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HIGH LIGHTS HIGHLIGHTS IS A PUBLICATION OF TETRA PAK ARABIA 3.2008 GROWING FMCG MARKET IN MIDDLE EAST Inflation is changing consumer spending patterns High Awareness in Gulf Helps Fight OSTEOPOROSIS JEDDAH FACTORY DECLARED SUCCESSFUL IN JIPM FINAL AUDIT

Highlights Newsletter Tetra Pak Arabia Dec 2008

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Page 1: Highlights Newsletter Tetra Pak Arabia Dec 2008

HIGHLIGHTSHIGHLIGHTS IS A PUBLICATION OF TETRA PAK ARABIA 3.2008

GROWING FMCGMARKET INMIDDLE EASTInflation is changing consumer spending patterns

High Awarenessin Gulf Helps Fight OSTEOPOROSIS

JEDDAH FACTORY DECLARED SUCCESSFUL IN JIPM FINAL AUDIT

Page 2: Highlights Newsletter Tetra Pak Arabia Dec 2008

Amar ZahidManaging Director

HIGHLIGHTS 3.2008

CUSTOMER FOCUS 04 Growing FMCG Market in Middle East

Inflation is changing consumer spending patterns.

08 High Awareness in Gulf Helps Fight Osteoporosis

Osteoporosis is a disease that weakens bone and increases risk of bone fracture.

10 Tetra Pak Announces Global Availability of Tetra Gemina Aseptic

World’s first roll-fed gable top shaped package is a hit with consumers.

11 Tetra Lactenso Aseptic Passionate Commitment to the Dairy Industry

With Tetra Lactenso Aseptic, Tetra Pak aims to conquer the dairy ambient market.

12 Jeddah Factory Declared Successful in JIPM Final Audit

The final assessment of the Excellence Award was conducted by the Japan Institute of Plant Maintenance (JIPM).

13 International Products

16 Tetra Pak Supports Dubai Municipality in Clean Up Drive

Tetra Pak Arabia joined forces with other corporate entities to support Dubai Municipality in organising Clean Up the World.

17 Jeddah Factory Gets BRC Food Packaging Certification

On-site audit was conducted by a certification body, Moody International.

18 In Search of Peace!Interview with Kamran Polad

20 Employee Day 2008Tetra Pak Arabia recently organised Employee Day at the Al Nakheel Village Resort in Jeddah.

FEEDBACKWe would appreciate your comments - please e-mail comments [email protected]

Publisher:Martin Fejk, [email protected]:Rauf Hameed, [email protected] Board:Amar Zahid, Niels Hougaard, Martin Fejk, Mohammed Angawi, Rauf Hameed

Dear Readers,

We are pleased to share with you the latest issue of Highlights. It includes the fantastic news about global availability of Tetra Gemina Aseptic (TGA) and the launch of Tetra Lactenso Aseptic solution.

You will read about the introduction of a versatile solution: the Tetra Pak A3 Flex machine platform. As the name implies, flexibility is the key word for this solution.

In this issue of Highlights, you will read about the Yemen Milk Carnival, which was held in partnership with our customers.

The event gave our customers a great opportunity to raise awareness about the importance of drinking milk and the 6-layer protection that our packages provide.

It takes us back to one of our core values - Customer Focus. It reminds us that we must add value to the business of our customers and inspire them because we recognise that they come to us by choice.

04

08 16

24

World’s first roll-fed gable top-shaped package is a hit with consumers.

2 HIGHLIGHTS 3.2008 HIGHLIGHTS 3.2008 3

Page 3: Highlights Newsletter Tetra Pak Arabia Dec 2008

igh inflation across the globe led primarily by a market slow down in the USA and

fueled by record all time high oil prices during 2008 has affected consumer spending patterns. The Gulf region is no exception with Saudi Arabia’s annual inflation rising to 10.6 percent in June 2008 which is the highest in the last 30 years. (Source: Saudi Press Agency citing government data).

Inflation has affected prices in the Saudi FMCG market, this has affected household consumption patterns. To establish how it affects real families, we use information from TNS Worldpanel which surveys a population of people or households (in this case – households) while taking a representative sample and recording

FEATURE

their purchase behaviour on a monthly basis.

Applying the Consumer Panel analysis to Saudi Arabia the outcome was that the FMCG market grew at 6 percent over the last 12 months (amongst 31 categories tracked by TNS Worldpanel). Most of this increase was driven by price increases.

There was an increase in number of trips (Occasions) while the basket size per trip decreased. The increase in number of trips was driven primarily by Baqalas, which increased by 4.8 percent. There was a decrease (about 1 percent) in the number of trips to supermarkets.

There has been higher spends in almost all categories. But in volume terms, the consumption has decreased for some of the key categories such as milk powder, edible oil and laban. Consumers are dropping breakfast cereals from the purchase basket.

REDUCINGCONSUMPTION

4 HIGHLIGHTS 3.2008 HIGHLIGHTS 3.2008 5

H

GROWING FMCGMARKET IN MIDDLE EAST

Page 4: Highlights Newsletter Tetra Pak Arabia Dec 2008

Overall, the average household outlay per trip has declined since spends in Baqala are typically lower than other store types. The price increase was highest amongst food categories where the prices went up by 12 percent. Beverages saw the least price increase. This is likely because beverages such as CSDs and water work on price point-led sales such as SAR 1 or SAR 2 depending on the pack size.

