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MYTHSAbout young Saudis &implications for brands
Revealing
wins international excellence award
JEDDAH FACTORY
Celebrating the race for zero
HIGHLIGHTSHIGHLIGHTS IS A PUBLICATION OF TETRA PAK ARABIA 1.2009
Amar ZahidManaging Director
HIGHLIGHTS 1.2009
LONG-TERM VIEW
Dear Readers,
The latest issue of Highlights is here with many exciting news and stories. It includes a revealing research featuring common myths about the Saudi youth and what are the implications for brands. The results of this research study give us valuable insights into this age group’s brand preferences and shopping behaviour.
This issue includes the launch of the Tetra Pak Dairy Index, which is an important initiative for Tetra Pak, targeted specifically at customers, retailers and other dairy influencers. Combining expert industry analysis with the company’s own perspective, the Tetra Pak Dairy Index provides an unparalleled insight into the state of today’s dairy sector and the global trends that are shaping its future. We hope that it will support our customers in their business priority of protecting and growing processing and packaging solutions for the dairy sector.
This issue also includes the introduction of a versatile processing solution enabling our customers to get superior and more consistent product quality without compromising food safety – while reducing operating costs and minimising their environmental impact.
We look forward to receiving your valuable feedback to improve the contents of Highlights.
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2 HIGHLIGHTS 1.2009
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04 Revealing myths about young Saudis and implications for brands
Preconceptions about today’s young Saudi consumers are prevalent among most Western marketers and even within the Kingdom.
08 Drink milk, stay healthyEvery day, millions of people around the world consume milk. It’s a basic food staple, which is considered part of a healthy diet for all ages.
10 KDD switches full range of juices & nectars to Tetra Gemina Aseptic
KDDC is today one of the biggest customers of Tetra Pak Arabia for white milk, flavoured milk, creams, JNSD and tomato paste.
12 Tetra Pak reports progress on CO2 reduction
Company shares update at Capitol Hill briefing and joins in “Lights Out” for Earth Hour in sites around the world.
14 Tetra Pak launches Tetra Tebel Casomatic SC 7
The new way to first-rate production of first-choice cheese.
15 International Products
17 Local Product
18 Jeddah factory wins international excellence award
Tetra Pak Arabia’s Jeddah factory has been honoured by the world renowned Japan Institute of Plant Maintenance (JIPM) for the Total Productive Maintenance (TPM).
20 Celebrating the race for zeroFactory Day 2009 celebrated 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
Drink milk,stay healthy.
HIGHLIGHTS 1.2009 3
FEATURE
4 HIGHLIGHTS 1.2009
MYTHSAbout young Saudis and implicationsfor brands
reconceptions about today’s young Saudi consumers are prevalent among most Western marketers and even within the Kingdom. Most are rich kids who are frivolous in their spending habits, some say.
Others believe young Saudi adults have no professional ambitions – particularly women who just want to get married at a young age and immediately have children.
But how true are these and other common myths? And what are the implications for brands in the Kingdom? Global market research agency Synovate surveyed young people between the ages of 18 to 24 in Saudi Arabia as part of a worldwide study across 26 different markets last year. The results shattered many myths and brought to light fascinating insights on this age group’s brand preferences and shopping behaviour.
The stereotype of young Saudis as frivolous consumers is one of the first myths to be debunked, says Jérôme Vadot, Synovate’s Managing Director in Saudi Arabia. “Our research shows that 47% of this age group are ‘careful buyers.’ They would rather wait, watch and get feedback from friends before they take the plunge into buying something. Cost is definitely a constraint for many of them, with 48% admitting to worrying a lot about money – compared to 24% among all markets surveyed.”
“Having said that, Saudi young adults are extremely brand conscious and appear very sure and focused about the brands they use and are associated with,” Vadot adds. Their favourite brands are international – mostly European – with fashion and perfume brands making up the top five.
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Revealing
Having said that, Saudi young adults are extremely brand conscious and appear very sure and focused about the brands they use and are associated with,” Vadot adds. Their favourite brands are international – mostly European – with fashion and perfume brands making up the top five.
HIGHLIGHTS 1.2009 5
1 Dior
2 Chanel
3 Mango
4 Givenchy
5 Zara
6 Nokia
7 Adidas
8 Sony/Playstation
9 Diesel
10 Gucci
11 Body Shop
12 Next
13 Nike
14 Armani
15 Promod
16 Hugo Boss
17 Louis Vuitton
18 Max
19 Burberry
20 Naomi
21 Lancôme
22 Giordano
23 Bershka
24 Guess
25 Toshiba
26 Versace
27 Apple / Mac / i-pod
28 D&G
29 Fendi
30 Toyota
BEST BRANDS SAUDI ARABIA 2008
1 Toyota
- Toshiba
2 Armani
3 Hugo Boss
- Max
4 Sony/Play station
- Giordano
- Guess
5 Chanel
6 Diesel
7 Lancôme
8 Versace
9 D&G
- Fendi
10 Louis Vuitton
11 Givenchy
12 Dior
- Nokia
13 Adidas
- Gucci
14 Body Shop
- Nike
15 Bershka
16 Mango
- Burberry
17 Naomi
18 Promod
19 Zara
20 Apple / Mac / i-pod
21 Next
BRAND ASSOCIATION AMONG BEST BRANDSIN ORDER OF RANKING
a diversion from the global results when it came to soft drinks: “Pepsi and Pepsi products – 7UP and Mirinda – seem the strongest brand of soft drinks, making Saudi Arabia one of the few countries globally where Coca-Cola does not come top in this category.”
