EGYPT – The Arabian Food Industries Co, an Egyptian food and beverage company popularly known as Domty is seeking to enter the croissant market, as it has signed an agreement to acquire a processing line from AMF, a US-based provider of bakery equipment solutions.
The company has also inked another contract with AMF to supply it with a fourth line for baked goods production, with both investments set to total to 2.5 million euros (US$2.95m).
Currently at its three bakery production facilities, Domty is operating with a capacity of 90 percent and aims to reach the maximum level at the beginning of the school year.
“The company is ready to expand with full force. In addition to the expansion of sandwiches production through the fourth line, the company will start to engage in the croissants and pies market.
“We will enter this market with a different quality hence we will remain in the high tier price segment by offering a short shelf-life high quality products only, we believe our edge with our consumer is our high-quality short shelf-life products which we will adhere to in the bakery market.,” said Mohamed El-Damaty, CEO of the company.
The company expects the new lines will be in operations by mid next year, noting that it is also in negotiations with Tetra Pak to expand the capacity of its juice factory.
The Domty’s juice sales have been bullish, pushing it to reach its maximum processing capacity, “Consequently we are facing obstacles to reach the optimal utilization of the filling capacities, which is what we are facing,” said Mohamed.
Further to that, the juice and dairy giant is pondering on establishing a third factory seeing that its cheese category will also need to increase its production capabilities.
Earlier in the year, the Dutch dairy co-operative, FrieslandCampina partnered with Domty to establish a joint venture that will focus on the export of cheese.
Both cheese majors are combining their efforts in a new company that will export and sell affordable cheese propositions to markets in Africa and the Middle East from Egypt.
Under the agreement, FrieslandCampina will hold a 51 per cent interest in the joint venture and Domty, 49 per cent.
Established in 1989, Domty now has a total turnover of over Euro 100 million in white cheese (feta type), mozzarella, cream cheese, aside from fruit juices and bakery products.
Through the years, it has been widening its portfolio to different cheese formats and types, as well as expanding its market reach within Egypt and its export operations in the Middle East and the Gulf region.
The cooperation with Domty will allow FrieslandCampina to enter bigger, more affordable and faster-growing cheese categories and better serve consumers across their breakfast, lunch, dinner and snacking occasions.