International Dispensing (IDND) and ZAP Logistics announced that the debut of IDC’s aseptic tap, The Answer, in Pakistan.
With over 200 million people, Pakistan is the world’s largest dairy consuming country, and IDC expects it to be a major revenue driver in 2018.
In October 2017, the German milk processor Naarmann made its initial commercial shipment of 5-liter UHT milk packages fitted with IDC’s The Answer tap to ZAP Logistics in Karachi, Pakistan. ZAP Logistics placed the Naarmann/IDC product into “loose milk” shops and into households. It also handed out in-depth questionnaires to gauge consumer attitudes. The purpose of the research was to determine the strengths, weakness, and receptivity of the offering among retailers and consumers in order to fine-tune the business plan going forward.
To interact with consumers more directly, the Naarmann/IDC packages were placed into several hundred selected households in Karachi. Pakistan has a tradition of home delivery for many decades via the milk man who has been delivering unprocessed milk directly to households. Of Pakistan’s urban area “loose milk” business, approximately 50% is sold in milk shops and 50% through home delivery.
Of the consumers in the market study, over 90% reacted favorably and indicated they would buy the IDC packaging system, which they perceived as a higher-quality, more hygienic and practical solution, one containing a better-tasting product that stays fresh and doesn’t go to waste. The “loose milk” shop chains interviewed also indicated that they would buy the product.
Unpackaged, unprocessed “loose milk”, which comprises approximately 90% of the Pakistani market, is time-consuming; it must be purchased on a daily basis and boiled immediately to avoid spoilage. The IDC aseptic system, sold in large containers, can be purchased just once approximately every ten days and requires no boiling or refrigeration due to The Answer tap, which maintains sterility even at ambient temperatures. Respondents were also pleasantly surprised by the size of the 5-liter box, which proved to be very practical and easier to handle than expectations.
“ZAP Logistics has spent significant resources on this important market research,” said IDC Managing Director Pär Söderlund, “and both ZAP Logistics and IDC are extremely pleased with the positive response from consumers. We expect a very strong performance of our packaging solution this year, which will create a thriving business in Pakistan.”
Commercial ramp-up will commence in early Q1 2018 and is expected to grow steadily. Market pull-through will likely be further enhanced as local aseptic dairy processors see the success of the imported Naarmann/IDC package in the marketplace. Discussions with some of these processors to utilize The Answer system are already underway.