Egyptian food products company, Juhayna Food Industries (JUFO), has announced the launch of its plant-based segment which includes natural and vegan products.
The new product line is expected to bode well for JUFO’s revenues, enrich the sales mix, and improve the gross processing margin (GPM).
The new development also comes in line with the company’s innovation plan of introducing new premium products with high margins that will add to its current production of 200 SKUs.
Initially, Juhayna is launching five SKUs under the new sub-brand, N&G (Nuts and Grains), to become the first Egyptian company to introduce a full UHT plant-based milk range to the market. The line includes products such as 1 litre packets of Almond, Coconut, Oat, Soy and Hazelnut milks, the leading variants in Europe and North America in terms of market size and/or growth.
A source has exclusively told Daily News Egypt that the company’s management intends to invest about EGP 300m of capex during 2021.
JUFO will finalise its deal with the Saudi company, AMS Baeshen & Co, which is the main supplier of Rabea Tea. The deal is compatible with JUFO’s strategy of distribution for third parties, and has undertaken a good deal with the Saudi company to distribute Rabea Tea. JUFO also boasts a strong reach compared to the previous distributor used.
By this year, JUFO is planning to distribute its products in the Egyptian market after the Saudi company completes its factory in the county. JUFO has been distributing Rabea Tea coming from Saudi Arabia, which is a niche product.
In the second quarter (Q2) of 2021, the company will distribute the product manufactured locally in Egypt which targets the mainstream, translating into higher volumes and profitability. Rabea Tea is one of Saudi Arabia’s top 20 F&B players and present in 16 MENA markets.