Khalid Al Shekaili, the co-founder of Popular Popcorn, which cemented its brand by winning a contract with Etihad Airways. Satish Kumar / The National
Khalid Al Shekaili, the co-founder of Popular Popcorn, which cemented its brand by winning a contract with Etihad Airways. Satish Kumar / The National
Khalid Al Shekaili, the co-founder of Popular Popcorn, which cemented its brand by winning a contract with Etihad Airways. Satish Kumar / The National
Khalid Al Shekaili, the co-founder of Popular Popcorn, which cemented its brand by winning a contract with Etihad Airways. Satish Kumar / The National

Khalifa Fund and Etihad Airways help popcorn business, well, pop


  • English
  • Arabic

When Khalid Al Shekaili started selling his gourmet popcorn in 2009, he thought the best way to do it was at small stands at shopping malls.

This turned out to be an expensive and complicated way to do things, what with having to cook the kernels on site and comply with the various regulations governing the production of fresh food.

Then Etihad Airways came along and told the company that if it could package the popcorn into portion-sized packets, it would try it out as an in-flight snack. And that, so to speak, is when the company really took off.

Etihad placed an order for 12,000 packets. Airline contract in hand, Mr Al Shekaili and his brother, with whom he co-founded the Popular Popcorn business, approached the Khalifa Fund for support.

"We told them we are seeing a lot of acceptance from a wide range of customers - and this is a big contract we have won," he says. "They saw it was locally manufactured and told us to draw up a business plan."

The brothers presented their case to the Khalifa Fund's panel and were awarded a Dh2.4 million (US$653,400) loan to do two things: construct a production plant and ramp up their marketing campaign.

This allowed them to start attending international food expos such as ISM in Germany, the world's biggest confectionery trade fair, and Sial in France, the world's largest food exhibition.

In Germany, the brothers met one company from Australia and another company from Japan that each ordered two containers of popcorn.

With its cute logo in lime green and baby pink, it's easy to see the product's appeal in Japan. Popular Popcorn started out with three flavours - caramel, chocolate and coconut - but has since branched out into other varieties including strawberry, cheese, ginger curry and salt.

Etihad also asked the company to come up with a traditional Middle East flavour and the Shekaili brothers obliged by coming up with a date-flavoured popcorn.

"Dates don't really taste of much so we added cardamom and saffron," Mr Shekaili explains. "We had some ladies do a taste test and they gave us good feedback. We found it much better than the caramel one. It tastes very nice."

For now, the brothers have postponed plans to build their own factory.

"I went to visit a site at Kizad to look for premises and I met a very nice guy," he recalls. "He advised me, 'Don't construct, just rent. Now is not the time to build [facilities]. Build up the company in terms of sales'."

So the brothers have found a bigger site for rent in Mussafah and are transferring production there from Al Ain.

The Etihad contract and the interest of companies abroad also convinced the brothers to go after international rather than local sales. They have orders from Kuwait and Oman and interest from Bahrain and Algeria.

The UAE market is trickier. A local distributor is expensive, as are the fees Carrefour and Lulu want for stocking the product. However, Abu Dhabi schools are taking the salty variety, which has fewer calories. The brothers are excited that children will be introduced to the brand. Adnoc gas stations have also just agreed to stock the product.

"We import the kernels from the US, now France as well," says Mr Shekaili. "There are different types and we selected the best. It's called the mushroom variety. It pops uniformly, and its nice and easy for coating later on."

A packet retails for Dh1 - or Dh2 if bought at Adnoc.

Mr Shekaili retains his day job as an engineer at the Abu Dhabi Airports Company.

"We are struggling right now," he says. "We must repay the loan. We are not yet breaking even but we are growing steadily."

Encouragingly, the company has receive a royal seal of approval. At a local showcase, Sheikh Hamed bin Zayed spotted miniature Etihad planes at the Popular Popcorn stand. As the chairman of the airline, he was intrigued by the link between planes and popcorn.

"I told him,'Etihad has taken our product to the world'," says Mr Al Shekaili. "We have a lot of feedback on Facebook and Twitter from people flying Etihad asking where they can buy the popcorn. He loved that."

The following day, James Hogan, the chief executive of Etihad, called to place a new order.

Why it pays to compare

A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.

Route 1: bank transfer

The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.

Total cost: Dh567.25 - around 2.9 per cent of the total amount

Total received: €4,670.30 

Route 2: online platform

The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.

Total cost: Dh74.10, around 0.4 per cent of the transaction

Total received: €4,756

The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.

Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
Groom and Two Brides

Director: Elie Semaan

Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla

Rating: 3/5

While you're here
Specs

Engine: Dual-motor all-wheel-drive electric

Range: Up to 610km

Power: 905hp

Torque: 985Nm

Price: From Dh439,000

Available: Now

The specs

Engine: 1.6-litre 4-cyl turbo

Power: 217hp at 5,750rpm

Torque: 300Nm at 1,900rpm

Transmission: eight-speed auto

Price: from Dh130,000

On sale: now

BMW M5 specs

Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor

Power: 727hp

Torque: 1,000Nm

Transmission: 8-speed auto

Fuel consumption: 10.6L/100km

On sale: Now

Price: From Dh650,000

Labour dispute

The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.


- Abdullah Ishnaneh, Partner, BSA Law 

The past winners

2009 - Sebastian Vettel (Red Bull)

2010 - Sebastian Vettel (Red Bull)

2011 - Lewis Hamilton (McLaren)

2012 - Kimi Raikkonen (Lotus)

2013 - Sebastian Vettel (Red Bull)

2014 - Lewis Hamilton (Mercedes)

2015 - Nico Rosberg (Mercedes)

2016 - Lewis Hamilton (Mercedes)

2017 - Valtteri Bottas (Mercedes)