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July 31, 2020

Ebro Foods sets up Middle East “hub”, mulls Egypt disposal

Spain-based rice and pasta major Ebro Foods has announced plans to make changes to its operations in the Middle East.

By Dean Best

Spain-based rice and pasta major Ebro Foods has announced plans to make changes to its operations in the Middle East.

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The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
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Ebro is setting up a “hub” for the Middle East market in the United Arab Emirates in a bid to grow sales in the region.

The company, meanwhile, is considering selling its subsidiary in Egypt.

“In the Middle East, we have configured a new hub in Dubai with the aim of serving our growing sales in that geographical area,” Ebro chairman and CEO Antonio Hernandez Callejas told the company’s AGM. “We have entrusted its management to the CEO of Herba Egypt, our subsidiary in Egypt, a company that we are considering selling as Egypt has lost its status as an exporting country.”

Ebro’s business in Egypt has been used to export rice to other parts of the group. At the same time, the company has been marketing branded and own-label products in Egypt, on which it has focused since the country banned rice exports in 2016.

According to Ebro’s annual report, the Middle East as a whole accounted for 3.1% of the company’s EUR2.81bn in sales in 2019. The company generated 4.9% of its annual revenues from rice – EUR1.57bn (US$1.86bn) – and 0.9% of its yearly sales of pasta – EUR1.31bn –  in the Middle East.

Ebro is open to selling its pasta operations in North America. Earlier this month, Spanish business daily Expansión reported there are six entities eyeing the business, which is based in Pennsylvania and has brands including Ronzoni.

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Free Report
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What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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