Oman Refreshment Company (ORC) has launched three new formats for PET bottles in order to meet changes in consumer demand. Due to teamwork and flexibility, Sidel completed the line conversion within a reduced lead time. These formats are now operating with improved rated speed to satisfy consumer demand in Oman.
Established in 1974 and currently employing more than 900 people, the company is one of the pioneers and market leaders in the Omani manufacturing sector. As a franchisee of PepsiCo International, the company’s headquarter is located in Al Ghubra and it operates in different food (Lays, Cheetos and Quaker Oats, etc.) and beverage (Pepsi, Topfruit and Aquafina Water, etc.) sectors. It has an overall annual beverage production capacity of around 500 million litres. The company is expanding its manufacturing and distribution capabilities to meet growing demand for its products and also to respond to diverse consumer preferences.
The carbonated soft drinks (CSD) market in Oman is highly consolidated by international companies and it is dominated by PepsiCo whose sales volume and value in 2018 reached 84.7 per cent and 84 per cent respectively. Although Oman is known for its high CSD consumption, changing life styles and the introduction of an ‘excise tax' (50 per cent tax on CSD) have slowed demand. To maintain market share and adapt to healthier consumer habits, ORC approached Sidel to launch three new PET bottle formats (0.25 L, 1 L and 1.5 L).
Meeting a tight deadline through seamless planning and collaboration
The company has operated a Sidel Matrix Combi12 line since 2015 and the project was to adapt this very same line. When the order was received in June 2019, a 14-week lead time was established to meet the market launch date. However, it was initially assumed that the parts could be delayed because of the August summer break. The key to success was therefore seamless planning and execution.
As a complete solution provider, The brand achieved its goal by leveraging its expertise in production and closely cooperating with suppliers. From shipping to execution, approximately 15 experts from the brand participated in the project.
To ensure smooth operation, the original line efficiency was inspected by the team before site execution. With consultancy, some adjustments were made and supported by optimal logistics and 3rd party equipment suppliers to accelerate progress. The company also played a crucial role by providing full in-house support from the maintenance and warehousing teams to ensure that all activities went to plan.
In spite of tight time constraints, the brand displayed close teamwork, liaising with both the partners and the customer.
Youssef Ezzikhe, CEO, Oman Refreshment Company, said, “Sidel’s challenge was to finish the project within a very tight schedule. Sidel took swift action in manufacturing the required adaptation kits then shipping them in the fastest lead time possible. Installation, testing, and commissioning are the most challenging activities of the project wherein Sidel was able to excel by sending the best team.”
Flexibility and great service exceed expectations and result in a strong customer relationship
A flexible approach to project execution, together with on-going support from the product division to reduce the equipment lead time were the key factors contributing to an overall well planned and executed service project. The brand finished the line conversion project at the end of August 2019, allowing the company to fulfill their market commitment.
Moreover, the rated speed of the filler on each format was increased: 0.25 L – 24,000 bottles per hour (bph), 1L – 22,500 bph and 1.5 L – 22,000 bph. The project was completed in record time and new package sizes were launched onto the market with the production line proving to be highly efficient. “I appreciate Sidel’s flexibility and proactiveness,” added Ezzikhe.
Samuel Gobbe, vice president of services for the Middle East and Africa region, Sidel, “With Sidel’s excellent history of service support, we are proud that ORC selected Sidel for line conversion service. This proves that we are fully trusted by customers and our outstanding service is key to their loyalty.”