A Visit to Milky Way

The heart of Almarai’s success is the trust earned over 40 years of continuous commitment to quality.

Mission To provide quality and nutritious food and beverages that enrich consumers’ lives every day. Values Adaptable Sharing Passionate Innovative Respect Excellence

Vision:To be the consumer’s preferred choice by leading in chosen markets with superior food and beverage products.

Values: Adaptable, Sharing, Passionate, Innovative, Respect, Excellence

Almarai’s core philosophy is commitment to providing excellent quality.

Almarai constantly seeks to provide its consumers with high-quality products; to implement the highest industry standards in every aspect of its operations; and to enhance the brand by building a very advanced infrastructure for production, marketing, and distribution. Since establishment in 1977, Almarai has grown through carefully planned investment to become the Middle East’s first vertically integrated dairy company and the region’s largest producer and distributor of food and drink. Almarai products are market leaders in Saudi Arabia and wider regional markets. Over the years, Almarai has diversified production to enter the juices, bakery, poultry, and infant foods sectors, to become a fully integrated company with regional coverage and market capitalization exceeding $12.5 billion. Within this widespread diversification and expansion, quality is always the founding principle, upholding Almarai’s commitment to achieving the highest standards on behalf of its consumers and justifying its motto: ‘Quality you can trust’.

Sultan bin Mohammed bin Saud Al Kabeer

Chairman

Renewed trust every day

For four decades, Almarai has been a highly trusted food and beverage brand offering high quality products across the Middle East.

By providing great products that meet people’s needs, Almarai has become an integral part of their daily lives.

Across the Middle East, people trust the Almarai name as a hallmark of quality, a reputation that has been carefully nurtured over the years.

Quality is the highest priority every step of the way, right up until products reach the consumer. It applies equally to the care of livestock on Almarai’s farms, to laboratory research and testing, production control, and management of the retail supply chain.

Because Almarai owns most of its supply chain – from feed production to processing, packaging, and distribution – the company is able to maintain its exacting standards.

Commitment to consumer satisfaction is the company’s main objective, supported by constant innovation. This is complemented by Almarai’s production, marketing, and distribution infrastructure, which enables daily distribution of fresh products to over 110,000 retail outlets across the six Gulf Cooperation Council (GCC) countries, Egypt and Jordan.

Founded in 1977, Almarai has grown to become the Middle East’s largest food manufacturer and distributor. Diversification in recent years has added the Almarai range of juices; bakery lines under the L’usine and 7Days brands; poultry under the Alyoum brand; and Nuralac infant formula.

Product innovation and entering new categories are essential to business growth, continuing Almarai’s diversification drive. At any given time, at least 65 new products are under development and being evaluated for market launch.

Only the very best survive the rigorous process of quality assessment that determines the right to earn the coveted Almarai branding – and the consumer trust that it represents.

Dairy

Dairy has always been the core of Almarai’s business. The vast product range includes fresh milk, laban, flavored milk, milkshakes, UHT and evaporated milk, cream, yoghurts, desserts, natural and processed cheeses, butter, and ghee.

Juices

The first diversification in 1999 launched fresh juices, which quickly became market leaders.

Bakery

Expansion into bakery followed in 2007 with two initiatives – the acquisition of Western Bakeries, and the creation of Modern Food Industries, a joint venture with Chipita of Greece and the Olayan Group.

Poultry

Almarai launched poultry products in 2009 and has since expanded the range to provide a comprehensive offering to consumers.

The company has also developed specialized packaging to ensure optimum food hygiene and nutritional value

Infant nutrition

In 2010, a joint venture was formed with Mead Johnson to enter the infant nutrition market. Almarai took full control in 2014, launching its own brands: Nuralac and Nuralac Plus.

Wholesome goodness in every product.

Almarai assures the quality of all its products by using high-standard ingredients and applying stringent measures for food safety, from infant milk to the entire range of nutritional products.

‘Quality you can trust’ is a far-reaching promise that applies to every aspect of Almarai’s business.

Almarai’s motto ‘Quality you can trust’ represents a commitment to implementing the highest levels of quality, thereby earning the trust of all stakeholders. The motto also encapsulates the company’s integral vision, from strategic decision-making by the Board of Directors to administrative and operational principles and practices at production level. Whether dealing with investors and business partners or developing advanced professional skills among employees, rigorous quality control is crucial to all aspects of Almarai’s operations.

Within the work environment, quality is the cornerstone for growth and overcoming its attendant challenges.

In achieving this, Almarai has worked with international experts to merge local skills with global expertise, collectively contributing to the establishment of a multinational work environment.

In terms of products, the quality and development department undertakes responsibility for quality assurance, and for seeking out healthy products that are rich in nutritional value and will satisfy all tastes. The department researches and studies consumer preferences, seeks to understand consumer needs, and analyzes all options that respond to these needs. Innovation in applying the most advanced technologies is therefore considered to be one of the most important elements that contribute to food product diversification and meeting consumer expectations.

