Tuesday, Nov 30, 2010
Gulf News
Beverage brand to expand in Iran, Egypt and Iraq
Dubai A staple on dining tables around the region, the beverage brand Vimto is working on a major bottling capacity expansion in Iran, Egypt and Iraq.
Aujan Industries, the Saudi company which makes and distributes Vimto, decided to go for the additional capacities based on strong demand.
Vimto’s international sales were up 38.6 per cent last year driven mainly by higher demand in the Middle East, Africa and Eur-ope. Within the region, the highest sales have been in Saudi Arabia and the rest of the region.
“What’s the use of extending out distribution if we can’t supply?” said Adel Aujan, chairman of Aujan Industries. “We want to bolster manufacturing capacity in our plants to meet those demands and introduce manufacturing facilities to Tehran in 2011 and — when the security situation allows us — in Iraq as well.”
In the UAE, the company operates a $55 million (Dh201 million) plant at Dubai Investments Park. Aujan Industries is the largest privately-owned independent soft drink and confectionary manufacturer in the Middle East with a turnover of $750 million.
Vimto holds 90 per cent of the cordial drinks market and has seen steady growth even during the downturn. The foundation for all of this was laid in 1928 when the Saudi firm tied up with Nichols, a UK-based soft drink manufacturer, to distribute Vimto.
“We were very adventurous for those times; India was part of the British Empire so the very first shipment was to India,” said Aujan. “We ordered 50 cases which were shipped via wooden dhows from Manchester to Bombay [Mumbai], then to Bahrain which at the time was the principal port in the Gulf.”
First for market
Its popularity, so to speak, has only grown with time. Last year over 20 million bottles of Vimto were sold in the GCC.
“The drink has a very traditional taste — during the 1920s to 1940s there wasn’t any cordial drink on the market,” Aujan said.
“People used to make all their drinks at home. This was the first readymade drink available and in those days it used to be a year-round drink.”
Aujan started local production more than 25 years ago with a plant in Dammam in Saudi Arabia. The carbonated version was introduced in the 1980s and the product range has now grown to include a ready-to-drink carbonated drink in cans and PET bottles with easy open/close caps.
Recently, they introduced a cherry-flavoured version which has proved popular in the UK. Over the years, the drink has been adapted to suit changing consumer tastes.
“The consumer is becoming more health-conscious, so to suit the times we have increased the juice and vitamin C content,” said Aujan.
JAVED NAWAB/Gulf News
In demand
Adel Aujan, Chairman of Aujan Industries, says Aujan decided to go for additional capacities based on a strong demand.
By Aya Lowe ?Staff Reporter
Gulf News 2010. All rights reserved.
