Mecca Cola may regain its fizz in Gulf markets

Mecca Cola, the cola brand which had thousands of loyal customers in the UAE, Saudi Arabia and other Gulf countries, is trying to stage a comeback.

The soft drink was introduced seven years ago with much hype targeting Arab and Muslim customers around the world, but silently disappeared from shelves in the UAE and Saudi Arabia.

While the brand had to be withdrawn from Saudi Arabia because the country did not allow the company to use the name "Mecca" for its private business, the reason for its disappearance from the UAE market remains unclear.

Mecca Cola officials told Emirates Business they were trying to reintroduce the soft drink brands in these markets. Roman Jamal, an executive from the company, said: "Mecca Cola was doing very well in the UAE and Saudi Arabian markets. However, the product is not available in the UAE and Saudi Arabia now because the Saudi Government did not allow the use of the name Mecca, the holy city for Muslims."

The brand was introduced in 2002 as an alternative to the US soft drinks – Coca-Cola and Pepsi – which dominated the local carbonated soft drinks market. The company's headquarters was in the UAE, which was used only for re-export of the soft drink. The product reportedly sold several million bottles per month in the Saudi and UAE markets.

A number of retailers and distribution agents said they were unaware of the reason behind the disappearance of Mecca Cola from the UAE market. Jamal, however, said in the UAE the drink had to be withdrawn because its distribution agent showed no interest in renewing the local distribution agreement.

"Mecca Cola Middle East was our distribution agent in the UAE. They did not spend money on proper advertisements and promotions. There is no distribution here, but we are producing the drink in Kuala Lumpur, Malaysia, and distributing it in France, Malaysia and many other markets. We have clients in 45 countries around the world," Jamal said.

He said the company had no legal dispute with American giant Coca-Cola. Mecca Cola's official website, too, remains stagnant with a message that the site is under maintenance. The company claims to pay 20 per cent of its profits to charity, especially the Palestinian cause. It has been among the top selling soft drink brands in Pakistan, Yemen, Bangladesh, Algeria, Saudi Arabia and other Muslims countries.

A retailer in Sharjah said: "Mecca Cola was in good demand, as its big bottles matched Coca-Cola in size but were priced at only Dh3 each – much less than Coca-Cola. The brand was popular among both retailers and consumers due to the price difference. Without any notice, the distributor stopped delivering Mecca Cola. Many customers still ask for Mecca Cola."

Several retailers that Emirates Business spoke to said they were not aware that the brand was no longer available in the market. An official from the Arab Beverages Forum, in which Mecca Cola has been an active member, said he was not aware of Mecca Cola's disappearance from the local markets.

"Mecca Cola is still a member of the Arab Beverages Forum. We don't know whether the product is available in the market at present," he said.

Taoufik Mathlouthi, Chairman of Mecca Cola, had introduced the carbonated soft drink with much fanfare in 2002. It was available in Europe, Africa, the Middle East and in some Asian markets. Mecca Cola had reportedly signed an agreement with Dubai Industrial City for the construction of the first Mecca Cola Industrial Park in the Middle East.

Mathlouthi, who is presently located in France, could not be contacted. Calls to his mobile phone were diverted to another company official.

Keep up with the latest business news from the region with the Emirates Business 24|7 daily newsletter. To subscribe to the newsletter, please click here.