DRC’s Sharjah depot: meeting medium-term requirements

Dubai Refreshments Company (DRC) expects the total overhaul of plant and systems it completed recently, including setting up of a new distribution and logistics depot in Sharjah, will help boost the market share for its carbonated drink Pepsi and bottled water Aquafina.

DRC claims its Pepsi brand commands two thirds of the share of the carbonated drinks segment in the UAE and that its recently launched Aquafina has become the fastest-growing bottled water brand with a No 4 ranking in Dubai and Sharjah.
The UAE’s annual consumption of bottled water is believed to top 300 million litres in a market worth at least $55 million and bottled water accounts for at least 40 per cent of the soft drinks market, even more than carbonated drinks.
The UAE market for bottled water could grow to 400 million litres by the end of 2006.
The Sharjah depot was launched as part of a phased expansion of the company’s network to meet medium-term requirements.
The facility, on which the company spent Dh14 million ($3.8 million), was part of a total overhaul of DRC’s operations that took three years and involved an investment of nearly Dh100 million.
The Sharjah hub has an area of 140,000 sq ft including a 35,000 sq ft warehouse, 40,000 sq ft asphalted loading and parking bay and 4,000 sq ft office block. The facility can take in stocks of more than 120,000 cases of beverages, which will be distributed by up to 60 trucks. The facility also includes a two-storey 20,000 sq ft staff quarters for personnel servicing Sharjah. 
“With the summer on, the Sharjah base will give us a significant edge in bringing us and our products closer to our valued stockists and thereon to our customers at a crucial period when beverage consumption in the UAE reaches new highs,” said DRC general manager Alan Salem.
In addition to Sharjah, the new facility will also serve the Ajman market. The base will handle the full portfolio of Pepsico beverages including Aquafina, the bottled water brand owned by Pepsi and for which Dubai Refreshments Company has the rights for the entire UAE. Another distribution and logistics facility owned by DRC in Ras Al Khaimah services the requirements of the rest of the Northern Emirates.
 “Aquafina water, which comes from Dibba, is put through a multistage filtration process involving reverse osmosis, multistage micron filtration and finally carbon filtration so that all impurities are eliminated from the final product,” said DRC plant manager Wael Nehme.
Nehme headed a team that installed a new can-filling machine that cut raw material costs and increased output as well as production facilities for Aquafina. Production lines for 7Up were also modified. The official was also responsible for enhancing warehousing and logistics operations including the setting up of the Sharjah depot.
“The DRC plant is now rated No 1 in the Gulf among PepsiCo franchised bottlers and distributors,” said a company statement. “It has climbed four places in just three years. Before Nehme’s reorganisation programme was put in place DRC ranked No 5.”