Mazola Plans Expansion in North Africa
The MENA food sector has shown immense growth in the past few years and the region has the potential to become an emerging market leader, according to analysts. The importance of the region is enhanced by its exceptional location. It acts as a bridge between vibrant Asian economies, European-Mediterranean partnership opportunities and Africa’s significant potential for development. Economic growth in Egypt, Morocco and Tunisia could surge as high as 6%-a-year, according to a new report from Capital Economics, a London-based firm.
Making the most of these growth prospects is Mazola, the biggest food products manufacturer in the MENA region. The brand’s total sales and trade amount to AED 500 million, with 30,000 MT total sales per year. The manufacturer is Number 2 brand of corn oil in Kuwait, Lebanon, and Saudi as well as having similar brand leadership for Mazola’s mayonnaise range in Kuwait, Jordan and Saudi. The brand has been offering affordable products for consumers shopping through the military and co-op trade sectors, supplying quality oil, ghee and mayonnaise items. This has resulted in a 50% increase in sales in July, with a high possibility of this percentage increasing further before the year ends.
Mazola have also experienced a significant growth in exports. With this endeavour, the brand has allowed numerous other consumers to benefit from Mazola products and their superior quality. One of the other new North African markets where Mazola has expanded its export operations to is Sudan. Another region that has reported immense returns for Mazola is Jordan. The country’s economy is on the rise and so is the consumption.
“Mazola is gaining more popularity in the North Africa region and the region is going to be one of our main focus points for the coming year”, said Simon Gottfried, Vice President, Middle East & North Africa. According to reports, the expected regional growth rebound to 3.7 percent in 2016-17 is predicated on improving external demand for the North Africa region. North African exports are also expected to strengthen in 2015 and 2016 as the world economy improves. African economies will continue to grow in 2015 due to private investment and consumption, which have been key drivers of gross domestic product (GDP) over the past years, states the United Nations World Economic Situation and Prospects 2015 released in January. Africa’s GDP is expected to accelerate from 3.5 per cent in 2014 to 4.6 per cent in 2015 and 4.9 per cent in 2016. Increasing consumer confidence, an expanding middle class, improvements in the business environment and a reduction in the costs of doing business have also contributed to the continent’s economic growth. North Africa is expected to experience further acceleration in growth, from 1.6 per cent in 2014 to 3.9 per cent in 2015, respectively. The enhanced growth prospects for North Africa are underpinned by improving political stability in Egypt and Tunisia.
Mazola continues to look for distributors for North Africa so that many more around the region can enjoy high quality products from the brand.
