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Big retail outlets record dip in fresh milk and juice sales

DUBAI — Fresh milk and juices market in the UAE has been hit in the wake of the economic downturn with major retail outlets, including hypermarkets and supermarkets, recording decline in sales, a leading dairy manufacturer said on Thursday.

The decline in fresh milk and fresh juice sale is being felt only at big retails outlets while small outlets and groceries continue to record normal sales volume, said Dr. Ahmed El Tigani Abdul Rahim, General Manager, Al Rawabi Dairy Company.

Speaking at the 20th anniversary celebrations of the Dubai-based company, a pioneer in packaged dairy products and fresh juices in the region, Dr. Ahmed said Al Rawabi Dairy could buck the general sales downturn in 2009 and so far this year. “We have been maintaining an annual 15 per cent sales growth for many years in a row. Last year and in the first quarter of 2010, we maintained the growth trend,” he said.

He said the past 20 years had been a huge success with Al Rawabi emerging as the market leader with a share of 32.8 per cent in the fresh milk and fresh juices segment. The fresh milk market in the UAE is 600,000 litres per day and fresh juices size is estimated at 300,000 litres per day.

To commemorate the 20th anniversary, the dairy major launched a new range of health products including a line of yoghurt products named ‘Robivia’ and an array of health drinks labelled ‘B-Activ.’

“This is the first time that a dairy company in the region is launching functional foods, a new concept to cater to the lifestyle of a growing number of health-conscious customers,” Dr Ahmed said.

The event also saw the unveiling of a newly designed milk bottles and the launch of its water brand ‘Rawa.’ The new bottle design was conceptualised keeping in mind various functional aspects, he said.

“We have always been recognised for our freshness and guaranteed quality. We are certain that the new line of products and the novel packaging that we have introduced will continue to instill our valued position in the homes of our customers,” said Dr Ahmed.

“We believe it is essential to fill the gap in the market place for functional health foods. We look forward to specialising in providing health food products to suit all needs,” he said.

Al Rawabi currently enjoys market leadership in the UAE and Oman. “We plan to further expand our operations in Qatar and hope to gain the leadership position there as well.”

Ninan Mathews, Sales and Marketing Manager of Al Rawabi, said the innovative product range would help the diary company to sustain in leadership. “We have several firsts. We were the first brand to pack fresh milk in plastic bottles, which forced the entire industry to follow suit. We were also the first dairy company to introduce 100 per cent natural juices,” he said.

Mathews said as a market leader in the UAE and Oman, Al Rawabi currently supplies fresh milk produced at farms located in Dubai to over 6,000 outlets in the region.