Kellogg acquires Egyptian cereal maker Mass Food Group

Kellogg has acquired Egyptian cereal maker Mass Food Group for $50m, as part of its growth strategy to tap emerging markets.

Kellogg Europe president Chris Hood said: “As the number one cereal company in Egypt, Mass Food Group is an excellent strategic fit for Kellogg.

“The combination of Mass Food Group’s manufacturing capabilities, established local brands, and sales and distribution infrastructure, coupled with Kellogg’s product innovation, international sales knowledge, iconic brands and marketing expertise, will help unlock the growth potential of the cereal category in the key markets of Egypt and North Africa.”

Mass Food Group is a family-owned business that was founded in 1996 based in Cairo. It has grown into a leading player, commanding $18m in sales and employing 600 people.

The company owns popular local brands such as Temmy’s cereals and NutriFit cereal bars, and exports to more than 30 markets, spanning across Europe, East Asia and Africa.

Mass Food Group vice-president Tamer El Bahay said: “On behalf of the El Bahay family, I would like to say how proud we are to have been acquired by Kellogg Company, the world’s leading cereal producer. With their know-how and expertise, we can emerge stronger together with a combined portfolio of brands to excite our consumers.

“We know the dedicated people of Mass Food Group, who have helped make this company a success, will continue to grow and develop under Kellogg’s leadership.”

Kellogg Company chairman and CEO John Bryant said: “Today’s announcement builds upon significant progress against our emerging market growth strategy announced earlier this year.”

“We are building a strong foundation for emerging market growth.”

The transaction is not likely to leave a material impact on Kellogg Company’s annual operating profit and net earnings in the 2015 fiscal year.

Kellogg has made several acquisitions in 2015. The company bought Egypt’s leading biscuit company Bisco Misr; formed a joint-venture with Tolaram Africa to develop snacks and breakfast foods for the West African market; and acquired a 50% stake in Multipro, a sales and distribution company in Nigeria and Ghana.