Focus on Innovation

Ahmed Eltigani General Manager, Al Rawabi Dairy Company

IN JUST two decades, remarkable growth at Al Rawabi Dairy has transformed the company into one of the leading producers of milk in the region – retaining more than a third of its domestic market in an increasingly competitive sector. The company's success has been largely driven by its focus on quality, innovation and freshness, and the corporate philosophy of 'Pure freshness quality everyday' is backed by a vertical operation in Al Khawaneej, Dubai. Milk from Holstein and Friesian cows are received in the processing plants in just minutes to give Al Rawabi the unique advantage of delivering farm-fresh dairy products to consumers on a daily basis. Listed amongst the strongest 40 brands in the Arab world by Forbes magazine, Al Rawabi currently serves Dubai, Abu Dhabi, Sharjah, Al Ain, the Northern Emirates, Qatar and Oman, and plans to extend its regional footprint to Bahrain and Kuwait, where it will replicate the business model it successfully runs in the UAE. Speaking to Food Manufacturing Journal – Middle East, Al Rawabi general manager, Dr Ahmed Eltigani, shares the evolution of the company from a local milk supplier to a regional player in the beverage market.

Al Rawabi is a brand known to foster innovation and quality. How has the journey been?

Al Rawabi made a modest start with fresh milk in half-litre and one-litre bottles. We were the first company to introduce plastic bottles in end of 1990 when, based on consumer feedback, we learned they were relatively unhappy with carton milk. There were rising concerns of quality, foul odour and freshness of carton milk, hence Al Rawabi was the pioneer in introducing plastic bottled fresh milk. Consumers started experiencing the difference between plastic and carton milk, hence our sales grew drastically. Gradually, the entire industry followed suit.

As work progressed, we noticed that the concept of family sizes was increasing, as shopping was no longer a daily affair for many families. Hence we introduced the two-litre, and later, the one-gallon formats.

Al Rawabi thrives on innovation. In 1994, we were the first dairy company to introduce 100 per cent natural and fresh orange juice. A year later, we added on mango and other flavours as well. Today, we offer fresh milk – full cream, half-cream, double cream, skimmed and low fat; flavoured milks in chocolate, strawberry and date, yoghurt, laban, cream caramel and milk rice desserts, juices, and a range of health functional drinks under our 'B-Activ' brand. At the end of this year, we aim to introduce natural pomegranate juice in the market.

How has 2010-2011 been for Al Rawabi? What are your prospects for 2012?

The food and beverage industry – fortunately – has been relatively unharmed by the recessionary phase. Consumers can choose to cut down on luxury items or fancy dining, but not daily consumables.

The only issue that we faced was the increase in cost of the ingredients that we purchased, since we only procure 100 per cent natural concentrates from prime suppliers across the world. We had to deal with major cost fluctuations, but we ensured that none of the price hikes were ever transferred to the consumer as we understand that our products are daily consumable items.

2012 seems promising. With passing years, consumer awareness and competition will grow. However, I feel that there is a lot of room in the market place for functional health foods, healthy drinks and innovative packaging. As always, innovation and quality will be the key factors to focus on.

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