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November 6, 2014

Saudi’s Arrow Food makes play for Arab Dairy

Saudi Arabia's Arrow Food Distribution has joined the race to take over Egypt's Arab Dairy.

Saudi Arabia’s Arrow Food Distribution has joined the race to take over Egypt’s Arab Dairy.

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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.
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In a statement to the Egyptian stock exchange yesterday, Arrow Food – a partnership between Saudi Bin Laden Group and Foodstuff Group – offered to buy 100% of Arab Dairy.

Arrow Food said its offer was subject to the control of “at least” 51% of Arab Dairy. It has offered EGP57.12 per share. The firm added Arab Dairy would “benefit from the strong distribution capabilities of Arrow and its access to other Middle East markets”.

On Tuesday, Egyptian private-equity firm Pioneers Holding finalised its offer to buy 60.2% of shares at EGP56 (US$7.83) per share. It presently has a 25% stake in Arab Dairy.

Arla Food is also interested Arab Dairy. In September, it made a takeover offer of EGP65 per share for up to 100% of the business.

At the time, Rasmus Malmbak Kjeldsen, senior vice president for Arla’s business in the Middle East and Africa, said: “The company seems well-aligned with our ambitions in Egypt, and we are now looking at the details before deciding whether or not to actually purchase a share of the business.”

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Free Report
img

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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