Egpyt-based bakery group Edita Food Industries has signed an agreement with Khalifa A.Algosaibi Cold Stores (KACS) for distribution of its products in Saudi Arabia.
As per the agreement, KACS will distribute the Edita’s Hoho’s, Twinkies and Tiger Tail (HTT) brands throughout Saudi Arabia.
The distribution agreement capitalizes on Edita’s 2015 deal with US-based Hostess Brands that expanded its ownership of Hoho’s, Tiger Tail and Twinkies brands across 12 new countries in the Middle East and North Africa (MENA) region.
It is also in line with Edita’s acquired rights to manufacture and distribute 11 other Hostess Brands on a regional basis.
Edita Food Industries chairman and managing director Hani Berzi said that the agreement will extend its reach to the second biggest consumer market in MENA besides boosting its its export growth which is aimed to grow beyond the 6% that was recorded last year.
Berzi added: “Our push for export growth not only helps us establish a leading position in the packaged snack food market both locally and regionally, but also mitigates against foreign currency limitations that have gripped the Egyptian market for well over a year now.”
In August, Edita reported that its sales revenue grew by 6.9% to EGP550.2m ($61.8m) in Q2 2016 compared to same period last year.
Edita’s distributer in Saudi Arabia, KACS is a subsidiary of the Dammam headquartered conglomerate Khalifa A.Algosaibi Group.
KACS deals in the distribution and marketing of FMCG brands in Saudi Arabia besides managing advanced distribution complexes in the Middle East. Its distribution complexes include dry, chilled and also frozen facilities.