Another misconception is that young Saudis are not aware of the latest technology and that social networking is not as popular as it is in the West. “This couldn’t be farther from the truth,” comments Vadot. “Most young adults today are technology savvy and are crazy
6 HIGHLIGHTS 1.2009
When Synovate asked respondents which brands they are most proud to be associated with, electronics and automobiles yielded very high results and so do the relevant brands – particularly Toyota and Toshiba. In the fashion category, young Saudis are most proud to associate themselves with Armani, Hugo Boss and Max.
Translating brand image and association into actual shopping patterns turns up some interesting findings. Retail outlets show equal to little share across the board for the must used chains, while Zara and Mango are the most frequented clothing brands – both mainly by females. Young men did not identify a specific clothing brand that they mostly shop for.
Synovate study also looked into consumption patterns for everyday products, such as snack foods and soft drinks. Both of these categories are, unsurprisingly, very popular with this demographic, with 89% having consumed snacks in the past three months. Chocolates are the most popular snack food for young adults in the Kingdom, with more than a third consuming Galaxy.
Similarly, 87% reported drinking a carbonated beverage or juice. Vadot notes
1 Galaxy
2 Twix
3 Kit Kat
4 Snickers
5 Kinder
6 Bounty
7 Mars
8 Lays
9 Maltesers
10 Ülker
MOST USED SNACK FOOD BRANDSAUDI ARABIA 2008
1 Pepsi
2 7Up
3 Mirinda
4 Coca-Cola
5 Tropicana
6 Al-Rabea
7 Mountain Dew
8 Fayrouz
9 Barbican
10 Caesar juice
MOST USED SOFT DRINKS BRANDSAUDI ARABIA 2008
FEATURE
about owning the latest gizmos and gadgets.” Ninety-six percent own a mobile phone, 93% own or use a computer at home, and 63% own laptops. While their time online is predominantly devoted to using email (95%) or chatting (86%), 34% use social networking sites such as Facebook or YouTube. The latter has taken off in Saudi Arabia, scoring the highest hits among all social networking sites with 53% having visited it in the last 7 days. Clearly cars are an obsession among young males, as much of their viewing material involved automotive stunts and joyriding.
Careers and education have become very important to Saudi young adults, according to Vadot. “This is an indication of the changing times: they realise that without a good education leading to a career, they will not be able to lead a good life.” Among those surveyed, 78% are full- or part-time students.
Attitudes toward careers and education have particularly shifted among women, says Vadot. “More females are working these days than a few years ago and this is continuously increasing. Women are now seeking independence, they value their education and some even pursue higher studies abroad. Many are looking at medicine, teaching and creative or design work as attractive careers. Many industries have opened up separate ladies sections in office buildings for women employees. Men are slowly beginning to accept and get used to women in the work environment.”
HIGHLIGHTS 1.2009 7
1 Zara
2 Mango
3 Max
4 Promod
5 Adidas
6 Next
7 Drosh
8 Bossini
9 Etam
10 City Plaza
MOST USED CLOTHING BRANDSAUDI ARABIA 2008
1 Panda
2 Centerpoint
3 City Max
4 Geant
5 Carrefour
MOST USED RETAIL OUTLETSAUDI ARABIA 2008
The results of Synovate’s Young Adults Revealed survey were drawn from an online panel of 420 respondents across the Kingdom of Saudi Arabia. An online questionnaire was developed specifically for this project.
The sample break included 210 males, 210 females (Age 18-21: 205 Age 22-24: 215).
Courtesy: Synovate Research
Most young adults today are technology savvy and are crazy about owning the latest gizmos and gadgets.”
One myth that does hold true, however, is that young Saudis are not terribly worried over the environment. “Only 40% are concerned about the effects of climate change – a far cry from what we would see elsewhere in the world,” explains Vadot. A majority (58%) think they should be free to use as much water and electricity as they want, while half believe environmental problems
are the government’s responsibility. An encouraging sign, however, is that 46% believe ‘one person can make a difference’ in tackling environmental issues.
