29 February 2016
Abu Dhabi - Agthia Group ('Agthia'), a leading food and beverage group in the UAE, has entered into partnership with the General Trading Company (GTC) of The Olayan Group of the Kingdom of Saudi Arabia to distribute its [premium] retail flour product across the country.
The agreement, signed by Manolis Trigkonis, Executive Vice President of Agri Business of Agthia Group, and Husam Edghaim, General Manager of GTC on behalf of Samer Khawashki, President, Consumer Division at The Olayan Group, paves the way for Agthia's best-selling flour for the domestic market to be distributed across retail outlets in Saudi Arabia by Olayan.
Manolis Trigkonis, Executive Vice President of Agri Business at Agthia commented: "We have spoken regularly about our desire to broaden our business and our customer base in the region, and Saudi Arabia clearly provides us with a large population and a ready market for our premium flour product. The Olayan Group is the obvious partner of choice given their strong presence across the country and their experience in working with a myriad of leading international brands. This is an important step for us in our determined strategy to grow our core categories and to make them among the GCC's leading brands."
Husam Edghaim, General Manager of GTC added: "Agthia is an ideal partner for us as they offer a high quality product which complements our range of consumer brands, and they have a clear growth strategy backed up by strong initiatives to enter the Saudi market. We have agreed on the best approach to achieve initial as well as longer term objectives, and we are positive about the success of Grand Mills flour in the Kingdom."
Agthia's flour is produced by Grand Mills, which began operations in Abu Dhabi in 1978. The flour to be sold in Saudi Arabia, Patent Flour No 1, is a blend of hard and soft wheat, which provides the right balance to be used in almost any recipe requiring flour.
GTC is among Saudi Arabia's largest importers and distributors of consumer products representing a large number of major international principals. Founded in 1954, GTC is one of The Olayan Group's oldest and largest companies. It handles major brands, backed with a history of brand building for product lines and numerous category leaders, including food products, personal and dental care products, and confectionery through its branches in Al-Khobar, Riyadh, Jeddah and Abha.
Agthia reported preliminary net profit of AED 231 million for 2015, an increase of 20 percent from the previous year with net sales 13 percent ahead to AED 1.87 billion fuelled by flour, water and beverages and dairy. Flour sales in particular grew 15% to AED 427 million with distribution and customer base expansion in Abu Dhabi and the Northern Emirates, in addition to growing exports and wheat trading.
© Press Release 2016