Author: Arella Sun Publish Time: 2026-04-28 Origin: Qingdao Unionchem Co.,Ltd.
This case study examines how Al Rafi Food Industries, a UAE-based condiment manufacturer, partnered with Unionchem to optimize their thickener sourcing strategy. By switching to bulk xanthan gum supply from Unionchem, the company achieved 30% cost reduction, improved product consistency, and secured a reliable supply chain with guaranteed 48-hour delivery.
Company: Al Rafi Food Industries LLC
Location: Dubai, UAE
Industry: Food Manufacturing (Condiments & Sauces)
Founded: 2008
Annual Revenue: $25 million
Al Rafi Food Industries specializes in producing premium Middle Eastern condiments, including tahini, hummus, and specialty sauces, for retail and foodservice markets across the GCC region. With over 200 employees and distribution networks throughout the Middle East, the company supplies major supermarket chains including Carrefour, Lulu, and Spinneys.
As a natural thickener essential to their product formulations, xanthan gum represents a significant portion of Al Rafi's raw material expenditure. Between 2023-2025, the company experienced:
22% increase in xanthan gum procurement costs
Price volatility making budget forecasting difficult
Limited negotiation power with existing small-volume suppliers
The condiment manufacturer faced recurring challenges with their previous xanthan gum supplier:
Average lead time of 3-4 weeks (vs. industry standard of 1-2 weeks)
Quality inconsistencies between batches affecting product viscosity
Limited certifications (missing Halal certification for regional compliance)
"We were spending too much time managing supply issues instead of focusing on product development and market expansion."
— Mohammed Al-Hassan, Procurement Director at Al Rafi Food Industries
In Q3 2025, Al Rafi's procurement team initiated contact with Unionchem, a leading xanthan gum manufacturer based in Qingdao, China. Unionchem's team, led by General Manager Arella Sun (26 years of industry experience), conducted a comprehensive cost analysis:
Key Findings:
Current procurement: 8 MT/month at $8.50/kg
Proposed bulk arrangement: 24 MT/month at $5.95/kg
Projected annual savings: $244,800
1. Bulk Supply Agreement
Unionchem offered xanthan gum bulk pricing with quarterly volume commitments, securing stable pricing for 12 months.
2. Quality Assurance
All shipments include Certificate of Analysis (COA) with full xanthan gum viscosity and purity specifications.
3. Certification Compliance
Unionchem's halal xanthan gum certification met UAE and Saudi Arabian import requirements.
4. Logistics Optimization
Consolidated shipping from Qingdao to Dubai Jebel Ali port reduced freight costs by 18%.
Metric | Before Unionchem | After Unionchem | Improvement |
Xanthan Gum Cost | $8.50/kg | $5.95/kg | -30% |
Monthly Spend | $68,000 | $47,600 | -$20,400 |
Annual Spend | $816,000 | $571,200 | -$244,800 |
Lead Time | 3-4 weeks | 48 hours (stock) | -85% |
✅ Product Quality Consistency
Batch-to-batch viscosity variation reduced from ±15% to ±3%, significantly improving final product texture in tahini and hummus formulations.
✅ 48-Hour Delivery Guarantee
Unionchem maintains regional inventory in Dubai, enabling rapid fulfillment for urgent orders.
✅ Supply Stability
Zero production delays due to raw material shortages in the 6 months since partnership initiation.
✅ Certification Support
Unionchem provided full documentation for xanthan gum food grade compliance, streamlining Al Rafi's export documentation.
Partnership Terms:
Contract Duration: 12 months (renewable)
Volume Commitment: 24 MT/month (288 MT annually)
Payment Terms: Letter of Credit (L/C)
Delivery Terms: CIF Dubai Jebel Ali
Product Specifications Delivered:
Xanthan Gum Food Grade (80 mesh)
Viscosity: 1,200-1,800 cPs (1% solution)
Protein content: <1%
Non-GMO verified
Based on the success of the xanthan gum partnership, Al Rafi Food Industries is exploring additional product lines with Unionchem:
CMC thickener for extended sauce formulations
Gellan gum for clean-label product development
Welan gum for high-temperature processing applications
Bulk purchasing from established manufacturers can reduce ingredient costs by 25-35%
Supply chain localization (regional inventory) dramatically improves responsiveness
Certification alignment is critical for Middle East market compliance
Long-term partnerships with hydrocolloid manufacturers provide pricing stability and priority allocation
Ready to optimize your thickener sourcing strategy? Unionchem offers free sample evaluation and custom cost analysis for food manufacturers.
Contact Unionchem Today:
Email: sales@unionchem.com.cn
Website: www.unionchem.com.cn
Request a Quote: +86-13953383796 +86-533-7220272
About the Author
Arella Sun is the General Manager at Unionchem with 26 years of experience in the hydrocolloid industry. She specializes in helping food manufacturers optimize their thickener supply chains and reduce production costs.
