"Slow and steady is how we define the way we do business"
Sammer Sultan, co-Chairman, Shan Foods, speaks to Aurora about her organisation’s ascent to success.
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“In Pakistan, we want to be the number one sauce brand, not just a brand associated with ketchup and mayonnaise”
Mamun M. Adil: Dipitt’s ketchup was initially supplied to Wingitt, an eatery you set up in 2016 and then formally launched in 2018. How has the brand grown since?
Syed Zeeshan Haider: What is helping our growth is the fact that people are far more aware of different cuisines compared to a few years ago. Covid-19 and social media helped here because, during the lockdown, people were home a lot more and did a lot of food browsing online. And of course, food continues to be the predominant pastime in Pakistan and in this respect, Dipitt helps people cook different types of foods. Furthermore, compared to previous generations, the current one has far more in-depth culinary knowledge. Since 2016, we have added about 70 products to our portfolio, which we export to 28 countries.
MMA: How has the prevailing economic situation affected Dipitt?
SZH: It may sound like a cliché, but with challenges come opportunities. Therefore, even though the economic situation and import bans have been difficult to deal with, we have been able to provide a European-quality product at competitive pricing in both local and international markets.
MMA: Do you import your raw materials?
SZH: We import from Europe. These include starches, gums, and certified and healthy preservatives, and they are expensive given the fluctuating currency rates, inflation and duties. Dealing with these issues has been a mixed bag, but we have figured out the solution to an extent by vertically integrating ourselves. For example, we cultivate our own tomatoes and chillies in a dedicated facility.
MMA: What impact have inflationary pressures had on your regular customers?
SZH: Many customers are switching from foreign brands to Dipitt. Similarly, several customers have switched from Dipitt to cheaper brands and we are trying to win them back by teaching them about yield – that if they use one tablespoon of our sauces, they may need to use half a cup of another brand. Additionally, we have not raised our prices this year.
MMA: How has the Boycott, Divestment, Sanctions (BDS) movement affected Dipitt?
SZH: It had a positive effect in one area and a negative one in another. On the one hand, many people in Pakistan have switched from international brands to Dipitt, but on the other, when they boycott our international chains, this affects us negatively, although our overseas clients have helped balance this out.
MMA: How do you market Dipitt?
SZH: Through on-ground activations and digital channels. Consumers are very smart, which is why I tell my teams to spend more time on on-ground activities rather than relying on digital channels. In my experience, when consumers actually try a product, only then do they believe and trust it, compared to when they learn about a product through messaging in the media with pretty pictures, influencers or brand ambassadors – especially given that the latter two change frequently and consumers can see through this. Ultimately, consumer feedback translates into R&D, innovation, and eventually commercial aspects, and we conduct more research than most of our competitors.
Speaking of the competition, I would like to advise them to innovate, just like we do, rather than ‘copy-pasting’ our products; that is very easy to do, and it is unethical and extremely demotivating.
They should invest in research and come out with better products than ours. This can only create healthy competition.
MMA: Do Pakistani consumers prioritise concerns such as workers’ rights and ethical market sustainability? Or are these issues still developing within our consumer consciousness?
SZH: In my opinion, Pakistani consumers are not too concerned with such matters. At the same time, we have international clients like McDonald’s who undertake thorough audits at our facilities, and this involves interviewing our factory employees with a focus on age and education levels – essentially determining how socially compliant we are. I believe that this is the right way to conduct business and we adhere to these standards, even if it is still a relatively new idea in Pakistan.
MMA: What changes have you noticed in consumer purchasing behaviour?
SZH: I think they have started to opt for smaller SKUs, although so far, we have not gone down that route with our products, apart from mayonnaise, which we ‘degrammed’ from 500 grams to 400 grams (our competitors followed suit). More importantly, consumers have become more thoughtful about their purchasing decisions. I have seen them debate between products about price, taste and expiration dates. A few days ago, I was in Al Fatah in Lahore, and I saw a lady selecting a particular brand of jam. When I asked her why she had picked that brand given that it was quite expensive, she replied that it had better fruit content and less sugar compared to other brands, and she did not want her children to have that much surplus sugar in their diet. This is precisely the reason why we devote the same portion of our budget to research as we do to marketing.
MMA: How wide is your distribution?
SZH: We have more than 30 distributors nationwide, and our products are found from Gilgit to Gwadar, including small towns and the K2 base.
MMA: How do you market internationally?
SZH: As ‘newbies’ trying to innovate and make good-quality products, we usually meet our international clients at food exhibitions. International markets are more mature compared to Pakistan (where ketchup and mayonnaise are the predominant condiments) and therefore require a wider range of products.
MMA: What would you say is the secret behind Dipitt’s success?
SZH: I think one thing would be my wife’s [Samar Sultan, co-Founder] ability to create new flavours. Another factor is my former colleagues and alumni who have helped me – from LUMS, Philip Morris or Unilever – and whom I would like to thank through Aurora for providing leads for expansion.
MMA: Where do you see Dipitt in the next five years?
SZH: I want Dipitt to be in 50 countries by 2025. I want to be at Tesco, Target, Walmart – everywhere. In Pakistan, we want to be the number one sauce brand, not just a brand associated with ketchup and mayonnaise.
For feedback: aurora@dawn.com
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They should invest in research and come out with better products than ours. This can only create healthy competition.
MMA: Do Pakistani consumers prioritise concerns such as workers’ rights and ethical market sustainability? Or are these issues still developing within our consumer consciousness?
SZH: In my opinion, Pakistani consumers are not too concerned with such matters. At the same time, we have international clients like McDonald’s who undertake thorough audits at our facilities, and this involves interviewing our factory employees with a focus on age and education levels – essentially determining how socially compliant we are. I believe that this is the right way to conduct business and we adhere to these standards, even if it is still a relatively new idea in Pakistan.
MMA: What changes have you noticed in consumer purchasing behaviour?
SZH: I think they have started to opt for smaller SKUs, although so far, we have not gone down that route with our products, apart from mayonnaise, which we ‘degrammed’ from 500 grams to 400 grams (our competitors followed suit). More importantly, consumers have become more thoughtful about their purchasing decisions. I have seen them debate between products about price, taste and expiration dates. A few days ago, I was in Al Fatah in Lahore, and I saw a lady selecting a particular brand of jam. When I asked her why she had picked that brand given that it was quite expensive, she replied that it had better fruit content and less sugar compared to other brands, and she did not want her children to have that much surplus sugar in their diet. This is precisely the reason why we devote the same portion of our budget to research as we do to marketing.
MMA: How wide is your distribution?
SZH: We have more than 30 distributors nationwide, and our products are found from Gilgit to Gwadar, including small towns and the K2 base.
MMA: How do you market internationally?
SZH: As ‘newbies’ trying to innovate and make good-quality products, we usually meet our international clients at food exhibitions. International markets are more mature compared to Pakistan (where ketchup and mayonnaise are the predominant condiments) and therefore require a wider range of products.
MMA: What would you say is the secret behind Dipitt’s success?
SZH: I think one thing would be my wife’s [Samar Sultan, co-Founder] ability to create new flavours. Another factor is my former colleagues and alumni who have helped me – from LUMS, Philip Morris or Unilever – and whom I would like to thank through Aurora for providing leads for expansion.
MMA: Where do you see Dipitt in the next five years?
SZH: I want Dipitt to be in 50 countries by 2025. I want to be at Tesco, Target, Walmart – everywhere. In Pakistan, we want to be the number one sauce brand, not just a brand associated with ketchup and mayonnaise.
For feedback: aurora@dawn.com