Middle East

R E P O R T

BRYANT CHRISTIE INC. I N T E R N A T I O N A L A F F A I R S M A N A G E M E N T

THE MIDDLE EAST CONFECTIONERY MARKET: OPPORTUNITIES FOR U.S. CONFECTIONERY EXPORTS

Prepared by Bryant Christie Inc. for the National Confectioners Association

January 30, 2009

Seattle Telephone: 206 292 6340 Sacramento Telephone: 916 492 7062

TABLE OF CONTENTS EXECUTIVE SUMMARY…………………………………………………………… ……..1

INTRODUCTION…………………………………………………………………………4

BACKGROUND ……………………………………………………………………4 METHODOLOGY ……….…………………………………………………………4 REPORT FORMAT …………………………………………………………………4 GENERAL MARKET ENVIRONMENT…………………………………………………… 5 MARKET FOR CONFECTIONERY IN THE MIDDLE EAST……………………………….7

CONSUMPTION TRENDS…………………………..………..……………………. .8 COMPETITION ..……………………………..…………………………...……………..13 MULTINATIONAL PRODUCERS…………………………………………………...14 LOCAL PRODUCERS………………………………………………………… …...14 CONFECTIONERY IMPORTS….…………………………………………………...16 DISTRIBUTION……………………………………………………………………… …18 RETAIL ……..……….......…………………………………………….……….…19 CONVENIENCE STORES …....……………………………………………. ……...22 HOTEL, RESTAURANT AND CAFETERIA …..……….……………………………23 COLD STORAGE….. ....…………………………………………………….. ……24 MARKET ACCESS ..………………………………………………………….…………..24 LABELING …..…………………………………………………………………..26 CONCLUSIONS……………………………..………………………….……………. ….27

APPENDICES

RETAIL PRICES FOR LEADING CONFECTIONERY BRANDS U.S. AND COMPETITOR CONFECTIONERY EXPORTS TO THE MIDDLE EAST CONTACTS

Middle East Confectionery Market:: Opportunities for U.S. Confectionery Exports January 30, 2009, Page 1 of 28

EXECUTIVE SUMMARY

There is growing attention among global confectionery manufacturers on the Middle East market and for good reason. For a number of years, confectionery sales in the region have experienced double digit annual growth, increasing by nearly 15% annually between 2004 and 2007. There are a number of reasons for this boom in sweets consumption. Demographics certainly play a major role. Confectionery traders cite two specific demographic trends that have affected their business. First is the growing influence of young consumers. For most of the countries in the region, the 15 to 24 age bracket makes up 20% or more of the population, as compared to 15% in the U.S. Moreover, these young consumers often have the financial backing to purchase impulse and indulgent items such as confectionery. Thanks to the region’s oil-based economies, which have grown region-wide by 30% since 2003, consumer spending is at an all time high. Traders also cite the impact of foreign residents as a cause for the surge in confectionery sales. In Saudi Arabia alone, expatriates account for half of the country’s workforce and there are large expatriate populations in Kuwait, Bahrain, the UAE, and other markets. Foreign residents, often Westerners, bring with them a demand for the Western brands and high value processed goods they are accustomed to. These consumers also represent a substantial and wealthy target for retailers active in the region, helping drive modernization of the retail sector. Whether it is the French retail giant Carrefour or local operator Spinney’s, retailers are adopting Western formats that improve the shopping experience. Such modernization has resulted in far greater product selection than ever before, along with efficient distribution, warehousing and cold storage. Decreases in tariffs have also played a role in expanding confectionery product availability in the Middle East. The U.S. and European Union have reached a number of trade agreements with partners in the Middle East over the last decade and regional trade agreements are under negotiation. As a result of these agreements, the trade and investment environment has improved dramatically fostering regional expansion by multinational confectionery companies in particular. Cadbury, the regional market share leader, Master Foods (number two), and Kraft among others, have all invested in production facilities in the region in recent years while simultaneously acquiring brands they hope will deliver even more consumers. The presence of these competitors has forced local producers such as Gandour and IFFCO to similarly expand and innovate. The end result is that the Middle East has become one of the most dynamic and lucrative confectionery markets in the world. The Middle East is a strong market for all forms of confectionery, but chocolate is king. Depending on the individual market, chocolate accounts for 39-66% of total confectionery sales across the region and growth projections for chocolate are higher than projections for sugar confectionery and chewing gum. Detail relative to the market for each product type follows.


Chocolate Annual chocolate sales exceed $4.2 billion in the Middle East. Large multinational companies own the majority of market share but there are strong local players such as Lebanon’s Gandour, Israel’s Strauss-Elite, and Iran’s Dadash Baradar. Products from these companies are often perceived as inferior quality compared to European and American confectionery, but they compete effectively on price and benefit from local support. These companies typically cede the upper end of the market to imported products or premium offerings of the multinationals. Swiss and Belgian chocolate in particular are perceived as superior quality so products identified as Swiss or Belgian (regardless of where they were manufactured) often command greater attention among retail buyers. American chocolate is also perceived as high quality though some traders state that consumers can differentiate its taste from European chocolate and prefer European varieties. Nevertheless, U.S. chocolate exports to the region are rising. According to Global Trade Atlas, in 2007 U.S. chocolate sales to the region totaled almost $19 million up from $8.5 million in 2004. One of the more notable developments in the chocolate market in this region over the past decade has been its segmentation and the onset of a luxury/super premium category. Interestingly, in this category, local companies compete effectively. Traditional Middle Eastern chocolatiers such as Patchi (Lebanon) and Ghraoui (Syria) offer high-end products that are considered among the best in the world. These confectioners are expanding aggressively in the region. Licensing production to a Middle Eastern producer is one way in which U.S. companies could look to enter the market. A number of contacts interviewed for the study expressed interest in a licensing arrangement with a U.S. manufacturer as opposed to importing and representing the foreign product. From their perspective, imported products (because of their higher price) face more of an uphill battle against the premium lines offered by Nestle, Master Foods, and Cadbury which are produced locally and have deeper marketing and sales budgets. This is not to suggest that opportunities for U.S. confectionery exports do not exist. U.S. companies that are able to provide marketing support and pay for shelf space would certainly attract attention from distributors. At the same time, the region’s large number of specialty chocolate and confectionery shops (even coffee shops) are a legitimate target. Many of these establishments make their own chocolate or offer unbranded products purchased locally, but some attempt to set themselves apart by offering high-end branded confectionery. Sugar Confectionery Sugar confectionery is also popular in the Middle East but not nearly to the extent of chocolate. Many of the same local manufacturers mentioned above are active in this product category as well. But unlike the chocolate category, the market for sugar confectionery has been slower to develop and segment. As such, hard and soft candies, jellies, and other sugar confections typically occupy the lower end of the consumer market, making these products a strong fit for the more rural areas of the region. For example, in rural areas of Egypt, sugar confectionery dominates sales with 82% of the market, compared to 16% for chocolate and 2% for gum. A growth area, as for chocolate, is in sugar-free products. New, all natural and sugar-


free confectionery products would gain the attention of large retail chains and distributors that work the convenience stores and specialty shop channels as well. However, sugar-free confectionery remains a small part of the market. In fact, many distributors rely on imports to satisfy demand for sugar-free candies since the market size is not large enough to spur local production. For imported sugar confectionery, Turkey is a leading supplier. Turkish confections including pastries and fruit flavored candies are very popular. According to GTA, Turkish sugar confectionery exports to the region amounted to 25,000 metric tons in 2007, whereas exports from the EU and U.S. totaled 20,600 and 2,100 metric tons, respectively. U.S. companies seeking entry into the Middle East have a few options. Trade shows such as Sweets Middle East (of which the NCA is already familiar) are a good opportunity to meet local distributors and retail accounts, and to provide samples. Ultimately, it is important that products match the taste profile desired of local consumers and that the products offer something different from what is already available. Some popular flavors used in recent product launches include strawberry, cherry, and chocolate. Flavor combinations are also gaining popularity. Another option is to work with U.S. distribution companies and sales agents that handle a variety of grocery products and that have distribution agreements already in the Middle East. Dealers Food Products Company, based in Cleveland, is one example. This firm represents Spangler’s candies among a wide assortment of products for commercial use or retail sale. The company distributes throughout the Middle East through local agents and distribution partners. Companies like this with an established distribution network can be a good fit for other U.S. confectionery companies whose product line may offer something unique. Direct sales are also an option, but a more challenging one to pursue. Large, modern retail chains in the region buy direct from suppliers but these chains typically look for known brands, very competitive pricing and marketing/sales support that may be difficult for small and medium sized confectionery companies to offer. Chewing Gum The chewing gum market in the Middle East is similar to the market for sugar confectionery. Though the market is segmenting into low and high-end products, particularly with the onset of functional gums, it is still largely dominated by low price chewing gum from multinational companies (Wrigleys, Cadbury) and large local competitors (Gandour, Strauss-Elite, and Seham). Chewing gum sales are projected to grow steadily over the next few years. Euromonitor International predicts a 10% growth in retail sales for sugar gums but higher growth rates for sugar-free and functional products. Arabian Business reports that functional gum sales rose 20% in Saudi Arabia in 2006 alone, consistent with growth rates elsewhere in the region, and sales for 2007 were expected to remain high. This is despite cultural norms in some markets where chewing gum in public is frowned upon. For U.S. confectionery companies looking to crack the market, there appear to be opportunities for private label products and for licensing agreements. Companies looking to export branded chewing gum to the Middle East should consider one of the regional trade shows such as Sweets Middle East or GulFood or the ISM show in Europe.


INTRODUCTION BACKGROUND

Bryant Christie Inc. (BCI) was retained by the National Confectioners Association (NCA) to study the market for U.S. confectionery in the Middle East. The project consisted of desk research and in-country interviews with contacts in the Middle Eastern trade. The objective of the project was to better understand the opportunities and potential obstacles to U.S. confectionery export growth to the Middle Eastern region, so that NCA and its members could more informatively strategize their market development efforts. The report is written with a regional focus though, to the extent possible, information has been collected on all individual markets which comprise the NCA’s Middle East UES region: Saudi Arabia, the United Arab Emirates (UAE), Kuwait, Jordan, Lebanon, Bahrain, Egypt, and Israel. This report summarizes BCI’s findings. For more information about the findings in this report please contact Eric Rosenberg, Bryant Christie Inc. at (206) 292-6340 or by email at [email protected].

METHODOLOGY

BCI staff initially conducted in-house desk research to examine major consumption trends in the Middle East, market demographics, distribution systems, import requirements, and market access for U.S. confectionery. Sources for this effort included the Global Trade Atlas, USDA/FAS Attaché reports, Euromonitor International, TNS, CIA World Factbook, and a variety of online articles and publications. For the in-country research, BCI worked with partners based in Egypt, Turkey and Qatar. The researchers conducted personal interviews with confectionery importers, distributors, retailers, government agencies and other parties familiar with the region’s confectionery trade. This in-country research also included retail audits and price checks of available confectionery products to help gauge competition and the relative market presence of leading U.S. brands.

REPORT FORMAT

This report is organized into the following five primary sections:

1) An overview of the market for confectionery in the Middle East 2) A review of consumption trends, competition, and local production 3) A detailed look at the distribution infrastructure, comparative market

access for U.S. confectionery, and import requirements 4) A conclusion summarizing market and distribution findings 5) An appendix listing local retail prices, export figures, and key contacts

mailto:[email protected]


GENERAL MARKET ENVIRONMENT

With over 450 million inhabitants, the Middle East accounts for nearly 9% of the world’s population and population growth is expected to continue at a fast pace.1 By 2050, the population is forecast to increase by 60%, reaching 692 million—the world’s second fastest growing area. To meet demand, the region must increase its food supply significantly over the next 25 years to nearly double its current capacity.2 There are two major factors contributing to the soaring population: a lower infant mortality rate and the arrival of immigrant workers and refugees. Unlike other regions with a growing middle class, the Middle East still maintains a relatively high birth rate which is anticipated to decline, but at a slow pace over the next 40 years. A result of these demographic trends is the Middle East’s notably young population. In fact, one out of every three people living in the region is between the ages of 10 and 24. For most of the countries in the region, the 15 to 24 age bracket makes up 20% or more of the population, as compared to 15% in the U.S.3 Expatriate workers and war refugees also comprise a large and growing share of the population. Attracted by opportunities in the oil industry, many of the laborers in the states of the Gulf Cooperation Council (Bahrain, Saudi Arabia, UAE, Kuwait, Oman, and Qatar) originate from the Philippines, India, Bangladesh, Indonesia, and Pakistan. In Saudi Arabia alone, the expatriate worker population has reached 8 million, representing almost half of its workforce.4 There has also been an influx of Western expatriates working for global companies equally attracted by the wealth and sales opportunities presented by these burgeoning economies. Vast wealth offered by the region’s oil reserves has made the Middle East a study in contrast. Extremes of rich and poor, liberal and conservative lifestyles can all be found within the Arabian Peninsula and Northern Africa. Average family incomes can range from as low as US$730 per capita in Yemen to $43,420 in Qatar.5

1 Sudhakar Tomar and H. Bahceci, “Pulses Trading in the Middle East and North Africa,” presentation, Hakan Agro DMCC .

2 Ibid. 3 Ragui Assaad and Farzaneh Roudi-Fahimi, “Youth in the Middle East and North Africa,” Population Reference Bureau, April 2007.

