UZMA KHATEEB-NAWAZ: National Foods was established in 1970. How has the company grown since?
ALI RASHID KHAN: National Foods was formed by Waqar Hasan and Abdul Majeed. They had both lived abroad earlier and returned to Pakistan because they wanted to do something for their country. They realised that there was a dearth of quality spices in the market and decided to venture into the spice business in order to provide consumers with a high-quality spice brand that was both hygienic and convenient to use. The company received a positive response and gradually expanded. Recipe mixes were introduced in the late seventies, positioning National Foods as pioneers in the field. Over the decades, we continued to add more brands to our portfolio and today we offer 250 different products across 13 categories, including spices, recipe mixes, pickles, sauces, condiments, jams and desserts. Although recipe mixes remain a core revenue driver, our strategic focus is on fostering balanced growth across all categories. This approach ensures we meet diverse consumer needs and adapt to market trends, securing long-term business sustainability. We export to over 40 countries and have offices in Afghanistan, Canada, Saudi Arabia, the UK and the USA.

UKN: What is the value of Pakistan’s spice market?
WAJAHAT EIJAZ: It is currently valued at approximately Rs 35 billion, with National Foods capturing the largest market share. We have a particularly strong presence in urban areas.

UKN: Who are your primary competitors?
ARK: When we look at our product portfolio, we cannot identify one organisation that competes with us across all 13 categories. However, we do have different competitors in different categories. The size of our product line creates a cohesive brand experience for our consumers. For example, consumers who enjoy our recipe mixes might also purchase our jams, pickles or ketchup. This synergy drives overall sales and fosters brand loyalty.
WE: One of our competitors is Shan, particularly when it comes to recipe mixes. However, their influence is mainly concentrated in Karachi and Khyber Pakhtunkhwa. Understanding this allows us to develop targeted strategies to enhance our presence in these two areas, ensuring growth and competitiveness across all regions. In Punjab and the other cities across Pakistan, we are the market leaders.
ARK: Our strategy encompasses a broader approach, with a focus spread across 13 categories, all of which are equally important to the company. This diversified focus allows us to maintain a strong market presence, meet a wide range of consumer needs and position our products comprehensively in the food industry. Our goal is to be an integral part of our consumers’ table and pantry and encourage them to choose as many National Foods’ products as possible.

UKN: National Foods’ product line, specifically in the recipe mix category, is not as extensive compared to competing brands. Is there a reason for this?
WE: National Foods has deliberately refrained from introducing an extensive array of recipe mix spices because, having recognised the intricacies of the local market, we realised that there is a lower demand for other cuisines, such as Chinese or Malaysian. Therefore, it is more practical for us to concentrate on traditional recipe mixes, such as biryani and quorma. Having said this, National Foods offers a wide range of recipe mixes, including many traditional dish-focused mixes, such as daal, vegetable curry, tikka, nihari, haleem, biryani, quorma, kofta and karhai mixes. This strategy is aimed at ensuring the longevity of the brand in the market amidst potential economic disruptions.
ARK: At the end of the day, consumer demand has to be substantial enough to justify our product portfolio as well as our inventory, maintenance costs and overheads. Additionally, due to limited shelf space in stores, we prioritise allocating space to our fast-moving recipe mixes over the slower-moving ones.

UKN: What led you to launch the Karachi Khaas product line?
ARK: We launched the Karachi Khaas recipe mix range in 2023. This initiative is aimed at reclaiming and reinforcing our presence in Karachi. We recognised that the city is the largest market in terms of turnover and sales and identified the need to devise a strategy to regain market share there. Previously, we held a substantial market share in Karachi, which has declined over the past 15 years due to several factors.
WE: The range has a new packaging design and five new flavours (Bombay Biryani, Quorma, Karhai, Achar Ghosht and Nihari) tailored to suit the palates of Karachi’s residents and it was supported by an advertising campaign created by IAL Saatchi & Saatchi. The aim was to earn the trust of retailers, as they are our primary point of contact, by creating a product that was tailored specifically for people in Karachi.

UKN: Why is National Foods not a market leader in Karachi?
ARK: Several factors, including product unavailability in stores, retailers pushing other brands and occasional instances of incorrect purchases made by the household help. The introduction of Karachi Khaas is one avenue through which we seek to recapture a portion of this market.

UKN: What has been the response to Karachi Khaas?
WE: It is premature to evaluate the outcome at this point. However, there are several promising indicators. We are receiving positive feedback from retailers and consumers alike. The idea is to change the perception of consumers and ensure they understand the unique qualities of our brand. We want Karachiites to adapt to this new taste gradually.

UKN: How has National Foods weathered the recent economic disruptions?
ARK: We have adopted various strategies to address them. One such adjustment was the decision to discontinue the National Ka Pakistan series with Chef Saadat, a deliberate measure aimed at reducing costs. Additionally, we constantly evaluate resource allocations to help manage costs effectively. The intention is to mitigate the impact on consumers by avoiding passing on the burden of rising costs to them and we haven’t increased our prices. We have also partnered with local and international experts and initiated our own agricultural production of tomatoes as a starting point. Launched in August 2023, this initiative, called ‘Seed to Table’, allows us to cultivate high-quality tomatoes and reduce our dependency on imports. Plans are also underway to expand this approach to include other produce in the future, such as red chillies. We view economic disruptions as opportunities for local industries to rise to the occasion. Many value-added product alternatives are now being developed in Pakistan. It would be encouraging to see our competitors stepping up and launching similar initiatives to produce locally.
WE: Unfortunately, it is not the cost of the recipe mixes that has made consumers hesitant to purchase them; it is the rising prices of related ingredients like meat, vegetables, rice and oil, which increase the overall cost of preparing a particular dish, leading consumers to shy away from buying recipe mixes. However, we anticipated this issue and planned accordingly, ensuring that if one product category suffers, another one can compensate for it.

UKN: What are National Foods’ plans for the future?
ARK: We are exploring seasonal and geographical opportunities to determine the feasibility of new products. Our strategy involves continuously introducing new products; some are currently in development, but we cannot disclose further details at the moment.

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