The flavour factor

THE DAIRY industry in the GCC has seen new developments over the past few years, growing in tandem with changing lifestyles. The Kingdom of Saudi Arabia is the largest producer of milk and dairy products, followed by the UAE and Oman. KSA produces 50% of the milk products it consumes, whilst UAE fulfills only 25% of its local demand. Owing to limited production capability, Qatar, Oman, Kuwait and Bahrain produce less than 20% of their local dairy demand.

“We expect the entire GCC dairy market to grow at a healthy pace over the coming years. Compared to high dairy consuming countries in the West, the per capita consumption of dairy products in GCC countries is still much lower, which indicates that there is significant room for further growth,” said Mahboob Murshed, managing director at Alpen Capital (ME) Limited. “In 2012, the total UAE consumption of liquid milk reached approximately 210 million litres. Short-life milk represented 60% of total consumption.”
Milk consumption patterns in the UAE have changed considerably in the past 20 years as consumers are becoming more sophisticated in using different formats. Milk may have a natural taste and texture of its own, but in the region, it has always been enjoyed with some flavour. Powdered extracts, for instance, have always been available in limited flavours for the local market. But now manufacturers are cashing in on the potential this dairy segment holds, and several new flavoured milk products in different sizes, are appearing on retail shelves.

Fortified and flavoured
“Overall demand for flavoured milk is continuously increasing, especially amongst the younger generation, teenagers and kids,” said Abyson Jacob, deputy sales & marketing manager, Al Rawabi Dairy Company. “ In the year-to-date, growth is 10% in the flavoured milk section. But we are planning to launch functional products with benefits pertinent to healthy heart and brain, healthy ageing, etc.”

A producer of plain and flavoured milk, Al Rawabi Dairy was the first to pack fresh milk in plastic bottles in the UAE. The company offers fresh full cream, double cream, low-fat milk, skimmed and flavoured milk, as well as laban, yoghurt (Robivia), and a range of functional health drinks (B-Activ). Its milk is essentially high in E1, B6, B2, B1 and D3.

“We produce chocolate milk, strawberry milk, mango-lychee milk and toffee milk enriched with vitamins K2 &D3,” said Mr Jacob. Flavoured milk in 200 ml and 500 ml sizes are highly in demand in the region, he said.
The company’s latest, the Mango Lychee and Toffee Milk are enriched with vitamins K2 & D3 for bone health. Amongst its flavoured milk products, chocolate and strawberry flavours are selling well in the home market. However, mango is showing much potential to become one of the favourites as well.

“We are unique in the market, as we are the only company using compounds which are prepared from real fruits,” said Mr Jacob. Al Rawabi’s strawberry milk consists of a natural colour and natural strawberry compound with ingredients imported from Germany. The chocolate and cocoa powder for chocolate drinks are also sourced from Germany, whilst the Mango-Lychee milk contain real mango puree and lychee juice concentrate imported from the Netherlands. Ingredients for Toffee Milk are from Switzerland.

Al Rawabi won the best new health food or beverage ingredient award at Gulfood 2013 for its NutreeBoost drink, which is a functional laban enriched with oats, vitamins and minerals. Available in mango, strawberry and orange, NutreeBMujer