Energy beverages providers are considering expansion in Africa, the Near East and India as they planning to open new markets to counter moves by Saudi Arabia to impose a 100 % tax on their sales in the Kingdom.

Providers participating in Gulfood - the world's largest annual food and hospitality exhibition and its leading global food trading platform-- say Africa and India in particular are revealing big potential.

Buzz Energy beverages, called the sector's fashionista for its ingenious product variety and innovative product packaging, has signed a flurry of new distributor contracts at the program, which goes for the Dubai World Trade Centre (DWTC) until Thursday night, taking it to the Lebanese and South African markets and states new accords are imminent with potential partners in Ethiopia, Pakistan and India.

"New markets will be the answer to the approaching taxation in Saudi Arabia," stated Camille Sofia, Head of Marketing, Africa, Asia and the Middle East. "We will be launching into Egypt around the beginning of April and have likewise gotten enquiries at the show for Nepal and the Maldives which we are pursuing.".

Hype, which runs a regional workplace in Dubai, states it is final speak with imminently sign suppliers in the UAE and Qatar to contribute to its network which currently consists of Kuwait and Bahrain.

"There is enhancing demand in the GCC where tastes are becoming more sophisticated - a trend which is growing volume. Our variety, which includes absolutely no sugar and added vitamin drinks, meets this air travel to quality which is evidenced by our success in Iran where we are the marketplace leader and run a production center," included Sofia. "There's no denying Saudi is a huge market which will now be affected however other markets are opening up and we have actually been kept busy at Gulfood pursuing these leads.".

Saudi Arabia's Mahmoud Saeed Beverage Industry, the name behind the locally-produced Boom energy beverage and the Hillsburg and Dandanah drink brands, has been talking to potential partners from Ghana, Guinea and Kenya at Gulfood.

"We already export to 32 countries and are preparing to enter the African market in a huge method," explained Ankur Sharma, Chief Marketing Officer. "We likewise have our eye on Europe because of the a great deal of Muslims who live there and who rely on Made In Saudi Arabia products. We have contracts in place for the UK and Cyprus and are wanting to broaden this network.".

Saudi Arabia has revealed it prepares to impose a tax of 50 percent on sodas and 100 percent on energy drinks and hopes to expand the relocate to other GCC states for implementation early next year.

The Council of Saudi Chambers of Commerce & Industry has estimated that energy beverages sales in the Kingdom touched US$ 1.5 billion a year in 2014. Eighteen months ago Saudi authorities banned the sale of energy drinks in sports clubs and within government, health and education facilities and all forms of sponsorship and advertising including the free distribution of the drinks.
Despite the Saudi tax moves, Dubai-based Moto - a UAE-made energy beverage produced in Jebel Ali at the National Refreshment and Union Beverage Company plants - will quickly move into the Saudi market with its existing brand and an upcoming all-vitamin version.

"You can not disregard the Saudi market despite the troubles due to the fact that it's the largest energy market in the Middle East," said Tariq Suliman, Managing Partner.

Moto, which just recently moved into 269 petrol stations throughout the UAE and prepares to have 6,700 point of sale operations throughout the emirate's mass grocery retail sector by the end of March, has registered a dozen suppliers at Gulfood from throughout the Sub-continent, the CIS, Russia, the GCC, Levant and Europe to add to its existing export network of Iran, Iraq, Nigeria and Egypt.

"There's no rejecting Africa is going to be big and we have satisfied two potential suppliers at Gulfood which could help us enter the Angolan and Cote D'Ivoire markets," described Suliman.

Long-term Moto strategies to release new water and vitamin drink items and after that its own exclusive product facility in the UAE.

"The feasibility study has actually been done and the plans are ready - we are just now constructing volume and we'll be ready to calm down within 2 years," discussed Suliman. "The plant will be in the UAE because it is an unbelievably vital energy drink market accounting for 3.4 million cases a year.".