4 Farzaneh Roudi-Fahimi and Mary Mederios Kent, “Challenges and Opportunities—The Population of the Middle East and North Africa,” Population Bulletin, Vol. 62 No. 2, June 2007.

5 Sudhakar Tomar and H. Bahceci, “Pulses Trading in the Middle East and North Africa,” presentation, Hakan Agro DMCC .


The region, which is comprised of major oil-driven economies such as Saudi Arabia, Iran, and the UAE, is spread over an area of 14 million kilometers, roughly one and a half times the size of Canada. Because of rising oil prices, these economies have undergone significant growth in recent years. However, their dependence on oil revenues creates vulnerability to fluctuating oil prices. The end of 2008 marked the first period in the past decade that the region registered a slowdown in economic growth due to the global credit crisis and decreasing oil prices. Despite this slowdown, foreign food, beverage and agriculture suppliers continue to be attracted by the Middle East’s demographics, income levels, and reliance on imported products. This interest in trade with the Middle East is tempered somewhat by the region’s political instability. Political and civil unrest has long been associated with select areas of the region, particularly within the countries just west of Asia: Iraq, Israel, and the Palestinian Territory. Such circumstances have interrupted the flow of U.S. agricultural trade to the Middle East in the past. For example, in 1990, U.S. agricultural exports to the Middle East experienced a sharp drop as a result of decreased economic activity during the Persian Gulf War.6 Agricultural trade has since recovered, but may face another downturn due to the ongoing economic instability worldwide and outcomes of the most recent Israeli-Palestinian unrest. Though most Middle Eastern countries have stronger historical ties to Europe than to the U.S., the U.S. is a major player in food and agricultural trade with the region. It is estimated that the total value of agricultural trade between the U.S. and the Middle East reached $6.8 billion in 2008, up from $4.2 billion during the previous year.7 That said, the USDA’s Economic Research Service predicts a slowdown in U.S. agricultural trade to the Middle East in 2009. Due to weaker commodity prices, increased competition, and a stronger dollar, U.S. agricultural exports are expected to recede worldwide, including in the Middle East with an estimated reduction of $2.1 billion in the region alone. However, agricultural trade in the Middle East is anticipated to rebound over the long term as the region searches for solutions to supply food to its teeming population while enduring drought-stricken conditions affecting local food production. Currently, confectionery trade makes up only 0.2% of U.S. agricultural exports to the region.8 The U.S. primarily exports grains to the Middle East, though horticultural exports and ready-to-eat consumer foods make up an increasing share of U.S. trade. U.S. exports have had particular success in Egypt, which is one of the leading markets for U.S. wheat and ranks among the top 10 U.S. export markets for agricultural commodities annually.9 Much like the rest of the Middle East, the Egyptian market is developing a taste for American and European goods and newer

6 Moke, Marsha, “Trade snapshot: the Middle East – U.S. agricultural exports to the Middle East,” AgExporter, August 1991.

7 “Outlook for U.S. Agricultural Trade,” U.S. Department of Agriculture Economic Research Service, December 1, 2008.

8 Department of Commerce, U.S. Census Bureau, Foreign Trade Statistics. 9 “U.S. Agricultural Exports Help Egypt Fight Food Shortages,” Export Industry News, August 13, 2008,

<http://blogs.officialexportguide.com/news/?p=1401>.


McDonald’s Ad in Dubai

generations are anxious to try a growing selection of Western products. Traditionally, Saudi and Western expatriates were the largest consumers of American consumer-oriented products as they tend to have high incomes. Nowadays other factors are contributing to the increasing demand for American consumer-oriented products across the region and U.S. companies are finding particularly lucrative markets in the UAE, Bahrain, and Kuwait as well. The growing youth

population, increased presence of American brands, regulatory reform, an improving distribution network, a growing HRI and retail food sector, and recently reduced tariffs on imported foods has all contributed to the expansion of U.S. food products in the Middle East.

MARKET FOR CONFECTIONERY IN THE MIDDLE EAST

The Middle East is identified as one of the top ten markets for confectionery products in the world, with a high per capita consumption of chocolate in particular. The total Middle East confectionery market is valued at $113 billion10 and the market has grown by 15% over the last three years with Saudi Arabia and Qatar experiencing the largest growth at around 24%.11 Such growth is attributed to greater disposable income per capita, the influence of the region’s enormous population of young consumers and the traditional role of sweets in Arab and Israeli culture. Despite fluctuations in the region’s economy due to changing oil revenues, over the next decade confectionery sales are forecasted to increase by 15-20%.12 Individually, countries within the region are posting significant confectionery market growth. The market for confectionery in Saudi Arabia is valued at $544 million, growing annually by 5%. In Egypt, the confectionery market is valued at $382 million, growing 2.5% annually since 2001, and Israel’s confectionery market is estimated to reach $457 million by 2010, up from $419 million in 2007. As evidenced by these favorable growth trends, the confectionary market is still on the rise in the region despite changes in the current global economic climate. Overall, the middle class continues to expand and disposable income is rising per capita, allowing for expenditure on indulgent items.

10 TNS Media Intelligence 11 “International Sweets and Confectionery Leaders Eye Middle East 2008 for New Business and Partnership

Opportunities,” Eye of Dubai, September 19, 2008, < http://www.eyeofdubai.com/v1/news/newsdetail-25778.htm>.

12 Roger Field, “Life is sweet,” Retail New Middle East, December 13, 2005, <http://www.arabianbusiness.com/492339?tmpl=print&page>.

Middle East Confectionery Market:: Opportunities for U.S. Confectionery Exports January 30, 2009, Page 8 of 28 CONSUMPTION TRENDS

Regionally, chocolate leads in terms of consumer expenditure. For example, in the UAE and Saudi Arabia, chocolate leads overwhelmingly in terms of value when compared to sugar confectionery and gum sales. This holds true in urban areas in other markets as well. Where consumption patterns are reversed is in the more rural areas of less developed countries such as Egypt. Rural areas in Egypt registered higher demand for sugar confectionery at 82%, compared with chocolate (16%) and gum (2%).13 One of the more interesting developments in the region’s confectionery market has been the surge in chocolate sales and consumption with a particular focus on the premium segment. To a lesser extent this is now happening for sugar confectionery and gum. These premium products, typically made without additives and preservatives, are less a fit for rural areas where distribution is more difficult and income levels are lower. Such trends affecting each major confectionery product segment (chocolate, sugar confectionery, and chewing gum) are discussed in more detail later in this report. As mentioned earlier, demographic changes are a principle cause of shifting consumption patterns in the Middle East. A high birth rate in the region has led to a very young population. Nearly 70% of Saudi Arabians are under the age of 30 and 50% of UAE nationals are under the age of 16.14 Since youth are traditionally the influencers and main consumers when it comes to confectionery purchases, the young population provides a significant opportunity for suppliers to reach new customers. The younger population also tends to prefer Western-style foods compared to previous generations, creating wider acceptance for U.S. products. Youth and wealth are two attractive features of this region for confectionery suppliers. But as an added benefit, the sharing of sweets and confectionery is considered customary. The Middle Eastern population is overwhelmingly Islamic with a culture rich with customs, religious celebrations, family gatherings and festivals. The two main Islamic holidays are Eid Al-Fitr (Festival of the Breaking of the Fast) and Eid Al-Adha (Festival of Sacrifice), which are celebrated throughout the region and usually last up to three days. During these holidays, families will often visit each other and exchange sweets and gifts.15 Christmas and New Year’s celebrations

Cadbury Christmas Chocolate

13 Chamber of Food Industries-Cairo, 2007. 14 Lindsey Partos, “Confectioners tap into Middle East youth Market,” Decision News Media SAS, October 27,

2008, < http://www.confectionerynews.com/The-Big-Picture/Confectioners-tap-into-Middle-East-youth-market>.

15 Roger Field, “Life is sweet,” Retail New Middle East, December 13, 2005, <http://www.arabianbusiness.com/492339?tmpl=print&page>.


are also times when confectionery sales peak. By reinforcing marketing efforts and incorporating holiday themes during these special occasions, manufacturers take advantage of the increased level of consumption. Purchasing chocolates for gifting purposes is also common though this custom differs by market. For example, confectionery gifts are more common in the UAE (confectionery gifts mentioned by 10% of surveyed consumers) than in Saudi Arabia (4%).16 And while sales remain reasonably consistent throughout the year, there are a few periods, other than holidays, when volumes tend to shift. Sales will increase when school is in session, and then typically decrease as wealthy expatriates leave the region on vacation during the summer. The Haj and Umra (pilgrimage), which occurs annually based on the Islamic lunar calendar, is a time of the year when tourism increases, creating a moderate boost in confectionery sales. The number of foreign pilgrims coming to participate in rituals is estimated at about 5 million each year. The increasing availability of international products is also contributing to growth in the overall confectionery market. Rapid development in the food retail sector has served as a catalyst for this expansion and is responsible for the region’s wider exposure to a globally sourced selection. Chocolate Annual chocolate sales average over $4.2 billion in the Middle East.17 With a population of 25 million (17 million locals and 8 million expatriate laborers), Saudi Arabia represents the largest confectionery market in the Arabian Gulf. In Saudi Arabia, chocolate retail sales totaled $348 million in 2007, accounting for over 15% of the region’s chocolate consumption. Moreover, the value of chocolate sales per unit is rising. As the average income per capita increases, currently at $15,000, so does purchasing power and expenditure on luxury items. Wealthy expatriates are also supporting sales at the premium end of the market. A report from the Doha-based Gulf Organization for Industrial Consultancy (GOIC) proves this point. Doha has one of the highest income levels in the world and a sizable population of wealthy foreign workers. The GOIC study found that per capita expenditure on chocolate in this market ranked as one of the highest in the region at $11 per year. Similarly, in the UAE, where the wealthy expatriate population is sizeable and residents enjoy high incomes per capita, demand for chocolate is growing. AC Nielson data values the UAE chocolate market at $148.7 million and strong growth of 27% by value and 14% by volume is anticipate 18 Chocolate Aisle in Leban

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Given these high disposable incomes, consumers in more developed countries within the region are increasingly trading up to higher quality products especially in the case

16 TNS Media Intelligence 17 Koelnmesse GmbH, 2008. 18 “UAE chocolate market expected to touch 148.7m,” MENAFN, August 10, 2008.


of chocolate. Traditionally, lower-priced milk chocolates, with high sugar content were preferred. Now, more and more consumers are shopping in specialty stores rather than supermarkets, for their chocolate purchases and there is renewed interest in dark chocolate for its taste profile and association with better health. Increasing demand for premium imported chocolate is a clear indication that the market is trending towards finer confectionery. As an example, Swiss chocolatier Confiserie Sprungli began offering its luxury, hand-made chocolates and other confectionery in Dubai in 2008. The company was attracted by the region’s growth potential and demand for high-end food products. Orders are taken by a local office in Dubai and then flown in from the company’s factory in Switzerland to ensure freshness.19 Because of unlimited disposable income in the upper class in Dubai, and other markets in the region, cost is not a factor. Similar reasoning has been behind the expansion of Galler Chocolates from Belgium in the Middle East. Galler opened its first Middle East outlet in 2004 in Lebanon. Since then the company has expanded with shops in Jordan, Saudi Arabia, the UAE and Bahrain. Moreover, the company still has a robust outlook on future sales in the region which is behind plans to open more shops, particularly in Saudi Arabia over the next few years. According to the company’s website new shops will soon be opening in Lebanon, Dubai, and Saudi Arabia.20 Local premium chocolatiers are similarly expanding throughout the Middle East, jockeying for position with the influx of imports. Ghraoui Chocolates, one of Syria’s signature and historic producers is expanding in the UAE in addition to shops now in Jordan, Kuwait, and Syria. The Patchi company from Lebanon is another local competitor looking to capitalize on this trend towards premium chocolate consumption. Like Ghraoui, Patchi is expanding in Saudi Arabia, Kuwait and other markets. Chocolate in all forms has performed well in the Middle East for many years with single serve bars/countlines dominating retail sales. But even at the hypermarket/supermarket level there has been a notable shift in recent years in the variety and quality of chocolate being offered. The large multinational brands have helped drive this trend. In the last year, Nestle introduced its Nestle Gold line of premium chocolates in restaurants and retailers in the Middle East. Not to be outdone, Kraft introduced its Milka line of premium milk chocolates around the same time. The result of this emphasis on premium selections has been an increase in the per unit retail price for chocolate sold in the region. According to Euromonitor International, retail unit prices of chocolate tablets are estimated to have grown by 8% in 2007.21 Although the market is very promising in terms of growth, one factor may hinder further expansion, and that is the rising concern over health and wellness.

