The latest food and beverage industry news and trend analysis

Strategic Recommendations for Beverage Companies

Based on the synthesis of regulatory shifts, economic drivers, and market gaps, we offer the following strategic recommendations for B2B players:

For Global Alcohol Brands (Brewers & Distillers)

• The "Shadow" Entry: Do not wait for full legalisation. Enter the market now with your 0.0% ABV extensions (e.g., Corona Cero, Tanqueray 0.0). This establishes trademark protection, builds brand equity, and secures shelf space in key retail and HORECA accounts.

• Partner with "Premium Residency" Channels: Lobby to have your ultra-premium SKUs listed in the Diplomatic Quarter store. This is a niche volume but a high-visibility channel for key influencers (ambassadors, CEOs).

• Relationship Marketing: Utilise "dark marketing" techniques. Host private, non-alcoholic dining events for HORECA decision-makers to build relationships. Prepare "activation kits" for hotels that include branded glassware and bar tools, even if the liquid is restricted.

For Non-Alcoholic Beverage Producers

• Reformulate Immediately: Audit your entire portfolio against the 2026 Sugar Tax tiers. If your product has 6g of sugar, reduce it to 4.9g. The tax savings (SAR 0.79/litre) can be reinvested in marketing or margin.

• Focus on Functionality: The Saudi market is health-conscious. Pivot marketing toward "functional" benefits—hydration, vitamins, energy—rather than just "sugar-free."

• Own the "Saudi Champagne" Replacement: Create a signature serve that can become the new standard for banquets and weddings. Pitch this directly to catering giants like Gulf Catering or SACC (Saudi Airlines Catering).  

For Hospitality Suppliers & Logistics

• Register for Giga-Project Tenders: The procurement volume for Red Sea Global and NEOM is immense. Suppliers must register on the vendor portals (often SAP Ariba-based). Focus on "sustainability" credentials, as RSG prioritises eco-friendly suppliers (e.g., zero plastic packaging).  

• Develop "Turnkey" Bar Solutions: Hotels need comprehensive solutions. Offer a package that includes the bar station design (stainless steel from MD MADA), the glassware (Restofair), and the ice machines (Chbib).

   

• Secure the Cold Chain: For logistics providers, invest in reefer trucks and temperature-monitored warehousing. The distributor who can guarantee "farm to glass" temperature control will win the contracts for premium imports.

For Investors

• Watch the "Iqama" Salary Threshold: Currently, alcohol access is linked to a SAR 50k/month salary or high investment. If this threshold is lowered (e.g., to SAR 20k), it signals a massive expansion of the addressable market. Monitor the Ministry of Interior announcements closely.