View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
December 3, 2012

SINGAPORE: Olam buys Egypt’s Dehydro Foods

Singapore agribusiness giant Olam International has acquired Egypt-based onion and herb business Dehydro Foods.

By Dean Best

Singapore agribusiness giant Olam International has acquired Egypt-based onion and herb business Dehydro Foods.

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.

Olam said Dehydro is Egypt’s largest exporter of dehydrated onions and would add to its B2B ingredients business.

“This transaction is part of Olam’s strategic thrust to become the leading supply chain partner to its major global customers as the large food companies increasingly outsource their raw material and ingredient supply chain to reliable third-party suppliers who have a global sourcing and processing network,” Olam said.

The company, which paid US$30.8m for the business, also said Egypt’s trade deals with the EU gave it an advantage to other exporters of dehydrated vegetables. Egypt can also process onions “at more competitive costs”, Olam said.

Greg Estep, head of Olam’s spices and vegetable ingredients business, said Dehydro had potential for growth in Europe and further afield.

“Dehydro produces high quality dehydrates and its plants are accredited with key customers so we believe they have a strong franchise and a very strong potential for growth in exports into the Middle East, Europe, Brazil and Japan. It fits very well with our overall spices portfolio where we have a global market leading position,” he said.

This year, Olam has acquired a sugar refining business in Brazil and signed two ventures with US companies – with cocoa group Blommer Chocolate Co. and with agribusiness Lansing Trade Group on grains and oilseeds.

It has also expanded its consumer food business in Africa with acquisitions in Nigeria.

However, Olam has faced accusations its finances are in trouble. Investment firm Muddy Waters has said Olam is in continued “deluded denial” of its fiscal problems and has offered to pay for the firm to get its debt rated by Standard & Poor’s.

Olam has said Muddy Waters’ claims are “false and misleading”.

Related Companies

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.

Topics in this article: ,
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every other month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Food