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'The home market is our priority'
In the last two years, Masafi was able to double its revenue through the addition of new product lines. CEO Asraf Abushady spoke to Gulf News on Masafi's outlook of the mineral water industry.
- By Irish Eden Belleza, Web Coordinator
- Published: 00:27 May 5, 2008
- Ashraf Abushady, Chief Executive Officer, Masafi Mineral Water Company.
- Image Credit: Press Release
Gulf News: What is your overall review of 2007, particularly the regional scenario?
Abushady: Masafi's turnover during 2007 was Dh400 million. The company achieved a healthy balance sheet with its revenue doubling between 2005 and 2007. This was primarily achieved through the launch of new product lines such as juices, flavoured water and our entry into the gallon water business.
In the first quarter of 2008, we have recorded a 55 per cent sales volume growth across our tissues business; along with water and juices that grew at 20 per cent and 15 per cent respectively. Flavoured water has garnered 83 per cent segment share in the non-carbonated flavoured water segment within 12 months of its launch and has been growing approximately nine per cent year-on-year.
Gulf News: What do you think of the Dubai market?
Abushady: Being a Dubai-based company, the home market is definitely our priority. We enjoy 40 per cent of the local market share for bottled mineral water. Masafi now distributes approximately 20 million cases or 320 million bottles across the UAE.
Gulf News: Why has there been such an increase in the consumption of bottled water?
Abushady: According to the Earth Policy Institute, bottled water consumption worldwide surged to 154 billion litres (41 billion gallons) in 2004, up 57 per cent from 98 billion litres in 1999. More and more people are becoming increasingly 'dependent' on bottled water.
Bottled water is a regulated industry with stringent quality standards. The industry has also invested in communication exercises that articulated well the purity and quality of the offerings.
Gulf News: What is your forecast for this region?
Abushady: The first possible scenario is that multinationals will buy the small and local players. Alternatively, they would begin considering joint ventures with the larger players. The small players could enter new categories in the industry. The fourth scenario is that small enterprises will cease to exist.
Gulf News: Where do you see Masafi in the next few years?
Abushady: We envisage Masafi becoming a fast moving consumer goods (FMCG) company by 2011. We are constantly evaluating product segments and markets. There will be product extensions and additions in the months to come. It is too early to announce anything as the details are being finalised.
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