Khaleej Times

Man who hit the bull’s eye with fresh milk

Dr Ahmed Eltigani, CEO of Al Rawabi Dairy Company, visits Khaleej Times as part of our ‘Meet the CEO’ initiative. He shares how they continuous­ly ‘milk’ every last ounce of ideas for industry-first products

- Dr Ahmed Eltigani CEO OF AL RAWABI DAIRY CO.

Dr ahmed eltigani, chief executive officer of Al Rawabi Dairy Company, has seen a lot of firsts when it comes to the UAE dairy industry. Speaking at the ‘Meet the CEO’ series at the Khaleej Times offices, he looked back on when the company had first started operations in the UAE with just 500 imported cows.

“When we arrived back in June 1989, there were very few dairy companies in the region. Most of the dairy products came from Saudi Arabia. When we talk about dairy today, especially milk, we know that people enjoy fresh products. Parents want to give their children the freshest products that are vital to their growth,” he said.

At that time, all the milk came from a region in Saudi Arabia that was about 80km north of Riyadh. For it to arrive in the UAE, it had to travel over 1,800km. Transporti­ng the milk over that distance took time, and by the time it arrived in the UAE, it was not fresh. Al Rawabi saw the opportunit­y to be the first dairy company that would out fresh milk on the shelves.

While the company was off to a good start, he noted that there were still plenty of challenges that had to be faced early on.

“There was competitio­n in the market, and people did not understand the idea of freshness. Pricing structures for products were different as well, since our competitor­s were getting subsidies and we were not. We had to think about how we could penetrate the market, where companies were already establishe­d and had lower operating costs compared to us,” Dr Eltigani revealed.

At that time, in 1990, all the dairy companies were selling their milk in half- and one-litre cartons. Al Rawabi saw the opportunit­y to add another first to its portfolio by introducin­g something new.

“We were the first company to change the design and introduce plastic milk bottles,” Eltigani said.

“They are more hygienic and there is no danger of anything getting into the milk and changing its flavour. Immediatel­y, this caught the eye of consumers. We ended up capturing a 5 per cent market share. Two years later, we again saw an opportunit­y to introduce something new to the market. We saw that family sizes in the UAE were bigger on average, compared to the markets in Europe, so we introduced family-sized bottles that were two litres and then followed that with three-litre bottles. By this time, we had captured 7 per cent more of the market share.”

Dr Eltigani also revealed that in 1992, there was still no sign of fresh juices being sold in Dubai. Shoppers could buy nectars or longlife juices, and many were consuming them under the impression that

they contained a lot of vitamins. “But, when you have long-life juices, you must remember that they are ultra-heated to increase their shelf life, and this actually kills the vitamins as they are very susceptibl­e to high temperatur­es. We immediatel­y began to create a way to bring fresh juices to the market, and we were again the first company in the region to do so,” the CEO said.

Consumers soon started seeing Al Rawabi as a company that was setting industry standards, but Dr Eltigani has noted an increase in competitio­n. He does, however, likes to accept such challenges.

“During the past 10 years, we have not allowed our prices to increase, despite the fact that our production costs have risen 40-60 per cent, and supermarke­ts and cooperativ­es are taking a bigger share — almost 30 per cent. There are challenges from all directions, but we have to face them, find alternativ­es and find solutions,” he said.

One trend that he is happy to see in the market is the shift in consumer behaviours. “Shoppers are more knowledgea­ble about what they are buying for their families. We live in an age of readily available informatio­n, social media and Google. You see informatio­n coming from everywhere about everything. Consumers today don’t just see the production and expiry dates on products; they want to see the ingredient­s, if the product is organic, and how many vitamins they are getting from it. Shoppers want products that are healthier, which make them live longer and which make them look younger.”

This trend has led the company to foray into its most recent product lines.

“We noticed that people above the age of 40 suffer from various deficienci­es,” Dr Eltigani said. “Many of them don’t even know that they are lacking certain elements, which causes various health problems in both men and women. We saw an opportunit­y to create functional food products.”

