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 Fizzing
2004 results
from Pepsi
franchisee
as it
prepares to
go public
Dubai
Refreshments
Company, the
sole
franchisee
and
distributor
for PepsiCo
products in
Dubai and
Northern
Emirates,
has
announced a
further
increase in
profit for
the 2004
financial
year.
The company
achieved a
27 per cent
increase in
sales volume
and AED28
million
operating
profit, up
12 per cent
on the
previous
year;
meanwhile,
market share
in DRC
territories
reached 65.1
per cent.
These
impressive
figures,
including
double-digit
profit
growth for
the third
year in
succession,
come as the
company is
preparing to
be listed on
the UAE
bourse.
According to
general
manager Alan
Salem, the
company's
success over
the last 12
months is
particularly
impressive
when viewed
in terms of
an
increasingly
competitive
marketplace.
He said:
'For the
third year
in a row,
DRC has
posted
exponential
growth.
Judged in
real terms,
we have
increased
sales from 8
million raw
cases a year
to 18
million in
36 months.
For any
company to
achieve 225
per cent
growth in
such a small
period of
time is an
exceptional
performance.
'Viewed in
terms of a
competitive
market
place, the
profit
margins
start to
look even
more
impressive.
Dubai
Refreshments
has held the
majority
market share
in the CSD
category for
three years
now, but
growth in
sales volume
has not come
at the
expense of
everything
else.
'The last
three years
has seen
consistent
growth,
profit
margins and
turnover,
and have put
DRC in an
extremely
strong
position to
sustain this
growth in
the future.'
Since its
launch in
2003,
Aquafina,
PepsiCo's
international
bottled
water brand,
has quickly
become one
of the
leading
water brands
in the UAE
and Oman.
This
exceptional
performance
has
contributed
significantly
to overall
volume
growth,
market
share, and
profitability.
7Up, also
acquired in
2003, has
achieved
top-of-mind
awareness in
the
carbonated
drinks
sector after
a highly
visible
integrated
marketing
campaign.
The drink is
now the No.2
carbonated
soft drink
in Dubai,
Sharjah and
Northern
Emirates -
only beaten
by Pepsi.
Technological
investment
is set to
come into
play through
2005,
according to
Salem, who
said: 'We
have
invested
substantially
in operating
systems,
such as ERP
implementation,
and
hand-held
terminals
for sales,
as well as
infrastructure
costs, such
as a new
distribution
and
logistics
facility in
Sharjah.
'We see
these
improvements
as set to
help grow
our
bottom-line
even further
in the 12
months to
come, as we
concentrate
on
streamlining
our
operating
procedures
to maintain
our
competitiveness
on price.'
New major
accounts
include the
hypermarket
Geant, as
well as
nearly 20
exclusive
food and
beverage
outlets in
Dubai alone.
DRC began as
a limited
liability
company by
Decree of
His
Highness,
The Ruler of
Dubai and
amended its
status in
July 1994 to
a Public
Shareholding
company. In
1962 DRC was
appointed as
the sole
franchisee
and
distributor
for Pepsi
Co.
Since the
factory was
established
in 1959, DRC
has remained
at the
forefront of
the UAE
refreshments
industry,
continually
expanding
through
major
investment
in the
latest
bottling
technology
complemented
by the
highest
levels of
quality
management.
Pepsi is the
second
largest
company in
the global
soft drink
industry,
but in the
UAE is the
number one
soft drink -
well ahead
of its major
competitors.
DRC's
product
portfolio
today
includes
Pepsi, Diet
Pepsi, 7UP,
Diet 7UP,
Mountain
Dew, Mirinda
Orange,
Mirinda
Green Apple,
Shani,
Evervess
Soda,
Evervess
Tonic,
Evervess
Ginger Ale,
and Aquafina
pure
drinking
water. |
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