marKET Once upon a time, Almarai was a dairy company. This didn’t last for long because a greater brand story was about to take place.

It all started with fresh milk processing and a range of high-quality dairy products. However, throughout the years, Almarai demonstrated the same level of commitment to quality as it courageously tapped into various food industries, and it soon evolved into a fully integrated food production company. Besides its massive production capacity of an annual 900 million litres of milk, a map of local and regional acquisitions revealed Almarai’s remarkable expansion and diversification capabilities over the past six years – starting with the acquisition of Jeddah-based Western Bakeries in 2007, followed by Hail Agricultural Development Company in 2009, then a joint venture with the internationally renowned Chipita to produce pastries, and a joint venture with Mead Johnson Nutrition which resulted in forming the International Pediatric Nutrition Company (IPNC) for world-class infant nutrition products in 2010.

Regionally, Almarai formed a joint venture with PepsiCo and launched the International Dairy and Juice Company (IDJ) – a step aimed at further expanding the company’s markets in the dairy and juice segments across the MENA region. In December 2011, Almarai acquired Fondomonte SA, which owns and operates farms in Argentina, to help secure feed for its dairy and poultry units in Saudi Arabia.

After such important milestones in Almarai’s journey, juices, bakery products, poultry, and infant formula under the brand names of Almarai, L’usine, 7DAYS, Alyoum, and Almarai Enfa became members of Almarai’s family tree, enabling the company to experience extraordinary growth. Almarai was soon recognised for offering the best nutritional value

that meets consumers’ highest expectations and satisfies their tastes, and its strong presence resonated across several new markets outside the Kingdom including the UAE, Kuwait, Qatar, Bahrain, Oman and Egypt.

achiEvEmEnTS“Quality You Can Trust”, a few words that have always guided Almarai’s ongoing journey. With dedication, expertise and value

collectively accompanying the brand no matter where it traveled, Almarai was able to attain leadership across the region.

Witnessing such extensive expansion and diligent product development, Almarai was bound to be recognised. It soon became the only Arabic and Middle Eastern company to be officially labeled “a future brand” in the report “Great Brands of Tomorrow” which was published by Credit Suisse Research Institute. The report identified Almarai as one of the world’s fastest growing brands and highlighted the success of Almarai Company in achieving considerable growth within a short period of time, lending it the trust and credibility to walk shoulder to shoulder with the world’s biggest brands.

More awards and titles placed Almarai in the spotlight. It was listed among the top 40 Arab FMCG brands according to Forbes Arabia in 2006 and 2008, recognised as “Leader in the Retail Sector” during the Arab Investment

Summit in 2010, won BMG’s Transparency Award, was included among the “Top Five Brands to Go Global” by the Financial Times, and ranked first in the “Best Managed Companies in the Middle East” for food and agriculture. In addition, the Middle East Investor Relations Society labeled Almarai “Leading Quoted Company for Investor Relations” for 2010 and 2011. During 2011 as well, Almarai Vetal won the “Drop Award for Dairy” from the Arab Bureau for Food Industries and Arab Beverages Association.

To sustain its status as a customer-centric brand of international standards, Almarai is always keen on attaining international certifications and accreditations. The company is ISO 9001-9002 certified across all operational divisions, including farms, procurement, processing, quality product development,

distribution, and supply chain. Owner of the world’s first farm to be accredited with ISO 9002, it enjoys an ISO 9001:2008 accreditation for the production of raw cow’s milk as well as ISO 14001:2004 for effective management of environmental aspects and impacts associated with raw cow’s milk production.

Climbing up the success ladder, Almarai emerged as the largest vertically integrated dairy company in the world, as well as the largest manufacturer and distributor of beverages and food products in the region. The MENA’s number one brand specialised in consumer products, Almarai is undisputedly today’s market leader across its product categories in all GCC countries.

hiSToryBehind every successful brand is an impeccable vision.

Back in 1977, His Highness Prince Sultan Bin Mohammed Bin Saud Al Kabeer anticipated the growing demands of the Saudi market and recognised the need to transform Saudi Arabia’s traditional dairy industry to meet such growth. Almarai was soon born as a dairy company, and the scale and scope of its production quickly expanded to incorporate modern

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dairy farms and state-of-the-art processing plants. In the early 1990’s, it was time for restructuring and reinvestment. Almarai moved from a decentralised to a centralised structure; consolidating its farms from ten to four large farms, and its production from five factories to one advanced mega factory.

