GMG, which has a portfolio of leading international and home-grown brands across sport, food and health sectors, has entered the food retail sector with the acquisition of Géant operations in the UAE and exclusive rights to expand Géant operations in the Middle East.
Géant is a part of Groupe Casino, a French retailing giant with a turnover of over EUR35bn. GMG has acquired Géant’s current UAE retail footprint from Urban Foods by Dubai Holding. This will include a total of 18 hypermarket and supermarket locations across the UAE, with the new openings featuring some of Groupe Casino’s other brands such as Franprix and Monoprix. GMG will also have exclusive rights to expand these brands.
Mohammad A. Baker, deputy chairman and CEO of GMG, said:
“This acquisition is a milestone in our history as we venture into the food retail category. In doing so, we are able to cover the entire consumer journey from food manufacturing and distributing to retail. Moreover, the diverse portfolio of Groupe Casino’s supermarket brands will allow us to cater to all categories of consumers, from the price-conscious to those desiring more premium and specialty products.”
Redesigned verticals
Last year, GMG announced the redesign of its business into four verticals: GMG Sports, GMG Food, GMG Health and GMG Consumer Goods. The latest acquisition falls under the GMG Consumer Goods vertical, bringing the total workforce to over 700 employees. GMG, which has introduced more than 120 brands into its markets, announced plans last year to double its global workforce by 2025.
GMG has also continued to grow its original food brands Farm Fresh and Klassic, as well as being a distributor for popular food brands such as McCain, Mama Sita’s and Shan.
“Our acquisition comes at a time when the Middle East’s food economy is undergoing a major transformation. Consumer preference has shifted to locally-sourced food items and sustainable food options, while governments are simultaneously exploring ways to enhance food safety and promote food security in line with their national development visions. In the coming years, our intention is to cover the entire food consumption chain from farm to fork,”
Baker added.
Retail acquisitions
The Géant deal follows another high-profile GMG retail acquisition of Royal Sporting House in 2020. The company also acquired the rights to manage, distribute, and retail the Nike brand in Egypt and Iraq starting in the third quarter this year.
News Source: Gulf Business
