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Vimto Arabia

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Vimto Arabia

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vanessa.s.sfeir
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W36996

VIMTO ARABIA: NAVIGATING CULTURAL MARKETING LANDSCAPES1

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Shihanah Almutairi, Sarah AlShamali, and Maitham AlSarraf wrote this case solely to provide material for class discussion. The authors
do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain
names and other identifying information to protect confidentiality.

This publication may not be transmitted, photocopied, digitized, or otherwise reproduced in any form or by any means without the
permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights
organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western
University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) cases@ivey.ca; www.iveypublishing.ca. Our goal is to publish

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materials of the highest quality; submit any errata to publishcases@ivey.ca. i1v2e5y5pubs

Copyright © 2024, Ivey Business School Foundation Version: 2024-05-14

In the modern landscape of the Persian Gulf region, where tradition met innovation, a particular purple
bottle was synonymous with the holy month of Ramadan, which was starting that year on March 22, 2023.
This transformation was credited to Aujan Group Holding (Aujan Group), who took the British soft drink
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Vimto and seamlessly integrated it into the cultural fabric of the Middle East. The Aujan Group was a
diversified Saudi conglomerate headquartered in Dammam, Saudi Arabia, with operations extending across
over 70 countries but predominantly in the Middle East and Africa. Specializing in various sectors from
manufacturing and distribution to real estate, Aujan Group skillfully navigated the intersection of tradition
and innovation, to make Vimto an integral part of Ramadan traditions and secure its place among consumers
in the Gulf region, who referred to the beverage as “the king of all drinks.”
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Aujan Group had first become the licensed distributor for Vimto in 1927. The company soon created an
association between the drink and the Ramadan season through strategic marketing and branding efforts.
The company emphasized the role of Vimto in the holy month through targeted advertising campaigns that
resonated with seasonal sentiments and traditions. The campaigns featured imagery and symbols closely
associated with Ramadan, such as crescent moon and lanterns, as well as slogans that highlighted unity and
cultural connection. By presenting Vimto as an integral part of the Iftar meal—the meal enjoyed after a
long day of fasting—Aujan Group successfully made Vimto a familiar presence in homes during Ramadan.
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This approach allowed Vimto to become more than just a beverage; it became a part of the celebration
itself. However, with changing consumer preferences and market dynamics, Aujan Group was facing a
pivotal dilemma. Should the company broaden Vimto’s appeal beyond the Ramadan season to capture a
larger market share? Or should the company continue to reinforce the drink’s position as a Ramadan-centric
brand and preserve its cultural significance and deep-rooted connection with the holy month?

THE DUALITY OF VIMTO


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For more than 1.6 billion people, Ramadan marked the period of fasting from sunrise until sunset for the duration
of a full lunar cycle, which lasted approximately four weeks. The vast majority of Muslims, particularly in the
Gulf region, reserved a special space on their table for a soft drink called Vimto as they began to break their fast

1
This case has been written on the basis of published sources only. Consequently, the interpretation and perspectives
presented in this case are not necessarily of those of the Aujan Group Holding or any of its employees.

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after the long period. Vimto became informally referred to as “the king of all drinks” by its consumers during

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the Ramadan season, widely seen as the holy month’s quintessential drink.2 More than half of the annual sales
of the Vimto soft drink occurred during the holy month.3 This was quite an achievement for a brand that was not
local, had no roots in the Arabian Peninsula, and was not created based on Islamic rituals and beliefs.

Vimto was the brainchild of John Noel Nichols, a former soap factory manager in Manchester, UK. In 1908,

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Nichols left his regular job to develop an herbal tonic, which he initially called Vimtonic, based on the belief
that it gave the drinker vim and vigour. The health tonic recipe soon became popular in the United Kingdom and
English colonies around the world, including India. The reason for its success was related to high demand for
non-alcoholic drinks in the United Kingdom during the time of the temperance movement. Shortly after, in 1912,
Nichols shortened the name of the drink to Vimto, and then registered the product as a cordial a year later.