Understanding the aspirations and behaviour of young adults is critical for marketers in Saudi Arabia, concludes Vadot. “This is a large and increasingly influential demographic – better educated,
more career-oriented and moreaware of their buying power thanever before. Brands that wantto succeed in the Saudi marketare well-advised to engage withthese young consumers.”
8 HIGHLIGHTS 1.2009
espite the global economic crisis, consumption of liquid dairy products is expected to continue to grow steadily over
the next three years — with emerging markets driving much of this growth. At the same time, the current financial turmoil is likely to encourage many consumers to economise when buying milk, for example, by purchasing budget brands and private label products.
Over the past four years, global consumption of liquid dairy products has reached a compound annual growth rate of 2.4% — with consumption hitting an all-time high of 258 billion litres in 2008. Leading much of this growth are highly populated emerging markets such as India and China, where continued population growth and rising incomes, along with new dietary trends and preferences are fostering awareness, demand for and consumption of dairy products.
As milk consumption in these markets
grows, concerns around health and safety and the desire for increased convenience are fuelling a trend toward packaged milk — particularly long-life packaged milk, which does not require refrigeration or preservatives. For example, milk consumption in India has risen by a compound annual growth rate of 2.7% over the past four years, with packed milk growing by a compound annual
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growth rate of 4.7% over the same period. Worldwide consumption of packaged liquid dairy products is growing faster than the entire liquid dairy category and is expected to reach approximately 72% of total global consumption by 2012.
Of course, the dairy industry will not be immune from the global financial crisis. Recession in many countries, less access
stay healthyEvery day, millions of people around the
world consume milk. It’s a basic food staple, which is considered part of a healthy diet for all ages. It’s also a commodity that continues
to experience steady growth worldwide, even with a recent history of price volatility
and the current economic slowdown.
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.
GROWTH FORECAST AT 2.2% ANNUALLY UNTIL 2012
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.
D
DRINK MILK,
growth rate globally over the past four years. This growth comes despite a sharp spike in prices over the past two years, which saw milk prices increase by up to 75% in some markets before stabilising in late 2008.
However, this does not mean the industry will not be impacted. According to current consumer trends, global consumers are increasingly likely to economise — as evidenced by the fact that milk sold through discounters and other non-grocery retailers, such as convenience stores, has grown by 9.6% globally over the last three years. While consumers may not stop buying milk, they are more and more likely to go for value offers when feeling pressure on their budgets. For example, they will increasingly buy budget or private label brands when available. In Western Europe alone, sales of private label products now represent nearly 36% of total white milk sales.
Anxious consumers around the world are helping to change the way food, and particularly milk, is consumed in their markets. More specifically, they are helping to drive conversion to packed milk, mainly UHT milk. According to Tetra Pak data, worldwide consumption of UHT milk has increased from 18.7% of total liquid dairy products sold in
HIGHLIGHTS 1.2009 9
to credit and volatility in the currency and commodity markets will squeeze profit margins for many of us. That’s why we at Tetra Pak are more focused than ever on our strategy of designing cost-effective processing and packaging systems and continuously seeking ways to reduce our customers’ overall operating costs.
When including soy milk and other dairy alternatives, such as rice, nut and seed-based milks, this figure increases to 280 billion litres. Consumption in 2008 was up more than four billion litres or 1.6% from 2007— marking a 2.4% compound annual
2004 to 23% in 2008 — a compound annual growth rate of 7.9%.
This change in the way milk is processed and consumed in developing markets has been driven by increased consumer awareness of food safety. For example, up until the last few years, consumers in some developing markets believed that the best milk came straight from the cow. This perception is changing quickly due to consumer education campaigns sponsored by governments and dairy producers, well publicised food scares around the world, growing literacy rates and increasing health awareness in these markets.
About the Tetra Pak Dairy IndexThe Tetra Pak Dairy Index is a biannual report, which is designed to help dairy producers identify new opportunities for growth while offering all industry watchers information on the latest facts, figures and trends related to the global dairy industry.
Despite the global economic crisis, Tetra Pak forecasts that worldwide dairy consumption will continue to grow at a compound annual growth rate of 2.2% until 2012.
The data contained in this report is collected from a variety of Tetra Pak and external sources and analysed by Tetra Pak’s dairy market experts. The Tetra Pak Dairy Index also includes Tetra Pak’s analysis of the industry based on its day-to-day work with dairy customers, governments, non-governmental organisations and local communities around the world to support every aspect of the dairy value chain.
For full text of the report please go to:www.tetrapak.com/dairyindex
KDDC is today one of the biggest customers of Tetra Pak Arabia for white milk, flavoured milk, creams, JNSD and tomato paste and the company uses Tetra Brik Aseptic, Tetra Top, Tetra Classic and, since recently, Tetra Gemina Aseptic packaging systems.
