Dara’s Ice Cream expands and
opens 50 new ice cream parlours

The demand for ice cream is growing. Manufacturers have to import.

In Egypt, demand for ice cream and frozen desserts is growing from year to year. Market studies forecast an increase in sales revenue from 400 million euros in 2021 to around 650 million euros in 2026. At present, the market is dominated by large players such as Nestlé, Froneri and other international companies.

There are very few local brands with their own ice cream production and their own ice cream parlours, and they only have a small market share compared to the large suppliers of packaged or imported ice cream. Almost all manufacturers of portioned or packaged ice cream for consumption at home work with imported artificial flavourings, which come mainly from Italy. They also rely on imported trays and cups to package their products.

Traditional ice cream parlours with ice cream from their own production only have a market share of around three percent in Egypt. Our partner company Dutch Ice Cream is one of them.

Ice cream made from natural ingredients

Dara's Ice Cream was founded in 2017 by Dara Ghosheh and her husband Ahmed Khalil. In its first 5 years, the young company has opened eight ice cream parlours in Cairo and on the Mediterranean coast and is on a growth path. The ice cream comes exclusively from their own production. Ingredients such as milk, butter, nuts, and fruit are sourced from local producers, and artificial flavours are not used. Local suppliers of packaging materials have also been able to grow together with the ice cream producer.

Dara's Ice Cream has become a well-established brand in the premium segment and is now looking to expand. The ice cream factory near Cairo, which was set up years ago, is now far too small and urgently needs to be expanded. Currently, many tasks in the ice cream production process are done manually, but modern machines are to be used in the future. The aim is to increase production from the current 268 tonnes to 2,000 tonnes of ice cream and biscuits per year within three years. In the long term, up to 4,100 tonnes are to be produced.

The brand identity of a locally rooted company that makes desserts without artificial additives is to be maintained.

For the expansion to succeed, 21 new company-owned ice cream parlours are to be opened and 35 more under a franchise model. Dara's Ice Cream will thus be present in more cities in the country and in large shopping centres. In addition, new distribution channels will be created, targeting supermarkets, hotels and restaurants. Future export opportunities for the ice cream ingredients are also being explored.

The expansion creates jobs in production and sales

As part of the planned expansion, the company will create 345 additional jobs in production and sales within three years. One third of the newly hired staff members are to be women. To make this possible, separate changing rooms for men and women will be built as part of the investment project – an essential precondition for hiring women in production. Another 350 jobs will be created by the franchisee.

The working conditions of the 108 people already employed by Dutch Ice Cream will also improve as a result of the modernisation measures. They will receive additional social benefits and the company can offer them a bus service to the factory site. All production employees will take part in training measures to learn how to use the new machines. The environmental impact will also improve: The new ice cream machines are much more energy efficient and use less water. The higher production volume will allow milk to be purchased in steel tanks instead of packaged form, which greatly reduces the amount of packaging waste.

The company plans to invest a total of 12.95 million euros. The Facility Investing for Employment grants a subsidy of 5.55 million euros (43 %). Among other things, the grant will finance the construction of cold rooms, new electrical equipment, and the purchase of machinery. It will also be used to buy a forklift and four refrigerated trucks to deliver ice cream to supermarkets and ice cream parlours.

The Facility Investing for Employment (IFE) of KfW Development Bank is part of the Special Initiative "Decent Work for a Just Transition" of the German Federal Ministry for Economic Cooperation and Development (BMZ). With its support, the Facility wants to remove barriers that prevent the creation of new and better jobs in the private sector in the African partner countries.