portfolio of brands to excite our consumers,” said Tamer El Bahay, Vice President, Mass Food Group.
With Mass Food Group’s manufacturing capabilities, established local brands, and sales and distribution infrastructure, and Kellogg’s product innovation, international sales knowledge, iconic brands and marketing expertise, the merger will help unlock the growth potential of the cereal category in the key markets of Egypt and Africa.
The announcement builds upon significant progress of the company’s emerging market growth strategy announced earlier this year. “We are building a strong foundation for emerging market growth,” said John Bryant, Chairman and CEO, Kellogg Company.