KDD switches full range of juices and nectars to Tetra Gemina Aseptic
10 HIGHLIGHTS 1.2009
T he Kuwait Danish Dairy Company (KDDC) is a leading manufacturer and distributor of food and beverage products
in the Arabian Gulf. The company is the market leader in Kuwait in dairy products, ice cream, fruit juices and fruit drinks, as well as tomato paste. It’s the longest established, most diversified and one of the most innovative dairies in the region, as well as one of the top three dairy companies in the region.
The KDDC range of pure fruit juices, nectars, and fruit drinks, in TBA 200 S, 250 B and 1000 Slim packages, including 22 flavours, is undoubtedly the largest selection of fruit beverages any company offers in the local market and the “KDD” umbrella branded products are seen as “First Choice Refreshments” served to a guest.
The range is positioned as “natural products” displayed in chillers to retain optimal quality. The company’s slogan remains – “The fruit, the whole fruit, and nothing but the fruit.”
However, in a market with strong, increasing, competition from PET, KDDC wanted to introduce “novelty and improved package functionality” to regain market share.
By improving package functionality and image, as well as securing wider distribution and impressive display in chillers, the company aims to capture better mind share of consumers of its juices and nectars.
KDDC presents the advantages of the new package format as;• New image same juice – better pack!• Easy to open – simply twist cap!
• Easy to pour – no drips or splashes!• Easy to grip• Easy to store
In early 2009, the company switched 6 of its juices, nectar and fruit drink varieties from TBA 1000 Slim packages to Tetra Gemina Aseptic 1000 ml Square with StreamCap;
• The initial flavours in the market are: Mango, Fruit Cocktail, Pineapple, Orange, Guava and Apple.
The launch was supported by an in-store BTL campaign in Kuwait during the first quarter of 2009, whereas an ATL campaign will be rolled out after the company reaches an optimum regional distribution.
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HIGHLIGHTS 1.2009 11
T
T
Tetra Pak shares update at Capitol Hill briefing and
joined “Lights Out” for Earth Hour in sites around the
world.
How Tetra Pak has promised to fight climate change
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Tetra Pak reports progress on
12 HIGHLIGHTS 1.2009
etra Pak’s Climate Savers commitment is to reduce its absolute CO2 emissions to 10% below 2005 levels by 2010,
through improved energy efficiency and an increase in the proportion of renewable energy.
The Tetra Pak achievement
• Since 2005, when the Climate Savers goal was set, Tetra Pak has made exceptional progress. In the first year (2006) as a Climate Savers partner,
etra Pak recently joined 21 partner companies who make up the World Wildlife Fund’s (WWF) Climate Savers
programme to reaffirm the company’s commitment to achieving its five-year carbon reduction goals and to help mobilize business action around climate change mitigation policies.
At a media briefing on Capitol Hill, held in conjunction with WWF’s 2009 Climate Savers Summit in Washington, D.C., Tetra Pak presented a progress
report against its goal to reduce carbon emissions 10 percent by 2010 in absolute terms—a voluntary goal accepted by WWF in 2006 when Tetra Pak was invited to become a Climate Savers partner.
Among the results shared, Tetra Pak noted a 12% reduction of carbon emissions compared to 2005 despite double digit production growth during the same period. In 2008 energy use was a similar level as in 2002, despite a 32% increase in packaging production over the same period.
Cutting the impact of food processing and packaging
emissions fell 4%, while the production of packaging material grew by 5%.
• By 2008 Tetra Pak had achieved a 12% reduction compared to 2005 (from 397 Ktons CO2e [CO2 equivalent] in 2005 to 349 Ktons CO2e in 2008). Tetra Pak took the opportunity of the green electricity market becoming more favorable, and expanded the use of renewable electricity earlier than anticipated.
• In 2009 Tetra Pak reported that: “Energy use in 2008 was at a similar
CO2 REDUCTION
level as in 2002, despite an increase in packaging production of 32% over the same period”.
• The improved energy efficiency achieved per produced standard package (common indicator) was 25% in 2008, as compared to 2002.
• Even before setting its Climate Savers goal Tetra Pak had achieved a 10% energy efficiency improvement between 2002 and 2005.
Nils presenting a souvenir to the CEO of Al-Rabie Mr. Monther Al-Harthi.
Nils standing with the Riyadh office team during his visit.
Nils Björkman Executive Vice President Commercial Operations and Cluster Organisation Tetra Pak recently visited Tetra Pak Arabia. During his visit, he inaugurated the newly built Tetra Pak office in Riyadh and called on the CEO of Al-Rabie Saudi Foods Co. Ltd., Mr. Monther Al-Harthi.
to regionCommitment
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HIGHLIGHTS 1.2009 13
TETRA TEBEL CASOMATIC SC 7
22.5 hours of continuous production, ensuring whey quality suitable for high-end whey processing applications. • 30 percent improvement in weight accuracy. The weight accuracy has been increased to a variation coefficient even below 0.7, resulting in less cheese cut-off and overweight given away at cheese packaging. • Reduced product waste by around 95 percent.• Decreasing water consumption by around 65 percent.