Even though Vimto enjoyed some success at home, it only rose to fame after it was introduced to the Middle

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Eastern market in 1928.4 The critical event occurred when an Indian employee working for the Aujan family
company introduced a British cordial drink that had become popular in India, which was an English colony
at that time. The Aujan family liked the taste and soon made inquiries. This marked the start of the
relationship between the Nichols and Aujan families. Some observers referred to the relationship as the
most enduring love affair between the Gulf region and Britain.5 Soon after, Nichols partnered with Abdullah
Aujan and Aujan Group, a company owned by his brothers, to become the sole importer and distributor of
Vimto in the region. In the early years, Vimto was shipped in crates from Salford, a city within greater
Manchester, offloaded in Bahrain, and then transported around the Arabian Peninsula in traditional sailing
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vessels known as dhows. The long laborious journey and the initial success of Vimto in the region
convinced Nichols to allow Aujan Group to produce Vimto under its own license. Starting in 1978, Aujan
Group began producing the drink in a factory in Dammam, Saudi Arabia that was considered the first
beverage production plant in the region.6 In fact, a member of the Nichols family travelled to Saudi Arabia
to formally and personally transfer the secret family recipe for producing Vimto.
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VIMTO'S TRANSFORMATION IN THE PERSIAN GULF

What had begun as a family-owned business in England and a quintessentially British brand was soon taken
over by the Aujan Group. Vimto eventually became available in 85 countries, with Saudi Arabia as the biggest
non-domestic market, followed by Kuwait and the United Arab Emirates, confirming the drink's continued
popularity in the Gulf region.7 The sustained appeal of Vimto could be linked to Aujan Group’s significant
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networking family connections. In environments where hierarchical and community-oriented values prevailed,
securing a partnership was crucial. Alliances with family-owned enterprises that possessed substantial amounts
of financial assets were preferred, as were influential figures who were capable of facilitating swift market
penetration for affiliated ventures. This dynamic was exemplified by the significant success in the Gulf region
of Nichols plc, the Nichols family’s company, through its collaboration with the Aujan family. Influential
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2
Balaconah SA, “Suhoor #Balcony, an outlet for creativity with the most prominent makers” [in Arabic],” streamed live on June
6, 2018, YouTube video, 2:14:18, https://www.youtube.com/watch?v=nJK1M-TrIEU.
3
“About Nichols,” Nichols plc, accessed October 27, 2023, https://www.nicholsplc.co.uk/about-nichols.
4
Taylor Heyman, “How Vimto Stays at the Top of the Gulf’s Ramadan Shopping List,” The National News, April 26, 2022,
https://www.thenationalnews.com/gulf-news/2022/04/26/how-vimto-stays-at-the-top-of-the-gulfs-ramadan-shopping-list.
5
Anna Pukas, “Vimto: A Saudi Love Story in a Bottle,” Arab News, March 8, 2018,
https://www.arabnews.pk/node/1262066/offbeat.
6
“History,” Vimto Arabia, accessed May 11, 2023, https://vimtoarabia.com/about-us.
7
“History,” Vimto Arabia.

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families with strong connections could have a strong impact on product and service sales, as well as on the ability

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to secure necessary licences and agreements for manufacturing products or for regional distribution.8
In annual reports, Nichols plc attributed its boost in sales to a surge in shipments to the Middle East several
weeks before the start of the annual Ramadan season. For over a decade, the Middle East was reported as
Vimto’s largest importer. The reports also confirmed that the drink was particularly popular during the
Ramadan holy month, thanks to consecutive successful marketing campaigns. In December 2011, The

