AGP Executive Report

Danone’s Health Push: The French dairy giant reported Q2 like-for-like sales up 4.2% and said functional dairy and Alpro are driving demand across Europe, Middle East and Africa, while Waters got a “solid start” led by Volvic. Gaza Access to Cancer Care: A Palestinian professor in southern Gaza says she’s been blocked from further treatment as Israel’s siege restricts cancer drugs and medical supplies, with UN-linked stockouts already severe. Lebanon Food & Law Crossroads: Lebanese lawyers filed a complaint over a banker’s Washington dinner with Netanyahu, citing Israel-contact and boycott-law violations—showing how politics can spill into business and daily life. Food Safety Red Flags: Inspectors cited restaurants for dead flies over ready-to-eat foods, cigarette packs in kitchens, moldy freezer bread, unsafe cooling, and improper storage temperatures. Clinical Trial Spotlight (Israel): Tel Aviv Sourasky Medical Center will recruit patients for a first global trial targeting KRAS-mutated pancreatic cancer using SIL204. Hospitality Growth (Vietnam): Ascott signed nine Vietnam properties totaling 3,200+ units, accelerating its pipeline and expanding across multiple cities. Restaurant Openings (Middle East): Crowne Plaza Dhaka’s chef-led dinner highlights West Asia and Egyptian dishes, while Shawbak Lebanese Kitchen & Bakery in Melrose leans into Lebanese classics like sfayeh and man’oush.

Arab Food & Hospitality: The Westin Dhaka (with BRAC Bank) kicked off a 10-day “Taste of Arabia” festival (July 30–Aug 8), featuring an Arabian buffet with camel kabsa and tagine, mandi, lamb quzi, live döner and shawarma stations, mezze, and desserts. Middle East Business & Consumer Pressure: A report on the Iran war’s ripple effects says noodles and other staples are getting costlier across Asia as tourism drops and ingredient prices rise. Food Industry Finance: O-I Glass flagged Middle East-linked conflict pressures and disruptions affecting European and American operations in Q2, with food and non-alcoholic beverage segments faring better than alcohol. Regional Market Watch: UAE stocks stayed subdued with small gains as investors weighed ongoing geopolitics; Americana Restaurants jumped after posting first-half results and declaring a dividend. Foodservice Ops: Pilgrim’s Pride reported Q2 results, citing stronger U.S. fresh volumes and prepared foods momentum, alongside margin pressure from commodity pricing. Food & Culture Events: Dubai launched incentives to lure back tourists after Iran strikes, aiming to revive hospitality demand.

Functional Beverages: Stress-relief drinks are emerging as one of functional beverages’ fastest-growing categories, with stress cited as a top wellbeing concern and relaxation beverages growing around 19% annually as brands push differentiation. Food Distribution & Retail: Chefs’ Warehouse reported Q2 2026 results with net sales up to $1.17bn (+12.9%) and said Middle East operations are improving gradually into the slower summer period. Airports & F&B: Türkiye’s TAV Airports posted H1 performance with duty-free spend per head up 20% and food & beverage revenues rising 20% to €111.8m, supported by new Antalya Airport operations. QSR Expansion: Korean fast-food chain Mom’s Touch signed a master franchise deal with Singapore’s FairPrice Group for 25 stores over 10 years, with halal certification and plans to extend into Southeast Asia and the Middle East. Supply Chain Pressure: Reuters reports Diet Coke supply issues in India tied to aluminium can shortages linked to Hormuz disruptions, driving higher prices and larger can formats.

Middle East Security & Trade: The U.S. says Iran launched multiple ballistic missiles at American forces in the region, with all intercepted, as tensions around the Strait of Hormuz continue to rattle global oil flows. Hospitality Leadership in Qatar: Hilton Doha The Pearl named Lars Pursche as General Manager and Yildiray Satiroglu as Commercial Director, aiming to strengthen local and international guest growth. Restaurant Recognition: Taste of Bengal in Kinson was shortlisted for the 10th International Asian Restaurant Awards in the South West England category. Armenia–Türkiye Business Talks: Food, beverage and bottled water representatives met in Kars as Armenia–Türkiye normalization discussions continue, with direct trade procedures reportedly completed. Food Safety Alert (U.S., Middle Eastern spot): Taboon in Flint Township, Michigan was temporarily closed by health authorities due to a severe pest infestation. Brand Performance (Food & Beverage): Mondelēz reported Q2 2026 results with net revenue up and highlighted strength across North America and Emerging Markets, including Asia, Middle East & Africa.

