Almarai eyes 11% share in Saudi seafood market: CEO

Abdullah Albader, CEO, Almarai Co. 

Almarai Co. targets an initial market share of 11% in the Saudi seafood market, which is valued at SAR 15 billion, CEO Abdullah Albader told CNBC Arabia.  

The Kingdom imports 71% of seafood products at a total value of SAR 11 billion, he added.

Almarai’s decision to enter into the seafood market was driven by several factors, including the Kingdom’s food security, trade balance and consumption per capita, which is nearly 50% lower than global average. Consumption per capita in Saudi Arabia stands at nine kilograms annually, compared to 20 kilograms worldwide,

The seafood market is not developed in terms of packaging, preparation and transport, Albader noted, adding that Almarai’s services will include fresh products prepared according to the highest quality standards when the project is complete.

Investment in the seafood market comes as part of the company’s comprehensive strategy that aims to provide high-quality products at stores, and introduces new products in the other sectors where the company operates.

The main focus will be initially on the Saudi market, but export is an available option, Albader explained, noting that the dairy and juice producer will concentrate on a reliable brand, expecting Almarai to be the market’s leading player.

Elsewhere, the CEO added that Almarai’s investment in parent poultry birds accelerates some phases in the poultry segment, as the company is watching the global market. This investment will provide almost 3.5 million parent poultry birds, a very large percentage current in supply chains.

Almarai seeks acquisitions in the poultry business, when opportunities are available, as long as these investments fall within the SAR 6.6 billion budget allocated for expansion in the poultry business.
 

Almarai’s board of directors on June 13 approved a SAR 153 million investment to secure the supply of poultry parent birds for the company and the Saudi Arabian market, Argaam reported.