TANZANIA – Kerry Group, a world-leading taste and nutrition solutions company, is set to bolster its investments in technology to enhance bakery and beverage production in Tanzania.  

According to Ahmad Abdelazem, Kerry’s Distribution Manager for Greater Africa, Kerry Group has swiftly recognized the sector’s high turnover and vast growth potential, particularly in bakery and flavor innovation, since establishing a plant in Tanzania in November 2023 and investing US$1.3M.

“We foresee substantial industry growth over the next five years. Considering Tanzania’s burgeoning economy and its population of over 60 million, this presents an opportunity we cannot ignore,” Abdelazem stated. 

He highlighted that fostering collaboration between local food producers and beverage manufacturers is crucial to harnessing available opportunities and attracting further foreign investment.  

Abdelazem emphasized that while many foreign industries are eyeing Africa for other investments, Kerry Group stands out as the sole beverage company to have invested locally in manufacturing facilities. 

Looking forward, Kerry Group aims to reach over 2 billion consumers with sustainable nutrition solutions by 2030.  

Tanzania’s Bakers Association (TBA) chairperson, Francisca Lyimo, expressed enthusiasm about partnering with Kerry, noting that it will enable the production of quality and flavorful products.  

“It will also change the mindset of people and make them aware that the bakery food sector is vital for every individual,” she said. 

This ambition builds upon Kerry Group’s recent expansion efforts across Africa, including the acquisition of Rwanda-based Afribon four years ago.  

Afribon specializes in food flavor development and operates across East Africa and Cameroon, making it a strategic fit for Kerry Group’s business-to-business ingredient solutions in food, beverage, and pharmaceutical markets. 

Kerry Group’s Regional Vice President, Petre Dillane, previously highlighted that the acquisition of Afribon their local presence and enhances their capability to tailor products and services to regional tastes and preferences.  

“The diversity of regions and cuisines across Africa necessitates localized product development, from formulation to production setup,” Dillane explained. 

In its Q1 interim management statement for 2024, Kerry Group reported a revenue composition of 1.9 percent volume growth, 5.3 percent pricing deflation, 5.1 percent effects from disposals net of acquisitions, and 1.4 percent unfavorable currency translation, resulting in an overall revenue reduction of 9.9 percent for the period. 

Despite this, the Group’s EBITDA margin increased by 140 basis points, driven by cost efficiencies, portfolio developments, and pricing effects. 

The group noted that consumer demand remained relatively subdued during the period due to recent inflation across many geographies. 

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