John West tuna. (Photo Credit: John West)

Thai Union signs JV with leading Middle East food company

Thai Union Frozen Products PcL and Savola Foods Company, the largest manufacturer of consumer goods in Middle Eastern markets, have announced a joint venture (JV) expected to reach annual sales revenues of USD 400 million in the next three to four years.

Both companies together plan to invest USD 30-50 million over the next two years into the JV, which combines the global resources and expertise of Thai Union with the regional resources and expertise of Savola Foods Company.

The JV will benefit from the sourcing, processing, and R&D capabilities of Thai Union, and sales, marketing, and distribution expertise of Savola Foods Company.

In addition, it will leverage deep consumer and marketing expertise of both partners, including marketing John West brand in the Middle Eastern markets.

The product lines for the JV will include all seafood products, such as ambient, frozen, chilled seafood, as well as ready-to-eat meals. The JV will operate in 12 Middle Eastern markets: Saudi Arabia, United Arab Emirates, Oman, Kuwait, Bahrain, Qatar Jordan, Lebanon, Syria, Iran, Iraq, and Egypt.

Thai Union is a global seafood leader with over 20 factories operating across Asia, Europe, Africa, and North America. It operates in several seafood categories including tuna, shrimp, sardines, mackerel, and salmon and owns leading global brands like John West, Chicken of the Sea, Petit Navire, and Mareblu.

The company is the largest processor of tuna globally, and operates the world’s only tuna-focused Global Innovation Incubator in partnership with the Mahidol University in Bangkok, Thailand.

Savola Foods Company, a Closed Joint Stock Company and a subsidiary of the Savola Group (a Saudi Public Listed company), is one of the largest food companies in the Middle Eastern markets focusing on mass consumers foods such as edible oils, sugar, and pasta.

Savola Foods Company generated revenues of SAR 14.59 billion (approx. USD 3.9 billion) in 2014, and operates strong food brands, such as, Afia, Alarabi, Ladan, and Yudum.

The Middle Eastern markets to be served by the JV are estimated over USD 3 billion, with substantial growth expected over the next several years. Based on reported statistics, the core Middle East markets such as Iraq, Iran and Saudi Arabia alone had seafood sales in excess of USD 2 billion in 2014 and have experienced average growth of over 4 per cent over the last five years.

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