Consumer Product Nai World

Situation

Founders from Dubai wished to address obesity and type 2 diabetes in the Arabian peninsula. They wished to offer a better-for-you beverage alternative to sugary drinks.

Problem

Although concept briefs of iced teas highlighting flavors of Arabia were transformed into ready-to-drink iced teas, there was a limited contract manufacturing presence in the Middle East and the intellectual property of the brand needed to be protected.

Solution

As the product became prevalent in the region opportunities to collaborate with other bottlers emerged.  Given the rapid rate of growth, a strategic initiative was pursued to protect the intellectual property of the brand by developing an export concentrate program.  This allowed local bottlers to utilize highspeed bottling operations by focusing on the reconstitution of the beverage – distributing the tolling rate across a high volume high throughput bottling system.

Benefits

Initially producing the beverage for import resulted in relatively high COGS but nearly nonexistent operations requirements, which allowed the brand to focus on marketing and account acquisition.  This strategy accelerated the brand presence in the Arab region resulting in the beverage outperforming Pepsi sales in Saudi Arabia by year 3.  Shifting bottling operations reduced COGS by nearly 40% (sourcing glass locally at a landed cost equivalent of 50% US cost, elimination of the shipment of water, reduction in shipment volume by 80% and applied tolling rates of <30% US costs due to local market rates and high-speed operations.)

For more information, contact Mark Haas at 510-671-8300 or [email protected].