19 Stella Rosato, “Haute Chocolate,” Food, August 2008. 20 Galler, Galler Chocolatiers, 2008, < http://www.galler.com/index.php>. 21 Euromonitor International.


Consumers are becoming increasingly health conscious. As such, the confectionery industry is challenged to invest in product innovations that will satisfy the customer’s craving for sweets while accommodating their health concerns. Further development of sugar-free products is and will be a key driver in the coming years. Recent improvements in the taste and texture of artificial sweeteners are encouraging their usage in boiled sweets and chocolate. For instance, ChoCo’a, a leading producer of premium chocolates in the UAE, introduced a variety of chocolates that are aimed towards consumers with diabetes. The UAE and Bahrain are especially targeted for these product innovations since they have one of the highest rates of diabetes in the region. Sugar Confectionery The sugar confectionery market in the Middle East, although more concentrated than the chocolate market, is starting to fragment with the entry of new foreign suppliers. Nevertheless, for now some of the same dominant multinational companies discussed above control the market for sugar confectionery when it comes to mints, boiled sweets, and sugar-free confections. The largest supplier to the region is Cadbury Schweppes, followed by Perfetti Van Melle Group, and August Storck KG in order of market share. The largest local/regional companies are Halwani Bros Co. and Dadash Baradar Co. Some of the largest local confectionery companies focus on the halva market. Halva is a low-cost sesame or semolina based sweet paste that is often packaged in bars, mixed with chocolate, nuts or dried fruit. Halva is a staple throughout the region and, like halva, sugar confectionery typically occupies a lower tier of the market. Although domestic producers are the predominant suppliers of traditional sweets, multinational players have gained significant footing for candies and mints by achieving low production costs and establishing efficient distribution channels. When these are combined with the vast marketing resources provided by the big companies, it is easy to understand the difficulties that smaller providers and new entrants to the market face. However, this may be beginning to change with the onset of specialty and functional sugar confectionery. Sugar-free, all natural, and vitamin enriched candies are gaining popularity as the health-food trend advances. In an interview with Arabian Business, Patrick Dorais (regional marketing and sales director, Middle East and North Africa, Perfetti Van Melle) mentioned this trend as one that his company is closely monitoring. Specifically, he noted that there is clear development of a premium segment within the candy market with companies looking to bolster this development through the introduction of innovative new packaging and new products. He cited clutch bottle packaging as one example where the price per unit is greater than for a similar product packaged as sticks or even blister packs. Dorais also commented on the health trend. "At the same time, there is a health and wellness trend, where shoppers are looking at calories and sugar. There is big potential for sugar-free, calcium and vitamin-enriched products."22

22 http://www.arabianbusiness.com/533474-perfetti-planning


In an interview conducted for this study, a contact from Horreia Food Industries, one of the largest candy manufacturers in Egypt echoed the statement that the sugar-free and nutritional candy market is developing in the Middle East. He indicated that low sugar or sugar substitute candies using Maltitol are now being imported and are gaining popularity. He did not believe such products were yet being manufactured in Egypt because the market size remains small but mentioned that his company would welcome an opportunity to produce functional or other innovative candy products under license for a foreign company. He envisioned these products continuing to make inroads into the Middle East markets.

Along the same lines, a marketing manager of Wrigley’s Middle East, who was also interviewed, reported that the introduction of sugar-free drops has led to sales improvements and wider distribution. Despite the development of a premium segment of the sugar confectionery market, it is important to remember that the market remains dominated by lower-end products. This is particularly true in the more rural areas of the region where distribution of sugar confectionery (with its longer shelf life than many chocolate products) is more feasible. In rural areas of Egypt for example, sugar confectionery dominates retail sales with over 80% of the market, compared to 16% for chocolate and 2% for gum. In terms of product forms lollipops and hard candies are popular, perhaps owing to their Middle Eastern origin when fruit and other products were preserved with honey or other sugars. Chewier candies, including jelly beans are newer to the market but sales of these products are also reportedly doing well. There are some restrictions in terms of flavor however. Per Halal requirements (which will be detailed later in this report), candies with alcohol are prohibited. Chewing Gum Gum serves as a leading example of how sugar-free innovations have led to wider consumer appeal.23 In Saudi Arabia, sugar-free gum posted a 20% increase in demand over the last year alone, while category sales only increased by 5%.24 In addition to sugar-free options, consumers are looking for benefits such as teeth-whitening properties and cavity-reducing ingredients like xylitol. Companies are eager to capitalize on parents’ concerns over the dental health of their children. The Italian multinational company TV Ad for Happydent

23 Ahmed Mostafa of Incogum Alexandria, interview, December 14, 2008. 24 “Gum giants jostle for position,” ArabianBusiness.com, November 19, 2007, <http://www.arabianbusiness.com/504313?tmpl=print&page=>.


Perfetti Van Melle, offers a sugar-free line targeting children named Happy Dent (pictured). Gums like Happy Dent and Extra for Kids, an adaptation of Wrigley’s popular Extra line, has served as a sales vehicle for the children’s functional gum niche. As in the U.S. market, manufacturers are also introducing new flavor or other innovations as a way to attract consumers. Wrigley’s has reportedly had success with the launch of its watermelon flavored sugar free gum and its “Professional” line, a gum filled with small granules that provides a clean feeling to the consumer’s mouth. Even with these product innovations, gum sales are forecast to grow only moderately. This is simply because the gum market is still dominated by low cost conventional sugar gum. Retail volume of sugar gum is anticipated to increase by 10% between 2007 and 2012.25 From a value perspective, private label gum production, at least in Saudi Arabia and Israel is likely to keep downward pressure on chewing gum prices in those markets. Private label products are not as well established in the Middle East as in

Gum Endcap in Abu Khalil Antelia Hypermarket

Western countries. However, Saudi Arabia’s largest gum manufacturer Batook (the largest local gum producer in Gulf Cooperation Council countries) offers private label options for its clients and more private label gums are beginning to appear on the market. The development of this private label segment should be monitored as it could present opportunities for U.S. suppliers and, at the same time, challenges to brands already present in the market.

COMPETITION

As has been touched on in earlier sections of this report, top manufacturers of confectionery in the Middle East include major multinational companies with production facilities located in the region, and local producers. Since 2002, local producers began to experience a residual decline in market share as large multinational companies established production facilities and new offices for distribution and marketing purposes. This is often attributed to trade liberalization which has altered the landscape of the confectionery market. Declining tariff rates,

increased market access, and an improving investment environment have enabled large multinational players to enter the market. These companies already benefitted from considerable brand recognition and an association with quality so their appearance in the market pushed many local manufacturers towards the value segment of the market where they compete almost solely on price. Cadbury Egypt Group Location

25 Euromonitor International.


Further information on major players in the region is provided in the following sections though not all companies are covered. Those included below were found to have the largest combined market share across the region.

MULTINATIONAL PRODUCERS

The market leader with almost 13% of combined market share in the major countries of the Middle East is Cadbury Schweppes Plc. The company’s Egyptian operation, known as Cadbury Egypt Group, is the leading manufacturer of chocolate (Cadbury Dairy Milk, Moro, Allora, Gersy, Mandolin), sugar confectionery (Jelly Cola, Jelly Juice, and Jelly Mix), and gum (Chiclets, Hearty, Trident, Adams, Blox) in Egypt. In 1997, Cadbury realized that in order to grow its market share beyond affluent consumers it would have to offer something affordable to consumers of lower income. As such, the company decided to acquire Bim Bim, a leading local confectionery company. Now with over 80 confectionery product offerings, the company has a stronghold in the Middle East with a particular presence in Egypt, where the corporate giant owns almost 50% of market share for confectionery.26 Mars Inc represents 11.2% of the regional market and has a particularly strong presence in the UAE and Saudi Arabia where it represents 26% and 28% of the market respectively. Mars also represents upwards of 62% of confectionery sales in the smaller Bahraini market.27 In addition to its regional head office located in the UAE, Mars also runs branch offices in Saudi Arabia and Egypt. In the Middle East, the company has gained significant brand recognition with its Snickers®, Mars®, M&M®, Twix®, Bounty®, Skittles®, and Galaxy® brands.

Mars Billboard for Snickers Brand

The major gum manufacturer, Wrigley Jr. Company, which is now a subsidiary of Mars Inc, represents roughly 9% of market share in the Middle East but within the gum segment along Wrigley’s share is upwards of 45% in most markets. Other major multinational companies with sizeable sales in the Middle East include Nestle, Unilever, Kraft, and Perfetti Van Melle Group among others. Together, these four multinational companies account for 10.2% of retail market share in the Middle East and they compete intensely for additional sales.

LOCAL PRODUCERS

Although large multinational corporations hold the majority of combined market share, local producers have a significant presence in the Middle East and enjoy a loyal customer following. Regional producers are able to compete due to their proximity to the market and lower prices, and some long-standing local producers have a nostalgic appeal for customers. Competition has intensified in recent years

26 Gawad Abazah of Cadbury, interview, November 5, 2008. 27 Jalal Abbass Shebal Hashim of BMMI (distributor of Mars), interview, December 15, 2008.


with the presence of multinational players causing even the largest holders of market share to launch aggressive campaigns. Local manufacturers are also seeking innovative ways to reclaim their market through gourmet snack foods, which is a leading trend for regionally specialized products.28 For example, the UAE-based company Popular Popcorn, has launched new flavor adaptations of its popcorn product to include “creamy caramel and chocolate” as well as “white chocolate and coconut” to its product line. The Dadash Baradar Co., advertising under the brand AIDIN, ranks as the third largest confectionery supplier to the region. Currently, the company manages roughly 10% of market share in the Middle East and holds the largest share of the Iranian market at 27%. The Iran-based company which started out by producing toffee hard candies in 1945 now features a full line of confectionery products from chocolate bars, to gum, sugar confectionery, and biscuits.

Lebanese-based Gandour, whose products are available in over 55 countries across the Middle East and Asia is also a formidable player in the Middle East confectionery industry. Gandour is one of the largest producers in the Middle East, with plant locations in Saudi Arabia, Lebanon, and Egypt. The company produces a large line of chocolate and sugar confectionery, along with gums, biscuits, and wafers.

Strauss-Elite is the leading player in the Israeli confectionery market. The company occupied 45% of Israel’s market in 2007 in terms of retail value of sales, and represents 7.6% of the region’s market share. Strauss-Elite is best known for its Elite-branded chocolates, like its flagship Cow chocolate developed in the 1930’s. While the company’s portfolio also includes coffee, snacks, and dairy products, in terms of confectionery, Elite focuses on mid-range chocolate varieties and chocolate snacks, and also produces chewing gum. Not only is the company a major manufacturer of confectionery, during its history it has also opened a number of confectionery shops and chocolate cafes featuring its Max Brenner brand. Nejati Industrial Group, which markets under the registered brand name of ANATA, is a major manufacturer based in Iran and the seventh largest supplier in the Middle East, accounting for 3.7% of the market in 2007. Nejati Industrial Group produces almost 350 confectionery products for its domestic and international markets, and has achieved distribution to Eastern Europe, Asia, and the U.S. The company’s product offerings include a large line of sugar confectionery, as well as chocolate and gum, but in limited varieties. Hard Candy from ANATA

Some other significant local players include Salehia (Saudi Arabia) which focuses on chocolates and dates and has achieved international distribution and Batook (Saudi

28 “Region’s confectionery markets poised for rapid expansion,” AME Info, October 19, 2008.


Arabia) and Seham (Syria) among the largest gum producers in the region. Local manufacturers tend to have a particular stronghold in select countries, though a few have achieved notable market share when viewed on a regional basis. For a regional view, the chart below, which is based on Euromonitor International’s retail value sales data, demonstrates each company’s aggregate market share within the region. However, it should be noted that this chart represents a region defined only to include Egypt, Iran, Israel, Saudi Arabia, and the United Arab Emirates. It does not include Jordan, Kuwait, Lebanon, Qatar, and Bahrain, where the U.S. has been emerging as a supplier and where U.S. companies are likely to see some of their best opportunities. This also explains why some of the market share data provided in the chart below differs slightly from statistics provided earlier that came from in-country interviews.

