Interview with Mr. Stefan Hipp

kompackt, the client magazine of Meypack, talked to Mr. Stefan Hipp about trends in the market of organic baby food.

KOMPACKT – You were one of the first companies to focus on organic baby food. Since then, the “organic bandwagon” has reached most producers and consumers and a good many have jumped on it. What does this development mean for HiPP?

STEFAN HIPP – The origin of HiPP’s organic farming was the close friendship between Dr. Müller, the Swiss founder of biological organic farming, and my grandfather. My grandmother was Swiss and my grandfather met Dr. Müller through her. My grandfather was very interested in the process and was of the opinion that this type of agriculture represented exactly the right method of farming. In the 1950’s, he changed over a small agricultural operation in Pfaffenhofen to an organic farm, based on Dr. Müller’s model. That is when we began to process the first organic raw materials. This restructuring also included talking with the farmers and explaining the fundamentals of organic farming and convincing them of its merits. After beginning with vegetables we extended our organic operations to include meat in the early 1990’s and thereafter fruit. The interesting thing is, in the 70’s and 80’s no one was really interested that we were processing organically grown vegetables. It was based first and foremost on our own convictions. It was only at the beginning of the 90’s when organic became trendy and thus of increasing interest for consumers – from which our company profited as a result. One can therefore say that in the early years, we laid the foundation and raised awareness for the organic way of food production.

For HiPP, raising consumer awareness of organic production processes and overall quality provided the company with the opportunity to set itself apart from its competition. The basic groundwork we laid over years and decades helped us to position ourselves with an authentic brand promise. By the way, we are now raising awareness in the same way in the Eastern European markets. 

KOMPACKT – What importance does the HiPP organic seal have with respect to market reputation? What’s behind it?

STEFAN HIPP – The HiPP organic seal goes beyond the European organic seal because the European seal only addresses the cultivation of the product, not how it is further processed and transported. Therefore, a central component of the HiPP organic seal is that all raw materials are free from residue – a criterion not required for the European organic seal. Furthermore, the location and composition of the cultivated land is much more strictly controlled: We stipulate, for example, the minimum distance a field must have to the next industrial production site. Those are just two examples of how our organic seal is significantly stricter and therefore better reflects our standards and our understanding of what organic agriculture entails. 

KOMPACKT – How does HiPP ensure that its food is free from harmful substances – a sensitive topic when it comes to baby food?

STEFAN HIPP – HiPP possesses an extremely tight and secure quality management system in addition to the corresponding monitoring structures covering everything from the growers and producers through to production, packaging and delivery. We know our partners – often for decades – and monitor every intermediate step along the way. For example, when raw materials are to be delivered, we have extremely clear regulations about how the transport vehicle must be cleaned, what products are allowed and not allowed to be transported beforehand, given that this is an area with great potential for contamination.  As a rule, samples are taken and examined for more than 1,300 substances. Only after they have passed these monitoring tests may the raw materials be stored and processed further.

KOMPACKT – Do you conduct the quality controls yourself or do you engage external companies to do that?

STEFAN HIPP – Our quality safety department in Pfaffenhofen is responsible for the entire quality control. Additionally, we also have tests conducted by external, nationally certified laboratories. The quality control is of central importance to us and falls directly under the responsibility of the partners of the company. We stand with our names to uphold the quality standards – which explains the high importance placed on monitoring. We cannot allow even the slightest deviation in quality – that would be a huge blow to our authenticity. Quality, credibility and trust are the most important elements of our distinctive character. 

Consequently, we know, for example, every field on which the raw materials for our products are grown as well as the surrounding area. We monitor the growth of the raw materials and regularly conduct unannounced tests. The harvest and the delivery are checked just like the entire production process. Within the entire process, we have incorporated over 260 checks to guarantee the high quality of our products. 

Our laboratory in Pfaffenhofen is one of the most modern laboratories worldwide and is continually being enhanced. It pays off that we have accumulated such longstanding experience in the analysis of residue in raw materials.  

KOMPACKT – Catchword obesity: The problems of obesity and unhealthy eating habits are prevalent in all western influenced industrial nations, especially in the case of small children. To what degree is the food industry responsible for this?

