ALMARAI COMPANY... A QUALITY YOU CAN TRUST!
Almarai is a food service company, manufacturing dairy, bakery, and poultry products. The company mainly runs milk processing plants and produces milk and dairy products. Almarai is headquartered in Riyadh, Saudi Arabia and was founded in 1977.
Company overview:
Almarai is the Middle East's largest food and beverage manufacturer and distributor.
The company has grown as it strives to provide the consumers with unrivalled high quality products and has invested infrastructure, farms, distribution systems and production operations of world class standards. For instance, the Almarai Hosten cows are very productive giving double the amount of milk that European cows produce.
History of Almarai:
Almarai was started by HH Prince Sultan bin Mohammed bin Saudi Al Kabber in 1977. He was a visionary man and saw the gap in the dairy products in the Saudi Arabian market. He started the company to produce high quality products for the people. He guided the company in fresh milk production and laban processing. Under his guidance the company transformed to a modern company.
Almarai started producing poultry products through Hail Agricultural Development Company (HADCO) after they acquired it to diversify their product portfolio. The company continued its expansion plans and in the same year ventured into fruit juices production. The production is a joint venture between Almarai and PepsiCo.
Production and product line:
Almarai has state of the art production plants. The company has invested in high class facilities to produce high quality products. Through its production plants the company produces products on a daily basis to serve their customers.
Almarai’s dairy products continue to serve the people of the Gulf region. The organization’s earnings are generated from milk performance since it offers a notable position in the market demand. The firm’s products remain stable to reinforce its dominance in regional and local markets throughout the induction of numerous new types of goods. The division’s earnings increased by a CAGR of 13.7 percent between 2015- 2019 in which the earnings contribution from this section was 53.3percent in 2019 compared to its value of 60.7% listed in 2018.
There are various products in each product line giving consumers a wide choice and the products have different pricing so that consumers can choose what they can afford. That is a very good strategy by Almarai.
Growth and expansion:
The company has big plans for growth and expansion. It will grow through joint ventures and expand to other regions in the world. The acquisition of dairy companies in Egypt and Jordan will help the company to expand into North Africa and Levent regions through HADCO (Almarai company, 2009).
Therefore, Almarai will growth through the expansion of their core products into the region. They will also grow through the acquisition of companies that deal with the products they have added to their portfolio. The new acquisitions pose a very good prospect for further expansion and growth
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