Cadbury Schweppes Plc13%

Mars Inc11%

Dadash Baradar Co10%

Wrigley Jr Co, William9%

Strauss-Elite Group8%

Nestlé SA5%

Nejati Industrial Group (Anata)4%

Shirin Asal Co4%

Ferrero Group3%

Pars Minoo Industrial Co2%

Unilever Group2%

Halwani Bros Co2%

Perfetti Van Melle Group2%

Kraft Foods Inc2%

Ülker Gida Sanayi ve Ticaret AS1%

Others24%

Market Share of Top 15 Confectionery Suppliers to the Middle East

Cadbury Schweppes Plc

Mars Inc

Dadash Baradar Co

Wrigley Jr Co, William

Strauss-Elite Group

Nestlé SA

Nejati Industrial Group (Anata)

Shirin Asal Co

Ferrero Group

Pars Minoo Industrial Co

Unilever Group

Halwani Bros Co

Perfetti Van Melle Group

Kraft Foods Inc

Ülker Gida Sanayi ve Ticaret AS

Others

Source: Euromonitor International

CONFECTIONERY IMPORTS

Most Middle Eastern markets rely on imports to meet demand and the fact that the Middle East confectionery market is poised for growth in the years to come is not lost on suppliers worldwide. Increasing competition from local producers and foreign suppliers is anticipated. European producers are the main source of competition to American companies at least when it comes to other imports. This is particularly true within the chocolate segment. Since developed countries, like those within the EU, tend to be mature markets for confectionery, growth there is more incremental. Therefore, European


confectioners see an opportunity in emerging markets, particularly the Middle East. According to Global Trade Atlas, members of the European Union (EU) export over 76,700 metric tons of confectionery to the Middle East annually. Most exports come from Italy, Spain, Germany, and Belgium. Companies from the EU have strong brand recognition and are associated with premium quality, as well as product innovation. Although U.S. products are also perceived to be of high quality, awareness of U.S. brands other than industry leaders like Wrigley or Hershey is relatively low—especially in countries with a smaller percentage of Western expatriates. Some traders have also reported that consumers simply prefer the taste of European products over competing American ones, especially for chocolate. Turkey is the foremost competing exporter in terms of volume. The country’s exports rival what the EU exports collectively to the Middle East. However, Turkish confectionery tends to target less affluent customers shopping in the lower end of the market segment, while EU and U.S. confectionery exports occupy more of the premium segment. Iraq is Turkey’s largest customer, receiving 12.7% of Turkey’s gum and jelly exports, and 19% of chocolate exports.29 Other leading export markets for Turkish confectionery within the region include Israel, the UAE, and Saudi Arabia. China is a leading source of sugar confectionery for the region, and accounts for nearly one third of the sugar confectionery market share in the UAE. China’s total confectionery exports already exceed that of the U.S. at over 11,548 MT in 2007.30 Export volumes are likely to increase as China continues to make significant inroads in providing consumer-ready products to the region. This could of course change if China continues to gain a reputation for spotty food safety standards and lax quality control. In December of 2008, Saudi Arabia discovered excessive amounts of melamine (an industrial chemical that may cause death in sufficient dosages) in milk and dairy products, which included Chinese sweets. Other countries in the Middle East were quick to react. The UAE placed a ban on Chinese products containing dairy, and Jordan began to scrutinize Chinese imports by only allowing entry for products that were proven to be melamine-free.31 Regaining consumer confidence will play a key role if China is to increase its market share. Despite the growing number of competitors vying for import share, in 2007 U.S. confectionery managed to achieve 11% growth in the region, especially in countries with liberal trade systems and sophisticated infrastructure to handle product from distant origins. U.S. exporters have experienced particular success in the UAE, their top export market in the Middle East. Last year the U.S. shipped almost 2,700 metric tons to the market, and accounted for 5.3% of the country’s imported chocolate. 32 More recently, volumes appear to have increased by 26% as of October 2008. Israel imported 2,106 metric tons of U.S. confectionery in 2007 representing a doubling of the market for U.S. product since 2004.

29 Cengiz Karabayir, “Sugar and Chocolate Confectionery,” IGEME Export Promotion Center of Turkey, 2008. 30 Global Trade Atlas 31 “Tainted milk from China found in Saudi Arabia,” Associated Press, December 3, 2008. 32 ITC Comtrade and Global Trade Atlas


U.S. exports, while growing, still comprise a small share of the regional market. But recent developments have been positive. The U.S. dollar, which has depreciated in recent years, has had an overall positive role in supporting exports. Furthermore, several Middle Eastern currencies (UAE, Saudi Arabia, Qatar, Lebanon, Jordan, Bahrain, and Oman) are pegged to the U.S. dollar, providing an edge for U.S. exporters competing with EU suppliers during times when Middle Eastern currencies depreciate against the Euro.

DISTRIBUTION

Distribution for food products in the Middle East is evolving and, in many countries, now resembles distribution in Western countries, including the United States. Due to the presence of large multinational retail chains such as Carrefour, local companies have stepped up efforts to modernize and improve the consumer shopping experience. The U.S. Agricultural Trade Office in Cairo even credits Carrefour for revolutionizing the retail industry in Egypt by introducing the hypermarket format. But the changes brought about by the introduction of hypermarkets are not limited only to Egypt. Across the Middle East, modern supermarkets and larger format hypermarkets are changing the retail landscape with improved displays, a focus on quality, streamlined distribution and lower prices. This trend certainly benefits imported confectionery products as these new stores are more capable of handling imports and, with larger display areas, can offer a wider selection than ever before. Of course the extent of modernization in the distribution channel differs in each country that makes up the Middle East region. In a small country like Bahrain, for example, where income levels are very high and there are a significant number of expatriate Western consumers, advanced distribution is well established. In much larger countries like Egypt, where there is a wide disparity in income levels, such advancements in the distribution channel can be more inconsistent with lower income consumers still relying on open markets and mom and pop stores for their food needs. In all countries, convenience stores including those associated with gas stations, play an important role in confectionery sales as well. Despite the overwhelming importance of the retail sector to confectionery sales, the Hotel, Restaurant and Institutional (HRI) sector should not be discounted entirely. Many of the high-end hotel chains offer confectionery to guests through on-site stores or under private label as a way to market their brand. In other cases, hotels will team with leading confectionery companies such as Syria’s Ghraoui, Lebanon’s Patchi, or Godiva. Imported confectionery, because of its association with quality, can often be a fit for hotel chains. Each of these distribution outlets (retail, convenience stores, and HRI) will be discussed further in the following sections. In general though, the flow of product to these outlets can be summarized in the diagram on the following page. Large retail shops (hypermarkets and many supermarkets) often buy directly from


manufacturers, particularly for locally produced items. For imported products, the retailers buy from agents for the foreign company, or from wholesalers. Occasionally they buy direct from foreign suppliers. The same largely holds true for hotel chains. Convenience stores, however, are not set up to purchase direct. These outlets will purchase exclusively from agents or from the wholesale sector.

RETAIL

Hypermarkets and modern supermarkets continue to gain market share in the Middle East as consumers appreciate the one-stop-shopping advantage that these large format stores offer. That said, small mom and pop grocers still account for the largest percentage of confectionery sales. Often referred to as independent retailers, this category still dominates confectionery sales out of convenience. In many areas, these small grocers remain the most accessible options for grocery shopping. Below is a table showing the market share by retailer type for Egyptian confectionery sales.

Egyptian Confectionery Sales by Retail Channel

Channel 2005 2006

Independent retailers 60.0% 59.8% Convenience stores 25.9% 26.1% Supermarkets/ hypermarkets 5.5% 5.5% Specialist retailers 3.8% 3.75% Others 4.8% 4.85% Total 100.0% 100.0%

Manufacturers

Wholesalers Retailers Agents

Source: Euromonitor International

In other large countries in the region, such as Saudi Arabia, the breakdown of sales is similar to the table above. Small grocers in that market, also known as bakalahs have the largest share of confectionery sales (approximately 42%). These are located throughout the country in every neighborhood and offer a convenient shopping option for locals. However, large format supermarkets and hypermarkets are quickly expanding their presence.


alone.

In some of the smaller Middle Eastern countries such as Israel and Bahrain, the situation differs and supermarkets and hypermarkets account for the largest share of confectionery sales. In Israel, there are two national supermarket chains that now dominate the retail scene. Convenience stores, of course, still play a major role in confectionery distribution but the small independent grocer has largely faded from the picture. This is true as well in Bahrain where, in light of the presence of large numbers of expatriates, supermarket and hypermarket shopping is favored. Major Retailers In terms of retail companies that operate supermarkets and hypermarkets in the region, there are a limited number of large players. Among the multinational retail corporations, Carrefour is the most active in the Middle East. The company maintains hypermarkets in Egypt, Jordan, Qatar, Saudi Arabia, Syria, Oman, UAE, and Kuwait. Moreover, the company plans to open 20 new stores throughout the region.33 Carrefour Middle East is operated by the Majid Al Futtai Group. Carrefour’s top competitor is the other French retail giant, Groupe Casino which operates stores under the Geant banner. Geant is expanding its Middle East operations but this expansion has not been as robust as Carrefour’s in recent years. In Egypt, the German supermarket chain Metro has a sizable presence. There are now 32 Metro stores in the country and further expansion is anticipated.

There is one local company competing effectively in the hypermarket segment. Hyper Panda is based in Saudi Arabia but recently opened its first hypermarket outside of the Kingdom. That market is in Dubai. The company has lofty expansion

plans though these plans remain centered on Saudi Arabia for the time being. By 2010 the company hopes to have 120 outlets in that country There are more local players when it comes to supermarkets. One of the largest in the region is Spinneys. Spinneys competes with hypermarkets but has adopted a smaller store format with central locations. The company has stores in Lebanon, Egypt, and the United Arab Emirates but has expansion plans that include new stores in eleven countries in the Middle East/North Africa region. Among the most immediate expansion targets are new stores in Jordan, Qatar, and Pakistan. In addition, the company intends to enter into joint ventures as a means to extend the brand further. Through joint ventures the company hopes to expand its presence in Syria, Saudi Arabia, and Kuwait among other countries.34 Spinneys is one of the few local retailers expanding throughout the Middle East. The other major local players in the retail sector are typically confined to their home market. In Saudi Arabia, the Al Azizia-Panda company and

33 “Carrefour in Middle East adopts category management and supplier negotiation from Soft Solutions,” 21

Food and Beverage Online, September 18, 2008, < http://www.21food.com/news/detail14584.html>. 34 http://www.spinneys-supermarkets.com/Library/Files/press.pdf


Tamimi Markets are two of the largest retail chains. Al Aziza operates hypermarkets under the aforementioned Hyper Panda banner and supermarkets under the Panda name. There are now over 50 supermarkets in its system in Saudi Arabia. Tamimi Markets began as a joint venture with Safeway in 1979, but is now entirely locally owned and operated. In Israel, Shufersol is the top chain. Shufersol has approximately 32% of the grocery retail business in Israel and operates three types of stores including a hard discounter, a hypermarket, and a more traditional neighborhood grocery. In total, there are over 220 outlets in the Shufersol system. Mega is the other major Israeli retail chain. Mega is a store banner under the parent company Blue Square Limited. Together, the two leading Israeli retailers represent over 60% of sales in the country. Merchandising

Confectionery is displayed in these supermarkets and hypermarkets in much the same way as is done in western countries. This is understandable because these modern retail outlets were modeled after Western chains to take advantage of research on what makes for a favorable shopping experience. There will typically be one, possibly two isles, devoted to confectionery products with additional display space near check-out to maximize impulse purchases. At left is a picture of a check-out confectionery display at a Spinneys market in Lebanon.

Check-out Display at Spinneys Representatives of the Spinneys company and Alosra Supermarkets were among contacts interviewed for this study. Their message was consistent. Throughout the Middle East, confectionery sales are impulse purchases so the best mechanism to ensure sales (at least through these retailers) is through favorable in-store product positioning, preferably at check-out. In light of this, it is common for confectionery companies to purchase large special displays or to pay fees in return for better shelf placements. The latter practice is not necessarily ubiquitous. According to the confectionery category manager for Spinneys Lebanon, that company does not engage in fee-for-placement. But it seems that most large retailers do. In Saudi Arabia for instance, distributors pay fees ranging from $1,000 - $5,000 per SKU35 for product placement into the different hypermarkets. The higher the payment, the better the placement. And this does not even include the additional fees charged for promotional space or special exhibit space within the store that is particularly common during holiday sales periods.

35 “Saudi Arabia: Annual Exporter Guide,” USDA FAS GAIN Report #SA8017, September 28, 2008.


ir, ebanon.

Supplies Ltd, hereas in Egypt these products are handled by MasterFoods Egypt.

CONVENIENCE STORES

bil’s On The Run stores can now be found in about 100 gas stations in e region.

th gas stations but the company has a as station/convenience store format as well.

