Al Ain widens its network reach
by ArabianBusiness.com staff writer on Tuesday, 14 August 2007
Al Ain Mineral Water has announced ambitious plans for further expansion in the UAE and the GCC.
Talking exclusively to Caterer Middle East, general manager of Al Ain Mineral Water Fasahat Beg, and Ilias Assimakopoulos, CEO of Emirates Foodstuff and Mineral Water (AGTHIA) - parent company of Al Ain Mineral Water - said it was set to increase its market share in Dubai, Sharjah and the Northern Emirates over the coming years.
A public listed company on the Abu Dhabi stock exchange since 2005, AGTHIA is hoping to become a leading powerhouse for the food and beverage industry in the region, and established in 1990 Al Ain Mineral Water already has a firm following among the local community, according to Beg.
"We have a 23% share of the bottled water industry in the UAE, making us the number two player here. But in Abu Dhabi we are number one with a 40% share," citied Beg.
Currently undergoing a rebranding strategy in order to raise the profile of the brand, Al Ain Mineral Water has a two-pronged strategy. Modernising the bottles to make them more appealing to the Dubai market, the labels now have a more contemporary and modern image, depicting the greenery representing the ‘Garden City' and Al Ain Tower.
The second part of the company's rebranding strategy has been to increase its distribution network with the opening of a distribution centre in Al Quoz, Dubai.
"Our distribution is strong in Al Ain and Abu Dhabi, so we are now in a position to expand across the other Emirates. Traffic congestion was a key reason for opening up a centre in Dubai, but also because it is experiencing a growth in trade, so it is important to have a presence here," said Beg.
With a total of 50 vehicles distributing the water across the Emirates, Assimakopoulos said the consumption of water in the UAE was 1.5 billion litres each year, with bottled water accounting for 500 million litres.
"What we build ourselves on is our quality product, our history and our reputation. Our production facility is very modern and we have strong internal processes," added Assimakopoulos.
Available in 5ltr, 1.5ltr, 0.5ltr, 330ml and cups of 250ml and 100ml formats, Al Ain Mineral Water's presence in the hotel, restaurant and café trade is growing. Currently the water of choice at Emirates Palace, Hilton Abu Dhabi and Kempinski Mall of the Emirates, the company also distributes its water to other catering institutions, with private labelling also proving a key selling point for its business.
"Our water is located on Etihad aircraft and across UAE institutes like the UAE Armed Forces and the Ministry of Health. This market is growing so we have a sales team dedicated solely to this sector," said Beg.
"Also, quality and mineral composition is become increasingly important to consumers, our mineral composition - like for sodium - is very low, and we also have extremely high standards as outlined by the Abu Dhabi Food and Health Authority," added Beg.
Concentrating on the UAE for the time being, Assimakopoulos and Beg both commented that expansion across the GCC would emerge as a real possibility in the coming years.
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