Savola Group, one of the largest food companies in the Middle East, and Thai Union Frozen, one of the largest seafood processors in the world, have announced that they have formed a joint venture and aim to bring new seafood products to rapidly growing, underserved Middle Eastern markets.

 

The two companies will jointly invest between US$30 million and US$50 million into the venture over the next two years and are targeting US$400 million in sales within four years.

 

The newly formed entity will produce ambient, chilled, and frozen seafood products along with ready-to-eat meals and will focus on Thai Union’s well-known John West brand across all six Gulf Cooperation Council (GCC) markets along with Egypt, Iran, Jordan, Lebanon, Iraq, and Syria.

 

“The Middle East region is one of the fastest growing seafood markets globally. It is a well-established seafood culture with increasing per capita consumption,” says Thiraphong Chansiri, president and CEO of Thai Union.

 

The two companies estimate that the 12 markets the joint venture will concentrate on have a seafood market worth more than US$3 billion; the markets of Saudi Arabia, Iran, and Iraq, alone, reported seafood sales in excess of US$2 billion in 2014, and 4% annual market growth over the last five years.

 

The resulting entity formed through the agreement will be backed by two of the largest food companies in the world. Thai Union owns the brands Chicken of the Sea and John West and is the largest processor of tuna in the world. The company also produces sardine, mackerel, salmon, and shrimp products from more than 20 factories around the world. In 2014 the company reported sales of US$3.8 billion and profits of US$142 million, and by 2020 it aims to reach sales of US$8 billion.

 

Savola Group is one of the largest food processors in the Middle East, controlling multiple operations throughout the region. In 2014 the group reported sales of approximately US$3.9 billion.