Distributors interviewed for this study stated that confectionery sales (chocolate in particular) really pick up around the Christmas and New Years holidays with confectionery companies often paying for large display spaces and offering new packaging and incentives to attract consumers. Holiday travel give-aways are common as are more simple prizes for kids. Cadbury’s has created Christmas ornaments that were a popular part of displays this year. Adjacent is one Christmas chocolate display as found in a Metro store in Ghaz Christmas Promotion at MetroL When it comes to supplying these stores with product, two routes are most common. Local manufacturers supply the stores directly. As with large retailers in the United States, there is typically a central distribution point that services many stores within the chain in one area. Foreign companies, on the other hand, typically retain a firm that serves as their in-country agent (often separate agents in each country within the region) responsible for imports, distribution and marketing. While this is not necessarily required, the large retailers often prefer to deal with a local company to ensure that any issues with distribution can be taken care of quickly. A few examples of local agencies representing major confectionery suppliers include Al Jazira Group and Bahrain Maritime and Mercantile International (BMMI). Both of these companies operate in Bahrain. Al Jazira group handles Cadbury products while BMMI represents Hershey’s and Mars brands. The Al Sayer Group is a similar example. This company is the exclusive representative for Kraft products in Kuwait among scores of other food and non-food products within its portfolio. But as mentioned, often separate agents are appointed for each market. For example, in Saudi Arabia, Mars products are handled by Arabian Foodw

Convenience stores are also important purveyors of confectionery products in the Middle East. Most gas stations offer an attached convenience store and, in fact, some of the same stores found in the U.S. are operating in the Middle East. For example, Moth The major chain convenience stores are typically supplied by the region’s largest food distributor/wholesalers. The Jawad Business Group in Bahrain, for example, distributes food products to hypermarkets, supermarkets, convenience stores and independent grocery stores in Bahrain and Qatar. The company also owns and operates convenience stores under the Jawad Express and 24/7 Mini Mart banners. These convenience stores are not associated wig


company is based in Bahrain but operates worldwide. In 2008, it

enience stores that operate in ically obtain supplies from cash in Egypt or Carrefour.

HOTE

onomic crisis poses an immediate threat to this sector, the development of e Middle East as a top tourism and business market has already enticed leading

available. Chocolate bars are also ommonly found in room mini-bars or simply as part of daily service. For example,

t is merely at the hotel, restaurant, and cafeteria sector is a viable sales channel for

confectionery. Moreover, growth in this sector from hotels to coffee shops, may present opportunities for U.S. confectionery suppliers for years to come.

BMMI, previously mentioned, is another of the large distributor/wholesalers that operates in the region and that services convenience stores among other retail accounts. The

was awarded a large Pentagon contract to distribute food and other items to U.S. troops in Saudi Arabia, Qatar, and Bahrain.

There are also independent conveach country. These stores typand carry wholesalers like Metro

L, RESTAURANT AND CAFETERIA Though the retail sector (large format stores, specialty shops, and convenience stores) accounts for an overwhelming majority of confectionery sales in the region, the hospitality sector should not be overlooked. This sector is booming in the Middle East with impressive growth in hotel construction, particularly five-star hotels that cater to Western and affluent business visitors and tourists. Though the current ecthrestaurateurs and coffee chains, among other companies, to set up shop in the region. Growth in the hospitality sector is one of the very reasons organizers recognized an opportunity with Sweets Middle East. The UAE alone has one of the world's fastest-growing hotel and hospitality sectors. According to an article from Gulfnews in early 2008, an anticipated 86,000 new hotel rooms will hit the market by 2012 in the UAE and a separate report cited in that article suggests that 128 new hotels are expected to begin operations in 2009 in the GCC region as a whole.36 These hotels offer numerous restaurant choices and most include small convenience stores and coffee shops where confectionery is readilycthe Jumeirah Beach Hotel, one of many five star hotel properties in Dubai, includes packaged Godiva chocolate in guest rooms. Godiva, in fact, has expanded its presence in the Middle East with partnerships like the one discussed above. Godiva chocolates are served on Emirates Airlines and the company has teamed with a local coffee and equipment supplier, Moka Trading for distribution and a retail presence. Of course not all companies have the global brand recognition of Godiva that makes these partnerships possible. The pointh

36 http://archive.gulfnews.com/gnfocus/gulfood_2008/main_story/10192364.html

http://archive.gulfnews.com/gnfocus/gulfood_2008/main_story/10192364.html

Middle East Confectionery Market:: Opportunities for U.S. Confectionery Exports January 30, 2009, Page 24 of 28 COLD

ast.

ilities and its

ing space, including cold

porters all have their own orage or access to appropriate facilities through one of the larger providers. As ch, cold storage availability should not be a constraint for U.S. confectionery

temperature controlled conditions.

MAR

STORAGE Cold storage capacity in the Middle East is increasing dramatically. Since 2004, the refrigeration capacity of the region has increased by over 700%, reaching 123.6 million cubic feet in 2008.37 The availability of cold storage in the Middle East has improved considerably over the past years coinciding with the onset of the region’s more modern supermarket/hypermarket sector. Modern retail establishments often have on-site cold storage and receive their goods through a distribution channel set up to handle frozen foods or foods that require temperature control. The large distribution companies, some of which were mentioned previously, are similarly equipped to handle dry, frozen or chilled products. For example, the Jordan Global Food Distribution Company (JGFD) is one of the region’s large players for food distribution. JGFD currently distributes food, pharmaceutical and disposable

roducts to Jordan, Saudi Arabia, UAE, Iraq and other markets in the Middle EpThe company, based in Amman, operates three warehouses. Its bonded warehouse in Amman offers 2,000 square meters of dry warehouse space, 1,000 square meters for frozen product storage and 1,000 square meters of chilled warehouse space. BMMI, the Bahrainian logistics leader discussed above, offers 150,000 square meters

f warehousing throughout the region through the company’s own facosubsidiaries and partners. As with JGFD, this includes the complete range of warehousing for dry, frozen, or chilled goods. BMMI also designs and builds temperature controlled storage facilities for other clients in the region. Clients with more limited storage needs can rent warehousstorage from various facilities. The Hala Supply Chain Services Company of Saudi Arabia, for example, offers overflow warehouse rental space or full logistics and distribution services depending on the needs of the client. Because having modern, clean, and insulated storage and distribution systems is critical in light of the region’s hot climate, confectionery imstsuexporters that require KET ACCESS U.S. confectionery exports to the Middle East face very different duty and tax obstacles depending on the shipment’s final destination. The U.S. has concluded and implemented Free Trade Agreements (FTA) with three Middle Eastern nations including Israel (1985), Bahrain (2006), and Jordan (2001). As a result of these agreements, U.S. confectionery exports enter Israel and Bahrain duty free at this

37 “IARW Report Finds Global Cold Storage Capacity Increasing,” International Association of Refrigerated

Warehouses, July 8, 2008.


s by HS code and accounting for ade agreements now in place. Not all HS codes relevant to the U.S. confectionery

indust f the more common codes for confectionery products.

Confectionery Tariffs in the Middle East on Imports from the U.S.

point. Exports to Jordan still encounter some duties but these are in the final stages of elimination. Under that agreement, Jordanian tariffs were largely eliminated over eight or ten year timeframes. As such, confectionery tariffs will be eliminated by 2010, if they have not already been removed. The table below shows a comparison of regional tariffs on U.S. confectionery producttr

ry are shown below; rather the table is designed to show a comparison o

Chew

ing

Gum

1704

.10

Suga

r Co

nfec

tione

ry

1704

.90

Bulk

Cho

cola

te

1806

.2

Choc

olat

e

18

06.3

1, 1

806.

32,

1806

.90

Suga

r Fre

e Co

nfec

tione

ry

2106

.90

Valu

e Ad

ded

Tax

Bahrain 0% 0% 0% 0% 0% 0%Egypt 30% 30% 10% 20% 5% 10%

Israel 0% 0% 0% 0% 0% 15.5%

Jordan 0% 0% 3% 3% 0% 13%

Kuwait 5% 5% 5% 5% 5% 0%Lebanon 20%

audi Arabia 10%20% 20% 20% 5% 10%8% 15% 15%* 5% 0%S

UAE 5% 5% 5% 5% 5% 0%* The Saudi Tariff for Chocolate Under the 1806.90 HS Code is 8% Source: World Tariff; USTR As shown on the table, Egypt and Lebanon maintain some of the highest tariffs among countries in the region on U.S. confectionery products. At this point bilateral free trade agreements with these countries appear unlikely. This also holds for Saudi Arabia. Talk of FTAs with Egypt and Saudi Arabia have surfaced at different times over the past 10 years but there has been no serious engagement on either side. Nevertheless, the U.S. has stated a goal of reaching a broad Middle East FTA by 2013. Concluding agreements with Kuwait and the UAE are seen as the next steps toward this goal. FTA negotiations with the UAE began in 2004 after the two countries concluded a Trade and Investment Framework Agreement (TIFA), but

ose talks stalled once the Bush Administration’s Trade Promotion Authority

s existing value added tax AT) rates. Some countries do not have a VAT or sales tax on goods sold. Other

thlapsed. The U.S. has similarly held a TIFA with Kuwait since 2002 which is seen as the basis for a future FTA but to date progress toward an FTA has not been made. In addition to tariffs, imported U.S. confectionery products face a variety of taxes in different Middle Eastern nations. The table above show(Vcountries do have these in place along with a variety of port fees. These additional fees are often minor in comparison to the duty charged.


tandard shipping documents such as a commercial invoice, waybill, and packing list

. This is esigned to directly compete with a future U.S. Middle East FTA. The European

eration Council (GCC) ough this has been in the works for over 20 years and appears to have stalled

Talks were suspended in December 2008 over a number of issues, and with ocusing on other countries as higher priorities for free trade negotiations, it

LABE

audi Arabia, Kuwait, Bahrain, QATAR and the UAE are members of the GCC. standards with the Saudi Arabian Standards

s-setting body. Product labeling under the

ddress of manufacturer, packer, distributor, importer, vendor

sportation and preparation instructions

Date of production, for products with no specific shelf life

Sare needed for exporting to the Middle East. In addition, a Certificate of Origin is often required. This document typically requires certification from an Embassy or Chamber of Commerce. Though the U.S. now has in place three FTAs with countries in the Middle East, the EU has also made progress with trade liberalization in the region. In fact, the EU is further along with some of the top trading partners there. Specifically, through individual association agreements reached with each country, the EU is looking to assemble a Mediterranean Free Trade Area within the next few yearsdversion includes Egypt, Israel, Jordan, Lebanon, and Syria among other countries and such an agreement would position European producers favorably in a region that already has strong retail sector ties to Europe (Carrefour and Metro). The EU has also been pursuing an FTA with the Gulf Coopthrecently. the EU fis not known when negotiations with the GCC will resume. LING

SThese countries have harmonizedOrganizations serving as the lead standardGCC standard includes:

Specific product name

List of ingredients, in descending order of proportion

Metric measurements

Name and aexporter or

Special storage, tran

Additives

Country of origin

Shelf life, or

Food additives, antioxidants and special diet foods have additional specific labeling requirements.


ard, but their labeling policies resemble this standard closely. Labels must e in Arabic (Hebrew for Israel) though bilingual labels are permitted. Stickers are

.S. may not have approval in the iddle East. Additive standards are often available online. For example, the Saudi,

Other countries in the region such as Egypt, Israel, and Jordan do not adhere to the GCC standbalso permitted but these are more commonly used for products with limited import volumes. It is also recommended that U.S. confectionery exporters looking to sell their products in the Middle East be aware of regional and country-specific additive, preservative and coloring standards. Additives and preservatives must be mentioned on the label but additives approved for use in the UMGCC, and Israeli standards can be found in the NCA’s own Trade Regulation Database online at the www.ecandy.com website. In addition to the general labeling requirements listed above for most countries in the region, exporters should also be aware of Halal requirements, which restrict the usage of alcohol and specific additives in food products. Requirements also encompass hygiene and quality elements. There exist 20 Halal certification bodies in North America. While there is no harmonized system for Halal standards and certification, according to the International Halal Integrity Alliance, foods must be considered Halal in order to enter Saudi Arabia. Since the majority of Muslim countries impose strict standards against the entry of non-Halal products, manufacturers are increasingly catering to the Muslim consumer group. For xample, due to its expansion in Middle Eastern markets, French confectioner

Patrelle, now boasts a full range of sweets that are completely Halal compliant since 008.

