UAE-based Al Bayader International, a supplier of disposable packaging products for the food and beverage industry, has reported success in its recently launched solutions and is contemplating an expansion of its production facilities in anticipation of additional clients within the country and abroad.

“Our plans for this year include further investments in our state-of-the-art manufacturing and logistics facilities in the Jebel Ali Free Zone (Jafza). Year 2012 will witness the second phase of enlarging our industrial capability,” said the company’s chief executive Nidal Haddad.

The Jafza logistics and supply chain facility came on stream in 2008 while the manufacturing plant opened in 2010. According to the company, the logistics facility can load up to 455 40-ft containers at the same time and integrates extensive warehousing, loading and off-loading areas for up to 12 containers simultaneously. The hub, designed to serve the export market, is served by the Infor 4000 WMS warehouse management software.

“Our family here at Al Bayader is set to grow to over 600 and our continued investments will help us focus on our mission of providing total and high-quality food packaging solutions to the food and beverage industry. I truly believe Al Bayader’s right mix of passion, manpower and strategic investment is indicative of which way we are going –upwards,” said Haddad.

Al Bayader feeds its markets with more than 1,000 products ranging from clear plastic containers, cups and lids to paper and aluminium items, foam products and cling film.

The company has witnessed a new range of products rolling out from its Qatar and Jebel Ali manufacturing facilities. Its R&D department has introduced innovations conceptualised and designed in-house, among them pASTRIPAC which packs clear plastic containers made specifically for pastry and confectionery and was rolled out for the first time from the Jafza facility last November.

The production process

New product has appeal
Elaborating, the company said:”pASTRIPAC enhances product appeal by clearly showcasing the content, thereby adding value to the product. Made exclusively of PET – currently one of the fastest growing materials in the food packaging sector – it offers superior clarity, excellent barrier properties, inherent strength, durability and shock resistance. The innovative designs take into account four main areas - operational excellence, safety, presentation and consumer conveyance.

“A combination of this product with Al Bayader’s Clear Cup range offers eye-catching possibilities of serving fresh, healthy and convenient Grab and Go snacks. The double-action feature allows separation of products into key components ensuring overall integrity, appeal and extended shelf-life.

“As a practical, safe and compact way of providing optimal and attractive presentation, the double-action benefit of the product is that it is cost-efficient while simultaneously boosting sales and profitability and reducing inventories.”

The company’s main clients include the Horeca (hotels, restaurants and catering) sector, international franchises and coffee shops.

Al Bayader was founded in 1991 in Dubai and later expanded into Sharjah. The first branch office was established in Abu Dhabi in 2001 while the Al Ain, Ras Al Khaimah and Fujairah branches came on line in 2002. The company set up a Qatar presence in 2003, followed by Oman in 2005 and Syria in 2010.

“Our customers, for the most part, have realised they too need to adapt in order to cope with the pressure on their cash flows. And while they have adapted their way of doing business with us, in the end most do appreciate the benefit of having a rock solid partner, one who will help their business grow and develop through end-to-end food service solutions” observed Haddad.

Containers convenient for packing a variety of food items

Peaks and troughs
“At Al Bayader we have always been aware there will be peaks and troughs in business. That’s why we have striven to build a business on strong foundations.”

One of the troughs the packaging industry faced was the economic downturn. “We witnessed a drying up of liquidity as shoppers were forced to limit their spending while at the same time consumer confidence was shaken by the collapse of retail giants. This, in large part, is why the market dynamics for the F&B industry have changed significantly. The global downturn has had a major impact on the food packaging industry internationally. However, from the market grapevine, we do know that regional spending has not dropped in a big way, which means that consumers in the Middle East, especially the GCC area, seem to have somewhat deeper pockets than the rest of their counterparts globally.

“That said there is strong indication that consumers have become more discerning. This has occurred against the backdrop of retailers rationalising the supply base by optimising their supply chain structure and cutting costs in more areas of the business. There is no time where creativity was in demand more than now. We still believe that with creative solutions packaging will always keep growing in the region, not with two-digit growth but growth all the same.”

Haddad commented that market trends were constantly evolving and that the food and beverage industry was one of the most dynamic of them all. “The current trend is clear plastic containers or cups as many studies have shown there is a very positive impact on food sales when food is kept in a transparent container,” he said.

Wrapping up the achievements of the company, its expansion plans and market ups and downs, Haddad said: “While our trajectory this year might not be as steep as a few years ago, I am confident we will weather the storm better than most and we look forward to new challenges to come.”