Beverages producer Aujan Industries Company expects to maintain double-digit growth this year after achieving in 2008 its much-publicised ‘555’ goal.
That milestone referred to the target of $500 million in revenues across five brands in five years.
The goal was reached a year earlier, signaling it continues to be a force in the Middle East’s juices and carbonated drinks market. Aujan, a closed joint stock firm owned by the Aujan family and with Sheikh Adel A Aujan as chairman, more than doubled its revenues in the four years it took to reach the milestone.
“The economic slowdown is not affecting our sales; we are very well- established,” said Aujan’s vice president for manufacturing Hussain Abahussain.
The company’s turnover rose 20 per cent in 2006, 17 per cent in 2007 and 24 per cent last year.
Aujan, which also markets imported confectionery products, has its main production facilities in Dammam plus a plant in Dubai that opened in 2005 and two more plants in Iran - a juice filling plant and a can making unit.  The juice factory is in production while the can facility is under commissioning.   The cans will be consumed by the beverage plant, leaving any surplus to be sold in the local market.
Total production has touched 980 million litres annually with the Dammam facilities accounting for 60 per cent of the volume. These volumes are produced in state-of-the-art high-speed lines that can run up to 1,200 cans per minute.
Aujan plans to raise capacity at its Dammam plant by another 50 per cent through an expansion project which is underway and scheduled for completion by the end of this year. The additional lines will help to bolster production of Rani and Vimto. Some new capacity will also be available for Barbican, Aujan’s market-leading malt drink. The company began trading in Vimto in 1928 and started producing it in Dammam in 1980. Over the years, the drink’s popularity climbed substantially, particularly during the holy month of Ramadan.
Rani, Vimto and Barbican constitute the company’s flagship products. These three plus Hani and an energy drink made up the five brands in the 555 initiative.
As well as the beverage plant in Damman, Aujan is a partner in a modern can-making facility whose lines are capable of producing up to 4.3 million cans per day.
Some of the cans emerging from the factory are utilised by Aujan itself and other partners leaving the surplus to be sold in the open market.
The production area occupies 130,000 sq m at Dammam’s Second Industrial City. “It is the only beverage manufacturing facility in the region that produces in every type of packaging available including cans, bottles, PET, pouches and Tetra Pak – all under one roof,” said Abahussain.
Aujan’s direct distribution and sales infrastructure ensures its products reach every corner of Saudi Arabia, other Gulf states , Jordan and Yemen, who together make up 55 per cent of sales, with Saudi Arabia alone accounting for 32 per cent. The remainder of the international markets contributes 45 per cent.
The company has invested much in sprucing up its distribution system by deploying large transportation fleets that are equipped with Polestar global positioning systems.
Aujan has joint ventures and affiliate companies in all GCC states and Middle East markets for facilitating distribution.
More than 300 vehicles, many of them refrigerated, call on more than 27,000 outlets every week, According to the company, its fleets cover all supermarkets and wholesalers and 70 per cent of all retail outlets.
“The entire supply chain is integrated to minimise stock levels and provide accurate production planning. The highly computerised database is uploaded each evening to manage financial interaction between the company, wholesalers and retailers,” the company says.
Abahussain said innovative packaging designs and continuous product development were key to maintaining marketing leadership. The company sources fruit juice concentrates, puree, fruit dices and vitamins in Europe, India, South America and the Far East but 90 per cent of the main packaging material such as bottles, cans and trays come from Saudi Arabia or the wider GCC region.
The rise in the cost of raw materials and packaging was a big challenge, said Abahussain.