Characterised by its constant ability to surprise, the brand experienced another major transformation in 2005. Almarai moved from a privately owned company to become publicly listed with over 70,000 shareholders. During the same year, it inaugurated a second and larger processing facility that increased the production levels of its cheese and juice divisions. A number of acquisitions followed and diversification took the lead. In 2007, Almarai acquired the Jeddah-based Western Bakeries Limited to form Modern Foods Industries. In 2009, it formed a joint venture with Chipita to produce 7Days and another with PepsiCo to form International Dairy and Juice (IDJ). Moreover, it successfully added the poultry product category to its family by acquiring HADCO and modernising and building new facilities to introduce “Alyoum” poultry brand.

Infant nutrition was next on the list. In 2010, Almarai set up the International Pediatric Nutrition Co (IPNC) – a joint venture with Mead Johnson Nutrition, one of the world’s leading infant nutrition companies. IPNC is specialised in producing, marketing, and distributing infant nutrition products in the MENA region under the brand name “Enfa”.

ProducTAlmarai’s family keeps growing, and innovation is its vital nurturing element.

Almarai Innovation Management (AIM) was launched as a strategic initiative to guarantee constant innovation and efficiency within Almarai’s product portfolio. This way it can live up to its credo ‘Quality You Can Trust’ across all its product categories.

With Almarai’s food and beverage range, customers are assured that a high nutritional value is delivered to the retail shelf on a daily basis: fresh and long-life dairy, fresh yoghurt, desserts, cheese, and natural juices; bakery products from breads to puffs, croissants, and cakes represented by L’usine and 7DAYS; and various poultry products under Alyoum brand.

Under Almarai Enfa and Almarai Enfagrow, the company has introduced two new infant formula products with the nutritional value babies need throughout the different stages of their growth.

rEcEnT dEvEloPmEnTSExpansion, horizontally and vertically, is an ongoing process.

2012 witnessed the development of Almarai’s footprint in Argentina through Fondomonte, a

fully owned subsidiary that currently manages and farms approximately 23,000 hectares. To satisfy a significant proportion of Almarai’s animal feed requirements in the future, Fondomonte has invested in agricultural equipment and human resources and established a major structural and economic base. This represented Almarai’s first step in its long-term plan to become fully dependent on imported feedstuff and to effectively protect Saudi Arabia’s water reserves. In November 2012, and after successfully completing a rigorous and stringent testing process, the region’s first infant nutrition manufacturing facility was commissioned. This investment, along with the poultry investment completed in the first quarter of 2013, is instrumental to Almarai’s portfolio diversification strategy over the coming years.

PromoTionAlmarai’s promotions and campaigns resemble and reflect the brand in every sense.

Quality, innovation, and authenticity are key in communicating with Almarai’s consumers. Every offer is thoroughly examined before it makes its way to retail shops, every campaign is tested before it reaches out to the region, and every event is guaranteed to draw several smiles.

brand valuESInnovation, passion, adaptability, sharing, respect, and excellence govern the way Almarai thinks and operates within and outside its premises, with its community, and with the environment.

Internally, its management is keen on taking bold decisions that benefit stakeholders, while employees collaborate across departments to achieve the company’s objectives. Fairness, trust, and integrity are characteristic of every relationship – be it with a supplier, a fellow employee, a retailer, a customer, or a consumer.

In the Saudi community, the company supports various humanitarian, social, and national causes and organisations such as the Orphan Welfare Society, Down Syndrome Charitable Association,

Saudi Autism Organisation, and the Saudi Breast Cancer Society, among others. When it comes to environmental responsibilities, Almarai addresses one the region’s key concerns, water scarcity, by operating state-of-the-art designs and operating systems that extensively reduce water consumption.

Lending a hand to future generations is a responsibility that Almarai takes seriously. This is why it has launched the Scholarship Excellence Award for students in cooperation with the GCC’s Arab Bureau for Education as well as the Almarai Veterinarian Award in collaboration with King Abdulaziz City for Science and Technology.

Initiatives don’t stop here. Almarai’s innovation strategy applies just as strongly to its social and community activities and projects, now and in the future.

www.almarai.com

Things you didn’t know aboutalmarai

A herd of more than 135,000 Holstein cows provides an annual average of more than 900 million litres of milk.

Each Holstein cow produces over 14,400 litres of milk every year ; almost double the European average.

Almarai’s facilities, including farms and plants among others, cover a total area of over 700 million square metres.

The company ensures optimum quality through conducting over 10,000 quality tests on a daily basis throughout its premises.

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