Since its establishment in 1970, National Foods Limited (NFL) has maintained its legacy as one of the top food companies in Pakistan. In a bid to stay ahead of the competition, both locally and globally, the organization remains committed to research, innovation, technology and sustainable business practices. The food is now becoming more consumer centric, introducing new products with a particular focus on rapidly evolving consumer demographics and changes in their food preferences.
Hasan Sarwat, Chief Operating Officer Pakistan at National Foods, elaborated how NFL is moving ahead in a growingly competitive world. In an exclusive podcast with The Express Tribune hosted by Erum Shaikh, he gave insights into the operational excellence, strategic marketing approaches, and consumer-centric practices leading the future of company.
Hasan explained that at NFL, the human resources remain at the heart of all operations. NFL, he said, is fostering an inclusive culture to drive maximum potential out of its company and brands. “Our operational excellence is about collaboration, coordination, and co-creation among all functions, he said, adding that NFL has nourished an organizational culture wherein every voice is heard.
Adapting to Changing Consumer Needs
National Foods Limited is adapting to the changing demographics of Pakistan's consumer market. According to Hasan Sarwat, the company's legacy as a spice company is strong, but it needs to evolve to meet the demands of the younger generation. "Today, 60% of Pakistan's population is born after 1996, making them Gen Z and Gen Alpha. These young individuals think differently, make informed decisions, and have their own viewpoints, for whom we have launched new products, such as National Drizz’l, a range of sauces that resonate with the younger audience.
Balancing Tradition and Modernity
National Foods Limited is navigating the delicate balance between tradition and modernity as it evolves to meet changing consumer needs. According to the COO Pakistan, the company remains strongly entrenched in its legacy while becoming more contemporary. "To minimize friction, we're taking gradual steps," Hasan said. "We've relaunched our Recipe Mixes’ packaging to make it more contemporary and colorful, and we're targeting a younger audience."
Embracing Data Analytics, AI and Digital Transformation
National Foods Limited is also leveraging data analytics and artificial intelligence (AI) to optimize its supply chain operations and market trends. COO Pakistan Hasan Sarwat disclosed that the company has started using AI in certain areas, such as measuring out-of-stock levels on store shelves. The company uses technology to get real-time data on distributor sales and warehousing. "We're trying to keep pace and introduce new tools to modernize our operations," Hasan said, adding that NFL is also leveraging technology to enhance its manufacturing, quality control, and distribution processes, while data is also being used to homogenize its processes, reducing inconsistencies and improving product quality. The company has already introduced tools like Scada in its Faisalabad plant to standardize processes, such as ketchup production.
Talent Pool to Meet Industry Needs
National Foods Limited is taking a proactive approach to talent development, recognizing the decline in net ready talent available in the country. According to Hasan Sarwat, the company has a two-pronged approach to developing its own talent pool. "We're hiring for potential, not just for a specific role," Hasan said. "We provide our employees with a range of experiences, exposing them to different functions and roles, which helps them grow and develop their skills."
National Foods also offers management training programs to onboard fresh talent and groom them for future leadership roles.
How National Foods is Future-Proofing Itself
National Foods Limited is taking steps to future-proof itself amidst Pakistan's volatile economic, geopolitical, and climate landscape. According to Hasan Sarwat, the company has realized the importance of creating a multisourcing supply chain strategy to maintain sustainability. "We need to rely more on indigenous sourcing and less on international sourcing," Hasan said. "We've been successful in developing local supply chains for raw materials like starches, flavors, and gums." By adopting this approach, we have reduced dependence on international sourcing, ensuring supply chain sustainability, the COO Pakistan said.
Sustainability in Operations
National Foods Limited is also prioritizing sustainability through effective waste management and energy efficiency. According to Hasan Sarwat, the company started working on sustainability initiatives almost four to five years ago. One notable example is the company's Recipe Mixes’ packaging change, which reduced paper usage by 25% and carbon footprint by 17-20%. National Foods is also exploring ways to reduce pack sizes and ink consumption during the printing process.
Plans for International Expansion
National Foods Limited is eyeing international expansion, particularly in markets like the GCC, North America, Europe, and Australia. According to Hasan Sarwat, the company currently exports around $22 million worth of products globally and aims to increase it significantly over the next five years.
"We see promising prospects in international markets, particularly among new generations who want to fuse Asian and Pakistani flavors with their own cultural preferences," Hasan said.
Customer Feedback at the Heart of Innovation
National Foods Limited has made customer feedback a crucial part of its innovation process, with a focus on becoming a consumer-centric organization. According to Hasan Sarwat, every function within the company is encouraged to think about how they can add value to the consumer experience. To achieve this, National Foods conducts focus groups with consumers and involves stakeholders from across the organization to gain insights into consumer behavior and preferences. The company also invests heavily in research to understand changing consumption trends and consumer thinking.
One notable example of the success of this approach is the launch of Crushed Pickle, a product that was developed based on consumer insights. The product has been a hit not only in Pakistan but also globally, with National Foods experiencing significant success in international markets.
"Customer-driven innovation takes time and may not always be successful," Hasan said. "But we're committed to continuing to listen to our customers and develop products that meet their needs."
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