Sector News

Egypt’s Juhayna to form joint venture with Denmark’s Arla Foods

May 22, 2015
Food & Drink
(Reuters) – Juhayna Food Industries, one of Egypt’s largest dairy product and juice makers, will form a joint venture with Denmark’s Arla Foods that will be 51 percent owned by Juhayna and managed by Arla, Juhayna said on Thursday.
 
The venture, ArJu Food Industries, will add cheese, butter and infant formula to Juhayna’s existing product lines, the statement said.
 
The companies did not disclose the value of the deal or any financial details. It aims to start sales in Egypt in October.
 
Safwan Thabet, Juhayna’s chief executive, said the deal would help the company expand into other regional markets.
 
“Arla already has a strong presence in the Gulf, especially Saudi Arabia, and is looking to enter North Africa and we at Juhayna will benefit from entering those markets with them,” he told Reuters by telephone.
 
Food is seen as a fast-growing sector in the most populous Arab nation of 90 million people and the move was conditionally welcomed by analysts.
 
“Our initial reaction … is positive from (Juhayna’s) perspective,” NAEEM Brokerage wrote in a research note.
 
“However, with detailed information as to the size of capacities to be added, amount of capex etc, still to be disclosed, we are yet to have a clearer picture on the valuation impacts,” it said. (Reporting by Shadi Bushra and Ehab Farouk; Editing by Mark Potter and David Holmes)

Related News

February 21, 2021

Zero Waste Europe and ECOS tell EU “mass balance approach” is damaging plastics circular economy

Food & Drink

The signatories delivered a joint letter yesterday evening to the EC advising it to establish a “transparent, ambitious, and circular ‘chain of custody’” method instead.

February 21, 2021

Beyond the Bag Challenge reveals nine winners: “No single answer” to plastic bag pollution crisis

Food & Drink

Funded with US$15 million, the competition took off last July, prompting “suppliers, designers and problem-solvers” to submit environmentally sustainable design solutions and standard plastic bag alternatives.

February 21, 2021

Carlsberg to trial low-carbon glass beer bottles

Food & Drink

Carlsberg Marston’s Brewing Company has partnered with Encirc to trial a glass beer bottle that has the potential to cut the carbon impact of its bottles by up to 90%.

Send this to a friend