By Basma Bahaa
A new factory named “Fancy Food” was established in 6th of October City, with investment costs of EGP 100m, revealed former head of the Food Export Council (FEC) Alaa El-Bahi.
He noted that the new factory was established after the sale of the Mass Food company to international cereal company Kellogg’s last month for $40m.
El-Bahi said that the new factory will present new breakfast-meal products, noting that the construction process will take place in one year, after which the products will be presented to the market.
El-Bahi said the new factory includes a relatively large number of production lines, refusing to reveal any information regarding the production capacity or the number of products until construction is completed and operations begin.
He added that he is still in his post as chairman of Mass Food until a new board of directors is formed by Kellogg’s in the upcoming days.
El-Bahi said, in previous statements to Daily News Egypt, that Pharos Holding for Financial Investments was chosen as the financial adviser for the sales process and also the restructuring of the company, on the condition that Mass Food-Temmy’s subsidiaries, Mass Food International and Mass Trade be merged together into one entity, with a capital of EGP 200m.
Mass Food-Temmy’s is considered the first company of its kind for the production of breakfast cereals. Its products include Corn Flakes, NutriFit, Ricco biscuits, chocolate products, as well as Express instant noodles.
Mass Food-Temmy’s has achieved annual growth rates ranging between 25% and 30%. It also succeeded in entering more than 50 export markets worldwide, as well as hotels and tourist resorts in Egypt.
Europe, Asia and America are the most important export markets for Mass Food. Last year there were technological developments of new production lines. The cost of these developments amounted to EGP 40m, and they contributed to increasing the company’s sales, as Mass Food registered sales of EGP 127m during 2014, with EGP 14m in profit.
Mass Food-Temmy’s acquires 70% of Egyptian market share, in addition to a large market share of breakfast products in hotels and resorts in Egypt. The company’s capital amounts to EGP 15m, and its book-value is EGP 70m.