This document provides an overview of the food and drink market in Saudi Arabia. It discusses the large size but complexity of the Saudi market, with lengthy import processes and a fragmented trade landscape. The food and drink market is valued at $21 billion annually and growing 10% per year, with 80% of products being imports. The document outlines the major retail and foodservice channels in Saudi Arabia and characteristics of Saudi consumers, who are voracious foodies seeking new culinary experiences. It provides recommendations on how to succeed in the Saudi Arabian market with the help of specialized agencies.

1. WINNING IN
THE SAUDI ARABIA FOOD & DRINK
MARKET
SOPEXA WEB CONFERENCE – 3rd of september 2015
Speaker : BASSEL SIBLINI – Managing Director – Sopexa Middle East – bassel.siblini@sopexa.com
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2. © The information contained in this document is the property of Sopexa
Undoubtedly the largest in the Middle East, and not the least complex, the Saudi
Arabian market still eludes the majority of food producers around the globe.
A lengthy import process, a fragmented trade scene, and the diverse retail &
foodservice formats make this sea difficult to navigate.
It’s not all bad news though, for the Saudi is a voracious FOODIE, one that
demands new culinary experiences everyday and that will get them.
Whether from you, or from someone else.
Awakening the Sleeping Giant
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3. © The information contained in this document is the property of Sopexa
THE HEADLINES
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Understanding Saudi Arabia p . 6
The food & Drinks Market p . 14
The trade landscape p . 16
The business of foodservice p . 17
The business of Retail p . 22
The Saudi Shopper p . 25
Their Digital & Social Entourage p . 30
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3
4
15
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4. © The information contained in this document is the property of Sopexa
1
THE LANDSCAPE
UNDERSTANDING SAUDI ARABIA
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5. © The information contained in this document is the property of Sopexa
Holds two of Islam’s holiest
sites in Mecca and Medina
and is known as the “land
of the two holy Mosques”,
receiving close to 17M
pilgrims in 2014.
Unified in 1932 under the rule
of King Abdul-Aziz Ibn Saud,
The kingdom of Saudi Arabia
has since become the main
player in the Middle East’s
political scene.
Population 30M (30% expats)
Young, 51% under 25
GDP $27K (12th)
26th (ease of doing business)
Registered 4 % growth in 2014
Forecast to remain positive and reach 5% in 2020
Investing in the
diversification of its
economy, still very
heavily reliant on oil.
The kingdom has
announced $130b in
diversification projects
while maintaining the
focus on education.
Economy is anchored
around 3 main Regions:
Riyadh, Jeddah and
Damman – Khobar.

6. © The information contained in this document is the property of Sopexa
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THE FOOD AND DRINKS MARKET
EVALUATING ITS POTENTIAL
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7. © The information contained in this document is the property of Sopexa
$21b
Food and drink market value in 2014
Growing steadily at 10% per annum
80% of that is imports
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$6.3b $5.4b $1.8b $1.2b
Main
Categories/
Imports
Source : GTIS- GTA - Analysis Sopexa

8. © The information contained in this document is the property of Sopexa
Other Categories in $M889
661 665
131
9
52
258
338
27
178
100
200
300
400
500
600
700
800
900
1 000

9. 9
Key
Exporting
countries
$1.6b $1.5b $1b $.87b $.52b $.51b

10. © The information contained in this document is the property of Sopexa
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THE TRADE LANDSCAPE
IDENTIFYING THE RIGHT PARTNER
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11. © The information contained in this document is the property of Sopexa
Ways to import
1. Private labels
2. Agency Agreements
3. Consolidators
4. Direct to supermarket
Only products deemed
“Halal” and excluding
religious or outlawed
substances make it through.
Regulated by the SFDA.
Food & Beverage
import tax varies
between 0-5%
Listing fees ranging from $267 to $17,000 per SKU
A DOORWAY TO THE MARKET

12. © The information contained in this document is the property of Sopexa
Based in Riyadh, this exhibition registered 24,000 visitors and 350 exhibitors mixed between
agricultural and food products, like the name indicates.
Even if based in Dubai, remains the most attractive exhibition for Saudi buyers, with 4800
exhibitors and more than 86,000 professional visitors in 2015.
With the 2nd edition planned in 2015 in Riyadh, this remains a relatively small event and will need
time to prove itself.
Based in Jeddah, this event boasts 250 exhibitor, 5000 professional visitors and 350 pre-set
meetings.
3 Exhibitions Hosted in Saudi/ 2 in the UAE
Based in Abu Dhabi, the Sial ME 2014 attracted 818 exhibitors and 15,700 trade attendees
making the 2nd largest F&B exhibition in the region.

