Investment in advertising helps Aujan grow revenue

Campaigns for Barbican and Rani help drive a 26% jump in the beverage maker's first half sales.

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By  David Ingham Published  August 17, 2005

Aujan, the KSA-based beverage manufacturer, is proving the power of marketing. The company enjoyed year on year revenue growth of 26% in the first six months of 2005, a period during which it has run two major advertising campaigns. “It shows the wisdom of investing in your brand,” said Alex Andarakis, CEO, Aujan Industries. “We certainly intend to continue the momentum in the second half.” The campaigns, for its Barbican non-alcoholic beer and Rani fruit drink, have been amongst some of this year’s most memorable. The Barbican ads feature young Arab men hanging out with friends and contain a large amount of ad lib dialogue. Aujan will maintain its emphasis on marketing in the second half of 2005. A big pre-Ramadan campaign for Vimto, which sells briskly during the holy month, begins soon. Aujan’s new emphasis on advertising is a key part of the company’s ‘5,5,5’ strategy, which was drawn up by Andarakis following his arrival from Unilever just over 12 months ago. The strategy envisions Aujan hitting US $500 million in turnover within five years with five core brands. The company currently has four core brands and did around $250 million in 2004. The identity of the fifth brand will be revealed soon. Aujan is currently in the enviable position of being able to sell everything it makes, according to Andarakis. In response to this demand, it recently opened a new production facility in Dubai Investments Park with a capacity of 30 million cases per year and enough space to expand to 50 million. Plans for three more factories of similar size, spread throughout the region, are on the drawing board.

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