The General Trading & Food Processing Company (Trafco), one of Bahrain’s top players in the food sector, is seeking revenue avenues beyond the sector.

The company has signed a contract with Oman’s Al Bajha Group for distributing industrial cleaning materials and fresheners. Distribution of Al Bahja’s range commenced last September and Trafco general manager V Sundar Rajan commented that “the products are taking off.” Earlier, the Omani firm’s range was handled by another company in the kingdom.
Trafco, a fully Bahraini-owned company, is consolidating its hold on food-related segments.
“The principle we’re following is to invest in both the food-related sector and other industries such as fashions and hospitality,” commented Rajan. “While we’re now focusing on Bahrain, we’re open to Gulf-wide investments should suitable opportunities arise.”
The company also sees opportunities in private labeling. For example, it has created its own brand Dana for Pakistani Basmati rice, oil from Singapore and imported tissue paper. Its Delta brand covers mineral water, Indian rice and sugar. Trafco plans to introduce another brand Metro for mineral water, milk powder, chickpeas and food-processed items such as ketchup. 
Among recent developments was a move to establish convenience stores for fresh products. “The concept of convenience stores is getting popular in Dubai and we expect the same to happen here,” said Rajan. Trafco opened the first of such stores last October in the Budiya area of Bahrain, the next one is to be opened this month at Umm Al Hassan and the third will be established in Riffa with possibly a few more opening during this year. Trafco was established in 1978 with a vision to be the leading food distribution company in Bahrain, since fulfilled. The company has grown into a household brand associated with some of the finest food products in the world.
“As one of the largest food product companies in Bahrain, it maintains its main objective of providing quality food products from all over the world at reasonable prices,” the company states.
Trafco deals in canned, chilled, frozen products, general commodities and fresh fruit and vegetables as well as livestock.
The company has majority stakes in subsidiaries Awal Dairy Company (formerly Bahrain-Danish Dairy Company) (51 per cent) and Food Supply Company (60 per cent). The Kuwait Bahrain Dairy Company is 98 per cent owned by Awal. Among associate companies, it is a major shareholder in Bahrain Water Bottling and Beverage Company (41 per cent) and in Bahrain National Cold Storage Company (Baz). Trafco created Bahrain Fresh Fruits Company (BFFC) jointly with Saudi investors with equal shareholding to facilitate “economic integration among GCC countries.” The company has a 25 per cent stake in Bahrain Livestock Company, the other shareholders being Delmon Poultry, National Imports and Exports and Bahrain’s Ministry of Commerce and Industry, each holding the same stake.
According to Rajan, Trafco caters to as much as 85 per cent of the approximately 2,200 retail stores in Bahrain through direct distribution.
Household brands it supplies include Sadia (chilled and frozen food products), Rainbow (milk and coffee creamer), Honig (pasta, instant soup, breakfast cereals and ketchups), Noor (edible oil from UAE firm Iffco), and Friendship (dairy products, frozen fish, meat products and frozen vegetables). Among other brands it distributes are Findus, Zamil Food, Velocity, Wessex, Best Choice and Fox’s.
Trafco’s retail branches are located in Manama, Muharraq, Riffa, Toobli and Mina Salman. The company has extensive cold and dry storage facilities within the port complex and Sitra Industrial Area.
Trafco also owns the rights for Applebee’s restaurant, which has been successful in reflecting the American casual dining concept. Applebee’s, launched in 2003 and operating at the Bahrain Mall, has grown to become popular with Bahrainis and expatriates alike thanks to its ambience and décor as well as its steaks, Combo Tower, Sampler Tower and buffalo wings.
“Now that tourism is developing in Bahrain, we’re thinking of opening some more of such outlets. Once the Bahrain-Qatar Causeway is completed, it will be significant for tourism and associated industries,” said Rajan.
Consolidation and diversification are seen as important channels for raising revenues and net profits. In 2005, the company reported net profits of BD1.905 million ($5.05 million), against BD1.68 million in the previous year.