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14 HIGHLIGHTS 1.2009
etra Pak has recently launched a new version of Tetra Tebel Casomatic which enables cheese producers to achieve superior
and more consistent product quality without compromising food safety – while reducing operating costs and minimising their environmental impact.
Better whey and cheese quality Tetra Tebel Casomatic SC 7 helps the producers in the semi-hard cheese segment make superior quality whey and cheese with better accuracy when it comes to product properties like moisture content and weight. To further secure product quality Tetra Tebel Casomatic SC 7 comes with pre-defined and validated performance guarantees on hygienic conditions.
Tetra Tebel Casomatic SC 7 is setting new performance standards for production of semi-hard cheese. These include:
Downtime cut by more than 40 percent – CIP-downtime is reduced to only 1.5 hours for a 4 column unit, allowing longer production runs. Due to its new machine design CIP cycles are shorter and less energy and chemicals are wasted.
• Increased hygienic conditions of wheyTetra Pak can now guarantee coliform counts below 10 cfu/gram (colony forming units) and high thermo-resistant bacteria counts below 1000 cfu/ml even after
T
The new way to first-rate production of first-choice cheese
Tetra Pak launches
INTERNATIONAL PRODUCTS
SWEDEN
Continued growth for world’s first brand in Tetra Top Carton Bottle packages– “Yoggi” fruit yoghurtsThe Swedish yoghurt market is, to a large extent, driven by “health” and has grown continuously for many years with only a few exceptions. In 2003, Arla Foods set out to revitalise the fruit yoghurt market by introducing new product varieties in line with recent consumer demands – reduced sugar varieties, as well as products without added sugar – and also by upgrading to a new package type, significantly more modern and consumer friendly than the gable top package (without screw cap). The “Yoggi” range does not contain any gelatine, but is thickened by the addition of food starch and pectin.
Arla Foods switched to the Tetra Top Carton Bottle package alternative for several reasons; it was seen as a more modern package, without being extreme in shape/looks, its unique shape helped to profile the “Yoggi” range vs. competitors, it is very easy to open and can be fully reclosed, it is easy to pour
from and leaves no product residues at the top, it can be stored lying down in the fridge after opened.
HIGHLIGHTS 1.2009 15
FRANCE
Strong market acceptance for spring water-based fruit drinks in TWA 200 SOrangina Schweppes is the leading producer of premium fruit drinks in France, offering popular brands of carbonated drinks, such as “Orangina Schweppes” and “Canada Dry”, fruit juices (“Pampryl”) and fruit drinks, including “Oasis” and “Banga”
As a leader in the non-carbonated fruit drinks market, the company wanted to further strengthen its “Oasis” brand, available in litre-size PET bottles and 300 ml cans etc. The result was the April 2008 introduction of “P’tit Oasis” (“Little Oasis”) in TWA 200 S packages, a version targeted especially at the younger children (via their parents).
USA
Nutritional drinks with probiotic straw for childrenIn order to further expand its presence at retail level through its “Boost” brand, the next step for the company was to launch a product for children (1-13 years old) that would provide complete nutrition and “boost” their immune system.
In September 2008, “Kid Essentials” was launched under the “Boost” umbrella in Tetra Prisma Aseptic 250 (244 ml) Square packages; a range of “nutritionally complete drinks” with the added benefit of “immune protection” via a supply of probiotic bacteria provided inside the unique drinking straw (licensed from BioGaia). Consumer awareness of “probiotics” had been growing significantly in the US over the last two year.
The product is offered in chocolate, vanilla and strawberry flavours and, as an example, the vanilla variety is made with these principal ingredients; water, sugar, milk protein,
vegetable oil, whey protein concentrate, calcium salt, mineral and vitamins.
Each package provides 25 vitamins and minerals (incl. a generous amount of antioxidants - Vitamin C, E & Selenium) and 7 grams of protein. The calcium content is the same as in milk (120 mg/100 ml); however the “Kid Essential” products are lactose-free.
16 HIGHLIGHTS 1.2009
INTERNATIONAL PRODUCTS
SPAIN
UHT-treated sheep milk – a technical breakthrough and world premièreIn mid-2007, Leche Gaza introduced the first UHT-sheep milk in the industry – worldwide - and in 2008 the company received an award from the retailer Carrefour as the Most Innovative Company in Castilla y León region in Spain.
Gaza” is semi-skimmed sheep milk (1.6% fat) and comes in Tetra Brik Aseptic 1000 ml Slim packages with SlimCap.
As well as being the first in the industry, the new UHT sheep milk fills a market
niche – shelf stable sheep milk - previously untapped.
