Oman Refreshment Company SAOG

Climate Impact & Sustainability Data (2019, 2021)

ORC has been following its established “green initiatives” to efficiently manage the both liquid and solid ‘waste’ generated during its production/bottling processes.
Improved scores in unannounced audits conducted by independent international and local organisations related to HSE measures.

Successfully implemented new Human Resources policies and procedures in 2014, including upgrading of pay structure and performance-based management.
Consistently maintained its staff Omanisation percentage above the legal requirement.
Numerous “learning and developmental” activities for its staff with a focussed “learning and development” team.
Partnered with different CSR initiatives such as Beach cleaning event, support on Oman Science Festival, partnership with Oman Football Association, support for events in Sultan Qaboos University.

Maintained highest Global standard of food safety for consumer through preventive and treat assessment tool certification including FSSC 22000 V4.1 and ISO 22000:2005 of Food Safety Management Systems (FSMS).

Lower hydrocarbon production and implementation of new excise tax on selected products (carbonated soft drinks and energy drinks), impacting revenue.
Changing dynamics of employment environment in Oman (restricted employment of expatriates, shortage of skilled Omani workforce, soaring recruitment & wage costs).
Volatile international prices of commodities impacting profitability.
Stagnant consumer prices and raising trade margins pressure affecting cost absorption.
Stiff competition from many players in the water, juice, snacks and ice cream segments.

Revised price-pack-channel proposition to remain competitive.
Expanded range of “Good for you” and “Better for you” products.
Entering into forward contracts on certain key raw and packing materials.
Working closely with authorities and market players to address stagnant consumer prices and rising trade margins.
Diversifying revenue base by re-inventing core products and expanding product portfolio.
Investing in manufacturing, warehousing and logistics capacities to improve operational & marketing efficiencies.

Contributed RO 82.3K to COVID-19 prevention efforts and other CSR activities
Maintained staff Omanisation target above prescribed requirement
Implemented new organizational structure, policies, and procedures to attract and retain local talent

Disruption from the COVID-19 pandemic
Volatile international oil prices and other regional & global economic challenges
Contraction of overall consumers due to economic slowdown
Subdued consumer-packaged goods market due to excise tax on sugary drinks and increased competition
Increased stress on consumer spending due to Value Added Tax (VAT)
Stagnant consumer prices
Growing pressures of flat gross margins, revised fees, and charges
Increased cost of labor
Significant increase in prices of key commodity items (aluminum, sugar, pet resin, etc.)
Global supply chain blockade resulting in increased transportation costs
Volatile prices of key input raw materials and packing materials
Unstable job market & rising wage bill
Stagnant consumer prices
Growing fees & charges for various public services
Proposed reduction in/removal of subsidies for certain utilities
New excise tax decree on sugary products
Changing regulations

Government support through economic support programs and tax payment deferments
Investment in operational capabilities & facilities to meet consumer preferences
Upgrading & modifying business systems and replacing aging assets
Focus on sustaining and profitably maintaining market share
Product expansion & diversification plans
Improved operational efficiencies
Forward purchase commitments to minimize the impact of volatile raw material prices
Closely monitoring regional economic conditions and international oil prices
Exploring opportunities to diversify products and geographies