Global food industries have declared contract manufacturing to be the ‘best solution’ to reduce costs and set-up times, adding that private labelling gives FMCG brands an unprecedented opportunity to build brand loyalty.
Carrefour and Cartoon Network are among 130 plus brands due to converge, connect and catalyse new business avenues with private label suppliers, brand licensing professionals and contract manufacturers.
The inaugural Private Label and Licensing Middle East exhibition, taking place at Dubai World Trade Centre (DWTC) from October 29-31, will provide a strategic incubation platform for heavyweight local, regional and international businesses, start-ups and entrepreneurs to tap into worldwide business opportunities across the rapidly accelerating private labelling, brand licensing and contract manufacturing sectors.
According to the latest Nielsen Total Consumer Report, sales of premium private – or store – label products are growing at 6.3 percent year-on-year, resulting in private label brands now outpacing traditional multinational brands and ‘posting dollar growth more than three times the rate of branded products’.
Private Label and Licensing Middle East 2019, the MENA region’s first dedicated private label and licensing exhibition, will enable visitors to explore new business and product convergence avenues by connecting them with private label suppliers, contract manufacturers and solution providers from across the global FMCG sector.
Major players endorse new show
DWTC has launched Private Label and Licensing Middle East in response to persistent exhibitor and visitor feedback for a dedicated platform to address rapidly expanding private labelling and brand licensing opportunities in the region.
Consequently, a plethora of industry heavyweights will participate in the inaugural event, including Carrefour (Retail Excellence Partner), TetraPak (Packaging Masterclass Partner), Cartoon Network (Category Sponsor – Licensing) and Gold sponsors, FlavourTech and Al Emlaq.
“After the significant success in Europe and the Americas, we want to leverage on Tetra Recart’s (Retorted Carton Food) large network of manufacturers and co-packers by giving access to Private Label, Regional Brands and Licensing in Middle East. With close to 60 installations across the globe, our customers can provide a wide range of products and packages, which are not yet available in the Middle East,” says Thierry Gihan, product and marketing director, Tetra Pak, Tetra Recart.
Private Label and Licensing Middle East, which falls under the Gulfood power brand banner, will go beyond the food industry and unite more than 130 international brands from dozens of product sectors and 50 plus countries. The expo will bring together some of the biggest names in hospitality, including hotels and catering, alongside mega regional FMCG players such as pharmacy chain LIFE, e-commerce giant Amazon, Saudi Arabia’s retail company Panda, regional retail brand Nesto Hypermarket LLC, Movenpick Hotel Istanbul, cosmetics brands and more.
Perfect timing for a dedicated exhibition and summit
With MENA consumers, particularly those within the UAE and Saudi Arabia, becoming more price conscious, and value perceptions of non-branded products driving increased private label product sales right across the FMCG sphere, Private Label and Licensing Middle East organiser DWTC reiterated that the platform will provide a customised convergence point for key industry decision-makers and disruptors.
“Consumer preferences and buying habits are changing at a rapid pace and retailers are having to react to remain relevant. With change comes opportunity and private labelling, brand licensing and contract manufacturing open a wealth of potential new avenues for industry stalwarts and new prospects across the full spectrum of food and non-food FMCGs,” says Trixie LohMirmand, senior vice president, Events and Exhibitions, DWTC.
“With so many major retail, commerce and manufacturing heavyweights partnering the inaugural Private Labelling and Licensing Middle East, the event is shaping up to underline Dubai’s status as a multi-faceted business incubation hub and strategic gateway to global markets.”
Contract manufacturing offers cost-effective market exposure
Among the industry leaders leveraging the platform by Private Labelling and Licensing Middle East is Global Food Industries (GFI), a worldwide value-added frozen food manufacturer based in the UAE, which sees the inaugural industry-defining expo as a “unique opportunity” to display its contract manufacturing and supply chain capabilities.
Commenting on the benefits of contract manufacturing, Jacek Plewa, general manager, Global Food Industries (GFI), says: “Outsourcing manufacturing can be the best solution. The major benefit is reducing capital expenditure as there are no investments in facilities and resources. It also helps remove set-up times for establishing facilities and hiring resources. This means new products get to market quicker and generate faster revenue for businesses.”
Extolling the growing trend of private labelling, Plewa, whose company co-manufactures products for multinationals including Mondelez International, Americana, Alokozay and Unikai, adds: “Private label branding is an effective, cost-efficient way to build customer loyalty. Private labels are cheaper than the nationally-branded products, which can result in a higher profit margin for retailers. Changing economic conditions will help the growth of private labels as it offers a prospective opportunity for developing and fast-growing economies.”
Private Label and Licensing Middle East will offer a range of features to enhance exhibitor and visitor experience, including a dedicated Hosted Buyers Programme, where pre-qualified buyers from F&B to FMCG will attend, with a purpose of sourcing new products, and meeting with global suppliers and manufacturers offering new business opportunities.
Additionally, the event will feature a Meetings Programme for retailers and FMCG players to meet and network with providers and an RFP Portal for all visitors and exhibitors that will allow buyers to upload purchasing requirements, receive proposals and schedule meetings ahead of the show.
Meanwhile, the Private Label & Licensing Middle East Summit will provide a tailored knowledge-exchange arena for industry experts to share insights on product innovations and the latest market trends, including sessions on ideation, distribution and customer loyalty. Elsewhere, Brand Licensing Workshops are free-to-attend sessions designed for manufacturers and retailers to understand the importance of product differentiation as a conduit to increasing bottom line.
Elsewhere, TetraPak will host a Packaging Masterclass exploring innovative concepts of optimal packaging design to meet the ever-increasing consumer demand for trendsetting products.
While the focus of Private Label and Licensing Middle East stretches across a plethora of industries, the inaugural exhibition will run alongside Gulfood Manufacturing 2019 to ensure participants can maximise business potential across the food industry supply chain.
The key areas of focus of the inaugural Private Label and Licensing Middle East will explore three specific pillars:
• Private label, which denotes products manufactured or packaged for sale under the name of the retailer rather than that of the manufacturer. Retail heavyweight Carrefour, the region’s leading private label is the Retail Excellence Partner for the event and will showcase a wide suite of private label products alongside other key retailers and brands.
• Brand licensing, a process of leasing a renowned brand and using it on product or a company for a designated time period. Cartoon Network, the event Category Sponsor for Licensing, will present brand licensing opportunities to visitors to leverage their iconic brand characters on product packaging.
• Contract manufacturing, which is the production of goods by one firm, under the label or brand of another firm that helps to produce and sell products without having to invest in heavy machinery or equipment.
Private Label and Licensing Middle East 2019 will take place from 10am-6pm on October 29-30 and 10am-5pm on October 31. For more information, visit www.prime-expo.com.