CONC

riates, and increasing disposable income er capita should continue to foster demand for confectionery. Suppliers from

nery will continue to play a larger role in the arket opportunities available to suppliers. This is also the case for sugar

e

the beginning of 2

LUSIONS

Once looked upon as an unlikely trade partner due to a fragmented retail sector and lack of cold storage capacity, the Middle East’s advancement in both areas has led to greater opportunity for foreign confectionery suppliers. Additionally, trade liberalization, improved infrastructure and distribution systems are helping to facilitate new product entry and brand development. Today the Middle East is one of the most attractive markets in the world for confectionery. Demographically, the young population, growing number of expatpacross the region and around the world are keen on meeting this growing demand, and are therefore intensifying competition. Since consumer preferences are trending toward premium products, especially in the case of chocolate, high end confectiomconfectionery and gum, though to a lesser extent since segmentation within those product categories is less developed.


mpanies are capable of offering unique, innovative flavors, ackaging, or consumer benefits there will be substantial opportunity in this market.

porations certainly dominate the arket. But local companies have proven the ability to compete and there are

lso be a factor. Europe also pears further along than the U.S. with regional free trade discussions. To ensure a

. U.S. companies considering exploring sales to the Middle East could also seek out U.S. distributors (Dealers Food Products as an example) to obtain feedback on the market or input that might help gauge the potential for specific products.

iated the opportunity to work with the National Confectioners ssociation on this research project. If you have any questions about information contained ithin this report please contact Eric Rosenberg at (206) 292-6340 or by email at [email protected]

Concern over health is one issue that is driving segmentation. Consumer awareness of the linkage between sugar consumption and health issues such as diabetes, heart disease, and tooth decay is creating the demand for vitamin-enriched, sugar-free and other healthier alternatives to conventional confectionery. Innovation will therefore be a key factor that determines opportunity for U.S. suppliers in this region. To the extent that U.S. copThis is evidenced by the numerous product launches that suppliers are investing in across the region. From a competition standpoint, multinational cormnumerous examples of small local and foreign confectionery suppliers achieving success despite the presence of the multinationals. Unfortunately, European competitors seem to be the best positioned for success in the region. European confectionery enjoys a very favorable perception among the trade and consumers and many small European chocolatiers in particular already have brand recognition in the Middle East. In general, Middle Eastern markets have strong historical connections to Europe but the influence of major European retail corporations in the region such as Carrefour could aaplevel playing field for U.S. exporters it will be important for trade negotiations with Egypt, Saudi Arabia, and other markets to proceed. This is not to suggest that opportunities for U.S. confectionery are limited. To the contrary, the presence of U.S. confectionery is growing in the region and U.S. products also enjoy a good reputation. As such there are readily available opportunities for licensing agreements as a means to introduce U.S. brands to the market. And for U.S. companies wishing to export their products to the Middle East directly, there are importers and distributors prepared to do business. As in any market, product innovation, quality, packaging, price, and market support will all determine the level of opportunity available to any new entrant. A good starting point most definitely appears to be industry trade shows such as Sweets Middle East or Gulfood

Bryant Christie Inc. apprecAwer .

Appendices

RETAIL PRICES FOR LEADING CONFECTIONERY BRANDS Egypt (Mark up from import or production cost is 40% +10% sales tax)

Product EGP US$ Conversion

Cadbury Dream (Creamy White Chocolate) 3 $0.54Cadbury Milk 100 gr. 7 $1.26Cadbury Moro Chocolate + Coffee 2 $0.36Cadbury Milk Biscuits 59 gr. 4 $0.72Cadbury Milk Chocolate 26 gr. 1.5 $0.27Cadbury Milk 40 gr. 3.5 $0.63Cadbury Dairy Milk Chunky 45 gr. 3.5 $0.63Moro Chocolate & Coffee 44.5 gr. 2 $0.36Galaxy Milk Chocolate 40 gr. 3 $0.54Caramel 36 gr. 3.5 $0.63Galaxy Ripple 22 gr. 2.5 $0.45MARS Chocolate 51 gr. 3.5 $0.63Twix 58 gr. 3.5 $0.63Nestle Kitkat (U.K) 20.7 gr. 2.15 $0.39Nestle Nesquik choco milk 3.95 $0.71Kraft Toblerrone 5 $0.90Cadbury – Ireland Flake 32 gr. 5.25 $0.94Lindt – Swiss (dark) 100 gr. 14.75 $2.65Ferrero – Raffaello 30 gms 5.5 $0.99ION Milk Chocolate 45 gr. 4.5 $0.81Milka LEO 33.3 gr. 3.95 $0.71Milka MJoy 38.5 gr. 4.5 $0.81Kinder Country (Ferrero Italy) 23.5 gr. 2.25 $0.40Kinder Bueno 43 gr. 4.75 $0.85Kitkat – Nestle 20.7 gr. 2.15 $0.39Clix Gum (Spain) 15 gr. 1.95 $0.35Kent jelior 50 gr. (Turkey) 3 $0.54Halls 9 pcs 1.5 $0.27Cadbury's Eclairs toffee 500 gr. 20 $3.60Chlorets Gum 12 pcs 1.5 $0.27Chuba chups (Spain – Russia) 2.5 $0.45Trident Adams 14.50 gr. 3 $0.54Wrigley's Extra.Sugar free – 10 pcs – 14 gr. 2.95 $0.53Chicklets – 12 pcs 1 $0.18

Saudi Arabia

Product SAR US$ Conversion

Galaxy Chocolate Milk 40 gr. 1.75 $0.47Galaxy Chocolate Fruit 1.75 $0.47Galaxy Chocolate Soft 2.00 $0.53Galaxy Moments Chocolate 8.00 $2.13Twix 2.00 $0.53Cadbury Dairy Chocolate 1.75 $0.47Toblerone Yellow 2.75 $0.73Ulker Milk Chocolate 1.00 $0.27Ulker Hazelnut Milk Chocolate 1.00 $0.27Ulker Alp Chocolate 1.00 $0.27Hershey's extra Cream 8.75 $2.33Toffee Tiffany 800 gr. 20.00 $5.33Chicklets Gum Pack 270 gr. 10.00 $2.66Ghandour Gum Pack 270 gr. 8.50 $2.27Batouk Gum Pack 8.00 $2.13

UAE (Mark up in whole sale is 25-30% on import cost)

Product Pieces Weight (gm) AED US$ Conversion

Cadbury 5 49 13.5 $3.67Cadbury 3 100 14.9 $4.06Galaxy crispy 5 40 10.95 $2.98Galaxy wafer 6 11 $2.99Galaxy bag 36 40 91 $24.77Bounty 5 57 12.5 $3.40Snickers 6 50 12.5 $3.40Kitkat (2finger) 9 8 $2.18Kitkat (2finger) 36 35.25 $9.60Kitkat (4finger) 36 42 $11.43Kitkat chunky 24 50 48 $13.07Kinder 8 5.25 $1.43Kinder 4 3 $0.82Toblerrone 1 100 6 $1.63Mars 6 45 12.15 $3.31Quality street (carton) 1 265 14.9 $4.06Quality street tin 1 240 18 $4.90Quality street tin 1 920 51.3 $13.96Maltesers 24 37 60 $16.33

Jordan

Product JD US$ Conversion

Cadbury Dairy Milk 0.1 $0.14Moro Small 0.15 $0.21Moro Large 0.3 $0.42Crunchy Dairy Milk 0.5 $0.71Stimrol Gum 0.25 $0.35Galaxy 0.5 $0.71Twix 0.5 $0.71Flutes 0.25 $0.35Mars 0.5 $0.71Snickers 0.5 $0.71Bounty 0.5 $0.71Kinder Bueno 0.65 $0.92Kinder Bueno 0.35 $0.49Ferrero Roche ‐ Chocolate 0.75 $1.06Ferrero – Raffaello 0.6 $0.85Nutella 3 packs 0.25 $0.35Kit Kat Large 0.6 $0.85Kit Kat Small 0.3 $0.42Leon 0.5 $0.71Aero 0.6 $0.85Toblerrone 0.5 $0.71Extra Gum 0.35 $0.49Today Milk Chocolate 85 gms 0.65 $0.92Today Milk Chocolate large with nuts 1.2 $1.70Today Milk Chocolate small 0.6 $0.85Roberts Milk Chocolate 44 gms 0.35 $0.49

Bahrain

Name Origin Manufactured By Price (BD) US$ Conversion

Fantastic Seaweed Rice Crackers Thiailand Fantastic Snaks Australia 0.45 $1.19

Hershey's Chocolate W/Hazelnut UAE ‐ Dubai Hershey Company ‐ USA 0.25 $0.66

Gandour Safari KSA Al Jazira Food Processing 0.05 $0.13

Cream Savers Hard Candy USA Wrigley JR Company 1.00 $2.65

Gandour XLZ KSA Al Jazira Food Processing 0.05 $0.13

Loacker Quadratini Italy Loacker 0.63 $1.66

Mini Cream Wafers /Strawberry Flavor Hong Kong The Garden Company Limited 0.10 $0.27

Hubba Bubba Babble Tape Roll Mexico Wrigley JR Company Mexico 0.53 $1.39

Hershey's Chocolate Cookies'n'Strawberry UAE ‐ Dubai Hershey Company ‐ USA 0.23 $0.60

Cadbury Snow Flakes New Zealand Cadbury Confectionery Limited 0.25 $0.66

Gandour Hawaii KSA Al Jazira Food Processing 0.05 $0.13

McVities Fruit & Form Netherlands McVities (Great Britain) 0.55 $1.44

Balisto Creal Mix (Yoberry‐Mix) Germany Mars GmbH 1.00 $2.64

Twix Biscuit Fingers Germany Mars GmbH 0.90 $2.37

Bahlsen Hit Minis Germany Bahlsen 0.36 $0.95

After Eight Mini England Nestle Rowntree ‐ England 0.84 $2.21

Ulker ‐ Moestro KSA Ulker ‐ Food Manufacturers Company 0.10 $0.27

Gandour Tofi Luk KSA Al Jazira Food Processing 0.05 $0.13

Batook Chewing Gum ‐ Cinnamon KSA Batook Chewing Gum Ind Ltd. 0.03 $0.07

Arcor Argentine Arcor Saic 0.05 $0.13

Loacker BN Gorno Italy Loacker 0.15 $0.40

Kent Relax Chewing Gum Turkey Kent ‐ Member Of Cadburry Scheppes Group 0.23 $0.60

Tango Max Crunch Malaysia Network Foods Industries SDN BHD 0.13 $0.33

Artiach Chips Ahoy! Spain Kraft Foof Galletas 0.46 $1.22

Nabisco Ritz KSA Nabisco Arabia (Krafts Food Holding USA) 0.12 $0.32

Toggi Swiss Milk Chocolate Switzerland Kagi Sohne AG 0.20 $0.53

Balocco Snak Wafers Italy Balocco SpA 0.10 $0.27

Tango Milk Choc Malaysia Network Foods Industries SDN BHD 0.15 $0.40

Cadbury Snack Sandwich UK Cadbury Trebor Bassett 0.15 $0.40

Cadbury Time Out Ireland Cadbury Confectionery Limited 0.24 $0.64

Nabisco BelVita KSA Nabisco Arabia (Krafts Food Holding USA) 0.08 $0.20

Kinder Country Italy Ferrero S.p.A 0.13 $0.33

Cadbury Twirl Ireland Cadbury Confectionery Limited 0.25 $0.66

Nestle Tola UAE ‐ Dubai Nestle Middle East 0.05 $0.13

Cadbury Flake Ireland Cadbury Confectionery Limited 0.15 $0.40

Nabisco Oreo KSA Nabisco Arabia (Krafts Food Holding USA) 0.08 $0.20

Nestle Kit Kat England Nestle Rowntree ‐ England 0.10 $0.27

Royal Today Milk Chocolate Egypt Sallam Co. 0.05 $0.13

Ulker ‐ Metro KSA Ulker ‐ Food Manufacturers Company 0.10 $0.27

Stimorol Chewing Gum Lebanon Cadbury Adams 0.10 $0.27

Wrigley's PK 4pcs Kenya Wrigley Company Ltd 0.05 $0.13

Name Origin Manufactured By Price (BD) US$ Conversion

Dark Chocolate with Hazelnut Toffee USA Endangered Species Chocolate 1.20 $3.18

Dark Chocolate with Blueberries USA Endangered Species Chocolate 1.20 $3.18

Milk Chocolate with Rasin & Hazelnut (Organic) England Green & Black's Ltd. 2.13 $5.63

Dark Chocolate with Mint (Organic) England Green & Black's Ltd. 2.13 $5.64

Chocolate Hint Mint USA Hint Mint 1.20 $3.18

Green Tea Hint Mint USA Hint Mint 1.20 $3.18

Mega Mart in Jufair, Bahrain

Al Osra Supermarket in Manama, Bahrain

Lebanon

Name Origin Manufactured By Price (LBP) US$ Conversion

Storck Merci Chocolate 250 G Germany Augustin Storck 7,950 $5.28

Americana Choco Wafer 32G KSA National Food Company (Americana Cake) 250 $0.17

Cadburys Tokke Chocola 47G Spain Cadbury Espana SL 545 $0.36

Nabisco Oreo KSA Nabisco Arabia (Krafts Food Holding USA) 550 $0.37

Alpela Rio Turkey Ulker 1,825 $1.21

Milka Hazelnuts Alpine Milk Chocolate Germany Kraft Foods Germany 2,950 $1.96

Smint + Gum Strawberry Spain Chupa Chups 975 $0.65

Trident Splash Apple‐Raspberry USA Cadbury Adams USA 2,690 $1.79

Halter Candy Coffee Swiss Halter Bonbons AG 2,300 $1.53

Stimorol Xfresh Gum Vanilla Mint Turkey Kent ‐ Member Of Cadburry Scheppes Group 995 $0.66

