EGYPT - Kraft Heinz has confirmed plans to double its production capacity in Egypt and boost exports across the Middle East and African markets. 

This announcement follows a significant US$50 million expansion at its Cairo factory, which has been operational since 1991 and serves as the company's only manufacturing facility in North Africa and the Middle East.

The expansion is part of Kraft Heinz's strategy to drive a 65% increase in exports from the Cairo plant, tapping into the growing demand in Africa, particularly in the tomato ketchup segment. 

Africa's ketchup market is projected to generate US$3 billion in revenue by 2024, with a compound annual growth rate of 10.4% expected between 2024 and 2029. This growth potential has made the region a focal point for Kraft Heinz's expansion efforts.

Kraft Heinz's move aligns with the Egyptian government's initiative to reduce reliance on imports and position Egypt as a regional manufacturing hub. 

Minister of Investment and Foreign Trade Hassan El Khatib recently met with a delegation from Kraft Heinz to review the company's plans for the expanded production and export drive. 

The current factory upgrades are set to be inaugurated in September, further enhancing Egypt's role in Kraft Heinz's global supply chain.

In addition to increasing production, Kraft Heinz is also investing in sustainable agriculture projects in Egypt. This initiative is part of a long-term plan to support local farming communities and ensure a steady supply of raw materials, in line with the company's commitment to sustainability and the Egyptian government's agricultural goals.

Despite a slight dip in overall revenue, with the company reporting US$6.4 billion in the first quarter of 2024, Kraft Heinz remains optimistic about its growth prospects in North America and other key markets. 

The company reported US$26.64 billion in annual revenue for 2023, reflecting a modest 0.59% increase from the previous year. With strong performance in North America, where net sales reached US$4.8 billion in the first quarter of 2024, Kraft Heinz continues to focus on expanding its global footprint.

Kraft Heinz's decision to ramp up its operations in Egypt mirrors other recent strategic moves within the industry. Notably, EABL’s plan to acquire the remaining stake in Uganda Breweries Ltd and Diageo’s acquisition of an additional 14.97% stake in EABL are examples of companies in the food and beverage sector looking to consolidate their holdings and strengthen their regional presence.