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Coca-Cola Company (Coca-Cola) bought half of Aujan Group’s Vimto business in the Middle East for
US$980 million.9 The purchase was the largest consumer goods investment to date by a multinational
company in the Middle East, highlighting the growing investor interest in the region.10 In 2015, Coca-Cola
and Aujan Group formally announced the formation of Aujan Coca-Cola Beverages Company, the only
licensed manufacturer of Vimto in the Middle East.11 Coca-Cola was also planning to spend more than $5
billion in the region over the next 10 years, confirming that it was profiting from its relationship with the
Aujan family. Partnering with the affluent Aujan family enabled Coca-Cola to dominate the Middle East

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and North Africa market, which had the highest per capita consumption of non-alcoholic drinks.12

Vimto became extremely successful in the market. Its association with Ramadan helped it achieve cult
status. The image of Vimto in the minds of Muslim consumers seemed to usher in the arrival of the holy
month, leading some consumers to joke that Muslims would intuitively begin fasting upon seeing Vimto’s
purple bottle. Social media chatter for the few days before Ramadan would readily include sentiments about
the return of everyone’s favourite drink for the season. It seemed difficult to understand for some observers
how a British soft drink brand could become the Gulf region’s favourite drink during the Muslim holy
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month. In a 2020 documentary about Vimto’s success in the region, John Nichols, the chairman of Nichols
plc, tried to explain the brand’s popularity: “I think a lot of it is historic. We’ve been here for a long time.”13
But was Vimto’s success in the region due only to its long history?

AUJAN GROUP’S MARKETING AND BRANDING STRATEGIES


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Vimto’s advertisements in the Middle East were shown only during the month of Ramadan and had a
distinctive approach that mirrored the traditions and sentiments of the season. Central to these
advertisements was the depiction of mothers in the kitchen, busily preparing Iftar meals. This imagery was
intended to go beyond food preparation to embody the essence of family, care, and anticipation for being
together after a day of fasting. Vimto integrated itself into these scenes, suggesting that its role was to
complement the meal as a celebratory drink that united families.
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The advertisements also featured symbols of Ramadan such as crescent moons and lanterns, evoking the
spiritual and communal atmosphere of the month. Vimto campaigns also used slogans such as “Vimto, the
taste of togetherness” and “The taste of Ramadan” to inspire a sense of unity, cultural connection, and
perfect alignment with Ramadan beliefs and traditions. This approach allowed Vimto to become a familiar
presence in homes during Ramadan. The drink was not just a beverage; it was a part of the fabric of the
celebration itself. Many Vimto advertisements tapped into feelings of nostalgia and tradition.

8
Sami M. Abbasi and Kenneth W. Hollman, “Business Success in the Middle East,” Management Decision 31, no. 1 (1993),
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https://doi.org/10.1108/00251749310023193.
9
All currency amounts are in US dollars unless otherwise specified.
10
Simeon Kerr, “Coke Invests $980m in Saudi Drinks Company,” Financial Times, Dec 14, 2011,
https://www.ft.com/content/dd0d22dc-263f-11e1-85fb-00144feabdc0.
11
“Aujan Coca-Cola Beverages Company,” Aujan Group Holding, accessed September 23, 2020, https://www.aujan.com/our-
companies/fmgc/aujan-coca-cola-beverages-company.
12
Kerr, “Coke Invests.”
13
Simon Atkinson, “How the Gulf Got a Taste for Vimto,” BBC News, July 26, 2013, https://www.bbc.com/news/av/business-
23453175.