Dentyne Ice Cinnamint Russia Dirol Cadbury SA 925 $0.61

Smint Candy Peppermint Spain Chupa Chups 1,999 $1.33

La Valle Candy Alpin Italy Indaco Candy 1,990 $1.32

LU Chocoprince Rond Belgium LU 525 $0.35

Clorets Gum W/O sugar Mexico Cadbury Mexico 690 $0.46

Extra Mint Gum Professional Orange Poland Wriggley's 1,650 $1.10

LU Prince Double Chocolate ARE Danone Factories for LU France 230 $0.15

Cote D'or Chocotoff 500G Belgium Kraft Foods Belgium 11,500 $7.64

PIX Drops Spearmint Lebanon Master Chewing Gum & Candies Co. SAL 245 $0.16

Halls Cherry Sugar Free Turkey Cadbury Hellas AE 950 $0.63

ADA/ Clorets Cool Mint Tables Sugar Free Thiailand OLIC Thailand for Cadbury Thailand 1,650 $1.10

Milka Leo GO Chocolate Belgium Kraft Foods Belgium 1,075 $0.71

Kent Tofita Chewing Candy Turkey Kent ‐ Member Of Cadburry Scheppes Group 750 $0.50

Nabisco Teddy Grahams Go Pack USA Kraft Foods Global 4,100 $2.72

Bauduco / Barra Chocolate Brazil Pandurata Alimentos Ltda. 550 $0.37

Galaxy Flutes 22.5 G Egypt Mars Egypt 250 $0.17

CAD/Snack Sandwich Choco26 G UK Cadbury Trebor Bassett 825 $0.55

Nestle Milk Chocolate Jingle USA Nestle USA 10,100 $6.71

Bahlsen Hit Biscuits 150 G Germany Bahlsen 2,490 $1.65

Dirol Vitamin C Chewing Gum Cherry Denmark Gumlink A/S For Dandy A/S 490 $0.33

Colfresh Chewing Gum Spearmint Italy Indaco Candy 450 $0.30

Cheque Chewing Gum Spearmint Lebanon Master Chewing Gum & Candies Co. SAL 245 $0.16

Spinneys Supermarket in Mini Highway, Dbayeh, Lebanon

U.S. AND COMPETITOR CONFECTIONERY EXPORTS TO THE MIDDLE EAST

2003 2004 2005 2006 2007 10/2007 10/2008 %Change United Arab Emirates T 1,360 921 1,817 2,826 2,674 2314 2927 26.52Israel T 673 955 1,825 1,738 2,106 1722 2114 22.76Saudi Arabia T 2,527 1,219 2,246 1,282 1,476 1199 1353 12.88Kuwait T 1149 443 412 372 426 385 426 10.57Jordan T 99 130 203 253 226 167 373 122.55Egypt T 157 34 125 68 123 112 138 23.11Qatar T 217 166 95 201 122 109 182 66.49Pakistan T 4 7 8 31 119 88 70 ‐19.77Oman T 47 52 14 1 69 68 15 ‐78.49Lebanon T 230 73 171 70 61 58 140 139.11Bahrain T 172 167 116 45 47 46 128 180.65Yemen T 9 0 0 0 16 0 0 nIran T 0 0 2 0 0 0 0 nAfghanistan T 0 0 0 6 0 0 0 nSyria T 1 2 5 5 0 0 4 nTOTAL 6,645 4,169 7,039 6,898 7,465 6,268 7,870 n/a

United States Export StatisticsUDG: Total Confectionary,

Annual Series: 2003 ‐ 2007, Year To Date: 10/2007 & 10/2008Quantity

Partner Country UnitCarlendar Year Year‐To‐Date

/a/a/a/a

2003 2004 2005 2006 2007 10/2007 10/2008 %Change United Arab Emirates T 7,314 8,994 9,048 13,965 19,666 16057 15900 -0.98Saudi Arabia T 10,974 13,153 14,106 17,754 19,222 16105 12721 -21.01Israel T 14,834 13,558 13,585 14,696 16,039 13170 12204 -7.34Lebanon T 3,936 4,298 4,080 4,661 5,000 4148 3998 -3.63Kuwait T 5,615 5,031 5,291 4,587 4,167 3362 3675 9.29Jordan T 1,414 1,848 1,862 2,630 3,837 2956 3514 18.86Egypt T 1,358 1,754 1,770 1,806 2,873 2284 2897 26.87Qatar T 732 957 1,143 1,114 1,216 1006 1190 18.37Yemen T 1,239 1,436 1,109 1,564 1,043 847 609 -28.1Bahrain T 689 940 799 777 979 838 953 13.78Iran T 416 471 543 1,228 859 619 850 37.32Pakistan T 427 530 678 408 565 458 713 55.83Syria T 216 248 275 418 524 411 918 123.21Afghanistan T 230 326 197 482 491 462 311 -32.7Iraq T 64 324 121 183 229 156 278 78.86TOTAL T 49,458 53,868 54,607 66,273 76,710 62,879 60,731 289

Partner Country Unit Carlendar Year Year-To-Date

EU25 (External Trade) Export StatisticsUDG: Total Confectionary,

Annual Series: 2003 - 2007, Year To Date: 10/2007 & 10/2008Quantity

2

.2/a/a

2003 2004 2005 2006 2007 10/2007 10/2008 %Change United Arab Emirates T 2714 3486 5033 6139 4694 4006 3251 ‐18.86Saudi Arabia T 1148 1262 2182 2614 3097 2587 3352 29.58Israel T 563 584 731 997 1578 1313 1056 ‐19.57Yemen T 1922 1882 702 1815 1337 1113 1973 77.22Pakistan T 334 446 489 517 810 696 531 ‐23.72Jordan T 147 178 176 314 625 463 434 ‐6.33Lebanon T 146 136 385 425 419 242 460 89.82Egypt T 4 26 90 75 400 305 629 106.03Palestine T 59 39 99 252 334 285 195 ‐31.53Kuwait T 113 202 314 320 277 246 290 17.51Oman T 62 92 70 114 145 127 46 ‐64.18Bahrain T 67 84 84 49 76 63 84 32.5Iraq T 0 0 21 59 48 48 31 ‐35.34Iran T 4 0 11 1 39 23 37 57.2Qatar T 0 0 5 6 21 17 22 31Afghanistan T 0 0 0 10 0 0 0 nSyria T 4 0 0 6 0 0 0 nTotal T 7287 8417 10392 13713 13900 11534 12391 241.55

China Export StatisticsUDG: Total Confectionary,

Annual Series: 2003 ‐ 2007, Year To Date: 10/2007 & 10/2008Quantity

Partner Country UnitCarlendar Year Year‐To‐Date

CONTACTS Bahrain Jalal Abbass Shebal Hashim Supervisor Wholesale & Import BMMI – Wholesaler & Distributor Mars Telephone: +973 17 739200 Fax: +973 17 739200 Mobile: +973 39 966450 PO Box 828 Manama, Kingdom of Bahrain www.bmmigroup.com

Mr. Mohan Chandran Supermarket Manager Al Jazira Group BSC © Telephone: +973 17 590845 Fax: +973 17 593227 Mobile: +973 39 255031 Email: [email protected] PO Box 26087 Manama, Kingdom of Bahrain www.aljaziragroup.com.bh Mr. Rishi Khurana Sales Manager – Cadburys Al Jazira Group BSC © Telephone: +973 17 703035 – Ext 116 Fax: +973 17 703711 Mobile: +973 39 910439 Email: [email protected] PO Box 26087 Manama, Kingdom of Bahrain www.aljaziragroup.com.bh Mr. Guruvendra R Ghodke Senior Buyer Alosra Supermarket Bahrain WLL Telephone: +973 17 697200 Fax: +973 17 693128 Mobile: +973 36 410825 Email: [email protected] PO Box 828 Manama, Kingdom of Bahrain www.bmmigroup.com Agility Global Intregrated Logistics (PWC Logistics Bahrain) Building No. 64, Road No. 3401, Area No. 634 Ma’ameer, Bahrain P.O. Box 2758, Manama, Kingdom of Bahrain Phone: +973-1770-6000 Fax: +973-1770-6001 Email: [email protected]

Lebanon Darine Beem Spinneys Retail Head Office Category Manager - FMCG Telephone: +961 4 541441 Fax: +961 4 542409 Mobile: +961 70 627416 Email: [email protected] www.spinneys-lebanon.com Samir Dib Category Sales Development Manager/Confectionery Levant Countries (Lebanon and Jordan) Societe Pour L’Exportation des Produits Nestle S.A. Telephone: +961 4 541718 / 27 Fax: +961 4 541966 Mobile: +961 3 481401 Email: [email protected] www.lb.nestle.com George Adwan General Manager Kamel Haddad Freight Forwarding Manager PWC Logistics (Agility) Address: Fattal Building 2nd Floor P.O. Box 60493 Sin El Fil Lebanon Tel: +961 1-511270 Fax:+961 1-511271 Email: [email protected] / www.agilitylogistics.com Corniche AL Nahr BCC Logistics Headquarter Beirut - Lebanon Phone: +961 (1) 585 582 Fax: +961 (1) 585 580 Email: [email protected]

Qatar Hassan Ahmed Abakor Osman Economist – Qatar Chamber of Commerce & Industry Phone: - +974 - 4559153 Fax: - +974 - 4661697 P.O. Box 402 Doha Qatar Email: [email protected] Trade Affairs – Help Desk Ministry of Business & Trade Phone: - +974 - 4945555 Email: [email protected] Statistic Authority Phone: - +974 - 4958888 Fax: - +974 - 4839999 P.O. Box 7283 Doha Qatar Email: [email protected] Customs & Ports General Authority Phone: - +974 - 4457457 Fax: - +974 - 4414959 P.O. Box 81 Doha Qatar Email: [email protected] Qatar General Organization for Standards & Metrology Phone: - +974 - 4408686 Fax: - +974 - 4479052 P.O. Box 23277 Doha Qatar Email: [email protected] Agility global Integrated Logsitics (Agility W.L.L.) St 41, Salwa Industrial Area P.O. Box 22670, Doha, Qatar Phone: +974-450-0017 Fax: +974-460-6846 Email: [email protected] BCC Logistics- Qatar P.O. Box 14043 Doha - Qatar Tel: +974 (44) 43436 Fax: +974 (44) 43430 Mob: +974 (67) 54388 [email protected]

Mr. Ghassan Jaroudi Purchasing Manager (Dry & Frozen Food) Geant Stores in Doha/Qatar. Tel: (+974) 4692994, Ext 225 Fax: (+974) 4685864 Mobile: (+974) 5681957 P.O. Box: 23272, Doha Qatar Email: [email protected] www.giant-stores.net Al Deyari Food Stuff P.O. Box 61110 Tel: 4435275 Fax: 4670002 Ital Food Company P.O. Box 19834 Tel: 4681516 Fax: 4689565 National Food Company Tel: 4684981 Fax: 4683581 Integral Food Services P.O. Box 24359 Doha, Qatar Tel: 4660511 Fax: 4660522 Qatar Food Industries Company P.O. Box 2418 Doha, Qatar Tel: 4451000 Fax: 4434256 Qatar Food Company P.O. Box 5522 Doha, Qatar Tel: 4423102 Fax: 4425982 United Food Company P.O. Box 4056 Doha, Qatar Tel: 4440224 Fax: 4442264 Specialty Nutrition Company P.O. Box 9586 Tel: 4315553 Fax: 4315554 Turki Sweets P.O. Box 1834 Doha, Qatar Tel: 4660333

http://www.customs.gov.qa/

http://www.customs.gov.qa/

Kuwait Kuwait food company (Americana) (Distributor of Cadbury International, UK) P.O. box: 5087 Safat 13051 Kuwait Tel: 4815900 Fax: 4846925 Supply & building company (Distributor of Hershey's, Farley's, and Gandour) P.O. Box: 901 Safat 13010 Kuwait Tel: 4814188 Fax: 4848772 Aquamagic (Distributor of Candy Castle) P.O. Box: 23331 Safat 13094 Kuwait Tel: 2455120 Fax: 2444111 United Marketing Company (Distributor of Toblerone) P.O. Box: 958 Safat 13010 Kuwait Tel: 4743612 Fax: 4737214 Al Seedawi Factories Company P.O. Box: 569 Safat 13006 Kuwait Tel: 4813404 – 994 Fax: 4847488 Shaya & Shariff Inc. P.O. Box: 26704 Safat 13128 Kuwait Tel: 4711531/4/9 Fax: 4711523 Saud Aujan & Brothers Company P.O. Box: 29 Safat 13001 Kuwait Tel: 4336131 Fax: 4348070 Egypt Master foods (Importer of Mars/Galaxy Products Not Produced In Egypt) Maadi, Cairo, Egypt Tel: 02 25266550 – 44 – 46 – 48 Fax: 02 25266551

