Enterprise Development
Enterprise Development
Lebanese Firm Upgrades and Extends Market Reach.
We apply a market systems approach to accelerate economic growth and reduce poverty, particularly among small and medium-sized
H
igh-quality jams, syrups, olive oil, sesame products, pickles and other foods with the Mechaalany label are carried by specialty stores and supermarkets around the world. But the Lebanese food producer, established in the 1940s, only recently achieved its current market prominence with the help of ACDI/VOCA.
enterprises and smallholder farmers. We use market-focused tools to gain a thorough understanding of opportunities as well as legal, social, resource and other constraints. We then work at strategic points to encourage innovation, spur private sector investment and build relationships among industry participants. We are leaders in research on creating wealth in poor communities and promoting growth by linking small firms to profitable markets. Moreover, we inform about and learn from this research as we partner with local entities and private firms to design competitiveness strategies that include vulnerable groups, including women, youth and the very poor.
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“I am part of the value chain, and the value is coming to me—plenty.” — Ghanaian woman rice trader
Through the USAID-funded Lebanon Business Linkages Initiative (LBLI), which was designed to foster economic growth and reduce poverty, we helped Mechaalany develop its product line and improve efficiency, marketing and sales through market analyses, training and technical assistance. For example, to ensure that the company consistently follows effective food safety measures, we worked with its management team to conduct a systematic quality control review known internationally as a Hazard Analysis and Critical Control Points (HACCP) gap analysis. Our advisors also worked with Mechaalany to research local and export markets to develop a fine-tuned sales and marketing strategy. Mechaalany developed new packaging and launched, with cost-share from LBLI, an innovative local supermarket promotion to increase consumer awareness, bringing in $80,000 in initial sales. Mechaalany also began integrating with other parts of the value chain: The company now sources produce from local organic producers instead of importing it from abroad, and outsources distribution to a local company. As a result, it has increased cost-efficiency and raised local sales by 35 percent.
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Mechaalany’s success extends beyond local markets: the company exports to Asia, Australia, South America and the United States. To raise the company’s U.S. profile, ACDI/VOCA shared the cost of 28 in-store promotions in five key supermarket chains, helping to boost exports to the United States by 20 percent. Mechaalany’s success is just one of many such stories in Lebanon, and it represents the success of all—from smallholder farmers to distributors, food quality laboratories, exporters and others—who play a role in Lebanon’s food value chain.
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