Celebrating four decades of growth and innovation, Aran Group has transformed from its humble origins into a global leader in the food packaging industry. This milestone reflects not only its remarkable journey but also its ability to adapt and thrive in an ever-evolving market.

A natural evolvement from agriculture to Sustainable Packaging Solutions
This is the story of Aran, a company celebrating its 40th anniversary since its foundation in Kibbutz Nachshon. Agriculture and farming have always been the cornerstones of kibbutzim; however, 40 years ago, Kibbutz Nachshon members realized that they needed to develop additional areas of activity to ensure economic security that was not dependent on the whims of the weather. The food packaging industry was selected due to its close connection to the well-established agricultural sectors.

In 1983, when the company was established, Aran mastered production using various packaging technologies, including BIB bags. The company quickly realized that this sector had the most significant growth potential. Initially, Aran collaborated with a global provider of flexible packaging solutions for BIB production, gaining access to cutting-edge technology and expertise. This partnership enabled Aran to enhance its product offerings and expand into new markets. In 1998, the company independently entered product marketing, leading to rapid company growth and accelerated development.

Seeking Technological Differentiation
“When we first started,” explains Lior Mor, who has been the CEO of Aran since 2002, “our initial focus was on finding unique and distinctive technologies. We invested in lamination equipment and established our own thermo-lamination plant, which has since become a fundamental and exclusive capability of the company. In addition, we started producing accessories independently, significantly broadening our product range.”

In a short time, Aran became a leading supplier in the local BIB market. “At this point,” says Lior, “we realized that the solutions we offer are of exceptional quality and there is no reason why we should not compete on a global level. Since 2001, through hard work and the efforts of VP of Sales and Marketing Felix Malul, we have expanded into new markets in Europe and the United States. Over the next 10 years, we tripled our revenues and earned the trust of significant customers in the global food industry. Doubling our revenue again in the next decade.”

Growing in Europe with New Manufacturing Capabilities
The next logical step was to get closer to customers geographically, thus providing faster delivery times and offering local service. “We established the first plant outside Israel in Spain in 2010 at record speed; it focused on producing BIB bags for wine. The decision proved successful, and every two years we added a new production line to support demand. We quickly expanded our product range and began to provide solutions to the institutional market. We supported Europe’s transition from rigid packaging to more flexible and sustainable packaging.”

Aran promoted partnerships with aseptic filling machine manufacturers, thus developing a new market for applications that did not exist. BIB bags began to provide solutions for packaging liquid eggs, milk, POSTMIX, and more. “The additional applications grew and even exceeded the demand for BIB bags for wine. Just recently, we signed a major distribution agreement with Coca-Cola in Europe,” says Lior proudly.

Expansion in the USA
Further expansion came in 2016 with the establishment of a new facility in the United States. This facility serves the tomato and wine industries and supplies aseptic BIB packaging for other sectors. Aran USA also caters to the growing markets of Latin America and North America—USA and Canada. These are significant markets, hosting some of the largest BIB operations globally. The company in the USA went through a learning period with the market and its products, and today, it operates with high efficiency. With a skilled team providing high-quality and fast responses to a diverse market, Aran USA is poised for significant growth in the coming years.

Aran IBA Germany
The recent acquisition of Aran IBA Germany in 2024 represents a strategic enhancement to Aran’s capabilities. Aran IBA is known for its flexible packaging solutions, including the IBATAINER and the 50DN aseptic valve, reflecting its commitment to ongoing innovation and efficient production processes. The IBATAINER is mainly used for transporting fruit preparations—the fillings for yogurts such as strawberry, pineapple, banana, etc. It is the first flexible packaging solution replacing the transportation of high-value products that were previously shipped in very expensive stainless-steel containers with a high carbon footprint. This addition strengthens Aran’s presence and capabilities in the European market.

Investing in Sustainability
Single-use packaging is rightly facing public criticism for its harmful impact on the environment. “We are aware of the responsibility that lies with us as manufacturers,” says Lior. “We are investing a lot of effort, and are cooperating with other companies in the industry, for the recycling of both industrial waste and post-consumer waste to reduce the environmental footprint of our products.” In addition, steps are being taken to ensure product quality, including a transition to PFAS-free production, automated production without human touch, and advanced quality control systems. Aran supplies, in most of its products, bags made from recycled materials, contributing to a circular economy. In 2023, the company published a comprehensive ESG (Environmental, Social, Governance) plan with clear goals that are updated yearly, and it is working to implement these objectives across all its operations.

Leadership as a Key to Success
In recent years, alongside Chairman Sagi Cohen, the company has continued to expand its international activities and enter new fields. Aran’s success is driven not only by technological advancements but also by strong leadership. The senior management team has been crucial in setting the vision and steering the company toward its achievements. The dedication of Aran’s leadership and their strategic decisions have been central to navigating the rapidly changing industry.

What is the Company’s Most Significant Success in the Past 40 Years?
“Alongside all the technological and business successes,” Lior concludes, “our most significant achievement as a company is that every single employee at Aran is a leader—whether part of the management, department heads, or every team member. This is our strongest asset. Without them, Aran would not have achieved the success it has, and with them, our future is bright.”