The venture will see the duo export and sell affordable cheese propositions from Egypt to markets in Africa and the Middle East.
Last year, Domty and FrieslandCampina signed an MoU to explore joint business opportunities in Africa.
A Market Leader
Domty is one of the biggest cheese manufacturers in Egypt and a leading cheese brand in the country.
Established in 1989, it now has a total turnover of over €100 million and offers white cheese (feta), mozzarella, cream cheese, and fruit juices and bakery products.
The group has widened its portfolio to include different cheese variants and expanded its market reach within Egypt and export operations in the Middle East and the Gulf region.
Mohamed Damaty, vice-CEO of Arabian Food Industries, said, "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."
Strong Market Share
FrieslandCampina's brands, Frico and Kroon, have held a strong market share in hard/semi-hard cheese in several North African countries for decades.
The cooperation with Domty will allow the dairy producer to compete in bigger cheese categories and better serve consumers across their breakfast, lunch, dinner, and snacking requirements.
Dustin Woodward, managing director, FrieslandCampina consumer dairy Africa, said, "Combining our joint expertise, capabilities and footprint will allow us to nourish more African families than ever before.
"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."
FrieslandCampina will hold a 51% interest in the joint venture, while Domty will have a 49% stake.
© 2021 European Supermarket Magazine – your source for the latest retail news. Article by Conor Farrelly. Click subscribe to sign up to ESM: The European Supermarket Magazine.