Talal Al Ibrahim Gives an Overview Aljawda: A Leading Fruits and Vegetables Provider in Kuwait

Interview with Talal Al Ibrahim, Founder at Ibra and Co-Founder of Aljawda

What is your overview of the sector and Aljawda’s role within it?

Aljawda does not have a specific place in the sector because it is the first of its kind. Aljawda came into a really big, but monopolized market estimated at almost $2 billion. We went in with a completely different model in terms of having a closed joint stock company with 15 founders in the beginning and then raising 2 million KD or 7 million USD with 200 investors. The whole idea of Aljawda is having all parties involved in one company and entering the market together. So, you would have farmers, you would have farm owners, you would have restaurants, you would have large restaurant groups, and you would also have companies that utilize and use fruits and vegetables within the investors. They are all stakeholders and they are important stakeholders. This is the way that we have tried to penetrate the market since we started.

Who are your stakeholders?

The company decided to have different sections in terms of who is getting what stock and the maximum that each one can have. We had a portion for large restaurant groups. They were very important to be with us from the beginning because they have a large consumption base and we needed that for the revenue. Also, it helped with credibility, of course, in the market. We also had farmers and farm owners come in because the stakeholders used to not have any connections. So, Aljawda became the connection between all of them. Then you have the different channels that exist in Kuwait. We have over 60 co-ops, approximately 150 branches, supermarkets, mini markets, etc. All of these accumulate to a $2 billion per year industry. That market was owned by only a couple of individuals. We knew that we could not penetrate the market unless we joined hands together as one, and this is what we did and this is what we are doing.

What challenges did you face during the COVID pandemic and how were you able to adapt?

One of the main advantages that we have compared to other companies in the market is the amount of stakeholders we have. We have 200 investors and some of them are consumers, some of them are business owners, some of them are large restaurant groups, and we also have farmers.

COVID was challenging for everyone, especially with businesses not having clarity, in terms of when things are opening up, going to lock down, etc., especially in Kuwait. We had one of the longest lock downs in the world. So, I thought it was best to focus on something I have control over which is when I focused completely on Ibra and the idea builder. The idea builder is a bit different than the venture builder, getting an idea throughout the ideation phase and collaborating with venture builders to let them see light. I worked on two ideas that I am still working on other than my health concept called Formulas. In terms of Aljawda, it was really hard because after the investment happened, the company went into the establishment phase and after the establishment phase, COVID hit and the company was not able to launch. But that was also beneficial where it gave the executive team enough time to focus internally and clearly look at things in the market and how they can process things in case we have future pandemics. Then, when things started opening up, Aljawda was able to hit the market very quickly being in over 20 co-ops, 10s of supermarkets, working with farms in Kuwait, importing from the largest fruits and vegetables brands in the world, collaborating during COVID with the largest brands. So, it was good timing for them. Right now, they are focused on expanding in terms of the co-ops and restaurants and restaurant groups that they are working with. The main focus for 2022 and 2023 will be e-commerce with the Aljawda app launching soon. One of the interesting things to see is how everyone is rooting for Aljawda, especially the public, because they know it is countering the monopoly in Kuwait and they feel like they are part of the movement.

How are you developing the upcoming Aljawda app?

When it comes to the Aljawda app, the customer experience that we are trying to create is having an omni channel connecting all channels together. The app would be the main source that you can go to that connects you to all other channels. Of course, in terms of experience, the beauty of having a company like Aljawda is that you do not just have 200 investors, you have 200 smart, experienced investors with different backgrounds. So, they are not only investors, but they are also subject matter experts, which is a huge asset to have in any company because most companies do not have that. That is why they decided to take their time with launching the e-commerce and apps section. Aljawda is not planning just to stay in Kuwait, but as a market, you can see how huge it is with this $2 billion industry that has been monopolized for a long time. So, the focus right now is to expand in that sense and then focus completely on the e-space.

What features will be available on the app?

There are going to be different experiences within the app. When people consume fruits and vegetables, it depends on whether you are a family, a couple, an individual. There will be different channels that will suit each one of these factions. It will be able to cater to businesses as well. If you have events or whatever needs at large quantities, you can also accommodate that aspect.

How did Aljawda start? What was the impetus for creating this type of business?

When Aljawda started, there was a large shortage of onions in Kuwait. Onions are something that is in everyone’s household. Especially in the Middle East, we consume a lot of onions. When that happened, it created a backlash from the public, especially when people knew that part of the shortage was actually man made. Because of the monopoly that existed, they had extra tons of onions that they wanted to hold on to to raise the price and that caused shortages. This is when we started with a WhatsApp group and we said enough is enough. We got together in one meeting and at that meeting, we had no idea where we were going with this. We started having other meetings and here we are a few years later with Aljawda, doing a wonderful job in the market and having big plans for the region as well.

What products do you offer at Aljawda?

