Daily News Egypt – An official source at Edita Food Industries said that the company plans to enter new markets in the Gulf region in the coming period, after it has contracted with Khalifa Abdulrahman Algosaibi Cold Stores in Saudi Arabia. The new deal aims to distribute Edita’s popular products—Twinkies, HoHo’s and Tiger Tails—in the Saudi market.
The source explained that the company has adopted an expansion-based strategy focused on marketing new brands that were recently obtained from Hostess Brands Company.
Edita announced last year that it had finalised an agreement with Hostess Brands to expand the former’s ownership of its popular products to 12 new countries across the Middle East and North Africa. It also acquired the right to manufacture and market 11 other Hostess Brands on a regional basis.
Meanwhile, Edita announced that it has obtained loans worth EGP 170m from the Arab Bank, as well as another loan of €6m, to complete the construction of its new factory E08, and to import its production lines.
The source pointed out that the cost of establishing the project has increased due to the appreciation of the US dollar price—the initial cost was estimated at EGP 160m.
Construction of the E08 factory in 6th of October City will begin by the beginning of 2017; the company aims to complete construction in the second half of 2017.
This factory is designated to manufacture the combination of raw materials and inputs of the products. The new factory will manufacture and mix all the raw materials used in food production, including sweet filler for biscuits and creamy covering for crackers.
The source noted that the company’s production has not been affected by the shortage of sugar and the high prices in the Egyptian market, as the factory’s production departments managed to secure the company’s needs for the current period.