Sweet Biscuits, Snack Bars and Fruit Snacks in Egypt

PROSPECTS

Falling spending power hurts volume sales growth

Consumer purchasing power has declined following currency devaluation in late 2018 and shopping behaviour has become more cautious, resulting in only slight volume sales growth in 2019. As has been the case with many other product categories, Egypt’s high inflation, and in turn high price rises, has caused many consumers to cut back on certain items, including sweet biscuits, snack bars and fruit snacks.

Chocolate coated biscuits gain momentum as an affordable indulgence, while the health trend will see fruit and nut bars top value growth

Chocolate coated biscuits is a category proving increasingly popular with Egyptians. Despite chocolate prices generally becoming very expensive, chocolate coated biscuits are offered at reasonable prices and more consumers are buying them as an inexpensive indulgence, with some deciding to give up or reduce their purchases of other confectionery items amid high inflation and low purchasing power.

Samo Trading Co invests in distribution and proves resilient to currency devaluation

Samo Trading Co, which is the company behind the Abu Auf brand within nuts and dried fruit, is making huge investments in its products. The company is expanding its distribution channels by having its own stores and booths in major supermarkets and hypermarkets.

COMPETITIVE LANDSCAPE

Nestlé Egypt SAE launches Nesquik filled biscuits as the producer increases its in-country investment

Towards the end of the review period, Nestlé Egypt SAE launched its new Nesquik filled biscuits. The product is similar in concept to Oreo and Borio filled biscuits; however, Nesquik biscuits are produced with the claim that they have 26% less sugar, 20% less fat and more milk content than other similar products available.

Mass Food Co remains the clear leader in snack bars

Mass Food Co is a player owned by GBO Kellogg Co, and it continued to offer the leading brand (Temmy’s) within snack bars in 2019. It already had a very strong position within snack bars with its Temmy’s Nutrifit and Kicker lines, but in 2018 it was in the process of widening its snack bar portfolio.

Healthier cookies are increasingly popular

King M For Food Products has been active in Egypt for 30 years; however, towards the end of the review period its products succeeded in standing out on supermarket shelves given that it was the only local producer of healthier cookies. Its cookies are claimed to have 40% less fat and with no added sugar.

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