The key to taking brands nationwide

The Kingdom of Saudi Arabia is like no other market. Its variety of people and cultures and its formidable geography present distribution challenges, as well as potential rewards, that should not be underestimated. Success in selling goods here demands a special understanding, organisation and experience of the country’s unique trading environment. Possessing such key qualities has led the Jeddah-based Binzagr Group to its unrivalled position today as Saudi Arabia’s foremost specialist in retail distribution and consumer product marketing.

Long respected in Saudi Arabia as one of the leading business families, the internationally distinguished House of Binzagr, or Beit Binzagr in Arabic, was established more than 130 years ago to trade on the ancient spice route between Europe and the East and is now a diversified group of companies with global interests.

The group’s importation and distribution of branded consumer goods has enabled some of the world’s leading brands to reach customers across the length and breadth of the country. It has pioneered the local manufacture of many products that were previously imported, often in partnership with international companies who were originally suppliers. For example, its relationship with Unilever stretches back 80 years.

“In the early 1930s, we brought in soap from Unilever, starch from CPC, and cigarettes from the British American Tobacco Company,” says Sheikh Abdullah Saeed Binzagr, president of Binzagr Group. “In the 1970s, we opened a joint venture factory with Unilever, making detergent powders and hand soap. Over the years, this factory has grown into one of the major Unilever factories, with production efficiencies that compete with the best factories globally. In fact, there are only three places in the world where Dove soap is made: Germany, Jeddah and the US. Our factory manufactures soaps (Dove, Lifebuoy and Lux), toothpastes (Close-Up and Signal), shampoos (Sunsilk, Dove and Clear), fabric conditioners and tabletop cleaners (JIF Kitchen Cleaner).”

Through Binzagr Coro – a joint venture with Coro Foods AS of Denmark – the group produces fruit juices, diluted drinks and concentrated drinks, namely Suntop, Suncola and Sunquick. “This stage of industrialisation opened up new opportunities for us to venture into manufacturing, on top of the usual importing, warehousing and distribution services that we offered,” says the president. “Our factories come up with products that are sold in and out of the GCC market, for example Africa, the Middle East, etc.”

Binzagr now owns the Mazola brand of cooking oils in the Middle East, covering around 25 countries, and has a factory that manufactures Mazola oil, mayonnaise, margarine, and shortening. “Our industrial activities have become bigger than our trading activities,” says Sheikh Abdullah.

The company’s steady, deliberate approach to growth is comparable to that of the kingdom. “The arrival of oil caused a boom in the whole of Saudi Arabia, but it was not the sudden kind of growth. Progress took on a slow and steady pace over the years, which was fortunate because it protected the country from the problems that arose from sudden growth, such as what can be seen in Dubai,” says Sheikh Abdullah. “To my mind, it is more like the tale of the tortoise and the hare: slow and steady wins the race, with a very clear aim in sight. This is part of the country’s overall strategy for sustained development. That is why to this day, Saudi Arabia continues to ride on this stable and positive trend, while the growth in the other countries in the region has declined.

“Through the grace of Allah, the wisdom of HM King Abdullah and the sound policies of SAMA, Saudi Arabia continues to have a strong and steady development that can sustain itself. It is a reliable venue for investment.”