Established KSA-based drinks firm gears up for bullish beverage expansion in regional market
Saudi Arabia-based soft drink giant Aujan Industries is aiming to become the region’s leading soda distributor, ahead of traditional household brands such as Coca Cola and Pepsi.
Commenting on the established multinationals, chairman Adel Aujan insisted the company had the capacity to rival them.
“We have the skills, the financial muscle, the creative marketing, the corporate governance — and on top of that, we have the local knowledge,” he pointed out. “There’s no question that we can compete.”
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Today, courtesy of its brands Rani, Vimto and Barbican, Aujan is the largest drinks firm in the GCC, with more than 2500 employees and roots in 26 countries.
The firm saw a rise of more than 20% in revenue in 2009, and is expecting a similar hike this year.
“We’re in the one-riyal business,” explained Aujan. “It’s anti-cyclical; we do better in recessions than upturns.
“People don’t buy expensive things in a recession, but buy more of the low-priced items to compensate.”
The firm is aiming to generate US $1 billion in sales by the end of 2012.
Currently running three plants — in its key markets, Saudi Arabia, the UAE and Iran — two more will be added to the portfolio over the next two years.
Politics permitting, one is slated for development in Iraq.
“The volume [there] is huge,” Aujan asserted. “The arithmetic demands a plant but [Iraq’s] got to stabilise first. As soon as it does, we’ll move on it.
“But the growth story isn’t over for us in the Gulf — the area has a long way to go. These are still priority markets for us.”
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