Obviously, this is a narrow niche in the overall dairy products market, but the fact remains that the new UHT sheep milk from Leche Gaza is a technical innovation and is welcomed by those families unable (or unwilling) to use cow’s milk in their diets.
HIGHLIGHTS 1.2009 17
KAZAKHSTAN
Ice tea in Tetra Gemina Aseptic 1000 ml Square packages fromCoca-Cola bottler
ARABIA
Masafi unveils unique juice blends
Coca-Cola started co-packing in Tetra Pak packages in Kazakhstan with a local producer in 2005. In 2007, Coca-Cola Almaty Bottlers installed four Tetra Pak A3 Flex machines and, in the beginning of 2008, the company started commercial production of fruit juices and nectars in Tetra Gemina Aseptic and Tetra Prisma Aseptic packages.
In July 2008, Coca-Cola launched “Nestea” ice tea in TGA 1000 Sq packages.
Coca-Cola Almaty Bottlers was one of the first, and so far the only company in Kazakhstan, to start production of JNSD products in the new TGA package. The launch helped them to innovate and achieve differentiation on the shelf.
Tetra Pak Arabia’s customer, Masafi Juice, which is one of the leading juice brands in the region, has launched innovative proprietary flavour blends catering to different consumer needs. The all-new Masafi Mango and a blend of Pomegranate, Raspberry, Cranberry and Acai flavours offer the ‘rejuvenating effect’ while the ‘vitalising effect’ is achieved by Masafi Apple and a blend of Peach, Passion Fruit, Grape and Apricot flavours.
The ‘Energy Boost’, the third need-state for consumers, is achieved by Masafi Orange and a combination of Guava, Lychee & Pear flavours. The new flavours are available in innovative Tetra Prisma™ Aseptic 1000ml with StreamCap and a special 200ml packaging for kids.
“The launch of the new Masafi juice blends is a major step in our growth strategy, aimed at delivering premium quality products and addressing the needs of our consumers. Masafi has always taken its consumer insights
INTERNATIONAL PRODUCTS
LOCAL PRODUCT
seriously, and in line with the customer preferences, we offer the carefully mixed and matched 100% pure fruit juice blends that would meet all our consumers’ predominant need-states,” remarked Ashraf Abushady, Chief Executive Officer of Masafi. Masafi juice, among the top five juice brands in the UAE within two years
of its launch, is currently outpacing the category growth in the country registering a whopping 22.5% year-on-year increase. The company enjoys a total market share of 4.1% among all brands. Over 45% of Masafi Juice production is exported, which is indicative of the consumer trust in the equity of the brand.
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18 HIGHLIGHTS 1.2009
PrISP to bring value to customers
WINS INTERNATIONAL EXCELLENCE AWARD
In March this year, Tetra Pak Arabia successfully completed the Process Alignment and Information System Platform (PrISP). This initiative involves the supply
chain of packaging material, capital equipment, spare parts, technical sales and service. The business information system, which supports this programme and all its activities, is based on the world-renowned SAP R3 system.
PrISP will further streamline Tetra Pak’s resources across functional borders to focus on processes so as to bring to Tetra Pak’s
customers increased efficiency and consistency in daily operations.
This initiative allows us to enhance the quality and service of everything Tetra Pak does including faster response to the orders of customers, enhancing service level, potential further reduction in lead time, supply chain integration and e-Business.
I
etra Pak Arabia’s Jeddah factory has been honoured by the world renowned Japan Institute of Plant Maintenance
(JIPM) for the Total Productive Maintenance (TPM) excellence award in 2008. Globally Tetra Pak has received six more awards for manufacturing and consistency excellence for its other international plants in Italy, UK, Ukraine, India, Serbia and China.
The TPM award recognises plants which fulfil the demanding requirements for continuous programme improvement entailing reduced rates of machinery breakdowns, accidents and defects.
“We are proud to receive this remarkable recognition from the JIPM. Our converting factory is ranked as one of the top 10 factories in the Tetra Pak Group and this award bears out our overwhelming commitment to endless pursuit of quality and continuous
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Jeddah factory
improvement,” remarked Amar Zahid, Managing Director, Tetra Pak Arabia. The JIPM awards demonstrate recognition of adhering to best-in-class practices and commitment to continuous improvement as a world class manufacturer in terms of
controlling and improving the quality, environmental impacts and costs of production. Tetra Pak holds a record number of JIPM awards globally with 25 plants receiving a total of 44 JIPM awards, many of them winning several times.
he 1st grade students were given an introduction to the factory operations by Ahmed Elgohary, World Class
Manufacturing Analyst. Mohammed Angawi, Environment Manager and Hajer Ashmeel, Marketing Executive Tetra Pak Arabia informed the children about the history and beverage carton recycling programme of Tetra Pak Arabia.
