From left: Khaled S. Olayan, Chairman, The Olayan Group; John Stephenson, Director of Sales, Mondelez International GCC; and Salah Algosaibi, Executive Director, Khalifa A Algosaibi Holding Company, join hands at the announcement of the joint venture agreement in Riyadh Monday. The global snacks powerhouse, Mondelez International, has formed a joint venture with the Olayan Group and Khalifa Algosaibi group to manage its sales and distribution operations in Saudi Arabia. The joint venture marks further expansion in the Kingdom of one of the world's biggest snacks companies where its products have been distributed for nearly 100 years. The joint-venture company, to be called Mondelez Arabia For Trading LLC, will be managed by Mondelez International to help accelerate growth of its business in the Kingdom. The purpose of the joint venture is to serve customers and consumers in KSA better, and to be able to react more quickly to consumer tastes and demands, and to strengthen its snacking portfolio in the Kingdom. It is envisaged that the joint-venture company will commence operations later this year. The Mondelez Arabia management team will be based in Dhahran, with the intention to establish 11 branches located in major cities throughout the Kingdom. John Stephenson, Director of Sales Mondelez International GCC, said at a press conference in Riyadh Monday that “this is a major step for Mondelez International that demonstrates our long-term commitment to KSA, a very important and s strategic market of us in the Middle East and Africa. The KSA offers significant growth opportunity with strong GDP expansion. We intend to grow with it by investing in product innovation, sales techniques, new-sales systems, and by developing a talented workforce.” “This next chapter in our long history in KSA will boost our local presence to serve customers and consumers better through extended coverage, and help create jobs for Saudi nationals. The launch of the JV will help meet our ambition of fast-tracking growth globally. I would like to thank the Saudi Arabian General Investment Authority (SAGIA) for its support and guidance in helping to bring this partnership to fruition.” Khaled S. Olayan, Chairman, The Olayan Group, added: “We are very pleased to join forces with Mondel?z International once again to strengthen the position of their brands and products that we first began supporting more than 50 years ago when we undertook the distribution of products of General Foods (later Kraft Foods). During those 50 plus years, we have built a strategic partnership with Kraft Foods (now Mondelez International) that has seen us shape the taste of the Saudi consumer to the full array of its products. This latest joint venture, which will further strengthen our ability to serve the Saudi market, will have the added benefit of offering job opportunities to Saudis in a range of fields and locations. It represents a natural evolution of our long and strategic relationship, reaffirming the pride we take in our partnership with Mondelez International, one of the world's leading snack companies.” Salah Algosaibi, Executive Director, Khalifa A Algosaibi Holding Company, said: “We are delighted to be partnering a global snacks powerhouse and a major multinational like Mondelez International to reinforce our position and to drive investment in KSA. This partnership really demonstrates that Mondelez International sees great value in KSA as an important market with a growing population. Together we will deliver an enhanced offering for customers and consumers throughout the Kingdom.” Mondelez International's iconic brands have been sold in KSA for nearly 100 years and include Kraft and Philadelphia cheese, Tang and Cadbury Dairy Milk. In 2012, Mondelez International increased production at its Dammam biscuit plant, which also operates as a joint venture with the Olayan Group, in response to strong demand both within KSA and across the GCC. The plant has the capacity to produce 25,000 tons of biscuits and employs approximately 170 people from six countries, of which around 30 percent are Saudis. The popular Oreo biscuit, which celebrated its 100th birthday last year, is made at the plant using over 50 percent of locally sourced ingredients, and is exported across the GCC. – SG