There was also a large - 12 percent - price increase across the dairy based categories. Price increase by category was highest for milk powder and edible oils which rose 28 percent in the past six months. This is followed by dairy categories such as laban, fresh milk, evaporated milk and cheese.

These increases have had an impact on consumer purchases. The following table gives penetration % (percentage of households who purchased the category) and the consumption per category for all key categories which witnessed high price increases.

A closer look at the performance of the milk category provides a good example of the function of the decision tree. The milk category includes three formats – milk powder, fresh milk and UHT milk. Milk powder is the largest milk category and accounts for half of the total value. There was a decrease in volumes over the last six months which was due to switching to other milk categories as well as reduced consumption.

Switching analysis between the three milk formats indicate that milk powder is losing primarily to fresh milk followed by UHT milk.

There was double digit price increase for Fresh and UHT milk as well, but consumers are seemingly ready to pay more for these categories vis-à-vis milk powder.

MILK POWDER 95 92 225 254 10.4 9.2

EDIBLE OILS & GHEE 100 100 202 221 35.1 30.0

LABAN LIQUID 98 98 181 188 58.4 51.9

FRESH MILK 82 82 131 154 41.7 42.0

EVAPORATED MILK 63 63 69 76 7.8 7.5

UHT MILK 91 90 127 134 33.6 32.1

DISINFECTANTS 85 84 60 62 10.7 10.1

BISCUITS 94 94 65 72 6.6 6.8

COFFEE CREAMER 50 51 36 40 1.1 1.1

BREAKFAST CEREALS 68 63 45 48 2.3 2.3

FABRIC WASH 98 99 146 150 27.0 26.2

BOUILLON 84 81 41 44 2.0 2.0

SALTY SNACKS 92 91 83 83 3.1 2.9

YOGHURT 98 99 121 118 22.2 21.3

PENETRATION %

JUL -DEC 07

JUL -DEC 07

JUL -DEC 07

JAN -JUN 08

JAN -JUN 08

JAN -JUN 08

AVG SPENDPER BUYER (SR)

AVG VOLUMEPER BUYER (Kg/L)

FEATURE

Courtesy: TNS Middle East & North Africa

With 26 years of regional leadership, TNS is the largest and most experienced research agency in the Middle East.At TNS, their passion is to keep their clients connected with their consumers.

Biscuits, chocolates and potato chips constitute the “snacking” category. Spend on biscuits and chocolates increased considerably over last year. Consumption volume remained same as last year but in the case of potato chips, spends were stagnant over last year and consumers were able to buy a lower quantity of potato chips for the same outlay. This indicates that consumers are more price conscious on potato chips compared with biscuits or chocolates.

In the Edible Oils category, consumers have not reduced their consumption over a one-year period but there has been a movement from higher priced brands to lower priced brands. There is also a shift seen from the higher priced corn oil to lower priced sunflower oil.

For Cheese and Coffee, the pack size has dropped post price increases whereas

the number of packs purchased remained the same.

For Laban, there has been a decrease in consumption post the price increase.

The Consumer Panel measures purchase behavior at the consumer’s end. It is not a tool to estimate market or brand volumes but it is the last and most important link in the marketing chain

It provides coverage of the entire market because all trade channels including semi-wholesale channels are covered. It can be analysed by demographic, psychographic and consumer type segments and data derived from actual purchase behavior and not claimed purchase. The data collected is historical and continuous but the sample is static – same respondents month after month. It is therefore, a single source

6 HIGHLIGHTS 3.2008 HIGHLIGHTS 3.2008 7

PRICE INCREASE

NECESSITY

SUBSTITUTION

PERISHABLE

STOCK UPSPEND MOREBUY LESS

• Skin Care• Household Cleaner• Milk Powder

• Fresh Milk• Vegetables

• Toilet Paper

When there is high inflation, consumers tend to rationalise their spending as follows:

Available

Not AvailableNice

to have

Yes

Yes No

I always use fresh milk, but when the prices increased,I started trying long-life milk”.database and the information can be

analysed by trends or cumulative.

The net outcome of the Consumer Panel system provides detailed answers to the some fundamental questions essential for an accurate and real-time market analysis that will be used as the basis for both tactical and strategic planning:

• Who buys what category or brand, how much, from where, when and how?

• How does this vary across regions and target groups, and over time?

• How do I increase category width and depth? How do I target users and non- users, and heavy and light users - of the category and my brand?

• What are the loyalty levels of consumers to my brands and competitors’ brands?

• How do I target more loyal and less loyal consumers and hence grow my brand?

• In what way do I maximise the impact of my distribution across different trade channels, including semi-wholesale?

• How do I optimise my SKU portfolio in terms of pack sizing?

• How do I increase the impact of my promotions? How can I maximise my reach to competitor brand consumers by cross-banding?

• How is my new brand launch performing? And competitors’? What is the expected performance in the short to medium term?

