Sunday 24 March 2019

Marmum posts solid growth, eyes export markets

Dubai, May 19, 2014

Marmum Dairy Farm, one of the leading dairy brands in the UAE, has achieved a phenomenal growth of over 133 per cent in the turnover over the last 10 years, reinforcing its leadership in the regional dairy and juice industry.

A subsidiary of Dubai Investments, Marmum said its gross revenue recorded a compounded annual growth rate [CAGR] of 9.8 per cent between 2004 and 2013, while gross volumes achieved a corresponding CAGR of 7.9 per cent in the same period.

The company also unveiled plans to double its turnover over the next five years through a three-pronged strategy focused on augmenting its farm capacity, introducing new bottling lines, additional infrastructure and expanding its distribution network, both locally and internationally.

To reinforce this, Marmum – which was acquired by DI in 1996 – also announced a strong focus on export markets. The company has already started distribution of its long-life juices to Iraq and plans to extend its footprint to Oman and Qatar by boosting its fleet and distribution network.

The company, which is marking its 30th anniversary this year, has grown from one product category – milk and today manufactures and supplies popular products such as fresh milk, flavoured milk, fresh yoghurt, fruit yoghurts, fruit juices, Proactiv laban [buttermilk] and laban cool in natural, fenugreek, cumin and cucumber with mint flavours.

To mark the milestone, the company plans to launch new products and flavours, driven by its strong emphasis on quality, innovation and freshness in line with customers’ preferences.

Khalid Bin Kalban, the managing director and CEO of Dubai Investments, said: “Over the last 30 years, Marmum has witnessed amazing growth and today plays an active and influential role in the UAE food and beverage industry. When it started, it was one of the pioneers in the UAE dairy industry, and a flag-bearer of a local company making its mark in the FMCG sector."

"Now, we are planning to expand our footprint in export markets as part of our aggressive growth strategy across the Gulf and Middle East," stated Bin Kalban.

He added: “DI has achieved unprecedented success with its investments over the years. The decision to invest in Marmum was part of our strategy to strengthen our presence across diversified businesses and the impressive returns underline our strategic vision. We are adaptable to market dynamics and keen on developing our facilities and products to emphasize our high quality and innovation.”

As part of its strategy to increase its market share in the UAE, the company plans to add new sales routes for fresh dairy products and four new routes across Dubai, Sharjah and Abu Dhabi for long-life variants.

According to him, the company also aims to enhance its focus on hotels, restaurants, catering and retail channels.

"Marmum also plans to increase the distribution of its dairy products from the existing 3,000 outlets across the UAE to 4,000 outlets, which will boost its sales by 15 per cent and increase its market share by over 10 per cent," he noted.

Marmum’s annual production is 27.5 million litres and the company enjoys a clear market leadership in the fresh yoghurt category, especially among retail and catering channels in the UAE, he added.-TradeArabia News Service

Tags: UAE | export | growth | Marmum |

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