ALMARAI VS BEL GROUP Harvard Case Solution & Analysis

Section 1: General Introduction

Introduction of Almarai

Almarai is one of the world’s largest vertically integrated dairy companies, and it is also the largest manufacturer and distributor of food and beverages. It was founded in 1977 and it is headquartered in Riyadh, Saudi Arabia. It is ranked as the top FMCG brand in MENA region(Almarai, n.d).

Almarai is a market leader and continues to provide high quality standardized nutrition and health products to customers of all age groups. Almarai has joint ventures with International dairy and juice (IDJ) and Modern Foods Industries (MFI).

Introduction of Bel Group

Bell Group is a worldwide leader in branded cheeses with operations around the world across 36 countries. Moreover, it is also the manufacturer and distributor of processed and semi-processed cheese. It was founded in 1865 in France and has been operating in Spain since 1956.

Bell Group is ranked as third in the worldwide branded cheese manufacturer(BEL, n.d).

Section 2: History

History of Almarai

The company marked its existence in 1977. Through his guidance and encouragement, this vision  a achieved and due to this numerous agricultural projects were launched. From fresh milk and Laban processing, it soon expanded to state of the art processing plants and technology to incorporate the modern dairy farming techniques.

In the early 1990s, in order to achieve the aim to be a low-cost producer and to provide the consumers with high quality products with affordable prices, Almarai went through restructuring and reinvestment, and diverted its centralized structure to decentralization. In late 2005, another large central processing plant was commissioned, incorporating new cheese plant(Almarai H. , n.d).

In the late 2005,the company became a public listed and it is currently having 70,000 sh are holders. The company’s market capitalization exceeded SAR23 billion at end of 2011.

Almarai believes in diversification through innovation, growth and geographical expansion. With this strategy, the company entered in bakery products market in 2007, and poultry products in 2009 through acquisition of Hail Agricultural Development Company (HADCO). The company launched a premium poultry brand “Alyoum “.

Almarai expanded its geographical reach beyond Gulf cooperation council GCC and launched a joint venture with PepsiCo in 2009, which was named as International dairy and juice company (IDJ). Currently, Almarai is delivering high quality products to 48,000 customers within the GCC region.

In 2010, the company entered in infant nutrition market. Almarai madea 50/50 joint venture with Mead Johnson Nutrition and established International Pediatric Nutrition Company (IPNC).

The company conveys its vision as:

Almarai is continuously investing in technologically advanced production facilities and it has skilled human force to optimize their performance and to geta competitive advantage.

History of Bel Group
In 1856, Jules Bel setup his Comte cheese ripening and trading business in France’s jura region, which was taken over by his son, Leon Bel, after his death. In 1922, Bel founded From ageries Bel and started manufacturing processed, tasty and affordable cheese.
In 1921, Bel trademarked the cheese brand as The Laughing Cow. The commercial production of this brand started in 1924 when the first processed cheese mills and portion machines were installed at Lons-le-Saunier plant, which were replaced with more efficient modern plant in 1926 in Lons.........................

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