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Start-up Food & Beverage (F&B) companies have a big opportunity to out-play their multinational counterparts in a booming Mid East food sector, but lack core business components to ensure their enterprises stay afloat, an expert has said.
Uzair Anjarwalla, food entrepreneur, venture capitalist, and Managing Director of international food marketing company, Bridgepoint Foods, said that F&B start-ups in the Middle East can have a profound impact on a multi-trillion dollar global food sector, but entrepreneurship training, availability of venture capital, and high risk aversion are some of the key challenges holding them back.
“The food sector is worth US$4 trillion worldwide with stable and increasing growth rates, while the Middle East is one of the fastest growing regions within the industry,” said Anjarwalla, a speaker at this month’s SIAL Middle East Conference, taking place from 24-26 November at Abu Dhabi National Exhibition Centre (ADNEC).
“The biggest advantage that F&B start-ups have over their multinational counterparts is innovation. It has been proven that it is extremely difficult for large players to innovate as they are managed in a way that doesn’t encourage disruptive innovation and risks. Start-ups on the other hand have a huge opportunity as long as they correctly address market gaps and innovate.
“However, many fail because their business strategies can be weak, they have partnership issues and disagreements within the highly stressful first year of starting up, or venture capital is either not available or is not being invested into the right business processes.”
Looking to address these challenges, Anjarwalla will outline at the SIAL Middle East Conference how F&B start-ups can build a roadmap to ensure their businesses prosper.
He highlighted recent examples of start-up success stories in the region that other budding businesses can take confidence from, including beverage manufacturer Aujan Industries, where, in 2012, Coca Cola bought a 50 per cent stake in the firm for US$ 980 million. Others include confectionary retailers Bateel and Patchi; soft drink manufacturer Freez; and restaurants Just Falafel, and the Noodle House.
“The GCC and wider Middle East, although not a big food producer, is a fertile ground for developing F&B brands, whether in the Consumer Packaged Goods (CPG) space or in the retail space,” added Anjarwalla . “Because the region is at the cross-road of trade and culture and an excellent supply chain hub, Middle Eastern F&B concepts can be exported to the world.”
Boasting a line-up of more than 35 international and regional experts, the SIAL Middle East Conference will highlight the latest innovative trends, industry updates, new products and solutions for the Middle East food, retail, and catering sectors.
The three-day conference is a feature of SIAL Middle East, the region’s fastest growing professional food business platform for the food, drink and hospitality industries, held under the strategic partnership of Abu Dhabi Food Control Authority (ADFCA).
Now in its fourth year in Abu Dhabi, SIAL Middle East is part of SIAL Group, the world’s largest network of professional B2B food exhibitions which include SIAL Paris, SIAL China, SIAL Canada, SIAL Brazil, and SIAL ASEAN in the Philippines.
The showpiece event is co-located with the Emirates International Date Palm Festival, and will host more than 1,000 food, beverage and equipment companies from 40 countries showcasing their latest products, 65 per cent of which are new to the Middle East region.
Other features at SIAL Middle Eat include a hosted buyer programme, the La Cuisine by SIAL international chef competition, and the prestigious SIAL Innovation Observatory, showcasing the world’s most innovative food and beverage products, including winners from the global competitions from events in China, Brazil, Canada and Paris, and the Philippines.
For more information and to register for SIAL Middle East go to www.sialme.com
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