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In a league of their own

by ArabianBusiness.com staff writer on Tuesday, 13 May 2008
DIWAN: The key success of our company stems from the fact we don’t rely on multinational brands.

As Al Aqili Distribution snaps up new brands and masterminds expansion, how significant is its strategy to the strength of Middle East brands.

Albert Abu Diwan, Al Aqili Distribution's managing director, has pulled off a series of FMCG success stories. Under his watch, the company has completed its transformation into a branded goods leviathan.

How has Diwan instigated the company's ascent up the ranks of the region's distributors since he stepped up to head the operation in 1994? A shrewd combatant in the war for brand supremacy, Diwan says the distributor has thrived due to the strength of regional names and the quality of its portfolio, stretching across the retail channels from modern to down trade.

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A willingness to quickly seize opportunities is a top priority in his business strategy and he credits the company's rapid expansion to this dynamic brand building mentality.

The Dubai-headquartered firm recently clinched the distribution rights to Saudia Dairy and Foodstuff Co (SADAFCO), covering categories including juices, tomato pastes and ice cream.

They used to have their own distribution set-ups, but they closed it all down and moved to us with the objective of increasing distribution in adjacent markets."

The company built its reputation for excellence in the marketing and distribution of foodstuff and consumable products by increasing brands' market shares, and is now positioned in the top three in terms of turnover volume and the number of cartons delivered, after developing full coverage across the seven emirates.

Backed by an extensive 185-vehicle strong infrastructure in the UAE - every month the supply chain handles more than 500 inbound containers, more than 850,000 cases of ambient, chilled or frozen goods are sent to more than 7000 customers - its impressive list of clients appears almost endless.

In the food, home and personal products segments, the company offers a plethora of regionally and internationally-produced lines including Americana cakes, cheeses, French fries, meats and seafood, CG-Beans, California Garden, Foster Clarks, Gandour, Afia, Jolly Time, Nestle Pure Life water, Napco, Savola Olive Oil, Bosco syrup, Super-Max, Corazzi, Excel Plast, Olite sunflower oil, Karam corn oil and Spitz.

Business has remained robust in the face of intense competition as "we take an active stance in our brands' marketing, the principal and ourselves," by designing and developing consumer promotions tailored to local market needs.

"The key success of our company stems from the fact we don't rely on multinational brands, for example Americana's cakes and meats are brand leaders. We have taken on local brands with small market shares and grown them considerably.

The market share for Savola corn oil has grown from its initial 17% to become a market leader at 48%, Super-Max has jumped from 8% to 35%, and Americana Cake has risen from 8% to 75% during a 10-year partnership.

The brand portfolio has leapt more than six-fold since the company's origins from four to 25, manned by more than 600 employees.

The brand builder

UAE-based Al Aqili Distribution now offers an impressive line-up including Foster Clarks, Napco, Saudia Dairy and Foodstuff Co (SADAFCO), Savola olive oil, Lebanita, Corazzi, Excel Plast, Varta batteries, Jolly Time, Shams sunflower oil, Tata tea and Junal, and its reputation has been firmed up by more than 20 years of experience in marketing and distribution.

Full coverage across the UAE, Direct Store Distribution (DSD) operations built to international standards and more than 600 experienced employees have activated partnerships and a turnover in excess of AED 400 million (US $108.9 million).


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