• What is my source of gain/whom am I losing to?

Page 5: Highlights Newsletter Tetra Pak Arabia Dec 2008

taste, quite a lot of residents seemed to be lactose intolerant.

A lot more women than men in the GCC knew people who have osteoporosis, the study found. Also, a significantly more older people than younger people knew someone with osteoporosis. Looking at each country, Bahrain and Kuwait had a significantly high number of people who knew someone who has osteoporosis, while people in Oman and the UAE did not know that many people with the disease.

The main risk factors for osteoporosis include genetic factors, lack of exercise, lack of calcium and vitamin D, personal history of fracture as an adult, cigarette smoking, excessive alcohol consumption, low body weight, and family history of osteoporosis.

8 HIGHLIGHTS 3.2008 HIGHLIGHTS 3.2008 9

HIGH AWARENESS IN GULF

FIGHT

t 55 years of age, Umm Ali, a Saudi mother, tries every once in a while to down a glass of milk even though

she doesn’t like its taste. The sight amuses her two daughters, in their thirties, until it’s their turn and she gets to laugh.

It’s a ritual that Umm Ali has tried hard not to break since the girls came of age and, over the years, they’ve got accustomed to certain flavours they add to make the milk more palatable.

They go through the ritual not because it’s a tribal custom but because they know it’s quite possible that at some point in their later years, they could be struck by osteoporosis or ‘brittle bone disease.’

In fact, awareness on osteoporosis is pretty high among women in the GCC countries, according to an online survey commissioned by Tetra Pak.

The survey conducted by Maktoob Research showed that significantly more Gulf women and men over 45 years of age (87%) needed no

introduction to the disease. Only in the United Arab Emirates was the awareness rate comparatively low – 2 out of 10 people did not know about the disease.

However, in the GCC, the perception is that osteoporosis is not mainly a “woman’s disease”, the survey found. Nearly half of the respondents – a significantly high number of people from Saudi Arabia, Bahrain and Kuwait – said that men were more likely to be affected than women. In the UAE, though, most respondents agreed that women were more susceptible.

SHORTCUTS

In the study, based on the views of 1,124 respondents in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE, the surveyors found that nearly everyone associated the disease with bones, and women were more often able to associate it with bones than men.

The majority (62%) thought that the major symptom was joint/muscles aches and pains, followed by frequent bone factures (51%).

Older people aged over 45 saw ageing as the primary cause of osteoporosis while the younger

OSTEOPOROSISOsteoporosis is a disease that weakens bone and increases risk of bone fracture. Susceptibility to fracture due to fragile bone. Generally, bone density decreases after age 35, and decreases more rapidly in women after menopause.

Osteoporosis bone fractures are considerably painful, reduce quality of life, and can even cause disability. What’s particularly dangerous about the disease is that there are no symptoms until bone fractures occur. Bones that are affected by osteoporosis can break (fracture with relatively minor injury). The fracture can be either

NO SYMPTOMS

generation blamed it on an unhealthy lifestyle. Opinions were varied in different countries: Saudi respondents attributed it to unhealthy living, in the UAE they said it was due to weakening of bones, and in Bahrain the responses mainly referred to hereditary factors.

And a bit more than six out of 10 of them thought that regular milk consumption would help prevent the disease – significantly more Saudi residents thought so. When asked why they thought milk would help, more than 9 out of 10 cited the role of calcium in preventing osteoporosis.

Aside from that, 39% of them said milk is also good for overall health and wellbeing. A significantly low number of Qatar residents saw it this way though. In the UAE, residents also gave high marks to the effects of Vitamin D in bone development, which also prevents osteoporosis. No significant difference in opinion was found by age and gender.

The study found that the majority of daily milk drinkers in the GCC belong to the 45+ age level. Looking closer at the different countries, daily milk drinkers are sizeable in Oman and lowest in Saudi Arabia. No significant differences were found by gender.

As for the taste, a third of GCC residents dislike milk, though the major concern for people aged over 45 years was their intolerance to lactose. In the UAE, aside from the

The reasons cited for not regularly consuming milk were: Availability, forgetting to drink, laziness, and “depends on appetite”.

in the form of cracking (as in a hip fracture), or collapsing (as in a compression fracture of the vertebrae of the spine). The spine, hips, and wrists are common areas of bone fractures from osteoporosis, although osteoporosis-related fractures can also occur in almost any skeletal bone.

Doctors recommend that consuming a balanced diet with adequate calcium and vitamin D is an effective way to prevent onset of the disease. None of the available treatments for osteoporosis are complete cures and so prevention is the best way to beat the disease.In addition to a balanced diet, prevention measures include lifestyle changes like quitting cigarette smoking, curtailing alcohol intake and exercising regularly. Besides, there are medications that stop bone loss and increase bone strength.

BALANCED DIET

A

Page 6: Highlights Newsletter Tetra Pak Arabia Dec 2008

he result of these combined efforts is a unique capability to offer dairy customers

outstanding, customised aseptic production solutions, which Tetra Pak has branded Tetra Lactenso Aseptic. Each solution is designed for efficiency, product quality and sustainability. Moreover, each is backed by validated

SHORTCUTS

T

SHORTCUTS

The Line Controller 30 automates the interaction among all components along the packaging line.