“The factory tour has been running for several years and provides children an opportunity to witness the production of beverage cartons and learn how the packaging material protects the delicious taste and nutritional value of their favourite products. Children thoroughly enjoy the tour and we look forward to hosting more students in the future,” said Martin Fejk, Marketing Director, Tetra Pak Arabia.
Over 150 school children and 8 teachers of the Al Bayan International School recently visited the award-winning Jeddah converting factory.
Ahmed explained the beverage carton converting process and described safety precautions for the visit. Children were remarkably engaged by an animated movie illustrating carton recycling process. The children took a round of the converting factory, keenly observing all stages of the converting process.
The tour was followed by a question and answer session. The children also showed interest in witnessing the recycling of production waste and wanted to know more about recycling of post-consumer cartons.
The objective of these visits is not only to build relationship with local communities but also to educate them about the technologically advanced, industrial operations of Tetra Pak in Jeddah.
“Thank you for inviting us to Tetra Pak. It was a well-planned tour and an insightful one,” remarked Mrs. Sadeem, one of the accompanying teachers.
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HIGHLIGHTS 1.2009 19
School children learn about carton converting
“I am pleased to welcome you to Factory Day 2009”, remarked a broadly smiling and bright Konstantin Sinikov, Production Manager of the factory, who was greeted with a shout of joy by over 230 cheerful factory employees gathered in the Lotus Auditorium of the Jeddah Marriott recently.
Factory Day 2009
Celebrated in Jeddah
ZEROCelebrating the race for
20 HIGHLIGHTS 1.2009
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HIGHLIGHTS 1.2009 21
Martin Fejk, Marketing Director Tetra Pak took the stage from Konsta and highlighted the importance
of Tetra Pak’s Vision, Core Values and motto. “We must keep on the good work to pursue our ambition of achieving sustainable profitable growth while benefiting from our information base”, he added. He presented an insightful overview of the past year including performance of the company, products launched by customers, results of the Customer Satisfaction survey and key learning.
It was followed by a thought-provoking session by Abid Hassan, Finance Director, who shed light on the Balance Scorecard (BSC) of Arabia and the link between organisational Vision and BSC results of Tetra Pak Arabia in 2008.
Later Faisal Ghulam, Human Resources Director, and Mazen Nouh, Human Resource Manager, shared the results of the Employee Engagement survey in both English and Arabic respectively. The day was excitingly filled with lucky draw sessions offering
many valuable prizes in the midst of rapturous applause.
“I am glad that we are bringing strategic alignment to our operations with a clear sense of direction while taking the World Class Manufacturing (WCM) route”, remarked Karel Mucha, Factory Director. “I congratulate the whole team on a fantastic job and it’s a pleasure to be here again for another wonderful year with our awesome team, added Karel.
Karel shared with the audience some highlights and lowlights in 2008 and reiterated the need to bring in a safety mindset in everything we do. He talked about the 2009 challenges and mentioned the key projects and deliverables. “We have a wonderful guide and system in the form of World Class Manufacturing (WCM) which will drive growth in years to come,” he added. In the afternoon, the team was divided into various groups to initiate brain-storming sessions on various topics.
M AWARDS ANDRECOGNITIONS
• Best AM Team 2008- Fernando, Armando, Saud, Saber Autonomous Maintenance Laminator 21
• Best PM Team 2008- Zaman, Ariel, Amjad Achievement: ZERO breakdowns on Slitting machines due to unwinder loose tension
• Best QM Team 2008- Anil, Willy, Sibi, Ijaz, Adnan, Robert Achievement: 73% reduction of waste due to ink missing
• Best FI Team 2008- Ali, Khalid, Joel, Edgar, Boris Achievement: ZERO short stops on Laminator due to failure in foil splice preparation
• Best SC Team 2008- Rashid, Viquar, Naeem, Naveed Achievement: full analysis of storage space requirements based on factory capacity 2008-2010
• Best EEM Team 2008- Ijaz, Joselito, Sibi, Gil, Nelson, Anil, Aidin Achievement: on-time and in-full upgrade of registration control system on Printing presses with effect of 0.3% of total waste reduction
• Best Straw Factory Team 2008- Ahmed, Abdul Haleem, Khalid, Abdulrahman Achievement: Establishing efficiency losses data collection system for U-165 machines
• Highest no. of PODAR for unsafe acts and unsafe condition- Faiz Al Ansi
• Highest no. of Implemented Suggestions- Waleed Agil
• “Best of the Best” WCM teams- Edwin , Jomar, Abdul Qadir
• “Best of the Best” WCM teams- QM Team 43 - Anil, Willy, Sibi, Ijaz, Adnan, Robert
• PM 31 Failure Mode eradication team- Zaman, Ariel, Amjad
Asadullah Khan, Accounting Manager in Tetra Pak Arabia, joined Tetra Pak about 17 years ago and has since then driven financial and personnel policies to ensure compliance with local legal requirements, a passion that he lives every single day.
LEAN ON ME!
