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Americana Group Essay

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Company's Basic Information

Americana Group is a food company that is situated in Kuwait. Americana was founded in the year 1963. It started out with a small number of traditional business activities in Kuwait and has since gone ahead to substantially grow and become the largest food company in the Arab World as well as the Middle East expanse. Initially, the Americana group was a family-owned company by the Al-Kharafi family. The owners have an international business interest portfolio that takes into account food, finance, oil and gas, real estate and telecoms. However, in 2016, the Al-Kharafi family sold almost 67% of its stake to the Adeptio group, an investment group led by Mohamed Alabbar for a value of $2.4 billion. Moreover, at the outset of 2017, the Adeptio group finalized the mandatory takeover offer that remained in the company's stockholding (Reuters, 2016).

The company's main business operations includes transmitting food products all across the Middle East and North Africa expanse. The lines of business include the manufacture of food products as well as having outlets that operate food and beverage. The company operates in the consumer goods sector. Americana operates in the Manufacturing Consumer Packaged Goods industry. At the present moment, the Americana Group has 23 restaurant chains spread across 14 nations with more than 1,700 business outlets. Americana Group is a public company and its stocks are traded in the Boursa Kuwait exchange market. It became listed in the exchange market in 1984. Its stock symbol is S.A.K. It has a market capitalization of 988.93 million Kuwaiti Dinar (Boursa Kuwait, 2017).

Americana Group's key drivers for revenues and expenses takes into account manufacturing of food items, beverages, as well as other food stuffs together with the importation and selling of such food stuff at retail and wholesale. In addition, the company operates one of the most renowned brands in the Quick Service, Casual Dining and Fine Dining business classifications. Some of these brands consist of Pizza Hut, KFC, Costa Coffee, Red Lobster and TGI Friday's (Americana Group, 2017). Americana Group's consumer food collection and range consists of 9 consumer food brands that have grown and progressed to become household names and classification frontrunners in the Middle East and North Africa expanse. Americana...
The sales or revenue of the Americana Group have been steady over the past five years. The revenues generated in the 2016 financial year was 946.47 million Kuwaiti Dinar. The company experienced a net income growth of 5.26% with a gross income of 108 million Kuwaiti Dinar (The Wall Street Journal, 2017).

Industry Overview and Americana's Market Position



Within the food industry, Americana Group operates and competes on two fronts, which are consumer foods and restaurants. Americana is the franchise partner within the region for international food brands like Kentucky Fried Chicken (KFC), Pizza Hut, Taco Bell and Costa Coffee. On the consumer foods front, Americana Group operates Americana Meat, which has come to be the biggest meat-processing operation in the Middle East region with a market share of 45%. Americana also has manufacturing business operations that include Americana Cake, Cairo Poultry Processing Company, as well as Egyptian Canning Company (Thomas, 2009). Americana Group faces intense competition within its industry from expanding global and international companies. Its top competitors include Starbucks Corporation, Quickfood SA, Krispy Kreme Doughnuts, Inc., and Burger King Worldwide, Inc. (Food Business Review, 2017). To increase its competitive advantage, Kuwait Food Company sold a majority of its stake, 66.79% of the stockholding to Gulf-based investment firm Adeptio for $2.35 billion. The upside of this financial transaction is that Americana will obtain additional capital for investment from the Gulf-based investment group. As perceived, subsequent to the acquisition, the net profit of Americana increased by 31% (Reuters, 2016). Moreover, Adeptio's mandatory acquisition of Americana' remaining 26.63% stake was declared complete at the start of this year (Mubasher, 2017).

Market position is delineated as the competitive standing of a firm or its products in a certain market as measured by items retailed, revenue, distribution coverage, the extent of using the product, and consumer discernments and views. More often than not, firms can enhance their market position by means of price competition, quality augmentation, product invention, augmented…

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