Almarai implements the highest standards of health and food safety, demonstrated by the many accreditations granted by the International Standards Organization. This underlines the quality of Almarai’s unique ingredients and infrastructure, which unite the best farmlands, production plants, and modern distribution systems.

Almarai uses the best natural ingredients, sourced locally and globally, while implementing the most modern food technologies and building the most advanced production plants.

1.Crop cultivation and selection

Quality is the focus of all of Almarai’s farming activity, and that means using only the best animal feed. The company imports most of the feed: a crucial step for preserving domestic water resources. A growing proportion of forage already comes from farms in Argentina, the USA, and Europe.

2. Extraordinary care for farm animals.

Almarai’s farms look after their livestock to an exceptionally high standard, ensuring maximum yields and quality. Dairy herds have 24-hour access to professional veterinary support, year-round shaded housing, and air cooling and showering. Poultry flocks receive equal best-in-class care, from highly nutritious feed to best-quality water and air control.

3. Best-in-class manufacturing and processing.

The technology and capacity of Almarai’s manufacturing and processing capabilities are exceptional, with bakeries and factories delivering the highestquality output on a mass scale. Production facilities are constantly being expanded, renovated, and improved, as the company strives to operate to the highest standards of international best practice and meet ever-increasing demand.

4. Exceptional transport and logistics capabilities.

In terms of the scale of assets, distances covered, and quantities delivered, Almarai’s Transport and Logistics division is larger than any logistics company in the Middle East. More than 7,700 trucks and cold trailers deliver close to two billion kilograms of products every day, on time and in perfect condition.

5. Consumer insights and powerful branding.

Almarai has always worked to earn the trust of its consumers, and has become a brand leader that is known and loved by millions. Commitment to quality is at the heart of the company’s status as the Middle East’s leading food and beverage producer and distributor, and feedback is continuously gathered to help increase customer satisfaction.

Care and corporate responsibility.

Understanding the needs of Almarai’s customers is matched by equal commitment to the best interests of employees, its communities, and the environment.

People development is central to Almarai’s philosophy as a responsible corporate citizen.

A range of programs provide career growth. Almarai’s Dairy & Food Polytechnic trains more than 400 students every year, and the Graduate Professional Trainee program employs hundreds of talented fresh graduates.

The Almarai Sales Academy designs and runs competencybased development programs. The aim is to provide the highest standards and enable people to excel in their professions and grow in their careers, while meeting the organization’s succession plans.

The Almarai Driving School provides driving lessons for the lorry and heavy truck drivers who join the company every year as its fleet grows.

Employee welfare is equally important. The company applies international occupational safety and health standards, introduces policies to stimulate employee engagement, reviews wages regularly, and encourages positive communication.

In the broader sense, community involvement focuses on supporting education and excellence through initiatives such as the Almarai Award for Scientific Innovation, the Almarai Education Excellence Award for Arab students in the GCC, and the Almarai Award for Veterinary Excellence.

The entire concept of sustainability management is defined as the integrated management of economic, environmental, and social performance, with the goal of creating value for all stakeholders. Almarai considers this an essential part of business excellence.

Water conservation and sustainable farming methods are central to fulfilling Almarai’s growth strategy. Hence the commitment it made in 2011 to invest significantly overseas.

Alongside water conservation, a review of electricity consumption has led to a substantial reduction in the amount of power used by the company’s facilities, further reducing Almarai’s carbon footprint.

Leadership through discipline.

Almarai is an axiom for corporate excellence, consistently returning impressive yields for investors through unwavering focus on performance.

Powerful strands have been woven together over the years to form Almarai’s organizational robustness.

Financial performance and market leadership are the outward proof, but they are the result of Almarai’s underlying institutional strengths.

Leadership starts from the top, and the Board of Directors and executive team set the tone for the entire business. All directors are highly qualified, with experience at the uppermost reaches of private and public sector governance. They bring a discipline born of many years at the forefront of their professions.

At the next level, members of the executive leadership team are hand-picked from around the world, acknowledged as experts in their respective areas of specialization.

Together, Almarai’s strategic and managerial strengths have been instrumental in achieving compound annual growth of close to 20 percent since 2001, giving Almarai shareholders a 22 percent return on investment since 2005, when the company was listed on the Saudi Stock Exchange.

More than 30 percent of sales revenue is reinvested into business development every year, a firm foundation that helps to ensure continuous growth.

Outstanding boardroom and management performance is complemented by a shared commitment from employees – many thousands of well-trained and motivated people who take pride in their work and make an indispensable contribution.

Such capabilities and cohesion at all levels of the Almarai family – from the executive suite to the factory floor – form a unique asset that is admired throughout the business community.

