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Mohammad Ahmad Aboul Naja, managing director – Trading and Distribution, Federal Foods

Positioned among the leading distribution players in the UAE, Federal Foods has garnered its currently robust performance through a string of acquisitions since its inception in 1991.

Mohammad Ahmad Aboul Naja, managing director - Trading and Distribution, Federal Foods, describes the years between 1991 and 2000 as a turning point for the company.

"We decided to become more involved in the foodservice business, which now accounts for 75% of our turnover. This is an area of continued opportunity, and to cope with the government's major growth plans we have to grow at the same rate or face lagging behind."

Diversification has been pivotal to improving Federal Foods' platform for customer satisfaction, marked by a string of add-on product launches from poultry, the original core product, to seafood, meat and specialised products, including European cheeses and Italian coffee. The extension of the range has also opened up possibilities for new clients, from cafes to luxury hotels.

The company's facilities in Abu Dhabi, Ain Ain, Ras Al Khaimah and Fujairah boast ultramodern frozen, chilled and ambient storage facilities, which Naja predicts will take its expansion ambitions to the next level.

"We have 3500 metric tonnes of storage space, yet in terms of gearing up to cope with the expansion of the market, we plan to grow this space six-fold."

Naja says the company started out with 140 vehicles, yet this figure is set to rise to 250 by the end of this year.

"This growth is unprecedented in the history of the company, and any of our vehicles which are more than six years old will now be replaced."

The strongest potential lies in the UAE's hotels, which are responsible for 25% of Federal Foods' turnover, yet forecasts on the explosion of the hotel sector have convinced the company to step up with wider services for this segment.

"We plan to introduce a variety of seafood that has not been seen before in this market, together with a range of value-added products."

As experts point to the possibility that skill shortages could dent the health of the market, it is not just employers who have become increasingly creative in their defence strategies. Naja's awareness of the issues affecting the food and beverage sector appears to make real commercial sense.

"With the major expansion of hotel groups in the region, we anticipate there will be a scarcity of professional staff so clients need products requiring minimal preparation which will be easy to serve to their guests."

New launches will come from Federal Foods' private label, Marina, which will roll out more than 30 varieties of seafood in an abundance of sizes and flavourings. Other brands include Pinar, Halwani, Al Wadi Al Akhdar, Nabil, Fletcher Intl, Friboi, Marina, Val De Les, Dansco, Paysan Breton, Nowaco, Agrarfrost.

Convenience foods are also readily available from the company's Trading and Distribution division, including Turkish dairy brand Pinar and Brazilian brand Sadia, for which Federal Foods holds the exclusive distribution rights.

Sadia offers more than 400 varieties of poultry, beef and soya products, including whole chicken, chicken parts and breaded chicken products; while Danish brand Emborg's range includes packaged meat products, whole chicken, frozen vegetables, dairy products, fish and speciality catering products.

Quick service and casual restaurants are also catered to with Dutch french fry brand Farm Frites, and the distributor's list of subsidiaries including snack brand Star Foods Industries and chocolate brand La Ronda.

Product development and industry interaction has served as a key selling point for the company, which has been bolstered by the company's four in-house chefs, another figure set to rise in the near future.

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