FrieslandCampina enters fast growing Africa cheese market, forms JV with Egyptian Domty

EGYPT – The Dutch dairy co-operative, FrieslandCampina has partnered with the Arabian Food Industries Company, popularly known as 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.

Talks of the agreement began in 2020, with the two parties signing a Memorandum of Understanding (MoU) in September 2020.

Under the agreement, FrieslandCampina will hold a 51 per cent interest in the joint venture and Domty, 49 per cent.

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“We have been seeking this venture as a company for long. We believe that our products can fit well into the African market and joining forces with FrieslandCampina will help us a lot to do so.

“We are optimistic about the venture and its ability to grow in the future,” said Mohamed Damaty, Vice CEO, Arabian Food Industries.

Arabian Food Industries is one of the biggest cheese manufacturers in Egypt, with its market leader cheese brand Domty.

Established in 1989, it 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.

To further expand its market share, the company started distributing mozzarella cheese to small retailers and grocery stores.

“Over the next few years, we will bring exciting innovations that will create new cheese propositions that are more healthy, affordable and accessible to consumers across Africa and the Middle East.”

Dustin Woodward – Managing Director, FrieslandCampina Consumer Dairy Africa

With the partnership, the two companies are seeking to get a share of the multibillion Middle East and Africa Cheese market, which was worth US$8.52 billion in 2018 and estimated to grow at a CAGR of 4.27% to reach US$10.51 billion by 2024, according to a report by Market Data Forecast.

“We are very excited about the joint venture with Domty. Combining our joint expertise, capabilities and footprint will allow us to nourish more African families than ever before.

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“Over the next few years, we will bring exciting innovations that will create new cheese propositions that are more healthy, affordable and accessible to consumers across Africa and the Middle East,” Dustin Woodward, Managing Director, FrieslandCampina Consumer Dairy Africa, said.

FrieslandCampina’s brands, Frico and Kroon, have been dominant market leaders in hard/semi-hard cheese in several North African countries for decades.

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.

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