Kraft Foods Misr Trading (Importer & Distributor of Kraft Products) Cairo Tel: 0 2 26966200 International Trading Center (Importer & Distributor of Lindt of Germany) 20 Hegaz St., Mohandiseen, Giza Tel & Fax: 02 233460391 Al Yousef Import Co. (Importer & Distributor of Nestle Products) 108 Al Fateh Buildings, Nasr City, Cairo Tel: 0 2 26709163 Hasan Shaheen Import Office (Importer & Distributor of Sunrise, Rosehill Germany, Leo, Ferrero, Riesen of Germany) 3 Ibn El Hakam St., Helmiat El Zetoun, Cairo Tel: 012 6922593 – 02 226346276 Raslan (Importer & Distributor of Ion of Greece and Ferrero of Italy) P.O. Box: 337 Port Said, Egypt Intersect Elnahada & Atout St., Port Said Tel: 066 3233660 Ayman Effendy Mr. Ayman Shaheen Elnahada Ean Elvreibbor, Port Said, Egypt Tel: 0 66 3355515 Soudanco Mr. Ibrahim Soudan 5 Elsaid El Marghaney, Roxy, Cairo, Egypt Tel: 0 2 22585754/22584072 Fax: 0 2 22565984 Black Horse Import Co. (Importer & Distributor of Turkish Brands, i.e. Turkgida Donia) Alexandria, Egypt Tel: 0 12 2824195 Cairo: 010 0505018 Food Stores (Importer & Distributor of Sarotti of Germany) 11 Saeed Abulhuda St., Nahiya, Bullaq El Dakror, Giza, Egypt Tel: 02 2 7314663 Multifood (Importer & Distributor of Karas of Croatia) Cairo, Egypt Tel: 0 2 24175614

Kimo 2001 (Importers & Distribution Turkish Brands) 17 Hosney El Ashmawi St., Heliopolis, Cairo Tel: 0 2 6383366/012 2301937 Matgar El Tawkilat (Importer & Distributor of Tic Tac of Ireland) Cadbury Egypt Food Ind. Mr. Gawad Abaza, Managing Director 10th Ramadan City 2, B2, Sharkeyah, Egypt Tel: 0 15 361561 – 3 Fax: 0 15 361115 www.cadburyegypt.com Mars Egypt Industries Factory 6th October Industries City, 3rd Area, Giza, Egypt www.marsegypt.com Alexandria Confectionery & Chocolate Co. Mahmoudiah Canal, El Hadarah, Alexandria Tel&Fax: 0 3 4280349 www.corona1919.com [email protected] Covertina (Eastern Sweets & Chocolate Co.) 8 St., 6th October City, End of Gesr El Suez Road, Cairo, Egypt Tel: 0 2 22989823 – 22742986 Fax: 02 22989829 E-mail: [email protected] Honey Well (Manufactures Chocolate, Candies, & Gum) 10th of Ramadan Industry Area A2 Sharkiyah, Egypt Tel: 0 15 364755 – 360370 Fax: 0 15 364757 Horriyah 2000 (Chocolate & Sweets) Mr. Hassan Fendi, Chairman 14 Shobra St., Cairo, Egypt Tel: 0 2 25761743 – 25771591 Fax: 0 2 25764106 Factory: 10th of Ramadan Tel: 0 15 366096 Shamedan Misr Factory (Chocolate & Wafer) Taher El Querri 127 Elsayed Mohamed Korayem St. Agami, Alexandria Tel: 03 4455634 – 4457557 - 4402211 Fax: 03 4456852

Seniorita (Produces candies, chocolate, and wafers) 23rd July St., Tanta, Meet Hebish Bahariya, Egypt Tel: 040 740616 – 353052 Sima Food Industries P.O. Box 38 Shobra – Cairo 6 Merfak El Mayah St., Ameriyah, Cairo, Egypt Tel: 02 22020801-2461656 Fax: 02 24261661 Incogum (Cadbury Adams Group) (Chewing Gum: Adams and Chicklets) Industry Zone, Um Zeghio, Agamy Road, Alexandria, Egypt Tel: 03 4320373 – 4300681 Fax: 03 4300680 Bisco Misr (Biscuits & Chocolate) Sawah St., Ameriyah, Cairo, Egypt Tel: 02 2579550 – 257906 Fax: 02 2594133 Delta Sweets 10th of Ramadan Industrial City, Egypt Tel: 0 15 412980 Fax: 0 15 412930 Swiza Fine Chocolate Sameh Zahran 14th May Road, Sumoha, Alexandria, Egypt Tel: 03 4266655 - 4264455 Fax: 03 4265556 E-mail: [email protected] Golden foods 93 El Sudan St., 4th Flour, Mohandeseen Giza, Egypt Tel: 02 33375687 Fax: 02 37602282 www.goldenfoods.com.eg Mido Gum Factory Km 17 Cairo-Ismailiah Desert Road, Cairo, Egypt Tel: 02 2979744 – 2979743 Fax: 02 2979742 Ali Baba Gum & Candy Factory Mohamed Farahat 3 Saad Zaghlol St., Menchiah, Alexandria, Egypt Tel: 03 5610881 – 56101916 Fax: 03 5600975

Samarah Natural Gum Sharkiyah Industry Area, Block 81 Sharkiyah, Egypt Tel: 015 363862 Fax: 015 363864 ICC (Jiola) Portsaid, Egypt Tel: 0 66 3727202 Fax: 0 66 3723095 Email: [email protected] www.jiola.net Family Nutrition (Kraft Group Co.) 10th of Ramadan City, Egypt P.O. Box: 80 Tel: 0 15 410061 Fax: 0 15 410062 E-mail:[email protected] National Confcetionery & Chocolate Co. El Barageel, Embabah, Giza, Egypt Economic Co. For Industry (Free Zone) Gawad Abazah, Ceo of Cadbury Egypt & North Africa P.O. Box: 60 Sohag, Egypt Tel: 0 93 335448 Mr. Mohamed Fandy Horriyah Food Industries Mr. Ahmad Mostafa, Q. Assurance Manager, Incogum Alexandria Mr. Mohamed Dagher Quality Assurance Manager, Mars Egypt Mr. Ashraf El Sawaf Administrative Manager, Swiza Chocolates Alexandria Eng. Ahmed El Rakayabi Chairman, BISCOMISR Eng. Mahmoud Rouzeka CEO, Golden Foods Iraq BCC Logistics- Iraq (BCC Erbil) English Village, #170, Str. 40 Erbil – Kurdistan Iraq Mob: +964 (0) 750 7050 441 Mob: +964 (0) 770 642 6969 [email protected]

Jordan Transmed Trading (Importer & Distributor of Mars, Snickers, Bounty, Galaxy, M&M, Twix) Meccah St., Amman, Jordan Tel: 06 5826801 Enter Prise Distribution Co. (Importer & Distributor of Cadbury Products) Tel: 06 4123113 Mena Drug Store (Importer & Distributor of Ferrero, Kinder, and Nutella) Tilal Al Aly, Aman, Jordan Tel: 06 5411599 Nestle Jordan (Importer & Distributor of Nestle Brands: Kitkat, Leon, and Aero) Amman, Jordan Tel: 06 4163312 Arabian Distribution (Nader Group) (Importer & Distributor of Toblerone, Oreo, Extra Gum, Pez, Gum, and Candies) Alyasmeen District, Near Alyasmeen Bridge, Amman, Jordan Tel: 06 4200191 Al Nokhbah Import Co. (Agent of Turkish Brand Ulker) Alfahees, Amman Tel: 06 5330599 Aram & Hakob Co. Autostrad El Zarka, Opposite Jawad Bakeries El Zarka, Joran Tel: 079 5888074 Chocolate House Um Uthaina, Amman Tel: (06) 552 78 92 E-mail: [email protected] Ghraoui Jabal Amman, Amman Tel: (06) 592 03 66 E-mail: [email protected] Golden Chocolate Center Sweifieh, Amman tel: (06) 581 33 21 E-mail: [email protected]

mailto:[email protected]

http://www.jiola.net/

Lilac Chocolates Rabieh, Amman Tel: (06) 553 00 79 E-mail: [email protected] Silk Chocolate Tla' Al-Ali, Amman Tel: (06) 551 00 31 E-mail: [email protected]

Hasan Ashour Candies & Gum Factory Al Mukabileen, Near Jti, Amman, Jordan Tel: 06 4202003 Sharawi Gum Factory Al Mukabileen, Ersal St., Amman, Jordan Tel: 06 4203115 Philadelphia Chocolate Factory (Today Chocolate) P.O. Box: 168 Amman Industrial City, 11512 Amman, Jordan Tel: 06 402330 / 40 Email: [email protected] Aletihad Chocolate Factory (Roberts) North Marka, Amma, Jordan Tel: 06 4874300 Yousef El Karad & Partners Sarh El Shaheed St., Tabarbor, Amman, Jordan Tel: 06 5053634 Fax: 06 5053639 Al Naseeg Food Industry (Chocolate and Wafers) Alzarkah, Jordan Tel: 053743344

Alliance Chocolate Manufacturing Co. Roberts Marka, Amman Jordan Tel: (06) 487 43 00 Saudi Arabia Abdul Wahab Mohamed Aly (Bahrawi Co.) (Lindt) P.O. Box: 48 Jeddah 21411, Saudi Arabia Tel: 0966 02 6652441 Fax: 0966 02 6652464 Abbar & Zainy Food Supply &Services Co. (Distributor to Star Markets of American Candy) P.O. Box: 6319 Jeddah, Saudi Arabia Tel: 0966 02 6641296 Fax: 0966 02 6641085

Abdulwahab Aujan & Bros (Cadbury – Chupa Chups) Pobox 6332 Jeddah 21442, Saudi Arabia Tel: 6379040-6375745 Fax: 6379185 Arabian Food Supplies (Mars) Pobox 1400 Jeddah 21431,Saudi Arabia Tel: 6630 000 Fax: 66 53 555 Al Kabli Trading Co. (Waf Co.) (Importer of Loacker of Italy and Pez) P.O. Box: 3311 Jeddah 21471, Saudi Arabia Tel: 0966 02 6686000 Fax: 6630260 www.kabli.com Basmah Trading Company (Salem Ahmed Saiid Basamah) P.O. Box: 427 Jeddah 21411, Saudi Arabia Tel: 0966 02 660668 / 6601544 Fax: 0966 02 601544 Zamil Food Industries P.O. Box: 3191 Jubail, Saudi Arabia Tel: 0966 03 3415235 Fax: 0966 03 3418235 Email: [email protected] Batook Chewing Industries Ltd. P.O. Box: 25 Alkhobar 31952, Saudi Arabia Tel: 0966 03 8121245 Fax: 0966 03 8122116 www.batook.com United Industries Co. P.O. Box: 2806 Jeddah 21461 Tel: 0966 02 6360646 Fax: 0966 02 6376257 Saudi Gum Factory Maha Ahmed P.O. Box: 30167 Jeddah 21477 Tel: 0966 02 6366672 Fax: 0966 02 6376257

Mubarak Ahmed El Qahtany Factory P.O.Box: 41495 Jeddah 21521 Tel: 0966 02 6322562

El Sharq Candies Factory P.O. Box: 4641 Jeddah 21412 Tel & Fax: 0966 02 6080600 UAE Mars Factory Jabal Ali, Dubai, UAE Tel: 009714 2351073 Fax: 009714 2290193 Cadbury Middle East P.O. Box 61350 Jabal Ali Tel: 00971 4 8813833 Fax: 00971 4 8813914 Email: [email protected] Seville Products Ltd (Hershey's) P.O. Box: 54176 Dubai, UAE Al Quoz Industries Area, Dubai 44 St., 5b, Community 364 Tel: 0097 1 3 478431 Nestle Middle East Fze P.O. Box 17327 Tel: 0097148838000 Fax: 0097148839000 Email: [email protected] Wrigley Middle East Fzco P.O. Box 61211 Jabal Ali Tel: 0097148817954 Fax: 0097143392949 Email: [email protected] Sweet Factory Llc P.O. Box 622220 Tel: 0097143385692 Fax: 0097143395132 E-mail: [email protected] Tiffany foods ltd P.O. Box 54176 Tel: 0097143392939 Fax: 0097143392949 Email: tiffany@emirates_net.ae Pistache Llc P.O. Box 13067 Tel: 0097142697148 Fax: 0097142697061 Email: [email protected]

Atayeb Chocolates P.O. Box 29334 Tel: 00971 2 6669500 Fax: 00971 2 6669151 Email: [email protected] Leonard Belgium Chocolates P.O. Box 44737 Tel: 00971 2 6817989 Fax: 00971 2 6277721 Email: [email protected] Rockey Mountain Chocolate Factory P.O. Box 52880 Tel: 00971 2 6348222 Fax: 00971 2 6347222 Email: [email protected]

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