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By presenting the drink as an integral part of Ramadan celebrations, Vimto reinforced its position as a
traditional beverage choice for Iftar meals. This connection to heritage and family values was a powerful
tool in the company’s advertising strategy, as noted by Meshal AlKadeeb, the vice-president for strategy
and development at Aujan Group:

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Our earliest Vimto TV ad was in 1983 and was shown during the holy month of Ramadan and
continued to do so until today . . . it’s a tradition now to break one’s fast with dates and a glass of
Vimto, a tradition that has taken years to develop. . . . We start stocking Vimto in supermarkets six
weeks before the start of the holy month to announce to the consumer that Ramadan is coming.
Vimto is advertising for Ramadan! Prominent in-store displays and the timing of Vimto’s ad with
Ramadan’s beginning is key to Vimto’s success because the consumer is subconsciously
associating the brand with the occasion.14

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In some cases, Vimto collaborated with retailers, restaurants, and other partners for special Ramadan promotions.
These partnerships helped increase Vimto’s visibility and accessibility during the holy month, further embedding
the brand in the Ramadan experience. During Ramadan, Vimto often released limited edition packaging, which
could feature special designs or messages that celebrated the spirit of the month. For example, to herald the
coming of Ramadan, a Kuwaiti supermarket turned an entire aisle into a cardboard Vimto castle and filled it
with 2,000 Vimto bottles. A Dubai location of the US department store Bloomingdale’s sold special miniature
Vimto bottles with Swarovski stones that could be customized with the buyer's name.15
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Additionally, Aujan Group had complete control over the branding strategy in the region. So strong was the
company’s influence over the brand that it added “Arabia” to the Vimto brand name, causing some Middle
Eastern consumers some shock upon discovering that Vimto was actually a British brand. This perception shift
could be linked to Aujan Group’s branding strategy. The company decided to retain the historic Vimto bottle to
provide a strong continuity signal that confirmed the brand’s connection to tradition and heritage. However, the
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Arabian packaging featured a distinctive design using the Arabic Ruq’a typeface to align with the cultural
backdrop of Ramadan. The branding prominently displayed red script against classic white labels that were
adorned with gold accents, including a gold bottle cap. The choice of a glass bottle topped with a gold cap
enhanced the presentation, offering a blend of traditional elegance and luxury. This design approach created a
visually appealing contrast, with the colours and materials chosen to reflect a commitment to quality and respect
for regional traditions. The unique bottle, with Arabian elements in Ramadan-themed commercials, contributed
to the brand’s association with the holy occasion. The bottle itself had witnessed a variety of applications over
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its history, such as Vimto being promoted as a candle holder or light decorator for Ramadan table settings.

Aujan Group purposely decided to retain the bottle’s branding throughout the brand’s 95-year history.
However, the company managed a narrow line between consistency and modernizing the brand for current
consumers. Vimto was adapted to modern marketing strategies by making use of social media and digital
platforms to engage with younger audiences. Interactive campaigns, social media contests, and engaging
online content helped maintain the brand’s relevance across its target audience. A particularly noteworthy
example was an iconic 2018 television advertisement. As was done in previous advertisements, Vimto
portrayed the traditional role of women, but the 2018 advertisement took the portrayal a step further by
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depicting a Saudi woman driving to work and delivering a presentation to a mixed-gender audience.
Throughout its history, Saudi Arabia had maintained a high level of strict regulatory rules, especially for

14
Balaconah SA, “Suhoor #Balcony.”
15
Afshan Ahmed, “Personalise Your Vimto Bottle with Swarovski Crystals for Ramadan at Bloomingdale’s,” The National, May
16, 2017, https://www.thenationalnews.com/lifestyle/food/personalise-your-vimto-bottle-with-swarovski-crystals-for-ramadan-
at-bloomingdales-1.60829.

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mass media content, which made the 2018 Vimto advertisement appear daring and controversial. However,

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the country had progressed considerably in terms of social views under the leadership of Prince Mohammad
bin Salman, who had recently passed a law permitting Arabian women to drive for the first time, in addition
to lessening some restrictions and sanctions on creative mass media content.

