“Our goal is to establish Shafaq as a leading brand by setting new industry standards”

MAMUN M. ADIL: How has A&Z Agro Industries progressed since it was established in 2008?
SAQIB MUHAMMAD NAEEM: The company was initially a B2B business and would import oilseeds, such as soybean and canola, from Argentina, Brazil and the US, extract the oil and then sell it to edible oil companies to be further refined and processed, then sold. In 2016, we set up our refinery and launched Shafaq in 2019, followed by Alpine in 2021 and Sarim in 2022. 

MMA: What is the reason behind having three different brands?
SMN: The edible oil category is vast and it is very difficult to sustain a business while catering to a single segment in a very competitive market. This is why we have positioned our brands to cater to different market segments. Shafaq is in the premium category, Alpine targets the mid-segment and Sarim targets the lower middle segment. By diversifying our offerings, we effectively serve both the middle and upper consumer segments. This is important because the premium segment is very small and constitutes approximately 25 to 30% of the overall edible oil sector; the remainder consists of the khulla (unbranded) segment. There are more than 600 brands in the branded category. 

MMA: How does the formulation of these brands differ?
SMN: Edible oil is made up of soybean, canola, sunflower and palm oils, and each brand has a different formulation. Shafaq is mainly a mixture of soybean and canola oil (it has canola oil and banaspati variants). Alpine is made with canola and soybean oil, in addition to a banaspati variant. Sarim is a cooking medium, a seasonal brand and made purely with palm olein. 

MMA: What are the challenges when it comes to marketing new products?
SMN: In our industry, legacy and consistency are very important, and the older the brand is, especially in the premium segment, the stronger its connection with the consumer. Breaking into this market is therefore a challenge. It takes time to do so and requires planned, consistent and long-term efforts to establish a brand in this category. That is perhaps the reason why only one brand, Dalda, is a national brand – no other brand, especially in the premium segment, has been able to establish itself nationally. 

MMA: How extensive is your distribution network?
SMN: We started in Karachi and then expanded into Sindh. After I joined in 2021, we collectively developed a lot of brand strategies, innovations and new brands. We expanded our reach to Islamabad and Lahore and then other territories and are available in nearly 100 cities and towns. Shafaq is now available at top-tier stores such as Al-Fatah, Al Jadeed, Bin Hashim, Chase Up, Diamond, Naheed and Spar.

MMA: What is Shafaq’s target audience?
SMN: People who already buy branded premium brands. We are trying to educate consumers about the food safety element of oil, as that is our USP, and communicate that unbranded oil is not good for health. We have associated our brand closely with the cause of food safety. We celebrated World Food Safety Day on June 7, 2023 for the first time and subsequently conducted extensive digital marketing, influencer marketing, outdoor and awareness-building activities. The UN’s Food and Agriculture Organization recognised our awareness campaign and showcased it on their global website. If I am not wrong, no brand in Pakistan has received such recognition and we continue to closely associate ourselves with food safety. What we want to communicate is that Shafaq is a consistent and high-quality product in line with WHO standards – this is our key point of differentiation. In their communications, most edible oils focus on ingredients such as vitamins A, D, omega 3 and 6. We have taken a different and innovative approach, whereby we say that our product is healthy and food safety is an important issue. We have not focused on traditional routes in our communications; we have opted for innovative ways, partnerships, sponsorships and strategies.

MMA: How would you define Shafaq’s brand image?
SMN: Our tagline is Aghaz Naee Subh Ka (the beginning of a new morning). We want to convey that although we are new in the market, we provide an innovative and high-quality product to our consumers. 

MMA: How do you ensure quality control?
SMN: The most important aspect is that our product is produced in line with WHO standards. I cannot claim that other brands do this. We ensure that regular testing is conducted at our plants, be it internal or third-party auditing. 

MMA: How has consumer response been to Shafaq? 
SMN: Whoever has used it once, continues to do so. They like the quality of the product and convert to it. In fact, our consumption has increased at least five times since 2023. In October 2023, we received the Consumer Choice Award in the edible oil category; the award was based on several criteria, including the overall business, marketing efforts and consumer acceptance.

MMA: On what basis do consumers gauge the quality of edible oil when purchasing it?
SMN: It’s not about taste; it is about how the food looks after it has been cooked in a particular oil. Another factor is whether or not the oil freezes after being refrigerated. Usage efficiency – how long the oil lasts is also important. The appearance of the oil itself is a major factor; how light or dark it is. Shafaq is very light; in fact, it is the lightest oil in the industry, and this signifies that it has been processed extensively and is therefore good for consumer health. 

MMA: What are your future goals?
SMN: Our primary goal is to establish Shafaq as a leading brand in the premium segment through innovation and by setting new industry standards, be it through our product, packaging or marketing.

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