Saudi food giant eyes agencies for Egypt launch

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CAIRO--Saudi Arabian food and dairy giant SADAFCO (Saudi Arabia Dairy and Foodstuff Company) is drawing up a short list of ad agencies to help it launch its first Egyptian-produced goods to the country's 65 million consumers.

The Saudi firm is inviting regional agencies to bid for the account, worth up to $3 million. These include Inter-markets Egypt, which is already working with SADAFCO on its new milk brand; the state-funded Al Ahram; DDB Worldwide and at least one Saudi agency.

The business would include SADAFCO's line of fruit juices and processed tomato products.

SADAFCO faces tough competition from at least half a dozen large dairy brands in Egypt when it opens its factory in September. It is also facing a less conventional competitor in the shape of cheap, locally produced, unpasturized milk, delivered to the homes of about 60% of Egyptian milk drinkers.

SADAFCO's "Ishta" brand milk will also be home delivered although it is pasteurized. The company has cut costs with plastic packaging.

Copyright June 1999, Crain Communications Inc.

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