MOROCCO – Dislog Group, a major distributor and manufacturer in Morocco, is set to acquire a 51% stake in Fromagerie de l’Atlas, a Casablanca-based dairy company specializing in cheese and dairy products.
The Moroccan regulatory body, Conseil de la Concurrence, has received formal notification of the acquisition which is one of two acquisitions the company plans to finalize in the second half of 2024.
As one of the largest FMCG (fast-moving consumer goods) distributors in Morocco, Dislog has established partnerships with global brands such as Procter & Gamble, Nestlé, Mars, and British American Tobacco. It operates across approximately 72,000 outlets in Morocco.
The acquisition aligns with Dislog’s goal of diversifying its operations through investments in both Moroccan manufacturers and businesses in France.
In addition to this acquisition, Dislog has been active in expanding its portfolio through various acquisitions.
In May 2024, it acquired the Sanicroix household cleaning brand from Procter & Gamble. Earlier in the year, in January 2024, Dislog acquired the French FMCG distributor BBW/Chef Sam.
These moves were preceded by other notable acquisitions, including the French jam and canned vegetables manufacturer Cultures de France, and Moroccan FMCG player CMB Plastique Maroc, both in December 2023.
In September 2023, Dislog also acquired Africare, a manufacturer of single-use medical products and consumables.
Fromagerie de l’Atlas operates as a limited liability company under Moroccan law, focusing on the production, purchase, and sale of cheese and other food products.
The broader Moroccan dairy industry plays a significant role in the country’s economy, with over 400,000 farmers involved in milk production, according to a report prepared by Agriworks and Partners, Oranjewoud.
However, only around 40,000 farms can be classified as semi-professional, according to a report by Agriworks and Partners from the Netherlands. In 2021, Morocco produced approximately 2.5 million tons of milk annually, with 1.8 million cows contributing to the country’s milk supply.
The formal milk processing sector collects about 60-70% of the country’s milk production, while the remaining portion is consumed at home or sold through informal channels.
Although Morocco is about 94% self-sufficient in dairy production, the country imports value-added dairy products such as cheese to meet local demand.
The export market for processed cheese and other dairy products is relatively small, accounting for around 6% of production.
Danone and other local processing companies dominate the Moroccan dairy market. Dairy cooperatives collect milk from their members and deliver it to processing plants.
However, there are issues with milk composition and quality, as farmers are not individually tested and incentivized for quality improvements.
The development of value-added dairy products, such as high-quality cheese, could help Morocco compete with imported goods and open new export opportunities in North Africa.
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