Tetra Pak’s engineers and specialists have succeeded in making significant technological improvements and advances in the Tetra Therm UHT treatment units, Tetra Alex aseptic homogenizers, Tetra Alsafe aseptic tanks, Tetra Aldose and Tetra FlexDos aseptic dosage equipment.

10 HIGHLIGHTS 3.2008 HIGHLIGHTS 3.2008 11

Tetra Lactenso AsepticPassionate Commitmentto theDairy

Industry

performance guarantees. Tetra Lactenso Aseptic thus stands for the cutting edge in cost-effective UHT dairy solutions, and supports Tetra Pak’s strategy to become the preferred solution provider to gain clear technological leadership in Dairy Ambient. With Tetra Lactenso Aseptic, Tetra Pak aims to conquer the dairy ambient market!

TETRA GEMINA ASEPTIC

Tetra Pak Announces Global Availability of

World’s first roll-fed gable top-shaped package is a hit with consumers.

etra Pak has announced the global availability of Tetra Gemina™ Aseptic, the world’s first roll-fed

gable top shaped package with full aseptic performance for the packaging of both juice and milk-based products.

Two new package sizes have been commercially released in the Tetra Gemina™ Aseptic family: Tetra Gemina™ Aseptic 500 ml Square and Tetra Gemina™ Aseptic 750 ml Square. The new sizes open up opportunities for customers to enter alternative retail channels, and develop new products at attractive price points. The Tetra Gemina™ Aseptic package is

also available in 500 ml, 750 ml and 1000 ml sizes. Tetra Pak has produced more than 400 million Tetra Gemina™ Aseptic packages to date based on the leading Tetra Pak® A3/Flex platform, which has been deployed in Spain, France, Russia, Portugal and Kazakhstan.

Eighty per cent of customer orders for the Tetra Pak® A3/Flex for Tetra Gemina Aseptic include the new QuickChange™ option. QuickChange™ conversion between Tetra Gemina™ Aseptic package sizes enables customers to quickly change package sizes to respond to market preferences, seasonal cycles or

T new promotional opportunities. Independent research in eight markets using a sample base of over 1,500 consumers shows that the Tetra Gemina™ Aseptic package delivers an attractive design, excellent functionality and product differentiation.

The research conducted in 2007 also confirmed that the unique top and distinctive shape combined with easy handling and high pouring performance provides convenience to the end user. With Tetra Gemina™ Aseptic, customers and retailers benefit from strong shelf-impact and the advantages of ambient distribution, at a competitive cost.

Page 7: Highlights Newsletter Tetra Pak Arabia Dec 2008

INTERNATIONAL PRODUCTS

EGYPT

First white cheese in Tetra Classic Aseptic 65 packages in the worldAmericana is the most successful group of companies operating consumer foods, restaurants, and food-related products in the Middle East. Today, the Group has more than 900 restaurants across 12 Arab countries with several international franchises like Kentucky Fried Chicken, Hardee’s, and Pizza Hut and a wide range of consumer foods manufactured and marketed across the region with well-known brands. In 2004, Americana acquired the Egyptian dairy company Green Land Group 10th of Ramadan.

Green Land and Tetra Pak jointly conducted extensive research on the market needs, reaching a staggering realization; the majority of manual labourers, especially those employed in the construction industry, traditionally go to small groceries to buy one Egyptian Pound worth of loose white cheese, which they would consume with a loaf of bread as an on-the-go lunch during their break.

The concept of Tasbeera (meaning “snack” in Arabic) was thus born in 2007, a pre-packed alternative in Tetra Classic Aseptic 65 ml packages for the traditional labourers’ lunch/snack. Holding 65 grams, it is exactly the same quantity that could be bought in loose form for one Egyptian pound (USD 0.18). Furthermore, it is available at the same price point.

LATVIA

GOOD MARKET ACCEPTANCE FOR FIRST READY-TO-DRINK MILK SHAKES

he Jeddah factory was declared successful for the final assessment after a daylong audit by auditor

Tokutaro Suzuki and JIPM Coordinator, Tsutomu Nakamura, who spent the whole day with various pillar leaders and teams on the premises of the factory.

“I am pleased to share with you that the Jeddah factory has been declared successful in the final assessment audit for the Total Plant Maintenance (TPM) excellence award”, remarked Karel speaking to the factory employees and

FINALAUDITJIPM

The final assessment of the Excellence Award was conducted by the Japan Institute of Plant Maintenance (JIPM) to certify operational excellence through World Class Manufacturing.

the management team members in a ceremony held in the factory.

In order to mark this milestone achievement, a JIPM journey celebration was held in the evening. The venue was the production hall which was bedecked with colourful balloons, adding a touch of festivity to the ambience. On this occasion, all factory employees were presented laser photo engraved individual crystal trophies as a token of appreciation for their dedication and hard work.

JEDDAH FACTORY DECLARED SUCCESSFUL IN

“I sincerely thank and appreciate everyone’s efforts and hard work in getting us to this point in our quest for WCM excellence”.

