Nestlé opens Crunch chocolate factory in Egypt

By Oliver Nieburg

- Last updated on GMT

Related tags Chocolate confectionery market Middle east Egypt Nestlé

Crunch factory is Nestlé's first chocolate plant in Egypt
Crunch factory is Nestlé's first chocolate plant in Egypt
Nestlé has added an extrusion line to its existing dry goods plant in Egypt that will produce Crunch.

The 65 million EGP ($9m) investment at the facility in 6th​ of October City marks the first time the company has produced chocolate in Egypt.

Invest mode in Egypt

Nandu Nandkishore, Executive Vice President Nestlé SA and Zone Director for Asia, Oceania, Africa and the Middle East, said: “Egypt is an important trade and production centre for Nestlé. Our factories here produce and supply some of Nestlé’s biggest brands for the entire region.

“This latest expansion project is particularly special for the company. Since 2011, we have invested close to 1 billion EGP ($140m) in Egypt and doubled our local workforce to 6,300 employees. This proves Nestlé’s commitment to the Egyptian market and the importance of its large-scale labour and consumer potential.”

The latest expansion will generate 400 jobs. It comes soon after Nestlé inaugurated a EGP 200 million ($28m) ice cream factory expansion.

The Egyptian market

According to Euromonitor International, Egyptian consumers are gradually shifting from sugar confectionery to chocolate as products become more affordable.

The sales value of domestic chocolate confectionery market in 2013 stood at EGP 2.8bn ($396m), having recorded a 10% CAGR, according to the research organization.

Nestlé is the third leading chocolate company in the country with a 6.1% market share. Mondelēz dominates the market through Cadbury with a 50% share, while Mars comes ahead of Nestlé on 23%

Nestlé said that in future it would produce other confectionery brands at the facility.

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