Iran Fallout on Food Prices: A CNN report says the renewed US-Israel war on Iran is pushing up ingredient costs across Asia, with street vendors and diners in places like South Korea already adjusting prices for staples such as noodles. Tourism Shock in the Gulf: Dubai is rolling out an “A Dubai Invite” scheme offering residents rewards to bring visitors back after hotel occupancy reportedly plunged following Iran-linked attacks. Travel Retail Hit: SSP Group flagged that the Middle East conflict is weighing on passenger numbers and sales in Gulf travel hubs, with Q3 Gulf markets trading at about 65% of the prior year. New Openings in the Region: SUPA Uzbek Culinary House is set to open in Dubai, bringing Uzbek plov, samsa and kebabs to Millennium Al Barsha Hotel. Hospitality Expansion: Hotel Okura Thermal Resort & Spa Cappadocia (Türkiye) is scheduled to open in 2028, adding multiple dining venues and a major spa to the region’s food-and-leisure draw.

Middle East Food & Beverage Growth: A Kirkuk PhD student is turning a bus into a mobile Turkish restaurant, using imported spices and a doner-led menu to bring authentic flavors to Iraq without the cost of a fixed outlet. Tourism & Dining Demand: Lebanon’s Al Manoosh Lebanese Bakery and More is drawing long queues and a regional crowd, showing how diaspora-style comfort food is thriving in the Middle East-themed dining scene. Hospitality Expansion: Hyatt is set to debut in Armenia with Hyatt Regency Dilijan, adding major dining and conference capacity to a fast-growing year-round destination that also targets visitors from the Middle East. Climate-Driven Supply Pressure: Ecuador exporters are bracing for El Niño-related disruption that could lift global prices for cocoa, coffee, bananas and rice even as local production risks rise—an early signal for beverage and food supply chains. Food Business Resilience: In Thailand, restaurant operators expect continued expansion in 2026 despite cost pressures, buoyed by a government co-payment scheme and stronger foreign arrivals later in the year.

Saudi Retail & Food Branding: Selfridges’ Corner Shop will host an “immersive destination” for Saudi Arabia, running until Sept. 5, featuring 20+ fashion, beauty and food brands via Milaf Global (PIF-owned), including Lâm pastries debuting in London. Lebanon Dining Expansion: Scalini opens its first Lebanon branch in Downtown Beirut, bringing handmade pastas, seafood, pizzas and Italian desserts as it grows beyond Gulf cities. GCC Hospitality Tech & F&B: Antalya International Airport’s dining push highlights ordering tech (screen ordering and planned QR ordering across terminals) plus AI-led self-service systems to speed service. Workplace Food Safety: Starbucks baristas allege a new blending powder for frozen drinks causes coughing and sore throats, raising worker-safety questions. Food Delivery Disruption (India/Middle East link): Zomato reports its first sequential decline in active restaurant partners, blaming temporary closures from India’s commercial LPG shortage tied to West Asia disruptions and Strait of Hormuz impacts. Regional Restaurant Moves: Dan Hotels expands a rotating, local-chef street-food style program across its Eilat properties, while London’s Berber & Q Grill House closes after 11 years. Medical Care (Gastro): Tawam Hospital (UAE) reports a complex post-surgery sepsis case managed through rapid detection, reoperation and multidisciplinary ICU care. Food & Drink Industry Recognition: Asia Excellence & Leadership Awards 2026 honors Indian chefs with experience spanning the Middle East, including UAE roles.

QSR Expansion: Chipotle opened its first Mexico restaurant in the Monterrey-area city of San Pedro Garza García, Nuevo León, with Alsea as operator, and plans more sites in Nuevo León before pushing into Mexico City in 2027. Beverage Earnings Watch: Coca-Cola is set to report Q2 results on July 28; investors will focus on margin protection amid commodity pressure and Middle East disruption, after strong early-2026 momentum. Travel & Hospitality Economics: American Express said business travel spending rose 8% year-on-year in Q2 (with restaurant spending up 10%), signaling no near-term “fare relief” for road warriors—good news for dining demand, tougher for budgets. Airport Food Ops Disruption: London Gatwick’s water outage is easing; most toilets and food & beverage outlets are expected to be open for Monday flights. Local Food Safety/Community: Toronto police are investigating hate-motivated damage to two Kiva’s Bagel Bakery locations, including one window hit by gunfire. Middle East Dining & Leisure: Four Seasons Hotel Bahrain Bay is running a Türkiye-inspired CUT collaboration and a Friday “Bubbly Brunch,” plus World Chocolate Day dessert programming.

