A $10 million deal has recently been signed between the Saudi Dairy and Foodstuff Company (Sadafco) and the Al-Ahram Beverages Company, disclosed Ahmad Al-Zayyat director of the Egyptian firm. Al-Watan reported that under the agreement, Sadafco will distribute Al-Ahram’s non-alcoholic barley drinks, particularly the Fayruz brand, throughout Saudi Arabia, Kuwait, Qatar and Bahrain.
Al-Ahram subsequently hopes to gain control over 65 percent of the non-alcoholic barley drinks market in Saudi Arabia and 70 percent of the barley drinks market in Bahrain, Qatar and Kuwait.
Saudi Arabia is considered the largest non-alcoholic barley drink consumer market in the world. Domestic per capita consumption of barley drinks stands at three liters per annum. Earlier this year, Sadafco announced that it had achieved an annual profit of 100 million Saudi riyals ($26.6 million).
The company has been operating in the Kingdom since 1976, with seven plants located in Jeddah, Riyadh, Dammam, and Madinah, producing a range of 100 products, including milk, ice cream, tomato paste, cheese, fruit juices, snack products yogurt, hummus and mineral water. Another two UHT milk plants are operated by Sadafco in Egypt. The company, which dominates the Saudi dairy market, distributes its goods to more than 350 marketing outlets throughout Saudi Arabia.
Ahmad Marzuki, managing director of Sadafco, recently disclosed that among the company's new initiatives are expanding its distribution network of 300 vehicles that reach over 20,000 sale points through 26 distribution centers in Saudi Arabia, launching a new product-line and launch Saudi Majestique in single-serve family size bottles.
“Our strategy is to be a major player in the whole region, not only in Saudi Arabia. We have launched a new line of fruit juices in Egypt and we also have an ice-cream factory there. Now we are expanding into Lebanon, where we have acquired almost 50 percent of a company in the same line of business. We are also venturing into North Africa," Marzuki added.
Sadafco’s controlling shareholder is United Industries Company (UIC), a holding company focused on manufacturing and industrial investments. — (Mena Report)
© 2001 Mena Report (www.menareport.com)
