C O M P A N Y O V E R V I E W
Juhayna Food Industries
Bringing World-Class Standards To Egypt Written by: Nye Longman Produced by: Kevin Holmes
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The Company’s unique approach to its operations has guaranteed it a leading position in the Egyptian juice, yogurt, and milk markets
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ioneering the production of dairy and juice products for over three decades. Juhayna Food Industries is a leading Egyptian manufacturer that specialises in the producing, processing and packaging juice, milk, and yoghurt juice concentrate. During the past three decades Juhayna has succeeded in winning the loyalty of consumers who have come to view its wide variety of quality products as trusted household names. As a result of this steadfast determination to maintain its commitment to innovation the company has managed to achieve success in both the Egyptian market and as a regional exporter with consistently high rankings in market share for all of its products. Today Juhayna has a well-earned reputation as trendsetter in manufacturing, product innovation and marketing activities. Recent market studies indicate that Juhayna enjoys a level of brand awareness and trust that is significantly more pronounced than its
Juhayna launched its highly successful flagship natural yoghurt brand in 1987
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Key personnel
Claus Pedersen Director of Marketing and Innovation
Jahayna Pure product. One of Juhayna juice portofolio with 100% concentrate
competitors in the Egyptian market. By building state-of-art industrial infrastructure, and with over 4,500 employees, Juhayna has steadily increased production capacity while developing and expanding its product range. Today the company has than 200 SKUs in the market which are all produced at six separate manufacturing facilities and distributed using a fleet of 1,000 trucks and vans, serving customers across Egypt. But the story does not end here: Juhayna is planning for further expansions in the coming years to secure healthy and high quality food products for Egyptians for decades to come. The Juhayna Group accounts for roughly 70 percent of Egypt’s milk market; it has a share of around 36 percent of the country’s yoghurt market, alongside holding a 25 percent stake in juice. Juhayna products are available to consumers all over Egypt through its extensive
Claus Pedersen has an MSc in International Business from the University of Alborg in Denmark; he started his career working for various consumer goods companies like LEGO, Akzo Nobel, Royal Unibrew and ARLA Foods. Claus has been working with marketing across more than 25 countries and before joining Juhayna he was GM of Arla Foods in Vietnam where he was responsible for setting up a rep office and launching a new range of child nutrition products.
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Perfect fit to your brand
Starting from one company in 1994, Rotogroup is now one of the leading companies in packaging and rotogravure printing in the Egyptian market with 3 companies specialized in different packaging sectors (Flexible packaging converting, film making, cylinders engraving, and corrugated boxes)
www.rotografia.com • info@rotogroup-eg.com 6
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distribution network. This kind of countrywide success has been established through thirty years of focusing on setting global standards for its food products. As Marketing and Innovation Director, Claus Pedersen says: “Juhayna is an Egyptian company with global standards.” Juhayna’s success story began in 1983 with Safwan Thabet’s vision to provide his fellow Egyptians with healthy, high quality food products. During this journey the company has grown to control major market shares of the Egyptian juice, yoghurt, and dairy sectors, and has also acquired and established state of the art production capabilities. Its decades of hard work were recognised in 2014, when a study by AC Nielsen rated Juhayna as having Egypt’s highest brand-equity-index score. When it was
SUPPLIER PROFILE
“Juhayna is an Egyptian company with global standards” - Claus Pedersen Director of Marketing and Innovation
ROTOGROUP
Rotogroup is a family of 3 companies. Rotogravure industrial investment (Rotografia) is one of the leading companies in Egypt in flexible packaging & rotogravure printing field. With a capacity of 1100 tons/month, supplying most of the local and multinational brands as PepsiCo, Lays, Coca-Cola, Unilever, Nestlé, Danone, Lactalis, Juhayna, Edita, Almarai (Beity), Regina Pasta, and Misr Foods, moreover, Africa, Europe, US and Canadian markets. Misr Rotogravure for cylinders engraving and film production. Design and manufacturing of rotogravure cylinders with 800 cylinders/ month capacity, polyolefin and polyethylene with 250 tons/month capacity. Interpack for corrugated carton and boxes manufacturing, with 1100 ton / month capacity
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In 1993 Juhayna was also the first to launch ‘Light’ yoghurt in various sizes
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Number of vehicles in Juhaynas distribution network 8
listed in the Egyptian Exchange Market in 2010, ‘Africa Investor’ dubbed it as the best African Initial Public Offering (IPO). Juhayna’s juice factory won the regional Arab Award of Quality in 2014. Strategic Operations The Juhayna Group is comprised of different subsidiaries, which enables it to deploy multiple operational capabilities across its product lines and beyond; in the past this has even acted as a buffer for the company in the face of globally adverse conditions. To supplement its state of the art manufacturing facilities, Juhayna utilises 24 distribution centres and over 1,000 vehicles through its subsidiary Tiba. Additionally, Juhayna’s Al-Enmaa company uses modern farming methods to breed dairy cows and grow cattle feed as well as fruit for juicing. Pedersen said: “In the long term it is securing a