22 HIGHLIGHTS 1.2009
PROFILE
Highlights: What celebrated figure do you praise most?Asadullah Khan (AK): Plato
Highlights: Which word or phrase do you think is overused?AK: Don’t worry
Highlights: How would you explain your job to a child?AK: I do additions and subtractions, rarely do multiplications and divisions
Highlights: What did you have to learn the hard way?AK: Recognition comes with time
Highlights: What do you sing or hum when you are alone?AK: Kahan ho tum ko yaad aiyan gee….(an old Pakistani number)
Highlights: If you could choose any profession what would that be? AK: Sales or marketing
Highlights: Is there a book that changed your perspective? AK: There is no particular book that I can think of but I have learnt from my colleagues who helped me change my perspective. I am sure they would have read plenty of books.
Highlights: What’s the best reward for a job well done? AK: Admiration and praise from colleagues
Highlights: What is your idea of perfect happiness? AK: Uninterrupted bliss
Highlights: What is your greatest fear? AK: I am scared of fear
Highlights: Which person do you most admire? AK: My Mother
Highlights: What is the trait that you most deplore in others?AK: Selfishness
Highlights: What is your idea of extravagance?AK: Overspending on clothes and accessories
Highlights: What do you most like about yourself?AK: Continuous planning, which helps me to do my work on time to deliver better quality
Highlights: Which talent would you most like to have? AK: Better networking skills
Highlights: What do you most value in friends? AK: Openness
Highlights: Who are your favourite writers or singers? AK: I really like the celebrated Indian singer, Kishore Kumar
Highlights:: What is that you most dislike? AK: Airport immigrations
Highlights: What is your motto in life? AK: First thing first
Highlights: How and when did you start your career with Tetra Pak? AK: I started my career at Tetra Pak in December 1992 when I moved here from Ernst & Young Jeddah, Saudi Arabia
Highlights: What do you see when you look in a mirror? AK: A smart individual getting wiser every day
Highlights: Are you a control freak? AK: Yes
Highlights: Who can you not live without? AK: My youngest son
Highlights: What is the best thing that you like about your job? AK: Every day brings new challenges
Highlights: What’s on your bedside table? AK: A novel by Agatha Christie
Highlights: What’s on your CD player? AK: Modern talking - a German electronic music duo consisting of singer Thomas Anders and composer/producer Dieter Bohlen, classified under euro disco
Highlights: What do you enjoy doing in your spare time? AK: good and sound sleep
Highlights: What’s the wildest thing you have ever done? AK: Travelling in bus on single track road, which was 13,000 feet high from sea level
Highlights: Which is your favourite perfume? AK: Hugo Boss
Highlights: What’s your zodiac sign? AK: Scorpion
Highlights: How do you relax? AK: By watching TV
HIGHLIGHTS 1.2009 23
Carrefour, a world leading retailer, and Tetra Pak, outlined their sustainable energy strategies at a conference they hosted recently where companies demonstrated a range of practical steps they are taking to reduce their carbon impact and at the same time raise awareness among consumers on climate change.
Carrefourand Tetra Pakoutline their sustainableenergy strategies
the 20% energy efficiency target for the EU by 2020.”
Tetra Pak, a member of WWF’s Climate Savers Programme, has increased the energy efficiency of its packaging material production by 23% since 2002 and is increasingly using certified green energy. To date six of Tetra Pak’s packaging material plants in Europe are using green energy or buying renewable energy certificates. Tetra Pak is thereby well on the way to reaching its objective of a 10% reduction of CO2 emissions in 2010 vs. 2005 in absolute terms.
Carrefour is making good progress in reducing energy consumption in stores and in working towards its objective of a 20% reduction by 2020 compared to 2004. Carrefour will also continue to raise supplier awareness and facilitate efforts to improve their environmental performance.
he conference, The Energy Challenge: Enhancing Efficiency through Best Practices and Partnerships,” was organised in
partnership with the EU and was part of a number of events planned in Brussels and throughout Europe during EU Sustainable Energy Week.
Commenting on the initiative Meglena Kuneva, European Commissioner for Consumer Affairs said: “We congratulate Carrefour and Tetra Pak for their contribution in creating greater awareness amongst consumers about how each and every one of us can contribute to sustainable consumption. Modern consumers are not ready to consume less, but they are ready to consume differently. And we need to guide them through with more information and education on their impact on environment and their important role in succeeding to achieve
TCarrefour and Tetra Pak have pioneered a consumer awareness campaign in over 600 hypermarkets across Europe. The scheme, which was launched in early February, uses Carrefour-branded milk and juice - in specially designed Tetra Pak cartons which provide eco-tips to consumers. The products were on sale in stores in Spain, France, Belgium and Italy during EU Sustainable Energy Week (9-13 February 2009).
CONSUMER AWARENESS CAMPAIGN
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
