Dairy and juice producer Al Rabie of Saudi Arabia has announced a $50 million expansion plan for its factories, aiming to increase production by 500 million litres from the present 250 million litres.

Al Rabie expects the expansion strategy, which affirms its commitment to producing the highest-quality products using state-of-the-art technology and machinery, to double market consumption of the company’s products, a statement said.

The investment sustains the momentum of Al Rabie’s strong performance in 2008, which was highlighted by 10 per cent increase in demand for the company’s products and market share 70 per cent in Saudi Arabia and broader Gulf region. The company was also able to penetrate new markets such as Venezuela and the US.

“Al Rabie is committed to expanding its production capabilities by 15 per cent to complement the solid growth we experienced in 2008,” said Monther Al Harthi, general manager, Al Rabie Saudi Foods Co. Ltd. “We shall mention here that the total consumption of dairy & juices for 2008 reached 663 million liters in KSA and 290 million liters in GCC. 

“The strong reputation that our products have built as healthy products, in line with our motto of ‘Al Rabie: Health for All’ will definitely push sales forward in 2009. We shall also be coordinating closely with our partners such as Tetra Pak to further improve our commodities.”

Included in the company’s 2009 agenda is the strengthening of ties with long-term partner Tetra Pak. Al Rabie will coordinate with the Swedish food processing and packaging company in the development of new packaging and bottling technologies and designs.

Al Rabie was the first dairy and juice company in the Middle East and the third internationally to use TetraPak’s Tetra Prisma aseptic packaging.

Founded in 1980, Al Rabie is a pioneering producer of dairy products, juices and ice cream in Saudi Arabia; its core businesses include juices, nectars, still drinks and dairy products.

Al Rabie’s home base, Saudi Arabia, currently accounts for almost 70 per cent of the Gulf’s food and beverages sector.  The company expects to benefit from an expansion program it initiated in 2008 within the year; the initiative focused on improving local and export markets through strategic investments that enhanced distribution, particularly into non-traditional channels. – TradeArabia News Centre