13. © The information contained in this document is the property of Sopexa
Importers (Registered Active)
Food products
189
Rice
70
Vegetables & Fruits
31
Meats & Seafoods
49

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THE BUSINESS OF RETAIL
WHERE THE FOODIES DWELL
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15. © The information contained in this document is the property of Sopexa
Market Split:
45% Wholesale (rural)
35% Modern
20% General
Number of Retail
Outlets estimated at
41,000
And growing at 10%
“Even if on a downhill trend, wholesale still remains
the principal market to tackle in Saudi Arabia.
But get listed is not easy, there are 3 ways:
- Have the best value/ High volume product
- Have the best selling product
- Buy your way in … “
A rising demand for Fine Foods
is translating into new High
end stores with Gourmet
offerings for Foodies.

16. © The information contained in this document is the property of Sopexa
KEY ACCOUNTS
50+ stores, a mix of
Hypers/ supers
110+ stores, a mix of Hypers,
supers/ convenience stores.
16+ stores, a mix of
Hypers/ supers
VALUE Positioning
PREMIUM Positioning
(with a larger portfolio of
imports and fine goods)
15+ stores, a mix of
Hypers/ supers/ Gourmet
21+ stores, a mix of
Hypers, supers
20+ stores, a mix of Hypers/
supers.
“Prize competitions remain the best tested method to engage shoppers in Saudi Arabia, whether to launch a product or as a
maintenance activity, a good prize will generate volumes.

17. © The information contained in this document is the property of Sopexa
THE IMPORTANCE OF RAMADAN IN RETAIL
• Ramadan Season last 2 months.
• Undoubtedly the best period of the year.
• Only products with “Ramadan” value propositions are
allowed to communicate/ activate.
• Successful F&B players always tap into occasion.
• It can be done by creating a promotion or a special
recipe in Ramadan colours.
• Media & activation prices are generally more
expensive in Ramadan, but the ROI is still interesting.
• Saudis will appreciate and repay the effort done in
understanding their values.
“Food & Drink volumes
in Supermarkets Double
in Ramadan”
“80% of our Vimto*
volumes are within the
Ramadan period”
* Vimto is a red fruits concentrate served with water and ice, owned by Saudi company Aujan, alongside other brands
like Barbican and Rani. Coca Cola Co. bought 50% of Aujan in 2011 for $980M.

18. © The information contained in this document is the property of Sopexa
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THE BUSINESS OF FOODSERVICE
AN EXPLODING CHANNEL
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19. © The information contained in this document is the property of Sopexa
The current number of
licenced hotels is 1250 and
the construction of 550
new is underway, 75 of
them being 5 star hotels.
Recorded $17b in food
revenue in 2014, the
market is rapidly growing
following a surge in visitors
and evolving “dine out”
trends.
A new wave of Saudi Foodies with
travel experience or a curious
appetite are requesting new
culinary experiences, experiences
that are being fulfilled by new
restaurants and hotels.
Abdelkarim Meraashly
Banquet Manager at Nayyara
“Our clientele is demanding and more adventurous
everyday. Today, it is no longer surprising to receive
banquet requests that mix French, Indian, Japanese and
Italian cuisines. We deliver on those requests, with the
finest, authentic, ingredients we can find. “ re requesting
new culinary experiences, experiences that are being
fulfilled by new restaurants and hotels.

20. © The information contained in this document is the property of Sopexa
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THE SAUDI SHOPPER
A FOODIE AT HEART
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21. © The information contained in this document is the property of Sopexa
Man or woman, the Saudi Shopper is a price sensitive
buyer, that is willing to try new things, that is starting to
show interest in Healthy alternatives, that wants to see
new and exciting variants of the products he likes, that
might be sceptical at first, but when he buys… He buys
in bulk.
ATTITUDE & HABITS
2
23
149
128
106
0
50
100
150
200
2k - 2.5k 2.5k - 3k 3k - 3.5k 3.5k to 4k More than
4k
Monthly Spending on Groceries (SAR)

22. © The information contained in this document is the property of Sopexa
“The best performance usually
comes after the last prayer (after
9pm), that’s when traffic is at its
peak and that’s when we make our
best volumes. Night shopping is
considered common practice and
this is why we follow a 24h format.”
RICE . CHICKEN . PASTA . BREAD . MUTTON . BEEF . SEAFOODS .
MILK . YOGURT . EGGS . SPREAD CHEESES. GRAINS . FIZZY DRINKS . OILS .
VEGGIES . FRUITS . CONFECTIONERIES . DESSERTS . DESSERT INGREDIENTS…
…Are the things you would traditionally find in a Saudi’s shopping cart.

