Localisation has emerged as a key strategy for many food and beverage brands either entering or expanding in the Asian market, with many derivatives of this covering flavour innovation, packaging design, country-specific offerings and more.
One of the latest brands to join this foray is Saudi Arabian soft drinks company Kinza, which is currently manufactured in the Islamic holy city of Jeddah and exported to over 75 markets internationally.
The company has now set its sights on the South East Asian region which houses two of the world’s most important Muslim markets: Indonesia and Malaysia, and believes that the best way to conquer these markets is by localising not just at a regional level, but a country-specific one.
“South East Asia represents an important next chapter in our international growth,” said Kinza Founder Bandar Okrin.
“Malaysia and Indonesia each offer distinct and compelling opportunities, and both are central to Kinza’s Southeast Asia strategy.”
Despite these two markets being relatively geographically close by, consumer tastes and purchasing habits can still differ fairly significantly.
“For instance, in Malaysia Kinza’s product offering will be shaped by local preferences including reduced- and zero-sugar choices; whereas in Indonesia our approach will focus on product taste, affordability and distribution across channels suited to local purchasing habits,” he said.
“Our objective is not simply to enter as many markets as possible. We want to establish the right partnerships, understand the local consumer and build the distribution and manufacturing foundations necessary for long-term growth.”
Local manufacturing
At present, the Saudi brand has started building an online and offline presence in these markets by exporting its drinks from the Jeddah facility, but Okrin sees local manufacturing as the real way forward for it to grow locally.
“Local production would enable Kinza to reduce supply lead times and logistics costs, respond more quickly to market demand and adapt its pack sizes, pricing, product mix and marketing to local consumer and channel requirements,” he said.
There would be a substantial portfolio of drinks to be manufactured here as Kinza’s existing soft-drink portfolio comprises cola, lemon, orange, citrus, blackcurrant and pomegranate flavours, as well as zero-sugar products, soda water and energy drinks.
“We have grown at home in Saudi because people found in Kinza a brand they connect with culturally and emotionally, a taste that belongs to their everyday moments, gatherings and celebrations. We want to build that same connection here,” said Okrin.
Growing across Asia
Malaysia and Indonesia may be the most attractive markets due to large Muslim populations as well as overall population size, but Kinza has already demonstrated an ability to appeal to many different consumer groups, so ASEAN is just one stop.
The company has sponsored several international sports competitions such as the Spanish Super Cup, the French Super Cup, and the FIBA West Asia Super League (WASL), a key component of its ambitions to become a ‘globally recognised Saudi consumer brand’.
“We believe our Saudi heritage can resonate with consumers in both Malaysia and Indonesia, [but are] also pursuing growth opportunities across other parts of Asia, including South and Central Asia, as part of a broader international expansion strategy,” he said.
“As a new generation of younger consumers grows increasingly open to discovering brands with distinctive identities, authentic stories and products that reflect their tastes and lifestyles, we view our experience in markets like Saudi Arabia, the GCC and the Levant as a foundation for developing lasting connections with consumers in new markets.”