Power Root inks MOU to distribute beverage products in Saudi Arabia

KUALA LUMPUR (May 8): Power Root Bhd has inked a memorandum of understanding (MOU) with Saudi Arabian distributor Abbar & Sons Food Co Ltd (Abbar Foods) to distribute its powdered Alicafe and Alitea beverages throughout Saudi Arabia.

Established in 1955, Abbar Foods has built a strong reputation by distributing a wide range of consumer products, including international and domestic brand beverages, bakery and confectionery products, dairy products, spices, sauces and confectionery.

Abbar Foods has a wide distribution network of more than 8,500 touchpoints including 1,000 modern trade partners, which is supported by integrated components of warehouses, sales branches, sales force and logistics operations throughout Saudi Arabia.

In a statement on Monday (May 8), Power Root said Saudi Arabia is one of the beverage company's top three export markets. The country recorded the fastest gross domestic product growth among all G20 countries at 8.7% in 2022, despite persistent global challenges.

“The MOU with Abbar Foods would enable Power Root to enhance our distribution networks to have a wider reach to end-customers through hyper- and supermarkets as well as the smaller retail outlets. This would help us tap more effectively into the highly popular coffee- and tea-drinking culture in Saudi Arabia,” commented Power Root co-chairman Tengku Datuk Setia Putra Alhaj Tengku Azman Shah Alhaj.

“Saudi Arabia’s economic resilience is a positive indication of the economic comeback, and sets a conducive platform for our new MOU with Abbar Foods to enhance contributions further. We at Power Root are optimistic of this collaboration, and believe that it would ably support our export revenue drive,” he added.

At the time of writing, shares of Power Root were down three sen or 1.39% to RM2.13, valuing the group at RM960.3 million.