AlKadeeb, Aujan Group’s vice-president for strategy and development, explained that the company

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“purposefully linked Vimto’s image with women because we understand them to be our most profitable
consumers,” underscoring Vimto Arabia’s strategic focus on women (particularly mothers) as the primary
target audience that was prominently reflected in advertising campaigns. AlKadeeb also insisted that the
message had to be genuine to reach the consumer by enlisting the help of people from that particular culture:

If you are advertising to the Saudi market, you need to get Saudis to work on your marketing
campaign—only then will you offer a genuine message based on the real information you’re getting

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from your Saudi marketers, who are consequently from the same culture . . . When trying to show
how women are versatile and how Vimto can be used anywhere in our 2018 campaign, [a Western
agency] would recommend that we show women in the gym with a bottle of Vimto, or on the beach
enjoying their glass of refreshing Vimto. . . . Of course, these images won’t work in the Saudi market,
nor will our women relate to it. The Vimto bottle is mainly used in the kitchen, and the home, with
family or with friends. Showing otherwise would not reach our target market—they would not believe
in you or your message, because it’s not authentic, regardless of its innovativeness.16
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Aujan Group weaved a narrative that closely linked Ramadan with Vimto, fostering a sense of community
among its audience and turning Vimto into a household name. Unlike Nichols plc, Aujan Group preferred to
use emotional advertising in its marketing campaigns, with content that appealed to the feelings of consumers.
In the case of Vimto Arabia, prevalent religious undertones were inserted to deliberately associate the brand
with the holy month of Ramadan. Vimto was portrayed as being indispensable for the Ramadan table,
emphasizing its value and making it an essential component in the Middle East during the sacred period.
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In contrast, Vimto in the United Kingdom was more associated with grandparents and was portrayed as
old-fashioned.17 Nichols plc had taken Vimto through multiple rebrands over its 100-year history, featuring
various diverse campaigns and brand ambassadors such as Purple Ronnie and Derek Griffith.18 Vimto
advertising campaigns in the United Kingdom were designed to appeal to a wide audience, with a particular
focus on young consumers. The use of children’s characters, such as the stick-figure poet Purple Ronnie,
and famous personalities, such as the veteran British actor Derek Griffiths, were strategically chosen to
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attract and engage the younger demographic with light-hearted poetry and fun visuals.

CHALLENGES AND OPPORTUNITIES FOR VIMTO

The story of Vimto’s transformation in the Gulf region, particularly during the Ramadan season, highlighted
a unique case of a brand becoming deeply integrated into the cultural fabric of a market outside its origin.
Aujan Group’s strategic marketing and branding efforts successfully positioned Vimto as an indispensable
part of Ramadan celebrations, tapping into the values and traditions that resonated with a Middle Eastern
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audience. This targeted approach increased Vimto’s visibility during the holy month, but it also fostered a
strong emotional connection with consumers by making it synonymous with Ramadan festivities.

16
Balaconah SA, “Suhoor #Balcony.”
17
Simon Atkinson, “How the Gulf Got a Taste for Vimto,” BBC News, July 26, 2013, https://www.bbc.com/news/av/business-
23453175.
18
“About Nichols,” Nichols plc.

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Vimto was originally a British brand that experienced significant success in the Gulf region, due mainly to the
founder’s decision to allow Aujan Group to modify the brand’s identity for alignment with regional preferences.
The result was Vimto achieving cult status among Muslim consumers during the Ramadan season. This unique
situation underscored the importance of cultural sensitivity and adaptation in international brand strategy. It also
raised several intriguing questions about brand management and identity across different markets.

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Was Vimto’s founder Nichols right to allow Aujan Group to change the identity of his brand in other regions?
Was it a risky decision to allow two different identities in different markets for the same brand, which could
potentially confuse consumers? Should Aujan Group have considered dissociating Vimto Arabia from Ramadan
to broaden its market appeal? In other words, should Nichols have intervened and encouraged Aujan Group to
promote Vimto outside the Ramadan season? Considering the delicate balance between maintaining a brand’s
core identity while allowing it to adapt to local cultures, could Vimto continue to navigate this dual identity

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successfully, or would a more unified global brand strategy eventually be necessary?
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