São Paulo – Egyptian company Mashreq for Business Development has ambitious plans to enter more global markets this year by launching new products under the Bab El Sham and Bloom brands. Abdul Rahman Maghazi, the company’s export manager, said for 2022, he expects a boom in the local and export markets due to product innovations. The company intends to participate in a show in Brazil.
The export manager said Mashreq is looking at all markets Egypt has trade agreements with, including Mercosur. The Arab country has had a free trade agreement with the South American bloc since 2017, and several products are discounted or exempt from import tariffs.
Maghazi explains the inputs used in the production are medical and aromatic products; Egypt is distinguished by high production in the segment and large available quantities. These products are strongly demanded in South American markets, especially in Brazil.
The manager reported the company plans to participate in the APAS Show, a food sector show in Brazil, from May 16 to 19 this year. According to the executive, the goal is to identify the South American markets’ needs in general, particularly Brazil, for medicinal and aromatic plants, spices, and seasonings, areas in which the company offers high-quality production.
New products
Mashreq announced late last year, during its participation in Anuga, a renowned food show in Germany, the launch of a new product, a plant-based drink by the Bloom brand. The product is made with nine different flavors: Aniseed, mint, caraway, ginger, cinnamon, linden, chamomile, sage, and hibiscus.
The Egyptian company will also participate this month in Gulfood 2022, a food and beverage show in Dubai, in the United Arab Emirates, where it intends to present five new varieties of salad dressing. “We have participated regularly in the show for seven years, as it is the second-largest food industry show in the world after the Anuga in Germany and is the gateway to Arab markets and the Gulf region,” he said.
Exports
Maghazi stated the company recently made its first shipments to Saudi Arabia, with some spice products under the Bab El Sham brand, but in larger packaging than those for the local market, since consumption of spices in Egypt is significantly lower than in the Gulf countries.
Exports are already reaching Gulf markets, some European countries, and Canada. To support the increase in international distribution the company has proposed, Mashreq has been increasing its production capacity. Maghazi said the increasing capillarization strategy in the local and foreign markets also includes reducing the profit margin in the face of intense competition.
The executive said Mashreq for Business Development joined Egypt’s National Food Safety Authority’s safelist in April last year, which helped support its efforts to win over foreign customers and build trust swiftly.
Costs
Mashreq’s export manager said 2021 was a year like no other regarding the increase in raw material prices last year. He witnessed many changes in essential inputs, packaging materials, and international shipping. Maghazi estimates the average increase in production costs was between 20% and 30% last year; still, he states the company managed to absorb a part of this increase, and the other was passed on to the final prices of the products.
Translated by Elúsio Brasileiro
