Expanding its presence in the Gulf Cooperation Council region, Dipitt, Pakistan's foremost sauce brand, sets sights on establishing a production hub in Saudi Arabia.
Pakistani food company ITT Foods, renowned for its Dipitt brand sauces and confectionery, is set to increase its footprint across the Gulf Cooperation Council (GCC). The company, which currently operates in approximately 32 countries globally, is focusing on the GCC markets due to their strong revenue streams.
ITT Foods has been supplying sauces to leading Saudi retailers and food chains since 2019, including Hyper Panda and Herfy, one of the Kingdom's biggest food chains. Beyond Saudi Arabia, the company is negotiating a deal in the UAE with the country's largest bottled water company.
In an effort to further penetrate the market, ITT Foods is developing a specific range of Arabic sauces, including date syrups, to cater to the GCC market. The company is also working with an unnamed UAE water brand to launch their sauces, with the partnership likely to be announced in a few months.
To speed up market access, provide fresher products, and reduce delays in project launches, ITT Foods is exploring joint ventures with Gulf partners. One such joint venture is expected to be completed by 2026, though the name of the Saudi Arabian company involved is not explicitly mentioned.
ITT Foods aims to turn Saudi Arabia into its GCC hub and expand further into Europe and North America. The company is considering setting up a production hub in Saudi Arabia and is in talks with other large Saudi retailers to broaden its base in the Kingdom.
The Dipitt market in the GCC is estimated to be around $600 million, making it an attractive market for ITT Foods. The Saudi Food and Drug Authority (SFDA) going online has made it easier for ITT Foods to do business in Saudi Arabia.
Exports make up about 40 percent of ITT Foods' sales. The company currently supplies sauces to Nesto and other major UAE supermarket chains, and is expanding into Qatar and Lebanon. ITT Foods aims to increase its market share in the GCC to 10 percent within the next 5 years.
The company is also engaging with e-commerce platforms in Saudi Arabia to boost retail penetration and developing new products tailored to local demand. Despite challenges such as sugar taxes on ketchup, syrups, and mayonnaise, ITT Foods, like other exporters, is adapting to these changes.
ITT Foods' expansion in the GCC is a testament to the company's commitment to providing high-quality food products to a wider audience. With its strategic partnerships and innovative product development, ITT Foods is poised to make a significant impact in the region.