STEFAN HIPP – As a rule, babies seldom suffer from obesity. It usually begins somewhat later, affecting small children. The reason is usually found in completely false nutrition. There are numerous official recommendations for optimal nutrition based on the latest scientific findings. As long as mothers abide by these recommendations, that is the optimum situation. However, if children are left completely to their own devices, we all know which “foods” will be at the top of the list of favourites: snacks, fast food etc. Another reason can be found in the irregularity of eating. It is unfortunately the case these days that within families, individuals simply eat when they are hungry. A common breakfast, lunch and the family dinner are no longer practiced in many families. 

KOMPACKT – Mr Hipp, how to you maintain your strict quality standards in such diverse locations like Germany, Austria, Hungary and Kaliningrad, the former Königsberg?

STEFAN HIPP – It’s basically like this: We have the same quality standards at all locations – there is no difference, whether it is in the processing technology, the quality parameters or in the quality controls. 

KOMPACKT – When you have production facilities operating at the highest level, is it not problematic, particularly in the Eastern European countries, when you have to deal with different prices?

STEFAN HIPP – No, the prices for the HiPP products are nearly the same in all countries given that we uphold the same quality standards. Organic products have higher prices; there is no possibility of selling these premium products at a lower price. Our experience shows that the price does not pose a problem in countries such as Russia or the Ukraine. As soon as there is a consciousness for organic products, these products and the promise of quality that is comes with them is honoured and respected. 

KOMPACKT – Why did you select Kaliningrad?


STEFAN HIPP – Kaliningrad is a perfect gateway to the East, easily accessible from the West. The location offers excellent opportunities to produce agriculturally, possesses good connections via land and sea and has an administration that was extremely euphoric and open to investors from the West, helping us considerably during the establishment process. It was the optimal combination for us as a medium-sized company. The good possibilities to deliver raw materials were also very important to us. At the moment we are still only processing raw materials from the West in Kaliningrad. 


KOMPACKT – Your company is a successful, family-run business operating worldwide. What are the strengths – particularly in turbulent times – of a family business? What is the “genetic code” of this long-running success?

STEFAN HIPP – First, one must note that HiPP is a European company. 95% of our markets are in Europe and only 5% in the Middle East and in Asia. I believe that the advantage of a family-run business lies in the freedom and speed of decision-making. When important decisions need to be made, sometimes of great importance or of budgetary or strategic consequence, they are made in a flash within the family. We can do that, for example, because we are not accountable to any investors. We can also make decisions that may only pay off after many years – a time span unthinkable to CEOs of publicly traded companies because it is unacceptable to their shareholders. 

We want to remain a family business in the future – for reasons of tradition, of responsibility and of enjoyment, because a family business is simply fun. 

KOMPACKT – What role do the topics of sustainability and social responsibility play for HiPP? How do you put these values into practice?

STEFAN HIPP – The issue of sustainability being identified with HiPP is a very elemental topic and it is one that we have been promoting through the type of organic agriculture that we practice for a very, very long time indeed. Because how can I do more for nature than by renouncing together with the farmers the use of chemicals and by following strict crop rotation? 

At our location in Pfaffenhofen, we have a neutral CO2 energy supply and draw our water from our own wells. We utilise 97% of our waste and have been able to reduce our water consumption by 70% thanks to significant improvements in technology. In fact, we have reduced our energy consumption by around 50%. Furthermore, HiPP supports diverse efforts such as projects to preserve biodiversity. 

KOMPACKT – How is the brand HiPP growing?

STEFAN HIPP – HiPP enjoys a market share in Germany of over 50% and is registering slight growth – in a diminishing market due to declining birth rates. We are achieving our largest growth at the moment in Eastern Europe. 

When talking about growth in practical terms, we have specially trained employees who are constantly searching for new cultivable land or meat suppliers that fulfil our strict requirements. In particular, we have been cooperating with the same meat suppliers for many years and we support them in their efforts to enhance their operations. Similarly in the case of our vegetable suppliers, there is a large number with whom we have been successfully working for over 50 years and with whom we have an extremely high level of trust in the relationship, even though monitoring of each partner is also carried out regularly. During the search for new fields, for example in Hungary or in Russia, we send out our own agricultural engineers to find appropriate lands and farmers who either already farm organically or who are interested and motivated to switch over to organic cultivation in cooperation with HiPP.

KOMPACKT – Mr Hipp, thank you for speaking with us.