Food and Beverage

“Dole Food Company has previously engaged in the exportation of agricultural commodities to distributors located in Iran and in other countries for onward shipment to Iran in reliance on an OFAC general license that authorizes such activities…In January 2020, due to difficulties in receiving payment and importing the agricultural commodities into Iran following the reimposition of U.S. sanctions against Iran that had been lifted under the Joint Comprehensive Plan of Action, Dole Food Company ceased all direct exports of agricultural commodities to Iran and all exports to other countries for the purpose of onward distribution to Iranian consignees or end users.” (SEC Filing, 2020)

According to its Quarterly Report filed with the SEC in 2018: "In connection with the preparation of this Form 10-Q for the fiscal quarter ended February 25, 2018, we identified the following transaction which may be subject to the disclosure requirements of Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012 and Section 13(r) of the Securities Exchange Act of 1934. In January 2018, an indirect wholly-owned foreign subsidiary of General Mills made two shipments of flour produced in India to a distributor in the United Arab Emirates for distribution to customers in the United Arab Emirates, Kuwait, Bahrain, Oman and Qatar. An unrelated third party responsible for arranging transportation originally booked shipment of the flour on non-Iranian flag vessels, but subsequently, without the knowledge or consent of our foreign subsidiary or of General Mills, rebooked the shipments on Iranian flag vessels owned by Islamic Republic of Iran Shipping Lines (IRISL). The gross sale proceeds received by our foreign subsidiary from the two shipments of flour totaled $56,319, and our foreign subsidiary paid the freight forwarder in Indian Rupees a total of approximately INR26,316, or the US dollar equivalent of approximately $400, for the cost of shipping. We do not intend to make any future shipments using IRISL vessels."

According to its form 20-F filed with the SEC for fiscal year 2021, "Anadolu Efes, our [Anheuser Busch] affiliate, has a licensing agreement with an Iranian company for the production of non-alcoholic beer in Iran. Pursuant to that licensing agreement, Anadolu Efes will receive EUR 31,334 (USD 37,224) in gross revenue for 2021, from which it expects to record no net profit. Anadolu Efes plans to continue its licensing arrangement."

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According to its Annual Report filed with the SEC for fiscal year 2019: "The Iran Threat Reduction and Syria Human Rights Act of 2012 requires disclosure of certain activities relating to Iran by AB InBev or its affiliates that occurred during our 2019 fiscal year. Anadolu Efes, our affiliate, has a licensing agreement with an Iranian company for the production of non-alcoholic beer in Iran. Pursuant to that licensing agreement, Anadolu Efes will receive EUR 80,343 (USD 95,002) in gross revenue for 2019, from which it expects to record no net profit. Anadolu Efes plans to continue its licensing arrangement."

"The official IRNA agency said representatives of PT Mayora Indah Tbk, the company known as the global leader in coffee candy business, had met with local officials in the Iranian province of Hamedan to make preparations for construction of a production facility in the region, Presstv Reported.

A regional director of Mayora said during the meeting that the company eyes production of 400 tons of coffee products each month in its new factory in Hamedan’s Asadabad region.

Ronald Atmadja told Iranian officials that his company plans to begin construction of the factory as soon as local officials dedicate a land promised as part of the project preparations.

He said construction would take nearly a year and Mayora would import the machinery needed for production soon afterwards." (Iran Daily, "Indonesian food giant to launch coffee production factory in Iran," 10/2/2019).

"More than 20 ships carrying around one million tonnes of grain are stuck outside Iranian ports as US sanctions create payment problems and hamper the country's efforts to import vital commodities, sources directly involved in the trade said. Trading companies such as Bunge (BG.N) and China's COFCO International have been hit by payment delays and additional costs of up to $15,000 a day as the renewed US restrictions stifle the processing of transactions, trade sources said." (Ashraq Al-Awsat, 10/4/2019).

"An economic delegation led by New Zealand’s Primary Industries Minister Nathan Guy is scheduled to arrive in Tehran on Saturday to scope out trade opportunities in agriculture and dairy industries, Iran’s ambassador to New Zealand, Jalaledin Namini Mianji, announced.  The delegation includes, among others, the representative of Fonterra Cooperative Group, the world’s largest dairy exporter.  'Iran’s butter imports from Fonterra once reached $150 million a year, making it the biggest customer of the company. Encouraging the company to invest in northern Iranian provinces like Golestan has been pursued by the Iranian Embassy in Wellington,' IRNA quoted Mianji as saying." (Financial Tribune, "New Zealand Economic Mission Due in Tehran," 2/23/2017).

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"Fonterra is well positioned to increase its trade in Iran following the lifting of trade sanctions, it says….Fonterra managing director of global ingredients Kelvin Wickham said Iran was a valuable trading partner and a key butter market for Fonterra, with sales of $150 million." (January 2016)
 

"Telepizza, the largest non-US-based pizza delivery company in the world by number of stores, has announced further expansion, with the opening of its first Iranian store in Tehran’s Marzdaran Boulevard, with two other stores set to open by the end of the month." (July 1, 2017)

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"Spanish fast food chain Telepizza plans to open 200 branches in Iran in the next 10 years, with the first due to be ready to trade by March next year in Teheran... It will be the only western-run fast food chain to launch in the Muslim country..." (thinkSPAIN, "Telepizza to open in UK, Iran and Saudi Arabia next year," 12/1/2016).