We have different products for each line. In the wholesale, we are focusing on what sells most, from greens or onions or tomatoes, etc. Then you have the restaurants which depends on what the restaurants consume and whether you are dealing with a restaurant or a juice company where each has its own specifics. Then you have the households which mainly depends on the cuisines you have and the populations you have in Kuwait. You have the Kuwaiti cuisine mainly for the Kuwaiti population and then you have the Mediterranean cuisine, Lebanese, Syrian, Jordanians. Also, we have a large Indian community and a large Egyptian community in Kuwait. That also comes into play when it comes to what products we are offering to the market. One of the products that people were surprised that actually existed was the cotton candy grapes. Aljawda wants to focus on introducing new products into the market rather than just offering what is already there and what is already demanded in general.

What are your competitive advantages?

One of the main advantages that we have compared to other companies in the market is the amount of stakeholders we have. We have 200 investors and some of them are consumers, some of them are business owners, some of them are large restaurant groups, and we also have farmers. But in the future, hopefully when the company goes public, the people will be part of it. It is going to be the people’s company. So, the amount of early investing that you do in this company will mean that it will be your company in the future. This is what is not available with other fruits and vegetable companies. You are just purchasing from them and not getting anything in return. So, why not buy from your own company and consume your own products and actually try to better the quality of your products through having constructive criticism and having a voice and a vote on the Board?

What is one of your success stories that you are proud of at Aljawda?

One of the main things we are proud of as founding members of Aljawda is that we were able to raise what we needed to raise in three months. There was not any structure to our company. From the beginning, everyone told us not to waste our time and that it was going to be hard to go into co-ops where the monopoly controls everything. But we were able to penetrate the co-ops through a lot of public lobbying. I am also excited about where Aljawda is going next, whether it is going public or being part of the MENA region, not only Kuwait. Kuwait is just the beginning.

What is your vision for the company in the medium term, three to five years?

2022 and 2023 will be focused on expanding Aljawda in Kuwait. Maybe Kuwait is a small market compared to other markets, but in terms of the opportunity that is there, it is a hill to climb. Also, we have the goal of going public, which requires a lot of internal effort and preparation. Once that happens, expanding into the region will happen swiftly, hopefully. So, the main focus will be utilizing all opportunities in Kuwait. When that happens, then probably to the GCC, because it is a similar market. We have a lot of interests in the GCC coming and trying to learn from Aljawda and excited to see a company come up with a different model to penetrate the market. If you can do it in fruits and vegetables, you can do it in any sector because when you think about the biggest companies and how much they need to raise, being able to raise $50 million or $100 million is attainable if you have a proper structure and if you go public. The old days of monopolization are over as we know it, if not going to be significantly reduced.

What is your vision for Kuwait in the medium term and what are you doing with Ibra to facilitate this?

We are seeing the region flourish with talents that are able to meet the new markets. It has been a long investment in terms of the talents that you have coming from all over the world and also the local population that studied in the best universities coming back to add value and utilize their experience to build the new economies in the GCC and beyond in the MENA region. The main challenge right now is going to be political stability in the region. But in terms of the business market, it is very promising. We are seeing the vast expansion in Saudi Arabia and Qatar and the UAE. Kuwait is figuring things as well. With the amount of talents we have here, we are going to be on the right course soon, hopefully. This is why, right now, I am doing what I am in terms of the idea builder. Usually, you have ideas and then you have startup studios and incubators and accelerators and venture builders. The reason why I focus on an idea builder is because an idea has to be properly assessed and thought out, especially when you have experience in that field. There is a difference between getting through an idea without experience and having experience in the field which gets you a better direction on where to go with the idea. After that, you assess the different ideas you have and what they can do. Basically, it is a playground of innovative ideas and the space is endless and opportunities are endless in AI, gaming, entertainment, social media, the blockchain, cryptocurrency, NFTs, Metaverse, etc. The new economy is going to be different. Before, it was more about competition. Now, it is everyone joining hands to see which part they are going to take because of how many vast opportunities exist and not having enough resources to compete over the scarcity of opportunities. That is why in Ibra we want to focus on what we call Ibra’s Kitchen where we have 10s of ideas, then shortlisting and focusing on a couple, and then strategically joining hands with startup studios and venture builders to make them happen.

What is your inspiration? What drives you to do what you do?

I am a person with so many visions and ideas that I want to see happen, but the way I shortlist ideas is by how much of an impact it could have over a society and people. I try to see things that I am really passionate about and things that I think I can add value to. At the same time, I am looking at what the market needs. Especially in the past, we have been known not only in the market but in general in the business sense to look at what is there and just try to make it a little bit better. I want to change that because I am focused on innovation and creating something that is new to the market. That is my focus when I am shortlisting and eliminating which ideas I am going to push down the road and which ideas I am going to focus on.

ABOUT ALJAWDA: Aljawda is a closed joint stock company made up of 200 investors, gathering farmers, farm owners, restaurants, restaurant groups, consumers, etc., in one entity. Aljawda makes it possible to order and buy quality fruits and vegetables online through the Aljawda app. From greens to onions, tomatoes, cotton candy grapes and baby mangoes, the fruits and vegetables wholesaler offers a wide range of products to the Kuwaiti market.

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