Nestlé To Boost Ice Cream Capacity
News: Switzerland-based food company Nestlé has invested US$28.8mn to expand its ice cream factory in Egypt, reports Ingredients Network. The company says that the investment is designed to help meet increasing demand for Nestlé and Dolce brands and will result in the creation of 200 new jobs. Ice cream produced at the factory is distributed in Egypt as well as being exported to countries including Jordan, Libya, Lebanon, and Tunisia.
BMI View: We hold to our view that Egypt's household consumption will slow in 2013 in relation to previous years on account of the parlous state of the country's economic and political situation. Nevertheless, we are not calling for a collapse in consumer spending, as several factors - including remittance inflows and the impression that the security situation in stabilising - augur relatively well for private spending patterns over the coming quarters.