Al Fakher underlines ambitions for shisha business in travel retail

Al Fakher is a powerhouse player in the market for premium shisha molasses and shisha accessories. The manufacturer claims a 40% share of the global shisha tobacco market, with a varied brand portfolio that includes over 100 flavours and its products, which include hookah pipes and accessories, are available in 150 countries.

Now the ambitious, UAE-headquartered company is setting its sights on expansion in travel retail. It aims to build from a solid base in the Middle East and North Africa and become a global player. In travel retail Al Fakher already has an extensive distribution network in its region of origin, partnering with Dubai Duty Free, Dufry at Sharjah International Airport and in Jordan, DFS at Abu Dhabi International, Bahrain Duty Free, Beirut Duty Free, Egypt Air (across Egypt), Cairo Airport Duty Free, IDFS Morocco, Hamila Duty Free and Beirut Seaport.

The move to expand further is backed by the recent appointment of a dedicated travel retail team, led by well-known and respected industry executive Ziad Jabre (pictured) as Head of Global Travel Retail.

Jabre tells The Moodie Davitt Report: “With double-digit growth in the channel, travel retail is an integral part of our business. It plays an essential role driving additional growth, while also building brand equity. We see it both a sales and marketing channel that has high value and importance in our organisation.”

As a category, shisha tobacco remains a relatively small part of the wider tobacco category, but it is one of the fastest growing. As a leader in this sub-category, Al Fakher plans to on build partnerships that can leverage this growth in global travel retail, and develop the potential of shisha.

Al Fakher: A varied brand portfolio of more than 100 flavours, with travel retail now a major focus.

 

Jabre offers a neat illustration of how the brand and category can contribute to the travel retail offer. “Within the cigarette and tobacco category at Dubai Duty Free, Al Fakher has had year-to-date growth +72.5% in volume and +88.3% in value. With our new department dedicated to the channel, we will continue to drive category growth in all markets.

“We are well positioned to match our global availability in 150+ countries within travel retail. In the end, we want to be wherever our consumer is.”

That focus on travel retail will be backed by investment in consumer activation. Jabre notes: “Consumer activation is an integral part of success in the channel and we recognise that it’s a ‘must-have’ for us in this space. We have kept our focus on engaging the consumer with our high quality products and supporting the channel with promotional activity.”

The brand seeks to build on its position in the Middle East to expand to other travel retail markets and to new regions.

He highlights the success of a recent rewards campaign at Jordan’s Queen Alia International Airport where consumers were offered the opportunity of winning a holiday in Dubai.

The company’s broad range of products also support its expansion, with channel-specific lines on the agenda.

Jabre says: “Travel retail has become known for providing unique products designed specifically for the channel. Shisha is no different.”

Expect new flavours therefore to supplement the core brand portfolio of over 100 flavours, which are closely tailored to different markets and preferences.

The company has committed to a presence both at TFWA World Exhibition and at MEADFA (as reported) as it plots its path to expansion, with new product development and support for promotional activity on the agenda.

In what is fast becoming a competitive market for shisha in travel retail, how can Al Fakher stand out today and tomorrow?

Jabre provides a clear answer: “No other shisha brand has the global reach, scale and brand awareness that Al Fakher brings. If a shisha consumer is traveling from the US to the Middle East or across the world, they will know and recognise Al Fakher.

“We offer a consistent product experience across a broad range of high quality flavours, available in a range of sizes to meet our consumers’ needs.

“Al Fakher has always been the pioneer of innovation in the category and we have no intention of stopping any time soon.”

Background

A UAE-based shisha tobacco company, Al Fakher began as a molasses producer over ten years ago. Today it claims a 40% share of the shisha market. Al Fakher’s parent company, Al Eqbal Investment Company (EICO), has a market capitalisation of more than US$1.4 billion, making it the fourth largest company listed on the Amman Stock Exchange.

*Al Fakher Head of Global Travel Retail Ziad Jabre will be attending the forthcoming TFWA World Exhibition. He can be contacted on z.jabre@alfakher.com

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