Coffee sales in Saudi Arabia will rise by 77 per cent in 2016 thereby overtaking tea sales, said a top official, pointing out that the growth in coffee processing has helped boost the Saudi market for coffees to SR15 billion ($4 billion).

Meanwhile tea sales are projected to rise by only 49 per cent amid the stiff competition of global and local companies, added Khalid Bin Hamad, CEO of Bonnon Coffee, part-owned by the Sedco Holding Group, a local Saudi brand which competes with global coffee chains.

Given the positive outcome reflected in local consumption, these sales are expected to increase especially in the areas targeted for development by the government, he said.

According to the latest statistics issued by the International Coffee Organization (ICO), 1.4 billion cups of coffee are consumed a day worldwide. Coffee consumption has risen sharply in Saudi Arabia whereby 18,000 tonnes worth SR203 million ($54 million) are imported.

The CEO of Sedco Holding Group, Anees Ahmed Moumina, said that the current proliferation of cafes is normal because working conditions have contributed to the widespread use of cafes among of Saudi youths.

“Among the company’s top priorities next year will be continued strategic growth through the installation of more outlets, the introduction of advanced ways of giving prominence to the Bonnon brand and focusing on the company’s core business, particularly in Bonnon coffee shops, which provide a drive-thru sales service,” Moumina added.

Bin Hamad also indicated that the company, under its brand “Bonnon Coffee”, provides its clientele with all varieties of coffee products which suit all palates and mindsets under one commercial roof that values authentic culture.

It also values the palate’s natural transformation in modern times. He stated that “Bonnon Coffee” has devised outlets in a bid to satisfy the growing demand for fast coffee through specialised small sale channels both indoor and outdoor, to reach out faster to the largest number of consumers and at the lowest cost, in order to compete for a very limited segment of prime locations that are suitable for a drive-thru facility.

Its brand coffee shop located in Red Sea Mall was also recently renovated to add a modern touch to its atmosphere and upgrade its menu offering, Bin Hamad said, adding that Bonnon Coffee is planning to come up with new varieties of coffee delicacies.

The company has sought throughout its foundation stage and development to secure its own brand “Genuine Coffee Habitat” by coming up with all modern and genuine coffee products of the highest quality and in consonance with consumer satisfaction, Bin Hamad said.

Bonnon Coffee branches currently stand at 14 in the Western Region. Sales growth at most of Bonnon’s outlets ranged between 12 per cent and 35 per cent in 2013 and operating profits rose to 28 per cent from 6 per cent three years ago.

The company has ambitious plans to expand in both Saudi Arabia and neighbouring markets, Bin Hamad said. – TradeArabia News Service