TANZANIA- Irish food and beverage company Kerry Group has announced plans to significantly enhance its bakery and beverage production in Tanzania through investments in production technologies.
The company seeks to leverage Tanzania’s burgeoning economy and its 60 million potential market.
According to Ahmad Abdelazem, Kerry Group’s Distribution Manager, Tanzania’s growth potential was swiftly identified a few months after the company established a €1.2 million (US$1.3 million) production facility in the country in November 2023.
Abdelazem cited market analysis firm GCRF Africa’s prediction that revenue from Tanzania’s food industry will reach US$116.9 million in 2024 and is expected to grow at a combined annual growth rate (CAGR) of 7.89% from 2024 to 2030. The firm predicts revenues to reach US$171.6 million by 2029.
Kerry Group intends to foster proactive partnerships with local distributors and other food and beverage companies to take advantage of the available opportunities in the market.
Edmond Scanlon, Kerry Group’s CEO, said, “Our wide portfolio of taste and nutrition technologies, coupled with our global expertise and local production, will enable us to give local customers access to high-quality ingredients with authentic taste produced in Africa and will help us respond faster to the needs of our customers across the continent.”
Although Kerry Group is the first beverage company to set up a manufacturing facility in Tanzania, the company’s investment focus in the country will be snacks and baked goods. The company has already initiated contact with players in the baking industry.
Tanzania’s Baker’s Association (TBA) lauded the announcement, reiterating the value the Irish company adds to the country’s food industry in terms of increasing the quality of baked goods, employment, and contribution to the country’s economy.
Francisca Lyimo, TBA’s Chairperson, said, “We are happy to partner with Kerry Group because it will enable taste and quality products.”
“It will also change the mindset of people and make them aware that the bakery food sector is vital for every individual.”
The announcement is part of the food company’s ambitious expansion efforts, which also includes the acquisition of flavor and ingredients company Afribon based in Rwanda.
Kerry Group’s target for its expansion into Africa is to reach 2 billion consumers by 2030.
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