Country Hill International - Comprehensive Analysis Report

Summary

Country Hill International (CHI), established in Dubai, UAE in 1999, stands as a leading food import and distribution company. Its core mission is to source and supply premium branded, high-quality meat and dry foodstuff globally to the retail, hospitality, catering, and hotel sectors across the UAE and the broader GCC markets. The company is recognized for its pioneering efforts in introducing exceptional meat varieties to the Middle East. In 2010, CHI expanded its reach directly to consumers through Prime Gourmet, a specialized butchery shop, reinforcing its commitment to quality and service within the region's food industry.

1. Strategic Focus & Objectives

Core Objectives

The primary business objectives of Country Hill International revolve around the import and distribution of premium food products, with a specific emphasis on chilled meat. The company aims to provide high-quality provisions to the demanding retail, hospitality, catering, and hotel industries, ensuring product excellence and customer satisfaction.

Specialization Areas

CHI specializes in a diverse range of premium chilled meat products, including various grades of Wagyu, grain-fed and grass-fed beef programs, veal, lamb, poultry, and other specialty meat products. Key areas of expertise also encompass:

• Dedicated Cold-Chain Management: Ensuring optimal product integrity from source to delivery.

• Product Innovation: Continuously seeking and introducing new premium products to the market.

• In-house Specialized Training: Offering valuable training for customers on meat handling and preparation.

• Just-In-Time Inventory Management: Aligning inventory with customer requirements to minimize waste and maximize freshness.

• Price Partnering: Collaborating with customers on pricing strategies.

• Product Specification Reviews: Ensuring products meet rigorous quality and safety standards.

The company primarily sources its high-quality products from Australia, New Zealand, Japan, and European countries.

Target Markets

Country Hill International identifies its primary market segments as the retail sector, hospitality industry, catering services, and hotels within the UAE and the broader GCC region. Through its Prime Gourmet brand, CHI also targets the general public, offering direct access to its premium meat products and specialized butchery services.

2. Financial Overview

Funding History

In May 2018, Country Hill International underwent a significant financial event with its acquisition by the Gulf Japan Food Fund (GJFF). GJFF is a private equity fund backed by prominent investors, including Mizuho Bank, Ltd. and The Norinchukin Bank. This acquisition marked a pivotal moment for CHI, transforming it into a privately held, private equity-backed company.

Detailed Breakdown of Recent Funding Rounds

The acquisition by the Gulf Japan Food Fund in May 2018 represented a strategic investment intended to bolster CHI's growth and market reach.

• Date and Amount: May 2018, specific amount not disclosed, but it was a full acquisition.

• Key Investors: Gulf Japan Food Fund, with Mizuho Bank, Ltd., The Norinchukin Bank, and other investors.

• Fund Utilization: The acquisition facilitated the expansion of CHI's product portfolio, notably accelerating the introduction and scaling of Japanese Wagyu imports.

• Impact on Company Growth: This strategic capital infusion directly led to a significant increase in Japanese Wagyu imports, reaching ten tonnes by 2019, and supported plans for geographical expansion into Saudi Arabia.

3. Key Products/Services

Country Hill International's product portfolio is centered on high-quality, premium branded food items.

• Product Name and Description:

• Premium Chilled Meats: This core offering includes a wide selection of Wagyu beef, various grain-fed and grass-fed beef programs, veal, lamb, poultry, and specialty meat products. These are primarily sourced from countries renowned for their meat production, such as Australia, New Zealand, Japan, and several European nations.

• Japanese Wagyu: A high-value addition to the portfolio, significantly expanded following the GJFF acquisition.

• Dry Foodstuff: While meat is a primary focus, CHI also distributes premium dry foodstuff.

• Prime Gourmet: A specialized retail butchery shop launched in 2010, providing direct access to CHI's high-quality meats and services for the general public.

• Target Market/Condition: These products cater to a diverse clientele including high-end hotels, restaurants, catering services, retail establishments across the UAE and GCC, and individual consumers through Prime Gourmet.

• Key Features and Benefits: Products are distinguished by their premium quality, adherence to international standards (including HGP-free Angus beef, certified organic beef, natural hormone-free options), and the benefit of dedicated cold-chain management ensuring freshness. Value-added services like meat portioning are also offered.

4. Technology & Innovation

Technology Stack

Country Hill International leverages robust infrastructure and operational technologies to ensure the quality and integrity of its premium food products.

• Core Platforms and Technologies:

• Dedicated Warehouse and Production Facility: Located in the Al Quoz industrial area, this facility encompasses 11,000 sq. ft. of cold and dry storage.

• Temperature-Controlled Production Unit: Operates under stringent temperature controls to maintain product quality during processing.

• Refrigerated Delivery Vehicle Fleet: A network of 14 temperature-controlled refrigerated delivery vehicles ensures efficient and safe distribution, preserving the cold chain.

• Integrated Meat Processing Facility: Strategic investment in this facility allows for value-added production, including specialized meat portioning and other processed meat products.

• Scientific Methodologies:

• HACCP Standards: The production unit strictly adheres to the principles and standards of Hazard Analysis and Critical Control Points (HACCP), ensuring high levels of food safety and quality control in all meat processing and portioning activities.