T

Karel Mucha Factory Director

Riga Dairy (Rigas Piena Kombinats) is the biggest Latvian dairy producer and market leader in milk, ice creams and other LDP categories. The dairy has strong exports to Russia, Kazakhstan and about 20 other markets and is known for its competence in brand building and promotion.

As the leader in aseptically packed dairy products in Latvia, Riga Dairy launched, in May 2008, a range of milk shakes in Tetra Prisma Aseptic 250 (230 ml) Square packages (with telescopic straw) under the brand “TIO”, its well-known ice cream brand.

The TPA package format was chosen as it was seen as handy, attractive, easy to use on-the-go, as well as offering an opportunity to under-fill, leaving head space for shaking.

The dairy used “Blue Ocean” strategy by inventing a new product segment – ready-to-drink milk shakes - to strengthen its positions in on-the-go snack market.

SHORTCUTS

12 HIGHLIGHTS 3.2008 HIGHLIGHTS 3.2008 13

Page 8: Highlights Newsletter Tetra Pak Arabia Dec 2008

14 HIGHLIGHTS 3.2008 HIGHLIGHTS 3.2008 15

FRANCE

Premium juices, nectars and fruit smoothies in Tetra Gemina Aseptic 1000 ml Square packagesSince the merger with BricFruit in 2000 and Unisource in 2001, Fruité Enterprises (Fruité) has become the leading independent French producer of ambient fruit juice, including organic varieties, as well as nectars. Its main brand is “Fruité”. The company uses a wide variety of packaging formats, including cartons, plastic bottles and glass bottles. Fruité is the biggest JNSD customer of Tetra Pak France and uses Tetra Brik Aseptic 200 ml Square StreamCap, 200 ml Slim, 200 ml Base, 1000 ml Square StreamCap and 1500 ml Slim SlimCap packages.

In a national market, where all ambient juices in one-litre cartons are offered in TBA 1000 Square StreamCap packages, Fruité set out to offer a clear differentiation with the introduction of the Tetra Gemina Aseptic 1000 ml Square package innovation.

The new products are all targeting families and adults and are presented as offering “premium alternatives in the main ambient juice segments, in attractive, smart and innovative packaging, with an easy top quality pouring and extended shelf life”.

INTERNATIONAL PRODUCTS

FINLAND

CHOLESTEROL AND BLOOD-PRESSURE REDUCING ALL-IN-ONE TETRA TOP CARTON SHOT 100 ML PACKAGE

RFM Corporation is one of the biggest diversified food and beverage companies in the Philippines. The company is either the market leader or a significant player in many of the food and beverage categories in the market. One of the core values of the company is to provide every Filipino family great tasting, nutritious, yet affordable ready-to-drink (RTD) milk theycould drink everyday. With this in mind “Selecta Fortified” was born in 2006 to provide proper nutrition to the everyday household at very affordable and reasonable prices.

“Selecta Fortified Filled Milk” is presented as “milky-licious”, having the same nutritional benefits as those of other more expensivemilk brands.

Families from broad C&D social-economic segments, who seek the nutritional benefitsof milk but cannot afford present RTD options, is the main target group. Theybelieve milk is still one of the easiest and best ways to nourish every family member.

PHILIPPINES

Range of affordable, fortified UHT milk for mass consumer market

Valio Oy was the first company in the world to launch Tetra Top Carton Shot 100 ml packages. In early 2004, the company introduced a range of functional dairy drinks in this package format.

Valio chose the re-closable, bottle-like, Tetra Top Carton Shot package as it was a unique packaging concept in the world. Also, traditionally, Valio prefers cartons to plastic as packaging material, basically for environmental reasons. The company alsoappreciated the cost effectiveness of the fibre-based Tetra Top Carton Shot 100 ml package alternative compared to plastic bottles; especially as on-site blowmoulding of plastic bottles was not an option.

The patent is owned by Valio Ltd in Finland and licensed to many dairy companies around the world. Valio launched the first “Valio Gefilus” products in Finland in 1990. Today, there are over 20 different SKUs in the “Valio Gefilus” product range. “Valio Gefilus Max” comes in three flavours; Strawberry/Blueberry, Peach/Passionfruit and Vanilla (unsweetened).

• Orange juice with cells from Spain• Clementine juice from Spain• Clementine/Orange juice with cells from Spain• Grapefruit juice from Israel• Pineapple juice from Costa Rica

• Pineapple/Banana (with apple juice and vitamin C)• Orange/Mango (with vitamin C)• Banana/Strawberry (with apple and lemon juice)• Multifruit (with vitamin C)

DENMARK

ARLA FOODS launches probiotic dairy drink in Tetra Top Carton Shot 100 ml packages

BRAZIL

Sweetened condensed milk market – now 34% in Tetra Brik Aseptic packages

Arla Foods, one of Europe’s largest dairy companies, has launched its first product in Tetra Top Carton Shot 100 ml packages. .“Cultura ProBio” is a sophisticated cultured milk drink containing a blend of three added probiotic cultures;

• Lactobacillus casei F19 (patented by Arla)• Lactobacillus acidophilus LA-5• Bifidobacterium BB-12

The product is madeof cultured organicskimmed milk, organicstrawberries (9.5%),organic sugar (5%),soluble dietary fibre(2.5% inulin fromorganic agave),thickener (pectin) andlactic acid cultures (incl.Streptococcus thermophilus,used to ferment the fresh milk,and the three added probiotic cultures).

