![]() The company has also established a partnership in Turkey to fulfill its other export needs with spring water plant. “We took a long time to find it but we’ve got it and it started running in February,” he says. Investment in the new facility reportedly totals over Dhs20 million. The company also enjoyed market leader status in its GCC neighbor, and given Oman’s position on the same mountain range as Masafi’s UAE facility it seemed like an obvious choice.Īfter a lengthy process, the company eventually found a site in Oman with an existing plant, and nearby water sources, and went about installing new machinery. “Our biggest market is Oman after the UAE, so that was the first place to start.” Where then could Masafi find the water source it needed? “One of our considerations was to just set up a factory in Dubai using desalinated water,” he reveals.īut this did not fit with the company’s brand equity or its natural spring water origins. The company therefore considered its options. “They don’t use a natural water source so they are still able to export,” says Randall. “The demand and throughput was not there and all of the focus groups were saying ‘why are you guys doing this?’ It is not something they expected from Masafi.Īs a result, the company took the decision to discontinue the line at the beginning of 2013.įaced with an imminent ban on its exports, Masafi needed to come up with a plan quickly, especially given the decree would not be affecting its rival. We decided to go into rice as well.”īut not every product venture has been successful.Īn attempt to break into the nsalck food business with oven baked chips proved less ofa hit with consumers. We were once a distributor for one of the big rice companies, and when that distribution contract ended. “over the years, the strategy of the company has been to branch out and be not only a water company and hence the lanuch of tissues and juices. Juices followed in 20, and then flavoured waters, before another unexpected turn saw Masafi venture into rice products. A natural image, quality and zero chemicals- all of these attributes are ocommon to both although they are totally different categories.” say Randall. “Both water and tissues are about somthing that touches your body whether it is internally or externally. When it ended, consumer demand led Masafi to sell them as a separate product. This, unexpectedly for brands in its field, includes tissues, which were originally tied to the company’s bottled water as part of a promotion. Since then the company has expanded beyond its traditional bottled water market with a number of different product lines. When the company first started its operations from the village on the edge of the Hajar Mountains that bears its name, water containers mroe closely resembled white milk bottles than the clear plastic shapes seen today. Masafi was the UAE’s first bottled water producer, established in 1976 with a paid-up-capital of approximately $5.5 million. if they’ve got one of the big guys delivering CSDs to them, they will normally just be forced op take their water.” That’s how we are positioned differently to them but it does preclude us from some semi-exclusive channels like the hotels and restaurants. In comparison, Masafi’s position as a local natural mineral water producer is its advantage, he says. “They sue it as more of a loss leader to sell more of their soft drinks into the market.” “The advantages that the big nationals have is that they piggy back on their carbonated soft drink (CSD) brands so they tend to use their power there to get the water in, ” says Randall, speaking from his experience working at companies including Coca-Cola. “So what we had to do is find an alternative source to produce water outside the UAE.”īeing a local water producer was not without its challenges, even before the ban competeing against global heavyweights Danone, nESTLE, PepsiCo and Coca-Cola. Indeed, Masafi had been exporting to more than 50 countries from the UAE prior to the ban. “That came into effect in August, which put a lot of pressure on us because almost 30 per cent of our revenue and volume comes from exports,” says CEO Reginald Randall. As the only manufacturer to produce pure natural spring water in the UAE, Masafi was always likely to be the heaviest hit, and had only months to put its affairs in order.
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