• Technical Capabilities: The company showcases strong technical capabilities in cold chain logistics, inventory management, and precision meat processing.

5. Leadership & Management

Executive Team

• Dariush Rakhshani - Partner and CEO

• Professional Background: Dariush Rakhshani founded Country Hill International in 1999.

• Notable Achievements: Under his leadership, CHI has grown significantly as a prominent UAE supplier of chilled beef, lamb, veal, and poultry. He is credited with pioneering the import of specific premium meats to the Middle East.

• Key Contributions to the Company: Instrumental in introducing Australian Wagyu beef, HGP-free Angus beef, certified organic beef, and natural hormone-free, grass-fed New Zealand beef, lamb, and chicken to the region. He has also played a crucial role in positioning CHI as a comprehensive solutions provider for the retail and foodservice industries.

Recent Leadership Changes

The major organizational change was the acquisition of Country Hill International by the Gulf Japan Food Fund (GJFF) in May 2018. While this represented a shift in ownership and strategic direction, the provided information does not detail specific changes within the core executive management team beyond the founder's continued role.

6. Talent and Growth Indicators

Hiring Trends and Workforce

Country Hill International is estimated to have a workforce ranging from 51 to 200 employees. This size indicates a well-established operation capable of supporting its extensive import, distribution, and processing activities.

Company Growth Trajectory Indicators

The company's planned expansion into Saudi Arabia signifies a clear growth trajectory, aiming to capitalize on opportunities within the growing Saudi F&B market and extend consistent service to its existing Dubai-based customers expanding in the region.

7. Social Media Presence and Engagement

Digital Footprint

Country Hill International maintains a professional and active digital footprint across key social media platforms.

• Social Media Activity Across Platforms: The company actively posts on LinkedIn, sharing updates about its premium products, team achievements, and participation in industry-related events.

• Brand Messaging and Positioning: Content consistently highlights the quality of its premium meat offerings, strategic partnerships, and commitment to service excellence.

• Thought Leadership Initiatives: Through its posts, CHI positions itself as an expert in the premium food import and distribution sector, showcasing its operational sophistication and adherence to high standards.

• Notable Campaigns or Content: The company utilizes platforms like YouTube to offer a glimpse into its operations, including its state-of-the-art facilities. Its retail brand, Prime Gourmet, also has a dedicated Instagram page, actively engaging consumers with visually appealing product showcases and promotional content.

10. Market Analysis

Market Overview

The market for premium meat and dry foodstuff in the UAE and the broader GCC region is substantial, driven by strong demand from the retail, hospitality, catering, and hotel industries. This indicates a diverse and significant customer base that values high-quality international products. The robust logistics infrastructure within the UAE, particularly in Dubai, positions it as a vital hub for international trade, providing companies like CHI with crucial access to global supply chains and exposure to international markets.

Key Market Trends

The market is observing a growing sophistication among consumers, leading to an increasing demand for diverse cuts of meat beyond traditional loin cuts. This trend reflects evolving consumer preferences for specific flavor profiles, tenderness, and varying price points, indicating a maturing market with a desire for specialized and varied product offerings.

11. Strategic Partnerships

Country Hill International engages in both sourcing and strategic investment partnerships to strengthen its market position and expand its offerings.

• Partner Organization: Stockyard Beef, NH Foods, Silver Fern Farms

• Nature of Partnership: These are key sourcing partnerships with reputable international brands, ensuring access to the finest quality beef, lamb, and chicken.

• Strategic Benefits: Guarantees a consistent supply of premium products, diversifying CHI's high-quality meat portfolio.

• Partner Organization: Gulf Japan Food Fund (GJFF)

• Nature of Partnership: This represents a significant strategic partnership formed through the acquisition of CHI by GJFF in May 2018.

• Strategic Benefits: The acquisition provided critical capital and strategic backing, enabling CHI to significantly expand its product offerings, particularly with the introduction and scaling of Japanese Wagyu. It also supports CHI's broader expansion efforts.

• Collaborative Achievements: Facilitated the substantial increase in Japanese Wagyu imports and underpins the company's planned operational expansion into Saudi Arabia.

12. Operational Insights

Country Hill International has cultivated a strong operational foundation that underpins its market leadership.

• Current Market Position: CHI holds a robust position as a pioneer in importing premium chilled meats, including sought-after varieties like Australian Wagyu, HGP-free Angus beef, and organic beef, to the Middle East.

• Competitive Advantages:

• Dedicated Cold Chain Management: Ensuring unparalleled product integrity and freshness.

• State-of-the-Art Processing Facility: A modern production unit adhering to HACCP standards for processing and portioning meat.

• Commitment to Quality Standards: Strict adherence to HACCP ensures product safety and high quality, serving as a key differentiator.

• Operational Strengths: The company demonstrates strengths in advanced logistics, quality control, and customer-centric services, offering in-house training, just-in-time inventory, and product specification reviews.

• Areas for Improvement: (Not explicitly provided in the input, but often involves continuous optimization of logistics and supply chain efficiency).

13. Future Outlook

Strategic Roadmap

Country Hill International is focused on strategic expansion and enhancing its market accessibility.

• Planned Initiatives: The company plans to establish operations in Saudi Arabia, with initial efforts targeted for the first half of 2020. This move is