Abushady: product excellence
UAE-based mineral water leader Masafi expects to see a marginal growth in the sales volume this year, a senior official says.
“Given the sales figures of the previous fiscal year and the planned capacity this year, we are looking at a 7 per cent growth in 2005, Masafi Mineral Water LLC general manager Ashraf Abushady said. Sales in 2004 were 140 million litres, up 6.5 per cent over 2003.
Some 27 to 28 per cent of the sales is accounted for by exports. Outside the GCC region, where Masafi has a strong presence, Japan has emerged as the biggest market.
“We successfully entered this difficult market three years ago, and we’re now experiencing double-digit growth there,” remarked Abushady. The brand is also present in other Asian, African and European markets and the official said it had a “notable” presence in Germany and Pakistan.
“Masafi stands as a benchmark for quality, purity and hygiene throughout the Middle East and is now held in high regard in Asian, African and European markets. It has in fact become a generic name for mineral and bottled water in the entire Gulf region,” said the official.
The water is sourced in several rich underground springs in Masafi, in the UAE emirate of Ras Al Khaimah. The company claims it has had market leadership in the GCC area for the past 25 years.
“We believe that the quality of our products has been the primary mover of our constant growth in the regional sector,” observed Abushady. “Masafi has been at the forefront in innovating its products and services. As an example, the company was the first to equip its sales force with the latest hand-held terminals for quicker, efficient and error-free transactions.
“To be able to outdo its competitors and strengthen its market leadership, Masafi is well aware of the need to constantly enhance the excellence of its products through a process of continuous reinvestment and introduction of innovative manufacturing and marketing strategies.”
One of its marketing strategies has been the sponsorship of international sports events such as the Dubai Desert Classic gold tournament and tennis championships in Dubai, which has helped put the spotlight on the Masafi brand and generate interest in it. It has participated in other local and international events including the Gulf Food Exhibition in the UAE, the Dubai Shopping Festival, Foodex in Japan and the Anuga Food Exhibition in Germany. It was a partner of Dubai 2003, which hosted the annual meetings of the board of governors of the World Bank and International Monetary Fund.
Masafi was also the first to introduce bottled water vending machines in the region. As well as its advertising campaigns in the mass media, the company has placed its chillers and vending machines at strategic locations.
Asked to comment on the paradox experienced by overseas customers in receiving drinking water imported from a desert country, Abushady said: “There is no issue of contradiction in this scenario, as long as our valued consumers and partners are satisfied with our products and as long as we conform to international safeguards. In fact this is where our superb production facilities and innovative business and marketing communication strategies have been instrumental in furthering our brand identity.”
Masafi has worked hard to maintain international quality standards and promote confidence in consumers.
“We are proud of the fact that not only have we been conforming to international standards but have also set the benchmark for superior quality in the region,” said Abushady.
The official stressed that international standards covered the safeguarding of the environment as well. The company has been using eco-friendly PET packaging “which ensured zero contamination of water.”
Masafi was the first mineral water company in the region to be awarded the HACCP certification and was recently adjudged Plant Manager of the Year by the International Bottled Water Association.
The company has listed several “salient features” which, it says, reflect the commitment to quality and were instrumental in placing it in a position of market leadership.
These include continual supervision of the quality of preforms and caps. Samples are tested every hour from all the machines and checked against all possible manufacturing defects, it says.
“The company ensures that the mineral content of water is well within the range specified by the United States Environmental Protection Agency (USEPA), the European Union (EU), the World Health Organisation (WHO), the International Bottled Water Association (IBWA) and the Canadian regulatory authorities,” said Abushady.
Experts in Germany, France and United States conduct water analyses to ensure the products conform to US, EEC, German and French standards, the company says.
“The enforcement of stringent rules governing quality aspects in the production process makes the water absolutely safe for consumption. Personnel working in the production area are subjected to random health tests to maintain proper hygiene in this area,” said Abushady.
Masafi water is certified by NSF International, the only globally recognised third-party certifier of bottled water. The company is ISO 9002 certified, denoting it has a fixed quality system followed under all circumstances, and it has technical collaboration with local and international companies for “creating synergy by merging best practices and resources worldwide.”
Abushady said there were no restrictions imposed on the company regarding the amount of water that could be taken from the reservoir. It kept a tab on what it drew to ensure the water table was not adversely affected. “There are no formal agreements with the government in this case. In hindsight, being a law-abiding corporate citizen, there has been no need for the same,” said the official.
The company also has no plans to set up water plants in other markets, said Abushady as “our very brand name comes from the region where our plant is and it is not part of our global strategy.”
But it is in the process of extending product lines at its existing facility and plans to broaden its operation to service expanding global demand. The company is currently earmarking resources to fuel its expansion plans.
The company’s products come in PET bottles of 330 ml, 500 ml, 1 litre, 1.5 litres and 2 litres. It has also introduced the 330 ml normal cap as well as current Sports Cap portable bottles meant for customers on the move. The product portfolio includes mineral water cups in sizes of 250 ml, 200 ml, 125 ml and 100 ml, and soft facial tissues.
Masafi’s bottles and caps are manufactured at the company’s state-of-the-art production facility at Ras Al Khaimah. The PET comes from Taiwan, Thailand and Italy, and the company says its bottle costs are the highest in the regional market because it uses high PET grammage to ensure a soft and smooth touch. The company also stresses it uses food-grade colours.
“One of our main strengths has been the presence of a constantly evolving research and development facility,” said Abushady. “We keep reviewing products and practices and raise our standards periodically. Currently we have 450 Masafi employees wholly dedicated to our mission of continued research and constant development.”
One of the recent innovations related to kids packaging and featured a set of cartoon characters. The company also produced tissue boxes that could fit in car-door pockets and boutique fragrant facial tissues.
The company claims it has been a market leader in the tissue segment for over 10 years. It says its tissues are made from 100 per cent virgin pulp and manufactured with high-speed machinery to achieve very low grammage fine tissue. “This makes Masafi tissues extremely soft yet strong and resistant to wetness, with high absorbent properties. Great care is taken to ensure zero fluorescence is used while processing, making the tissues gentle and safe for the skin,” says the company.