Almarai’s unwavering focus on quality is also vital to creating such strong and familiar brands, and a business that maintains its consistent record of achievement. In recent years, the company has taken on a new international dimension, entering new regional territories and investing in farmland in the Americas and Europe.

Global recognition has come from respected authorities such as Forbes magazine and the Financial Times, both of which have ranked Almarai highly in surveys of the world’s best-performing food and drinks brands.

” Innovation is at the core of Almarai’s strategy. Consumers continue to benefit from high-quality food and beverages produced by a respected and trusted company.” Georges Schorderet Chief Executive Officer

The economy of scale.

As the world’s largest vertically integrated dairy producer, with a vast regionwide distribution network, diverse stakeholders benefit from the scale of Almarai’s business activities.

Almarai’s production and distribution cover the Gulf states, Egypt, and Jordan. Feedstock farms extend to Europe, the USA, and South America.

Almarai is the largest food manufacturer and distributor in the Middle East, with unique regional coverage and market capitalization of more than $12.5 billion. Since 1999 Almarai has diversified into juices, bakery, poultry, and infant nutrition. Between 1996 and 2006, gross sales doubled to $500 million. Since listing in 2005, sales have grown by 543 percent and net income by 396 percent, soaring to more than $3.7 billion since then. Today, total assets exceed $7.3 billion, with more than $4.2 billion invested in capital expenditure over the last five years.

Almarai’s farms occupy tens of thousands of hectares, and produce hundreds of thousands of tons of alfalfa and soybean every year. This feedstock is shipped to Saudi Arabia and the company’s dairy and poultry farms.

The cattle yards provide shaded housing, air cooling, and showers for Almarai’s herd of 170,000 Holstein cows. A team of 160 veterinary professionals tend to the entire herd, including the 200 calves born every day. Each cow produces more than 40 liters of milk daily, totaling around a billion liters annually. Poultry farms operate to the same exceptionally high standards. The poultry processing plant has production capacity of 200 million birds per annum.

Almarai’s manufacturing and processing capabilities are equally important in the company’s constant capacity growth. Capacity is always growing, such as new production lines that turn out 850 bottles of juice per minute. The company’s plant for infant formula is one of the most advanced in the world, with nutrition experts working tirelessly to create market-leading products.

More than 3,000 staff look after transport, warehousing, maintenance, planning, and 89 sales depots. They supply fresh dairy, juice, bakery, and poultry products to over 110,000 retail outlets – achieving 99 percent on-time delivery. At any given time, there are 1,300 Almarai trucks on Middle East roads.

The scale of operations now dwarfs the original 1976 founding concept, which was visionary in seeking to transform traditional dairy farming in Saudi Arabia to meet the needs of the burgeoning domestic market.

Innovation is a strategy for growth.

Almarai’s constant quest for innovative products, operational improvement, and opening new markets illustrates the core principles embedded in the company’s corporate philosophy.

Almarai has three growth strategies: organic growth, product innovation, and geographic expansion.

The ‘Almarai for Innovation Management’ initiative that began in 2009 has been the main pillar in developing dozens of new products under various trademarks in different categories.

Growth has always been at the core of Almarai’s business, and the engine of its success, and it is now considered as greater priority, with a focus on further vertical integration and increasing market share. This applies to all categories – dairy, juice, bakery, and poultry – where organic growth will be supported by targeted diversification and new product development.

In terms of geographic expansion, Almarai entered Jordan and Egypt as prime territories for sales growth in all categories and is also exporting to other markets.

Quality will always be fundamental, joined by sustainability as an essential prerequisite in implementing each of the three strategies.

Almarai is reducing the impact of its production on water resources in Saudi Arabia, applying an ambitious plan to import most of its feedstock in the near future by investing in farmlands overseas.

Investment in farmland in Argentina and the USA has now expanded to Europe, where large tracts have been secured in Poland and Ukraine, along with partners.

The feedstock, comprising more than 600,000 tons yearly, is shipped to Almarai farms in Saudi Arabia. This strengthens the vertical integration of the company and supports its sustainable growth.

Almarai’s three-pronged strategic plan – organic growth, product innovation, and geographic expansion – will enable the company’s return on investment and achievement of economic targets in its various sectors.

Through continuous plans to achieve sustainable growth, Almarai is always conscious of its responsibility towards consumers, investors, employees, and the community as it realizes its commitment to all, with quality that everyone can trust.




www.almarai.com

SNAPSHOTS FROM OUR VISIT TO AL MARAI ARE HERE…..

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22 Comments

  1. Matija Antonić

    This is an interesting article, I have heard about Almarai for the first time now, didn’t know there was a middle eastern company that has such an inspiring success story.

    Like

  2. Elizabeth O

    This sounds like an investment portfolio presentation and a comprehensive one at that. I like that they are not only into product but also people/manpower development.

    Like

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