"Once cultivated by Persian kings and believed to have healing powers, saffron is now fuelling the growth of a small German business that imports tons of the spice from Iran to make fine food products for sale in Europe and the Gulf. "We try to capture the soul of saffron and the magic it contains," says Michael Sabet, an Iranian-German business executive who quit his banking job six years ago to found Miasa GmbH, which is now doubling its revenues every year. Sabet is one of many German business leaders who see great business opportunities opening up in Iran after the end of sanctions related to its nuclear weapons programme." (Reuters, "Iranian saffron fuels growth of German food business," 9/30/2016).

"Saudi's Savola says to stay in Iran despite diplomatic rift." (January 5, 2016). 

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Savola’s subsidiary, Afia International Co., operates in Iran. Afia's subsidary, Savola Behshahr Company, also operates in Iran.

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"A Saudi-based food company that has done well for itself in sanctions-era Iran experienced the downside of investments there this week, when Iran’s double-digit inflation ate into Savola Group’s earnings. Savola, which makes cooking oil and other staple foods in markets around the Middle East and North Africa, reported a $150 million net profit for the quarter ended December 31, missing most analyst expectations of around $170 million. The company generates about 15% of total revenue from its business in Iran, pointed out NCB Capital’s Farouk Miah, making that country one of its most important overseas market…Savola, one of the Middle East’s largest food groups, has quietly prospered in Iran, despite the tensions. Regional economists cite a long history of business between key trading families of Iran and Saudi Arabia. Starting in 2004, Savola bought what today stands as an 80% stake in a holding company, Savola Behshahr, which manages two food plants in Iran. Savola Behshahr is said to hold more than a 50% share of the Iranian edible-oil market. Savola’s Saudi executives are largely hands-off, letting local managers in Iran deal with operations, analysts say. Iran’s government helps Savola Behshahr and other producers of key food items with subsidies, to control rises in costs of staples for Iranian families, Mr. Miah noted. The Saudi government itself is the second-largest single shareholder in Savola, through a 10% stake held by a social-insurance board, according to data on the Saudi stock exchange website. Savola’s gross profit in the fourth-quarter fell 20% on year – in part due to Iran’s sharp devaluation of its currency in 2013, some analysts say. Iran in July cut the rial’s value to deal with inflation brought on partly by international sanctions targeting Iran’s nuclear program. The Saudi company’s fourth-quarter report this week was acknowledgment ‘it has taken some of the hit’ of the currency devalution in Iran, Mr. Miah said. Additionally, re-classification of Iran’s economy as 'hyper-inflationary' – Iran’s central bank this month put the country’s official annual inflation rate at 40% – also required a procedural book-keeping change, and the financial impact of that piled up in the fourth quarter, EFG Hermes said in a note to clients. Lower prices overall for commodities and a one-off $27 million impairment charge related to another investment also contributed to Savola missing fourth-quarter earnings expectations, analysts said. The Saudi food company draws what NCB Capital estimates is 40% of its revenue in non-dollar-linked currencies. Expanding out of Saudi Arabia helps its food companies expand revenue despite price controls in the kingdom, but also increases their exposure to regional political troubles, as in Egypt, Iran and Sudan…Analysts say Iran remains a strong market for Savola, despite the complexities of operating in an economy under international sanctions. Food is exempted from the sanctions.” (Wall Street Journal, “Saudi Food Company Battles Iran Currency Weakness,” 1/21/14)

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“Iran is having to pay a premium for basic foodstuffs such as cooking oil, highlighting the increasing strain on Tehran from Western sanctions aimed at its disputed nuclear programme, even though the sanctions don't cover food. Wilmar International, the world's largest listed planter, and Mewah International, a $570 million edible oils processor - both listed in Singapore - are driving sales to Iran on long-term contracts, with Middle Eastern trading sources reporting premiums of up to $30 a tonne to the cash benchmark…Wilmar and Mewah dominate the trade with Iran where demand for high-value refined palm olein, used in cooking oil, can reach 500,000-700,000 tonnes a year. Wilmar sells to Saudi Arabian food company Savola, which buys palm oil to feed its edible oil processors in Iran, three Middle Eastern trading sources told Reuters. They said Wilmar demands a premium of $20-$30 per tonne to cover potential payment delays and interest charges. Wilmar said it does not comment on specific contracts. Savola did not respond to requests for comment.’ Savola is a one woman man. It sticks to one palm oil company to supply its refineries and it's Wilmar for the past few years,’ said a Dubai trading source close to Savola. "Payments can be slow, but there are ways around it. The money will be banked in (Saudi) riyals, euros and U.S. dollars from Turkish banks. Sometimes, the money will come via India…’Wilmar doesn't do high stakes gambling. So it has taken a corporate guarantee from Savola's head office in Saudi Arabia,’ said a Southeast Asian trading source who has done deals with Savola. ‘It's become standard practice.’ Savola has 832,000 tonnes of annual capacity in Iran, giving it nearly 40 percent market share in a country of over 74 million people. The firm's revenues from Iran increased by almost a third last year to 4.4 billion riyals ($1.17 billion), about 42 percent of its global edible oil sales.” (Reuters, “Beyond sanctions, Iran squeezed by higher edible oil costs,” 4/29/13)