The Ferrero Group (“Ferrero”), a global sweet packaged food group, announced today it has formed a new joint venture (JV) agreement with Ismail Abudawood Family (“Abudawood”), a leader in the FMCG distribution industry. Effective from February 2022 on wards, this important alliance will see Ferrero ensure a direct channel of distribution for its products across Saudi Arabia–a move set to further solidify and strengthen its operation in the Kingdom.

The creation of this JV is the culmination and evolution of a relationship that began almost two decades ago. It was in 2005 that Ferrero and Abudawood first became business partners in the distribution of Ferrero products across Saudi Arabia.

Over the years, both partners have enjoyed a shared history of success –one guided by a common commitment to delivering high-quality products to an ever-evolving market.

Headquartered in Jeddah, the new JV will see Ferrero and Abudawood collaborate to apply their unique business approach, know-how and unparalleled experience to the Saudimarket. This in turn will offer new avenues of growth, including opportunities for local expansion and the development of new products and strategies.

Commenting on the JV, Kurt Droeshout, Executive Vice President Operationsat Abudawood said: “We are thrilled to have joined forces with Ferrero – our trusted partner for many years. Together, we have witnessed outstanding business results. Looking ahead, we firmly believe that the formation of this new JV lays a strong foundation for mutual success going forward.”

Didier Laffineur, Regional Managing Director, Ferrero Gulf, added: “Our relationship with Abudawood –a market leader –has long been driven by a powerful vision for the future. At Ferrero, we are confident that, through this JV, by directly distributing our products across Saudi Arabia, we can build on the momentum of the last two decades and, as one, tread a solid path to sustainable growth.”

Ferrero’s JV with Abudawood marks an important regional milestone for the organization, especially considering it is the third of its kind since 2018. Ferrero’s first-everjoint venturein the Gulf was with Al Seer Group in the UAE (with the exception of Abu Dhabi). A year later, Ferrero partnered up with Al Bustan Al Khaleej (BK) in Kuwait.

The JV also adds to Abudawood’s portfolio of joint ventures and marks its third time partnering with a multinational giant in Saudi Arabia.