Savola Foods Company of the Middle East has teamed up with Thai Union Frozen Products (TUF) in a joint venture (JV) that aims to deliver sustainable, innovative seafood products to Middle Eastern consumer clientele.
The venture sets out to meld TUF’s global resources and seafood savvy with Savola’s regional expertise at the marketing and distribution levels. Both venture partners expect to leverage their consumer acumen, especially when marketing brands like John West. The product lines to be included in the joint venture involve all seafood products, from ambient and frozen offerings to chilled seafood and ready-to-eat-meats.
The twelve Middle Eastern markets targeted by the JV include: Saudi Arabia, United Arab Emirates, Oman, Kuwait, Bahrain, Qatar, Jordan, Lebanon, Syria, Iran, Iraq and Egypt. These markets are estimated at USD 3 billion (EUR 2.6 billion), and are expected to grow even more over several years, according to TUF. Core markets for the Middle East are Iraq, Iran and Saudi Arabia, with seafood sales climbing in excess of USD 2 billion (EUR 1.7 billion) in 2014; this key market segment has touted an average growth of over 4 percent over the last five years.
The JV parties estimate that the annual sales revenues to be mined over the next three to four years from this market will surpass USD 400 million (EUR 353 million).
With the Middle East becoming one of the fastest growing seafood markets today, proponents say the JV offers both participating parties a strategic, timely opportunity.
“The Middle East region is one of the fastest growing seafood market globally. It is a well-established seafood culture with increasing per capita consumption. We are very excited about this opportunity,” said Thiraphong Chansiri, President and CEO for Thai Union Group.
“Seafood plays a special role in our consumer’s diet. Yet, the product offer in the market appears to be rather basic. We are very pleased to join hands with Thai Union and are committed to bringing best-in-class products to the market,” added Maaraf Abderrahim, CEO of Business Development for Savola Foods Company.
Both TUF and Savola plan to invest USD 30-50 million (EUR 26-44 million) in the JV over the course of two years.