The Brazilian market for sweetened condensed milk (SCM) has since 1986 (when Laticínios Mococa launched the first product in Tetra Brik Aseptic packages) gradually been converting from almost exclusively the traditional can to a current situation where Tetra Brik Aseptic carton packages account for 34% (of the volume), or a total of 341 million packs (Est. 2008).

Italac is the leader in TBA packages but Parmalat and Elegé are two other very important brands.

Products in cartons started in the SCM category through TBA 284 B packages containing 395 g (the same quantity as cans = no need

of adjustments in the recipes!), and targeted housewives buying for their families.

SCM is normally used for culinary purposes, as a cooking ingredient when preparing deserts, puddings etc., but also as a pour-over for fruit salads, ice-creams, etc. Consumed directly out of the pack, the kids use it as a snack.

Page 9: Highlights Newsletter Tetra Pak Arabia Dec 2008

Tetra Pak Arabia recently joined

forces with many other corporate

entities to support Dubai Municipality in organising Clean Up the World drive

themed, “start today, save tomorrow”.

he 4-day drive organised by Dubai Municipality took place from 18th to 21st November

and included clean up activities, competitions, workshops and awareness programmes on various environmental topics. Clean up the World is one of the world’s largest volunteer clean-up drives, which attracts more than 40 million volunteers from over 120 countries every year in an attempt to increase public awareness and initiate practices for keeping a safe and healthy environment. One of the main objectives of the campaign is to enhance awareness about waste reduction and recycling while attempting to find lasting solutions to the growing waste problem.

The campaign in Dubai saw more than 20,000 volunteers participating in the event, which aims to create environmental awareness and encourage

Clean Up Drive

LOCAL PRODUCTS

Tetra Pak Supports Dubai Municipality

people to recycle, reuse and reduce waste.

The opening ceremony and launch of the campaign took place recently which was followed by clean-up activities by volunteers from the public and private educational institutions and the general public on forthcoming days.

In 2007, more than 18,000 people represented by different categories of the society, organisations, establishments, government bodies and individuals, participated in the event, removing 4,000 tonnes of waste including debris and abandoned vehicles from various areas.

“We are proud to support this campaign for the second consecutive year as it reflects and reiterates our commitment to society and the environment”, remarked Mohammed Angawi, Environment Manager, Tetra Pak Arabia.

T

in

t is wonderful that we’ve completed the BRC certification in compliance with our commitment to the Group. The certification is the result of continuous efforts of the whole team driving the certification with great passion, i.e., Bobby Johnson, Tony Ferraris, Emad Rizq, Ibrahim Elbesisi, Pravin Prajapati, Frederick Vazquez, George Shanto, Naveed Nawazish and Nasrullah Pathan”, remarked Konstantin Sinikov, Production Manager.

On-site audit was conducted by a certification body, Moody International, represented by Dr. A Hammad, who found a huge improvement in the wake of a pre-assessment audit.

The certification speaks volumes for Tetra Pak’s quality standards and good hygiene practices and will help significantly reduce the number of customer audits and associated management cost.

Gets BRC Food Packaging CertificationJEDDAH FACTORY

The Jeddah Factory has been recommended to be a

recipient of the British Retail Consortium (BRC) food

packaging certification after an extensive and insightful

external audit held recently.

“I

SHORTCUTS

16 HIGHLIGHTS 3.2008 HIGHLIGHTS 3.2008 17

Page 10: Highlights Newsletter Tetra Pak Arabia Dec 2008

Highlights: What historical figure do you most identify with?Kamran Polad (KP): Genghis Khan.

Highlights: Which word or phrase do you think is overused?KP: Crisis.

Highlights: How would you explain your job to a child?KP: I help cows keep their milk fresh for you.

Highlights: What did you have to learn the hard way?KP: Knowledge, skills and experience is nothing without the right attitude.

Highlights: What do you sing or hum when you are alone?KP: La Traviata or Rigoletto – Verdi.

Highlights: If you could choose any profession what would that be?KP: Hospitality industry, a 5-Star resort owner.

Highlights: Is there a book that changed your perspective?KP: Jack London by Martin Eden.

Highlights: What’s the best reward for a job well done?KP: Praise from colleagues.

Highlights: What is your idea of perfect happiness?KP: Good Health, peace, harmony between people and nature.

Highlights: What is your greatest fear?KP: War.

Highlights: Which person do you most admire?KP: My dad.

Highlights: What is the trait that you most deplore in others?KP: Materialism.

Highlights: What is your idea of extravagance?KP: Anything that I can’t afford to do or have at any given time.

Highlights: What do you most like about yourself?KP: Ability to achieve goals I set for myself.

Highlights: Which talent would you most like to have?KP: The ability to make complex calculations without a calculator.

