Almarai Dairy Products Portfolio

Almarai Dairy Products Portfolio

Almarai is the largest vertically integrated dairy manufacturer in the world . It has a market share of 44% of the dairy market in the Gulf Region according to Riyadh-based investment bank NCB Capital . The company's earnings before interest and taxes margin is at least 30% bigger than Paris based Danone SA, and Switzerland's Nestle SA.

Strengths:

1. Large portfolio of Products so more opportunity for cross-selling to customers

2. International collaborations with multinational companies for several products:

a. Joint venture with PepsiCo to manufacture juices; largest manufacturer of fresh juices in the Middle East

b. Collaborated with Mead Johnson Nutrition in opening Infant Nutrition Plant in Saudi Arabia in 2010

3. Comprehensive marketing campaigns and innovative programs: harmonizing packaging graphics with fresh consistent looks to increase brand appeal to the consumers. The company introduced new packaging formats to leverage the "on-the-go" consumption trend among the consumers.

Engro Foods Dairy Products Portfolio

Out of 20 billion liters of tradable milk, 74% is held by the unbranded fresh dairy sector

Strengths:

1. Engro Foods has launched a new fresh milk brand today called ‘Mabrook' which will be sold through milk outlets. This product has been launched as a response to the consumers' preference for loose fresh milk. Engro's value proposition would be its quality together with the affordability .

2. Engro enjoys a 51% market share of the UHT Milk market in Pakistan .

Weaknesses:

1. The company's dairy revenues have declined 4% YoY due a 13% YoY decline in UHT milk volumes in 2013

2. But recently it has