Dipitt, a prominent Pakistani sauce company, plans to establish a manufacturing base in Saudi Arabia to bolster its presence in the Gulf Cooperation Council (GCC) region.
ITT Foods, a renowned Pakistani company known for its Dipitt brand sauces and confectionery, is making significant strides in the Middle East. The company, which operates in about 32 countries globally, has been a supplier to leading Saudi retailers and food chains since 2019, including Hyper Panda and Herfy, one of the Kingdom's biggest food chains.
In an effort to strengthen its position in the region, ITT Foods is planning to establish a production hub in Saudi Arabia. This move is expected to cut logistics costs, localize key ingredients, and serve regional markets faster. The company is in advanced talks to take over a tomato manufacturing facility in Jeddah Industrial Zone 2, which was shut down in 2023 by a Saudi steel company.
ITT Foods is also engaging with e-commerce platforms in Saudi Arabia to boost retail penetration and is developing new high protein foods tailored to local demand. In a bid to cater specifically to the GCC market, the company is developing a range of Arabic protein-rich sauces, including date syrups. The Dipitt market is already about $600 million, and ITT Foods aims for 10 percent of the GCC protein segment in the next 5 years.
The company aims to turn Saudi Arabia into its GCC hub and expand further into Europe and North America. This expansion is being facilitated by negotiations for major collaborations, with advanced talks underway for a significant collaboration in the UAE. The Saudi Arabian company involved in the joint venture project with ITT Foods in water production is Saudia Dairy and Foodstuff Company (SADAFCO).
Rising tourism in Saudi Arabia and increased numbers of pilgrims for Hajj and Umrah are boosting demand for ITT Foods' high protein foods. The company's CEO, Syed Zeeshan Haider, stated that negotiations are underway for this major collaboration in the UAE as well. Haider also mentioned that ITT Foods is exploring joint ventures with Gulf partners to speed up market access, provide fresher protein-rich foods, and reduce delays in project launches.
However, the company faces challenges such as sugar taxes on ketchup, syrups, and mayonnaise, which are common in the region. But, like other exporters, ITT Foods is adapting to these changes. The Saudi Food and Drug Authority (SFDA) being online now makes it easier for ITT Foods to do business in Saudi Arabia.
ITT Foods is already a supplier to leading Saudi retailers and food chains, and the company is in talks with other large Saudi retailers to broaden its presence in the market. The joint venture with Saudi partners, according to Haider, is expected to be completed by 2026.
In conclusion, ITT Foods is making a strategic move to expand its presence in the GCC, particularly in Saudi Arabia. The company's initiatives, such as establishing a production hub, developing new high protein foods, and engaging in joint ventures, are aimed at catering to local demand, reducing costs, and serving regional markets more efficiently. Despite challenges, ITT Foods remains optimistic about its growth prospects in the region.
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