Highlights: What do you most value in friends?KP: Intelligence.

Highlights: Who are your favourite writers or singers?KP: Jules Verne and Isaac Asimov.

Highlights: Who are your heroes or heroines in real life?KP: My dad and my wife.

Highlights: What is that you most dislike?KP: Waiting in queues.

Highlights: What is your motto in life?KP: I will do my best to enjoy myself responsibly during my brief stay on Earth.

Highlights: How and when did you start your career with Tetra Pak?KP: I have never had more than 3 interviews with any company. I had six with Tetra Pak so I was quite intrigued to see the end result. It was only after the 7th interview that I was offered the job.

Highlights:: What do you see when you look in a mirror?KP: Someone who needs to loose some weight.

Highlights: Are you a control freak?KP: Most of the time - not, however sometimes I have to be one, even though I do not enjoy it.

Highlights: Who can you not live without?KP: My daughter.

Highlights: What is the best thing that you like about your job?KP: Working with so many extremely intelligent people from so many different backgrounds. Working in Tetra Pak Arabia is like studying in a world class university.

Highlights: What’s on your bedside table?KP: Usually different books, currently “The Mystery of Capital” by Hernando De Soto.

Highlights: What’s on your CD player?KP: A self-made compilation of my favourite music.

Highlights: What do you enjoy doing in your spare time?KP: Judo, Daido-Juku (Kudo), Brazilian Jiu-Jitsu, mountain bike, roller skating, hiking.

Highlights: What’s the wildest thing you have ever done?KP: If I said it out loud I would probably get arrested.

Highlights: Which is your favourite perfume?KP: I rely on my wife’s opinion on this subject.

Highlights: What’s your zodiac sign?KP: Aquarius.

Highlights: What is your biggest ambition?KP: Get a PhD or DBA degree.

Highlights: How do you relax?KP: Martial arts, cycling or roller skating.

IN SEARCHOF

Kamran Polad joined Tetra Pak 7 years ago and has since then found new challenges to keep him growing and going.

PEACE!

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PROFILE

Page 11: Highlights Newsletter Tetra Pak Arabia Dec 2008

n this occasion, gold bricks were distributed among all employees

who had completed more than 5 years of service with Tetra Pak.

Martin Fejk, Marketing Director, greeted employees while Amar Zahid, Managing Director Tetra Pak Arabia, thanked everyone for a wonderful year. Later Faisal Ghulam, Human Resource Director handed out certificates of appreciation to employees for their dedicated and valuable service.

“In line with our core value, Partnership and Fun, we enjoy working together and celebrating our achievements as one team.

Tetra Pak Arabia recently organised an entertaining Employee Day at the Al Nakheel Village Resort in Jeddah. The day offered all employees and their families an opportunity to mingle and win valuable prizes in exciting draws.

PARTNERSHIP & FUN MARK

EMPLOYEE DAY 2008

Let’s spend a day full of fun as today’s event is a tribute to our commitment”, remarked a cheery Martin Fejk.

“Today’s evening is a special occasion as we are all together at one place, celebrating our success and joy as one big family. I take this opportunity to thank you and your families for a fantastic performance during 2008 and hope that we will continue to grow during the next many years”, remarked Amar Zahid.

Tetra Pak has been organising these events in line with its core value, Partnership and Fun, to celebrate achievement and

to express the joy of working together. The objective of the event was to reward employees and their families for their commitment during 2008. Various exciting activities had been arranged for kids including face-painting, interaction with clowns, jumping in a castle and others.

The guests won many exciting prizes including holiday trips to exotic destinations such as Turkey, Egypt and Dubai. The end of the day featured an alluring lucky draw offering valuable prizes. All employees received a Sony Portable DVD player as a give-away.

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SHORTCUTS

O

Page 12: Highlights Newsletter Tetra Pak Arabia Dec 2008

T

“O

etra Pak Arabia and its dairy customers, Yemen Dairy and NADFOOD recently organised

a fun-filled, daylong Yemen Milk Carnival at the Fun City in Sana’a. The carnival offered many joyful and educational games meant to create a deeper understanding of the benefits of drinking milk.

The carnival, which was attended by over 3000 people, was open to children and families, all of whom participated in a range of engaging activities. Free samples

SHORTCUTS

HELD IN SANA’A Hundreds of children and their families

learn the importance

of milk consumption.

of flavoured and plain long-life milk was distributed and enjoyed by children and parents alike.

“Yemen Milk Carnival gives Tetra Pak a remarkable opportunity to raise awareness about the importance of drinking milk in general and of milk protected in carton packages in particular. We believe it is our responsibility to create awareness on how important healthy and nutritious milk consumption is for children”, said Martin Fejk, Marketing Director, Tetra Pak Arabia.

AWARENESS

The Yemen Milk Carnival is part of Tetra Pak Arabia’s ongoing drive to raise awareness about the health benefits of packaged milk products in the region. Tetra Pak Arabia had earlier organised similar festivities in the UAE, Kuwait, Bahrain and Saudi Arabia.

