Dina Farms unveils a new retail strategy that will see it grow its nationwide chain of neighborhood stores to 20 branches within the next two years.
Dina Farms, Egypt’s largest integrated commercial farm, has just launched a new chain of retail stores that are bringing high-quality dairy products, produce and meats to consumers nation-wide. The company currently has six stores located in five districts across the country.
The news comes as Dina Farms, part of Citadel Capital’s integrated regional multi-category consumer foods platform Gozour, continues to solidify its position in the Egyptian market as the premium supplier of fresh dairy and food products to the Egyptian consumer.
“Dina Farms has always been a well-known name in Egypt, but this is our first real entry into the retail business,” said Gozour Agro Chief Executive Officer and Managing Director Ahmed Seddik. “We have given our two existing outlets on the Cairo-Alexandria Desert Road and in Dokki a facelift and added four additional branches. Now we are moving quickly to execute a strategy that will see us grow to 20 stores within the next two years, creating substantial brand equity in the process,” he added.
According to Boudi Ghandour, Retail General Manager at Dina Farms, “The original plan was to open 20 outlets within five years, but the initial response from our newly opened store was tremendous. Market demand for safe, fresh products coming from a trusted source was such that we have decided to accelerate the expansion to target a total of more than 40 stores within the next five years.”
Ghandour, who has a wealth of regional knowledge and experience in opening and managing international retail outlets, is responsible for the execution of Dina Farms’ aggressive expansion plans.
The Dina Farms retail concept is what Seddik calls a “national chain of neighborhood specialty farm stores.” The convenience store-style shops sell fresh produce, fresh bakery, milk, yogurt and other dairy products including cheese, butter and cream. Fresh meats from the farm are also available as well as poultry (under the brand name “Dina Farms Selection”).,
“Despite the high costs associated with maintaining our state-of-the-art facilities and ensuring that our high-quality products reach the consumer safely, we have made sure that our prices will remain competitive,” said Ghandour. “Our unique business model, which capitalizes on our vertical integration and operating efficiencies, will ensure that profitability targets are achieved.”
“Dina Farms’ retail strategy is based on a limited-selection, high-turnover model,” says Seddik. “The higher turnover rate on a smaller number of items provides specialization. Moreover, it makes the whole business — from stocking shelves to checking out customers — much simpler.”
A few months before the roll out of the retail strategy, Dina Farms began introducing its own brand of pasteurized milk. In the time since its launch in March 2010, Dina Farms milk has secured a leading position in its category.
Dina Farms has recently taken receipt of 850 new Holstein heifers from the United States, adding to its herd of 6,000 dairy cows (out of a total herd of more than 12,000) and solidifying its position as Egypt’s largest dairy producer. The company’s total herd of milking cows is expected to reach 10,000 by 2012.
Dina Farms, located on the outskirts of Cairo, is both the largest privately owned farm in Egypt and the country’s leading dairy producer. The company also produces a diverse range of fruit and vegetable products for sale locally and internationally.
Gozour is an integrated regional agriculture and multi-category consumer foods platform. The group includes three primary lines of business: agriculture, dairy and dry consumer foods. Gozour Portfolio Companies include Dina Farms, Rashidi El-Mizan, Enjoy, Elmisrieen, El-Aguizy International and Mom’s Foods in Egypt as well as confectioner Al-Musharraf in Sudan.
Citadel Capital (CCAP.CA on the Egyptian Stock Exchange) is the leading private equity firm in the Middle East and Africa. Citadel Capital focuses on building regional platforms in select industries through acquisitions, turnarounds, and greenfields executed via Opportunity-Specific Funds. The firm’s 19 OSFs now control Platform Companies with investments worth more than US$ 8.3 billion in 14 countries spanning 15 industries, including mining, cement, transportation, food and energy. Since 2004, Citadel Capital has generated more than US$ 2.5 billion in cash returns to its co-investors and shareholders (on investments of US$ 650 million), more than any other private equity firm in the region. Citadel Capital is the largest private equity firm in Africa by PE assets under management (2005-2010, as ranked by Private Equity International). For more information, please visit www.citadelcapital.com.
For more information, please contact:
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