23. © The information contained in this document is the property of Sopexa
In a country where internet penetration is
87%, Online media consumption trumps
offline media 1.5 times over.
55% of time spent on social networks and blogs
MEDIA CONSUMPTION
TRENDS
Time spent Online (6.5 hpd) VS Offline (4.1 hpd)
50,000 posts
shared per
Minute

24. © The information contained in this document is the property of Sopexa
DIGITAL ECOSYSTEM
Used Car sales
SOCIAL
WEBSITES
FORUMS
FOOD
RELATED
TOP SITES

25. © The information contained in this document is the property of Sopexa
The Saudi consumer is exposed to media 80% of their
waking life, whether offline on outdoors, in store or on
TV, or online on social networks forums and blogs.
Food is one of the favourite pastimes (70% of Saudis are
overweight), the other one being malls and retail
stores, the only physical place where mixed gender
social interaction might be “acceptable”.
PEN PORTRAIT

26. © The information contained in this document is the property of Sopexa
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HOW TO WIN IN SAUDI ARABIA
AND WHAT WE CAN DO TO HELP YOU
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27. Trade
They say the right partner will make or
break you. Never has this been truer
than in Saudi Arabia.
We can help you identify that perfect
partner through a range of entry to
market activities, tested and
perfected for optimal ROI.

28. © The information contained in this document is the property of Sopexa
EXHIBITIONS
ORGANIZATION
& SETUP
PRE ENTRY
MARKET
STUDY
NETWORKING
& PR EVENTS
Trade Activities
28
B2B
MEETINGS
SETUP
DISPATCH AND
FULFILLMENT OF
SALES KIT

29. Shopper
Once in the market, you will need a
strong operational partner to promote
your products in the retail space, while
getting every bang for your buck.
Our supermarket experience allows us
to work within the market specificities,
to reach the Saudi foodies where it
counts, through an array of in-store
activation ideas.

30. © The information contained in this document is the property of Sopexa
DESIGN,
PRODUCTION AND
IMPLEMENTATION
OF POSM
INSTORE
ACTIVATIONS
SAMPLING
ACTIVITIES
AND
CONSUMERS
POLLING
Shopper Activities
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PRIZE
PROMOTIONS
& CONSUMER
COMPETITIONS

31. Digital
The path to purchase starts here.
Our Digital experts can help you
devise online strategies using the best
platforms to reach your target,
influence their opinion, educate them
on the product and engage them
with your values.

32. © The information contained in this document is the property of Sopexa
COMMUNITY
MANAGEMENT &
CONTENT
CREATION
E-LISTENING
CAMPAIGNS
DIGITAL
PRODUCTION
Digital Activations
Bloggers &
Influencers
DIGITAL &
SOCIAL
COMPETITIONS

33. Through the lineThe 360° approach.
A comprehensive process where after
carefully crafting a contact strategy
around our consumer, we mix online/
Offline tools for maximum impact.

34. © The information contained in this document is the property of Sopexa
QR CODE
COMPETITIONS
AND
PROMOTIONS
ON-PACK
ACTIVATIONS
WITH ONLINE
CONTENT
ONLINE ACTIVITIES
LINKING TO
OFFLINE
Through the line Activities

35. Success StoriesThe projects that set us apart.
In this section, we proudly showcase
some of our best work and draw insights
on what worked really well.

36. © The information contained in this document is the property of Sopexa
The French Week
The purpose of this activity
is drive awareness over the
existing French products,
induce trial and generate
sales.
To satisfy our Saudi
foodie’s curious palate, we
organise, every year, a
French food festival in
Saudi Arabia supermarket
chain.
This consists of high visibility instore activation, with heavy
sampling and an online relay on the supermarkets website
and social media channels.

37. © The information contained in this document is the property of Sopexa
Le Crunch
This campaign targets
professionals as well as
consumers, reiterating the
superiority of French
apples over their other
counterparts.
Every year, we collaborate
with Le Crunch, a
consortium of french
apples on a multi channel
multi target campaign to
bring awareness and drive
sales.
The channels used are in-store and out of home, as well as
the production of collaterals destined to professionals in
the Fruits & vegetables industry.

38. © The information contained in this document is the property of Sopexa
Jules, Sabco’s Mascot
In a multi channel
campaign, instore, online
and on social media, we
invited the audience to
interact directly with Jules,
learn about the brand
values and win ipads.
With the directive to
engage more with
children, we created a
campaign to bring
forward Jules, Sabco’s
mascot chicken.
The campaign was well received, especially online, where
on average we registered 9k+ unique interactions in our
facebook games.

39. Bassel SIBLINI
Managing Director
Sopexa Middle East
T : +971 4 439 17 22 Ext. 201
bassel.siblini@sopexa.com
You have a project in mind in Saudi Arabia ?
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INTERNATIONAL COMMUNICATION & MARKETING AGENCY
FOOD, DRINK, LIFESTYLE