Tourism Recovery Watch: Israel says Indian tourist arrivals could bounce back to pre-war levels by 2027, citing stronger marketing, improved air links, a streamlined visa process and closer ties. Foodservice & Community: A new Uyghur restaurant in Newcastle, 12Muqam, is set to join the city’s Restaurant Week with home-cooked dishes from the owner’s mother, aiming to pull diners into Xinjiang flavors. Dairy Supply Pressure: Connecticut is moving emergency support toward dairy farmers as production costs rise from federal tariff impacts and the wider West Asia oil shock, underlining how geopolitics is feeding into food prices. Local Food Culture: A “Handmade Palestine Bazaar” in Chico is spotlighting Palestinian food and crafts, with organizers saying borders and access limits have squeezed artisans’ markets. Hospitality Trends: Concierge services are shifting toward partnerships and coordination models, reflecting growing demand for tailored travel and wellbeing support.

Middle East Energy & Prices: With fighting around the Strait of Hormuz keeping oil volatile above $100 a barrel, analysts warn diesel costs could ripple through logistics and push up prices for groceries and other essentials. Regional Security & Travel: AP reports Houthi drone and missile attacks on Saudi Arabia, underscoring ongoing risk to key shipping routes in the Middle East. Hospitality in the Gulf: Dubai hotels are reportedly offering steep summer incentives and discounted stays as tourism demand softens amid regional tensions. Foodservice Expansion in Africa (Middle East-adjacent trade links): Kenya’s Artcaffé plans new outlets in Eldoret and further coastal growth, citing rising middle-class demand for curated dining. Tourism Wellness (Saudi): Miraval, The Red Sea opens on Saudi Arabia’s Shura Island, bringing a major international wellness brand to the Red Sea market. Local Dining (UAE/Bahrain): Four Seasons Bahrain Bay hosts Türkiye-inspired culinary collaborations and a bubbly brunch series, signaling continued premium F&B programming despite wider cost pressures.

Egypt Food Safety: Egypt’s Ministry of Health warned against counterfeit Coloverin-D packages (batch A251035), urging hospitals and pharmacies to verify sources and report suspected fakes. Egypt Restaurant Openings: Japanese restaurant Odoriko opened on Egypt’s North Coast at Playa, bringing its sashimi, gyoza, bao buns and sushi rolls to the seaside. Turkey Dining Trends: A Turkish feature looks at how sushi has gone mainstream, citing Istanbul-led consumption and the rise of ready-to-eat and restaurant “sushi” as a standard menu category. Turkey Hospitality Expansion: 7 Mehmet’s owner has launched “Daha” at The Bodrum EDITION, aiming to expand without diluting quality, and adding to the hotel’s broader dining lineup. Kenya Premium Dining: Artcaffé is expanding beyond Nairobi, rolling out a Winter Mediterranean menu and planning new outlets in Eldoret and the Coast as demand grows for curated dining experiences. Tourism & Food Culture: A travel guide spotlights Alexandria as an “Odyssey” destination, mixing Greek heritage with local bakeries and lunch spots. Gulf-Adjacent Hospitality Tech: Afterpay Arena (formerly Qudos Bank Arena) in Australia highlights tap-to-pay for food and beverage inside the venue, reflecting the wider push toward frictionless payments in hospitality.

Oil shock on food costs: Oil prices pushed past $100 a barrel again as fighting around the Middle East escalated, raising transport and supply-chain costs that can flow into groceries and other essentials. Qatar feed market pull: Traders are targeting Qatar’s growing livestock and dairy feed demand, with barley and sunflower oil flagged as near-term priorities. Dubai tourism incentives: Dubai launched “A Dubai Invite,” paying UAE residents perks worth about $800 to bring friends and family back during summer, including hotel discounts, attraction tickets and dining deals. Sweeteners and gut health: A new study reports some commercially used sweeteners can slow or stop beneficial gut bacteria growth, including when combined with certain compounds or medications. Hospitality openings & concepts: New dining and hotel experiences keep landing across the region, from Japanese izakaya-style spots in Saudi Arabia to fresh café-bar and restaurant launches in major cities.