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very strong supply of high quality raw materials.” Juhayna believes in the value of long term relations with both its suppliers and customers. Juhayna has been providing McDonalds with products for over 20 years; another good example of its long term focus can be seen in its sponsorship of Al Ahly Football club which began in 1998. Pedersen said: “It is rare to find this kind of commitment in today’s world, but you clearly feel this way of working in the company on a daily basis.” Technology Pedersen was proud to highlight Juhayna’s pioneering work in setting global standards across range of aspects, he said: “We were the first company to implement a fully automatic warehouse in Egypt and we are currently working on being the first to have environmentally focused packaging. All this is keeping the company in poll competitive position.” Instead of resting on its laurels, therefore, the company is seeking to implement the latest technology ahead of its regional rivals, and also to maintain a competitive stance with multinational companies with an interest in Egypt. Alongside fully automated manufacturing processes, Juhayna has recently equipped its sales team with the latest hand held digital mapping technology, which will enable them to track the progress of the company’s distribution fleet in real time, providing the best information possible to customers. Pedersen said: “Here, technologically, this is something that we need to support more and
Key personnel
Safwan Thabet CEO and Chairman Safwan Thabet has been Chairman of the Board of Directors and Chief Executive Officer of Juhayna since founding the Group in 1983. Mr. Thabet has left a distinctive mark on Egypt’s investment map, having played a central role in the development of the food sector for more than 30 years through various appointments and positions which he has held, including: - Member of the board of the Federation of Egyptian Industries (FEI) - Member of the board of the Chamber of Food Industries - Chairman of the board of the 6th of October Investors Association - Member of the board of Sixth of October Development and Investment (SODIC) Safwan Thabet holds a Bachelor’s Degree in Mechanical Engineering.
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Quality control at the El Dawlya factory
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more. Currently we are the only one implementing this model, but other companies are looking at it; you just have to be ahead all the time.” Pedersen noted that with large scale growth comes a great responsibility to succeed in the future, he said: “Growth has usually been between 20 and 35 percent on a yearly basis, this has slowed down but still a very high level compared to other parts of the world. Therefore we are always planning to invest in new machines to cope with these opportunities. Flexibility is key in Egypt’s current business environment.” Progressive strategy In order to retain its commanding position in the Egyptian market, Juhayna applies the same global standards to its recruitment and human resources operations as it does to the technological and manufacturing aspects of the company. Juhayna not only aims to source the right person for the job, but also seeks to develop its people through a variety of training methods. Whilst Juhayna is first and foremost an Egyptian company, it is not afraid of dipping into the global talent pool to ensure that its operations stay at the very cutting edge of its industry. Pedersen said: “We are currently implementing a new skills program to make sure that, no matter what stage a person is at in their development, there will be a way for them to progress. It will be clear what skills people need; we are implementing a plan for
Juhayna’s flavoured drinkable yoghurt which was released to the market in 2001
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“It’s a big difference in an emerging market; it’s something for a leading company like us to take the lead. When the market is ready, we will already be there.” - Claus Pedersen
each employee individually.” Implementing a clear, linear career path not only gives employees a sense of direction, but also contributes to company-wide unity. Juhayna is involved in a range of Corporate Social Responsibility (CSR) initiatives, in line with what Pedersen dubs global standards in ethics. He continued, asserting that it was the duty of the company to lead the way, he said: “It’s a big difference in an emerging market; it’s something for a leading company like us to take the lead. When the market is ready, we will already be there.” The company is involved in CSR at every level, recognising that its impact can be on both the small and large scale; whichever endeavour the company is involved in, Pedersen and his
El Dawlya factory - one of Juhayna’s 7 factories established in Egypt 12
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team are always asking: “What can we do to make a difference?” The company has recently funded the renovation of outpatient’s clinics at Ain Shams Specialised Hospital, and has also made provision for free breast cancer screenings and follow up treatment at the centre. Health is an issue that has preoccupied the company’s ethos; not only does the company seek to make healthy products, it has also aimed to donate as much as possible to schools that would not normally afford them. Juhayna also has a long term contract with Tetra Pak and together they are working together to roll out recyclable packaging across all product lines, as well as using FSC compliant paper when possible. It is therefore evident that the company takes its responsibilities seriously on a deeper level, aiming to reduce its environmental impact through carefully implemented solutions. Juhayna has quite rightly been dubbed one of Egypt’s best companies in terms of the quality and availability of its products, but also for the work the company does in developing its employees and the communities it operates in. Its openness to new technology and techniques has cemented its place as a market leader and innovator for years to come. Having operated so successfully, it is ploughing its gains into making these endeavours sustainable for future Egyptians to benefit from.
Company Information INDUSTRY
Yoghurt, Milk, and juice HEADQUARTERS
6 October City FOUNDED
1983 EMPLOYEES
4,580 REVENUE
430 million euros PRODUCTS/ SERVICES
Food, Manufacturing, Food Distribution, Supply Chain, Food Technology
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JUHAYNA FOOD INDUSTRIES Industrial zone number 1 6 October City, Egypt contactus@juhayna.com www.juhayna.com