Mitsubishi buys stake in Al Islami

JAPANESE firm Mitsubishi Corporation has acquired a minority stake in Al Islami Foods, a leading frozen food company with markets in the UAE and GCC.

The partnership aims to increase new product development in frozen food, as well as help expand Al Islami’s services in the HORECA and foodservice segment in the UAE. It will enable the halal food manufacturer to capitalise on Mitsubishi’s distribution in key markets in Asia.

(Left to right): Yasumasa Kashiwagi, Senior Vice President of Mitsubishi Corporation and Division COO of its Fresh Food Products Division, Saleh Saeed Lootah, Chairman of the Board of Directors, Dubai Cooperative Society, Yutaka Kyoya, Executive Vice President and Group CEO of Living Essentials Group of Mitsubishi Corporation and Marwan Al Garem, CEO of Al Islami Foods (Photo: Al Islami Foods)

Al Islami Foods accounts for the the second largest market share in the frozen meat products in the UAE. Its plans to expand operations particularly in halal where it has proven its expertise. Rightly so since the global halal food industry is forecast to reach USD 1.7 trillion by 2020 with consistent double-digit growth year on year, according to the company. Together with partners like Mitsubishi, it will further its footrprint in the HORECA segment for frozen halal food.

“HORECA is a wide-ranging market.  More recently, Al Islami Foods has focused on the more high-end and bespoke segment consisting of airline catering, five-star hotels and premium QSRs.  This positioning is consistent to our retail brand offering.  In this segment, you need a quality product that meets the exact requirements of the customer.  This requires disciplined new product development and a quality production process that gives the customer confidence                         

to build a long-term partnership with you.  Whilst we have demonstrated success in building our HORECA business over the past two years on these principles, the knowledge and product sharing with Mitsubishi will take our capability to a whole new level,” said Mr. Saleh Saeed Lootah, Chairman of the Board of Directors, Dubai Cooperative Society who commented on the new partnership.

PwC acted as lead advisor to Al Islami Foods on the deal. “We are delighted to contribute in creating this strategic partnership by introducing Mitsubishi through our global  corporate finance network and advising Al Islami Foods Group on all aspects of this landmark  transaction”, said Zubin Chiba, Partner PwC.