Back to the complete issue
Tuesday, 2 November 2021

Edita to kickoff production in Morocco within days, Egypt operation looks to expand bakery capacity in early 2022

Edita’s first production line in Morocco will be up and running within days, IR director Menna Shams El Din confirmed to Enterprise yesterday. The line will produce 2.7k tons of HoHos cakes each year, she said.

The first of four production lines: The Moroccan factory, which has seen EGP 200 mn in investments to date, is Edita’s first greenfield project in the country and will eventually include four production lines, Shams El Din said. The factory is being run through Edita Morocco, the company’s 76%-owned JV with local distributor Dislog Group. There’s no word yet on what the other three lines will produce, how much the company will invest in them, or when they will start operations.

Moving in on a slice of Morocco’s cake market: With the dedicated HoHos line, Edita aims to capture a share of Morocco’s USD 100 mn cake market, Shams El Din said. The opening of the Moroccan line marks “a key step in delivering on the company’s regional growth strategy,” the company said in its latest earnings release.

Expanding bakery line: Edita raised last week the price of its Molto lineup in a bid to improve margins amid rising global commodity prices. A company official told us at the time that Edita’s bakery line is running at more than 100%, a development that has prompted the country’s leading snackfood player to “install an additional bakery line in 1Q2022 that will allow it to increase capacity by 20%,” the official said.

Upsized Twinkies are coming: Separately, Edita is expanding its cake segment with the launch of upsized Twinkies Cream, strawberry- and chocolate-flavored Twinkies, and chocolate- and vanilla-flavored Twinkies Icing products, according to an emailed statement (pdf). The new products, which will launch within the next couple of weeks, will retail at EGP 3 per pack. The product launch will come with a rebranding campaign for its Twinkies line “to consistently stimulate demand across its existing segments.”

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.