Saudi’s SADAFCO opens new Makkah site as regional demand grows

By Hui Ling Dang

- Last updated on GMT

SADAFCO aims to raise operational and supply chain efficiencies through its newly built depot in Makkah. ©Getty Images
SADAFCO aims to raise operational and supply chain efficiencies through its newly built depot in Makkah. ©Getty Images

Related tags Saudi arabia Dairy Supply chain

Saudi food manufacturing major Saudia Dairy and Foodstuff Company (SADAFCO) seeks to raise operational and supply chain efficiencies through its newly built depot in Makkah, amid rising demand from neighbouring markets.

Based in Jeddah, SADAFCO operates sales and distribution depots in 24 locations across Saudi Arabia, Bahrain, Jordan, Qatar, and Kuwait, with its products exported to countries in the MENA region.

The new facility. located in the Saudi Authority for Industrial Cities​ and Technology Zones (MODON​), aims to improve SADAFCO’s value chain and capture growth opportunities in the region, as the firm has observed “steadily growing demand” for foodstuff supplies from neighbouring countries.

It covers a total area of 8,000m2​, including total built-up area of 2,800m2​ and storage area of 2,300m2​. A solar energy system with a total roof area of 2,400m2​ and the potential to generate 350kW of solar energy has also been implemented.

In addition, the depot has a storage capacity of 1,500 pallets (expandable to 2,000 pallets) for ambient goods, and 760 pallets (expandable to 1,000 pallets) for frozen goods.

With this, the company hopes to achieve cost savings, and cater to the rising demand more efficiently and sustainably.

“Taking pioneering steps in innovation is vital for SADAFCO’s sustainability, as well as for enhancing the well-being of society and the environment as a whole.

“SADAFCO has an established sales and distribution network throughout Saudi Arabia and across the GCC region. We are working to meet the growing demand in the neighbouring cities, keeping in mind the geographical importance of the new depot’s location,” ​said Patrick Stillhart, CEO of SADAFCO.

Based on its feasibility and market studies, SADAFCO is planning to roll out new sustainability-focused projects this year, including eight additional solar-powered facilities.

Tapping into RTE trend

SADAFCO’s flagship brand Saudia has been manufacturing high-quality dairy and food products since 1976. It is today a leading brand in Saudi Arabia, particularly in the tomato paste, ice cream, and milk categories.

In October last year, SADAFCO announced its partnership with Jordan-based Al Kasih Food Production Company (Kasih Food) to set foot into the ready meals and cooking solutions market.

Under the SAUDIA by Mezete range, the company now offers a variety of condiments, meal makers and dips, which are said to be popular among Arabian consumers, with a Saudi twist.

These include classic hummus, chilli hummus, baba ghanouj, tahini sauce, and koshna, all of which claim to be plant-based, and gluten- and preservatives-free. The products are available in more than 20,000 retail outlets across Saudi Arabia.

“This strategic partnership marks a new era for the brand, as it responds to increasing demand in Saudi Arabia for quality and healthy cooking solutions. Today’s consumers lead fast-paced lives with less time for cooking than ever before, but that doesn’t mean they want to go without the classic foods they grew up with, nor compromise on quality.

“We are committed to offering our loyal customers a wider choice of quality and healthy food choices that offer a delicious taste of home while catering to their busy lifestyles,” ​Stillhart added.

According to SADAFCO, the country’s burgeoning packaged foods market in recent years is largely driven by children and youth, who make up about 67% of its population and are influenced by global consumer trends.

“Saudi Arabia’s ready meals and cooking solutions market size is expected to grow from USD20.21m in 2023 to USD26.32m by 2028, at a CAGR of 5.43%.

“Our partnership with Kasih Food reflects our long-term vision to be a culinary powerhouse that fills people’s everyday lives with food excellence and more better-for-you options.”

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