Driven by dynamism

 INSPIRED by heritage yet driven by growth and innovation, Al Ain Mineral Water is constantly expanding products and improving the way the company operates. The wholly owned unit of Abu Dhabi-listed conglomerate Agthia Group (PJSC) is one of the leading water and beverage brands in the Emirates. Fasahat Beg, general manager, Consumer Business Division, at Agthia gives us an idea of the operating dynamics that differentiate the company.

How has 2011 been for Al Ain Mineral Water in terms of growth and products?
Al Ain Mineral produces over a million litres of water on a daily basis. Over the years, the company has fared consistently well in terms of volume and market share. In the first quarter of 2011, our sales grew 31 per cent year over year, our water volumes grew by 26 per cent while Capri Sun juice recorded a growth of 32 per cent. Last year, the water and beverage business recorded AED 265 million in net sales compared to AED 74 million in 2006.
For 2012, we are bullish about our organic growth, innovative platforms and export expansion prospects.

What was behind the launch of your vitamin-enhanced water brands? How has the response been?
WOW Vitamin water, a vitamin-enhanced functional water product, was launched in March 2011. The underlying ambition was to develop a new value-added category in the water segment for this region. Vitamin water is an offering that has achieved great success in Northern America and Europe, but is new here. Hence, we have developed specific flavours according to the UAE consumer base. For people who don't like to drink water, we are providing them with an opportunity to have a rehydrating beverage which has great taste, is natural with no sugar or additives, and comes in a low weight PET bottle.

 The initial response has been positive. We have full listings in the modern trade and convenient segment. We are getting regular re-orders and are aiming to introduce two more flavours by end of this year.

How is your range of flavoured waters faring?
We must remain cognizant of the fact that value-added drink categories such as flavoured water and vitamin-enhanced products are very new to the market. Volume growth, therefore, is slow and steady but quite consistent. It is a very natural product and is being developed according to consumer insights. UAE hosts a multicultural community with various demographic groups, each bearing its own specific taste preferences. Hence, all flavours are doing well.

What is your alliance with Capri-Sun and how has it worked for the company?
Capri-Sun is a global brand available in over 163 countries. We initiated a distribution agreement with Capri-Sun in 2008 and built a stand-alone factory in 2009, hosting one of the most sophisticated Capri-Sun lines in the world.
Capri-Sun is the leading kids drink worldwide and No. 3 juice drink in the world. Since our alliance with the brand, we have grown significantly and now hold a 10.4 per cent market share in the still drink segment in the UAE.

How are you doing in the Home/Office Delivery (HOD) segment?
Al Ain Mineral Water is a new entrant in this segment. We acquired Ice Crystal, a premier player in the HOD segment, in 2008, and launched our Al Ain 5-gallon format last year. We have increased our market share in Abu Dhabi and Al Ain, as our focus has remained on these markets. However, we plan to expand our footprint in Dubai and Northern Emirates as well.
Al Ain is an exclusive water supplier across various formats to clients such as Etihad Airways, Emirates, the Jumeirah Group, the Emirates Palace Hotel and Atlantis Hotel.

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