Interviews

Hani Berzi is the Group Chairman and CEO of Edita Food Industries, a leading Egyptian snack company. Berzi begins the interview by reflecting on his childhood and education in Egypt. He recounts that his father’s business allowed him to learn about business early, and his involvement during his student days paved the way for him to join his family business, Tasty Foods. Soon after Berzi joined the business in 1985, Tasty Foods entered into a partnership with Pepsi, and he was appointed as Vice President of Sales and Marketing. Pepsi’s engagement introduced concepts like human resources and insights into sales and marketing, which enhanced the operations and corporate culture of the traditional Egyptian business.

Following his desire for greater autonomy, Berzi declined Pepsi’s offer to train him further and left the business while maintaining a 50% stake. Seizing the opportunity of Egypt’s economic liberalization, he opened a distribution company that traded goods. However, he soon realized that his true calling lay in industry. Hence, he established Edita Food Industries in 1996 while maintaining the distribution arm. The idea of introducing croissants to Egypt struck him while visiting Greece. Despite the risks of introducing an unfamiliar product and hesitation from his partners, Berzi decided to start the packed croissants brand Molto, which has grown into a prominent brand in Egypt today.

Describing the evolution of snacking habits in Egypt, Berzi explains that the relatively simple habits created the potential for growth and innovation. He discusses how the pyramid-like Egyptian market, where inexpensive products are affordable for most consumers, necessitated the positioning of Molto as a mass product. Talking about the challenges of launching a unique item, he shares how strategies like emphasizing healthy ingredients and continuous innovation helped Edita break into the traditional snack market. He also discusses how Edita diversified its portfolio with cakes, which used similar ingredients as croissants.

Acknowledging the presence of corruption in Egypt, Berzi points out that strong governance prevents Edita’s employees from engaging in unethical practices. Reflecting on the turbulence in Egypt since 2011, he notes that a change in the tax regime, which required re-pricing all products, was particularly challenging. At this time, several partners advised Berzi to stop an investment, about 40% of which had been fulfilled, but he persisted. The decision allowed Edita to capture demand earlier than its competitors and facilitated its positioning as market leader.

Berzi proceeds to discuss Edita’s multi-price-point strategy. He explains that inflation is beneficial for his business as it allows him to re-price products without compromising on quality. He then talks about Edita’s IPO in 2015 and explains his rationale for taking the company public. Discussing the next generation’s entry into the family business, Berzi explains that Edita’s Step program allows the younger members of the family to gain valuable experience in different departments and shapes their involvement in the business. Expressing that family brings quick decision-making and a sense of belonging to business, he talks about Edita’s ‘Glocal’ culture, which blends global and local values to enhance operations.

Berzi addresses Edita’s international expansion, and discusses how factors such as electricity availability, infrastructure and skilled workforce made countries either favorable or unfavorable to begin manufacturing. With rapid industrialization and robust infrastructure, he identified Morocco as offering a promising opportunity for export-oriented Edita. Berzi explains how extensive research has helped Edita understand snacking habits in the region, which differ by country, and adapt its products to suit the local taste.

Berzi proceeds to discuss how businesses can demonstrate their responsibility to society by giving back to the community. He outlines Edita’s CSR initiatives, like the Edita Foundation, which focuses on health and education. He shares how Edita supported the government with equipment and medical supplies during the COVID-19 pandemic. He also talks about Edita’s efforts for water treatment and renewable energy, which help them minimize their carbon footprint. He shares how Edita furthers the mission of the educational organization, EducateMe to provide education and nutritional support to children and mothers and training to teachers. Talking about the biggest social challenges in Egypt- poverty, health, and education, Berzi expresses hope for a brighter future. Discussing the challenge of finding skilled workers, Berzi outlines Edita’s commitment to nurturing talent through training programs and external upskilling opportunities like seminars and courses. He concludes the interview by discussing the involvement of females in his workforce and emphasizes the need for significant efforts towards gender equality.

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