MILKCARNIVAL

ur engineers and specialists have succeeded

in making significant technological improvements and advances in our UHT treatment units. The result of these combined efforts is a unique capability to offer dairy customers outstanding, customised aseptic production solutions, which we have branded Tetra Lactenso Aseptic”, remarked Lars Ohlsson, Manager Sales Support, Tetra Pak Dairy and Beverage Systems AB.

Lars explained in detail how Tetra Lactenso Aseptic offers

The Portfolio Day was attended by over 10 customers and a similar number of employees at each venue. The objective of the Portfolio Day was to give customers a deeper understanding of the new generation of machines and prepare them for challenging market demands.

Portfolio Ride

SHORTCUTS

ENJOYING THE

cutting-edge cost-effective UHT dairy solutions to become the preferred solution provider and clear technological leadership in ambient dairy.

Later Michel Brikho, Portfolio and Food Category Manager, Tetra Pak Arabia, presented the joyful packaging ride. “The new generation of filling machines and distribution equipment offer higher line efficiency, lower customer operational cost, common platforms reducing stock levels, reduced operator and technicians training, improved functionality and quality control than the existing portfolio”, he added.

We welcome you to the joyful processing and portfolio ride and hope that it will gear you up for the launch of new generation of UHT solutions in your market.

Lars OhlssonManager Sales Support, Tetra Pak Dairy and Beverage Systems AB

Michel BrikhoPortfolio and Food Category Manager

22 HIGHLIGHTS 3.2008 HIGHLIGHTS 3.2008 23

Page 13: Highlights Newsletter Tetra Pak Arabia Dec 2008

he event, filled with educational games and entertainment for children,

included a range of engaging activities such as sketch the fruit, guess the fruit shape competition, fruit carving skills contest, balloon twisting and a variety of interactive games tying fruits to healthy development. Free samples of fruit juices in Tetra Pak cartons were distributed among all participants.

“This event was part of Tetra Pak Arabia’s drive to raise awareness about the health benefits of packaged juices. An overall healthy diet that includes daily fruit consumption is part of the comprehensive approach in making ourselves physically healthy”, remarked Martin Fejk, Marketing Director, Tetra Pak Arabia.

Tetra Pak Arabia and its juice customers recently celebrated Fruit Day at the Red Sea Mall in Jeddah. The objective of the event was to highlight the importance of fruits and to raise awareness of drinking fruit juices, especially those protected in long-life carton packages.

FRUIT DAYCelebrated

in Jeddah

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SHORTCUTS

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Page 14: Highlights Newsletter Tetra Pak Arabia Dec 2008

SHORTCUTS

Media Sahour HELD FOR

CUSTOMERShis reception is an annual affair and is attended by senior executives of

Tetra Pak’s customers.

he Sahour was held in Qasral Sharq and was attended by over 20 journalists. It offered an invaluable opportunity to senior executives of Tetra Pak to nurture

positive relationship with the media.

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HELD IN JEDDAHTT

IFTAR RECEPTION

Tetra Pak Arabia recently hosted its worthy customers to an Iftar reception in Leylaty

Hall 1.A Sahour was recently held for media representatives based in

Jeddah.

Page 15: Highlights Newsletter Tetra Pak Arabia Dec 2008

he A3 Flex is designed to change between 14 different package volumes

and shapes, which makes it easier to adapt to the changes in the market, seasonal cycles and promotional opportunities, hence protecting the customers’ investments.

The new A3 Flex allows two kinds of changes: Quick Change™ and Big Change™. The first is the conversion between any two packages/volumes that share the same bottom cross-section. For example,

FLEXIBILITY IS THE NAME OF THE GAME

T

FLEX:KEY FEATURES:• 14 different package shapes and sizes for Tetra Brik® Aseptic and Tetra Prisma® Aseptic, both in the portion and family ranges.• Increased production capacity from 7,000 family packs/hour to 8,000 family packs/hour for TBA 1-litre packages.• Available with single and multipack options. CAPACITY:• 5,500 to 8,000 packages per hour.

PACKAGES:• Covers packages ranging from 500 ml to 2000 ml.• Range includes 14 different Tetra Brik® Aseptic and Tetra Prisma® Aseptic packages.

Tetra Pak A3 Flex In brief

CUSTOMER BENEFITS:• Reduces operational costs by 5-15% compared to previous versions of this solution.• 10% lower maintenance costs compared to the current solution.• Quick Change™: Conversion between packages with the same bottom format takes a maximum of 20 minutes, while conversion from one type of package to another type takes nine hours – allowing customers to quickly adapt to changes in market preferences, seasonal cycles or new promotional opportunities.

FEATURE

Tetra Pak ArabiaP.O. Box 9454, Jeddah 21413, Kingdom of Saudi ArabiaTel.: +966 2 635 1515 +966 2 636 0030 Fax: +966 2 636 2220www.tetrapak.com

• TBA 500 Base and TBA 1000 Base • TPA 750 Sq and TPA 1000 Sq

The latter is a conversion between any two packages that do not share the same bottom cross-section, in 9 hours. Some shapes require more time.

Customers can now have a flexible machine that can produce up to 14 different TBA and TPA packages from 500 ml to 2000 ml with a speed of 5,500 to 8,000 packages/hour.