Barentz inks Iran deal

28 Jan 2016

Ingredients distributor Barentz International has announced that, following the recent acceleration of its business into high growth markets, it has established a joint venture with Future Way Holding in Iran.

Barentz inks Iran deal

Ingredients distributor Barentz International has announced that, following the recent acceleration of its business into high growth markets, it has established a joint venture with Future Way Holding in Iran. The new distribution company will focus on distributing ingredients in the food & nutrition, pharmaceuticals and animal nutrition industries in Iran and the Middle East region.

Barentz says this acquisition in Iran a logical step in the strong expansion of Barentz outside Europe. With 80 million consumers in the country and 400 million in the surrounding export area, the company believes Iran is a highly interesting market for industrial ingredients. Fuelled by the open attitude towards new food and personal care products of the large young Middle Eastern population, it is expected that the packaged goods market will show considerable volume growth over the next years.

"This acquisition is a great first milestone in our continued expansion plan for 2016,” said. Hidde van der Wal, CEO of Barentz International. “We have a positive outlook on the development of the industrial ingredients market in Iran, and moving into that market with a well-established family company like Future Way Holding was part of our strategic plans. The synergy of our cooperation lies with Future Way's traditional Persian way of doing business, combined with our knowledge of and access to high quality ingredients of our renowned suppliers, which will help local Iranian producers to increase the quality of their products and will enable them to grow their local business."

For Barentz International, headquartered in The Netherlands and active in close to 50 countries across three continents, this joint venture is strategically important, the company says, with the well-educated Iranian consumer looking to buy established, good quality international brands for their food and beverage, pharmaceutical and animal nutrition products. Being present in the Middle East fills the geographical gap between the Barentz presence in Europe and in the Asia Pacific region.

"Working together with a reputable company like Barentz, with their expertise of food and pharmaceutical applications and access to ingredients from reputable suppliers from around the world, is a real advantage for our customers,” said Ali Sabetian, CEO of Future Way Holding. “We can benefit from the cooperation with Barentz in more than one way. We will gain more ingredients expertise from our shared knowledge and also, we will have an increased access to more high quality and innovative ingredients from international suppliers. Although the consumption pattern of food products in Iran is still quite traditional, we observe a continuing trend of especially younger people wanting to buy established international brands. We expect these brands to move into our markets gradually, with a long-term aim."

The newly established joint venture company will operate under the legal entity Barentz Middle East.