Iran Foodservice Crackdown: Tehran cafés are being sealed after Friday-prayer calls to tighten enforcement of compulsory hijab rules, with owners saying they’re targeted as “odd ones out,” including visits by plainclothes men ahead of major religious events. Iraq F&B Expansion: PepsiCo signs new agreements with Iraqi partners to boost beverage production capacity (aiming above 250m cases/year) and to scale food output via improved irrigation and farming practices. UAE Tourism Push: Dubai launches “A Dubai Invite,” offering residents benefit packages worth over £600 to bring overseas visitors, including hotel, restaurant and attraction deals—aimed at reviving hospitality demand amid regional conflict. Food Safety Alert (US): A lettuce-linked Cyclospora outbreak tied to chopped iceberg lettuce from Mexico has sickened 1,644 people across five states, prompting supplier removals and restaurant sourcing changes. Trade & Agri Links (Morocco–Kazakhstan): Kazakhstan eyes higher grain exports to Morocco after shipments reached 161,800 mt, positioning Morocco as a logistics hub for wider African market access. Consumer Demand (EU Exports): A survey finds “quality” is the top driver for EU food and drink purchases in third countries, with weekly buyers highest in the UAE and the UK.

Tourism Push in Dubai: Dubai has launched “A Dubai Invites,” paying residents bonuses worth over 3,000 dirhams (about $817) for bringing friends or family to visit between July 20 and Oct 31, with perks like hotel and restaurant discounts plus attraction tickets; reports say more than 10,000 applications came in within 48 hours. Food & Beverage Supply Pressure: As oil prices top $100 a barrel again amid Middle East tensions, fresh food and other shipped goods face higher costs, with businesses likely passing some of the hit to consumers. Healthcare & Food Safety: Datwyler’s earnings call highlights how Middle East conflict is still disrupting supply chains for food and healthcare inputs. Public Health Regulation: Kenya is tightening industrial trans-fat rules, proposing stricter limits to cut non-communicable disease risk. UAE New Hospitality Openings: Dubai’s tourism incentives come alongside broader regional hospitality activity, including new restaurant launches such as Agora’s opening in Bethesda (Mediterranean concept).

Middle East Energy & Food Prices: Oil prices hovered near $100 a barrel after US strikes on Iran and attacks on Red Sea tankers by the Houthis, a move that can quickly feed into transport and grocery costs across the region. Abu Dhabi Healthy Living: Carrefour in Abu Dhabi removed “unhealthy” snacks and sweets from checkout and other high-traffic zones under the emirate’s Healthy Living programme, aiming to curb impulse buys. Egypt Hospitality Expansion: Accor signed an ibis hotel in Sidi Kerir on Egypt’s North Coast (200 rooms), targeting a 2029 opening and adding a restaurant, bar and event space. Iraq Consumer Goods Push: PepsiCo signed strategic agreements with Iraqi partners to expand manufacturing and distribution. Food Safety Crackdown (India, relevant to supply chains): India’s FDA Pune suspended licenses of 12 hotels/restaurants/bakeries over hygiene lapses, including expired products and improper food handling. Beverage Business: Oatly raised 2026 outlook after Q2 growth, while Vita Coco reported strong Q2 results and lifted full-year guidance. Tourism & Dining: New Radisson Resort Layan Phuket opened with 300 rooms, adding more regional travel demand for food and beverage outlets.

Israel Food Regulation: Israel’s Health Ministry rolled out major restaurant-sector reforms, cutting many construction and layout requirements so eateries can operate in smaller spaces and use some external restroom facilities, while keeping food-safety oversight intact. U.S. Embassy Security: The U.S. Embassy in Jerusalem warned Americans in Israel to stay alert amid a spike in violence tied to rival organized-crime groups, urging caution in Tel Aviv/Jaffa/Herzliya commercial areas, especially evenings and overnight. Middle East Cost Pressure: U.S. officials warned that Iran-related tensions could raise diesel transport costs—affecting groceries, goods and even new-home building—adding pressure to already tight household budgets. Iraq Manufacturing Push: PepsiCo is expanding its Iraq manufacturing footprint via new agreements, signaling continued investment in local production. Protein & Food Tech: Steakholder Foods (Israel) announced an ADS ratio adjustment for its Nasdaq listing, a move tied to its plant-based meat 3D-printing business. Beverage Trends (Global, relevant): Market reports highlight growth in premium vodka and tea-infused sparkling water—categories that can shape Middle East on-trade and retail demand.