This, he said, is already a huge market in Scandinavi­an countries, and lots of companies are working on putting elements into everyday food items such as milk and juices. Functional food products, however, are not for everyone; they are designed for people that suffer from problems such as hypertensi­on, obesity, vitamin D deficiency, heart and joint problems, and dementia — all modern diseases that are found in population­s all over the world.

Dr Eltigani noted that as part of the company’s research into what are the most common problems that people suffer from here in the UAE, they spoke to the Ministry of Health in Dubai, and found that the number one problem is vitamin D deficiency. Over 80 per cent of residents in the UAE suffer from vitamin D deficiency, and this is a major cause for concern because people that suffer from this deficiency get increasing­ly lethargic as the day progresses. This causes their productivi­ty to drop. They also suffer from joint and back pains. In addition, their immune systems are also impacted, so they tend to repeatedly fall victim to the flu.

“We worked with the ministry to

produce our Vitamin D milk. Then we introduced another product called Super Milk,” Eltigani said.

“After this, we saw the opportunit­y to create another product for people with very busy lifestyles. We realised that a large portion of residents were skipping breakfast in the mornings, because they didn’t have time. They are skipping the most important meal of the day and simply having a cup of coffee. We immediatel­y started working on Nutree Boost, which is a drink made from natural products that are designed to satisfy the body for eight hours. It is a replacemen­t for breakfast if you don’t have the time to sit down and have it.”

He added: “We are also developing several other health products. Currently, we are working on a drink that helps you lose weight. We are also developing products for people with hypertensi­on and for people with diabetes. In addition, we are also looking to create health and fitness products for people that regularly workout at the gym.”

Asked about the secret behind the popularity of Al Rawabi’s products, Dr Eltigani pointed to one thing — cow comfort.

“Happy cows give you good milk. Our cows come from Friesland in Holland and Holstein in Germany, and these geographie­s are very close to the Nordic Sea so it is very cold. Temperatur­es can drop to negative-20 degrees Celsius. Now compare this with summers in Dubai, where the temperatur­e humidity index is the highest in the world. We get temperatur­es that reached over 50 degrees last year and humidity that stood at more than 80 per cent,” he explained.

“We have a cooling system that reduces the temperatur­e to 28 degrees, and we invest in a lot of technologi­es and healthcare facilities that ensure that our cows don’t get sick. We do metabolic profiles on all our cows to ensure that they are healthy and that they are getting the right nutrition from their feed. Also, nobody is allowed to shout at the cows: happy cows, happy farmers and happy consumers.

During the past 10 years, we have not been allowed to increase our prices... we have to find alternativ­es and solutions

13K

Cows producing milk at Al Rawabi, from 500 when it started We are looking to create health and fitness products for people that regularly workout at the gym Don’t quit easily... there is always a solution... don’t get nervous and frustrated over small matters

Looking back, you will see that 90% of the time, you emerged from a situation without suffering any harm

Shoppers want products that are healthier, which make them live longer and which make them look younger Happy cows give you good milk... nobody is allowed to shout at the cows: happy cows make happy farmers make happy consumers

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 ??  ?? Dr Ahmed Eltigani is a very patient man, evidently shown in his management style at Al Rawabi Dairy Company. —
Dr Ahmed Eltigani is a very patient man, evidently shown in his management style at Al Rawabi Dairy Company. —
 ??  ?? The CEO believes that happiness is a key component in any business, giving that positive effect all throughout the value chain.
The CEO believes that happiness is a key component in any business, giving that positive effect all throughout the value chain.
 ??  ?? Dr Ahmed Eltigani has always had a consumer-first philosophy, ensuring their products will always be affordable.
Dr Ahmed Eltigani has always had a consumer-first philosophy, ensuring their products will always be affordable.
 ??  ?? He makes sure that Al Rawabi is in touch with its customers and the government for healthy offerings.
He makes sure that Al Rawabi is in touch with its customers and the government for healthy offerings.
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