Wines in Jordan
Family owned businesses are the most successful in the Middle East. The main thing is setting up good protocol.
Interview with Samir Haddad, CEO of Eagle Distilleries
What are Jordan’s prospects in developing locally and regionally competitive exports in food and beverage?
Jordan has made a lot of progress over the years in terms of agreements with different countries and also changes to the laws have helped this.
What markets do you feel are going to drive the future growth for Jordanian exports?
Jordan’s location gives us an advantage because the neighboring countries provide us with great potential. We are also looking towards Europe and the US.
What are the main challenges of this sector in Jordan?
The main challenges are the high cost of different forms of energy and figuring out how to cut these costs is an added challenge. This costs the whole country a great deal.
What is your personal opinion on the outlook of the Jordanian economy?
We hope to increase exports but there are still problems in the region that effect the economy as a whole. There are also security concerns with exports to unstable countries. We hope for peace in Iraq and Palestine and this will also increase export potential and the number of business transactions between Jordan and these countries.
Eagle Distilleries is the largest producer of domestic spirits, wine, alcohol, and dry ice in Jordan. Can you chart out the growth of Eagle Distillers and tell us about the history of your success in Jordan?
We started Eagle Distillers in 1953 and since then we have been developing according to the market demands and exports and we have grown with this strategy.
What is your strategy for the Haddad Group?
Haddad Group has been expanding since the beginning. We started with snack foods, perfumery and toiletries and now we have other industries we are trying to expand on different things not normally found in Jordan in order to cut down on our imports of these items. We are also trying to grow in the real estate field, among others.
Which market would you like to see developed in the future?
We are looking at many options. Now we are looking at expansion outside of Jordan and we have obtained licenses in some of these countries and we plan to supplement their industries that have deficits.
Can you shed more light on your wine producing capabilities?
Wine has been in the area for many years especially in Palestine and Jordan. However, for a while the only producers of wine were in the West Bank and Lebanon and there was nothing on the East side of the Jordan river so wine was imported. In the 1970s we set up a winery and vineyards and met a very high standard for our product that has led us to become very well known in the area. Now we are in the process of exporting our product to other countries.
You are a good example of a family owned business in Jordan. What does this imply and what is your vision for this type of business in Jordan?
Family owned businesses are the most successful in the Middle East. The main thing is setting up good protocol to ensure the continuation and existence of these family owned businesses.
Would you consider an IPO in the future or being listed on the stock exchange?
We thought of this a few years ago and some board members opposed this while some were for the idea. Now we are a limited liability company and we have not entered public shareholding. We may consider this in the future but not at the present time.
How do you structure your communications strategy? What would be your ideal strategy?
The main thing is to have a solid structure in both government and within the family itself. Most of our strategy now is focused on expanding outside of Jordan and supplying the shortages here in Jordan.
If you could identify one of the things in your group you have the most passion for what would it be?
Mostly with the food and beverage because this is our main line and where we have the most expertise.
There are a lot of companies producing wine and spirits as well, what is your competitive advantage?
Our goals for the Haddad Group are quality, honesty, and providing the right price. The labor force also helps us here in Jordan
You mentioned you are starting to export to Europe and you would like to start developing this market. How do you envision this?
We started this with communication and visits to the EU. We sent our wine to the UK and Germany on small orders and we were very fortunate because of our quality eliciting positive feedback. We are increasing our production in both the vineyards and capacity for our factories to help aid our exports.
What do you feel Jordanian wine has potential in the world? What makes it unique?
We are very fortunate due to the weather, soil, sun, and seasons. Many countries who produce wine are not this fortunate when it comes to these natural factors that affect the product outcomes. Many European wine experts sanctify the conditions in Jordan.
What are some of the programs you execute related to corporate social responsibility?
From the beginning we have been participating in the community. We have a committee in charge of all of this who manages the budget and allocates the funds to each cause. We help with things like schools, charities, orphanages, or hospitals and there are many ways to get involved in the community.
How do you envision the company in the next five years?
Jordan now is in a very advantageous position so I see the future in a very positive light with a lot of potential for various industries. I foresee a great deal of progress providing that the neighboring countries improve their situation to allow Jordan to enter and make investments or establish new industry. In five years I would like to see the Haddad Group in the midst of expansion across all fields- real estate, agriculture, local industry. I believe we will be more well known on the industrial side because we are more heavily involved in that sector.