San Miguel Pure Foods Co Inc in Packaged Food (Philippines)

SAN MIGUEL PURE FOODS CO INC IN PACKAGED FOOD (PHILIPPINES) Euromonitor International  April 2015

SAN MIGUEL PURE FOODS CO INC IN PACKAGED FOOD (PHILIPPINES)

LIST OF CONTENTS AND TABLES Strategic Direction ................................................................................................................... ..... 1 Key Facts ..................................................................................................................................... 1 Summary 1

San Miguel Pure Foods Co Inc: Key Facts................................................... 1

Company Background ....................................................... ........................................................... 1 Production .............................................................. ................................................................. ..... 2 Competitive Positioning ..................................................... ........................................................... 2 Summary 2

San Miguel Pure Foods Co Inc: Competitive Position 2014 ......................... 2

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SAN MIGUEL PURE FOODS CO INC IN PACKAGED FOOD (PHILIPPINES)

SAN MIGUEL PURE FOODS CO INC STRATEGIC DIRECTION 

San Miguel Pure Foods Co Inc will continue to be a major influence on Philippine packaged food. Its ability to maintain its strength among international competition continues to be driven by aggressive advertising and competitive pricing strategies. San Miguel Pure Foods Co Inc will continue to grow in strength as a significant local player.

KEY FACTS Summary 1

San Miguel Pure Foods Co Inc: Key Facts

Full name of company:

San Miguel Pure Foods Co Inc

 Address:

JMT Corporate Condominium ADB Avenue, Ortigas Center, Pasig City, Philippines

Tel:

+63 (2) 702 5000

Fax:

+63 (2) 702 5000

www:

www.sanmiguelpurefoods.com

 Activities:

Manufacturer of packaged food

Source:

Euromonitor International from company reports, company research, trade press, trade sources

COMPANY BACKGROUND 

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 A wholly-owned subsidiary of San Miguel Corp, San Miguel Pure Foods Co Inc is the fusion in 2011 of the two largest food manufacturers in the Philippines – San Miguel Foods Group and Purefoods Corporation. San Miguel Foods Group had interests in feeds, livestock, poultry, dairy products, fresh and processed meat and agriculture, Purefoods Corp focused on meat products such as ham, bacon and sausages. San Miguel Pure Foods Inc is a major player in various categories, including but not l imited to oils and fats, dairy, ice cream and spreads through brands such as Magnolia, Star, Baker’s Best, Dari Creme, JellYace and more. It also h as the San Miguel brand of coffee, a joint venture with foreign players, as well as packaged food brands for consumer foodservice and Great Food Solutions for institutional buyers. Other interests of San Miguel Pure Foods Inc include the production of flour and consumer foodservice chains Hungry Juan, Smokeys and Purefoods Tender Juicy Hotdog. Through its Monterey Meatshops and Magnolia Chicken Stations, San Miguel Pure Foods Inc competes in retailing through the sale of fresh meat. Its purchase of Petron petrol stations led it to venture into forecourt retailing as well. The company also operates in Indonesia and Vietnam. San Miguel Pure Foods Inc continued to be a significant competitor to both local and multinational brands. Its pricing strategies allow its products to be available to a variety of customers, including middle- and lower-income consumers. It continues to innovate as evident in the increasing flavours of i ts product lines, such as its growing ice cream product line with the addition of popular local flavours in the “Best of the Philippines” line. The addition of these Filipino flavours attracted not just locals but tourists as well. Advertising efforts are continuously strengthened to maintain and further build their brands.

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SAN MIGUEL PURE FOODS CO INC IN PACKAGED FOOD (PHILIPPINES)

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 As an established and trusted company, San Miguel Pure Foods Inc also benefits from its wide network of distributors nationwide, extending through various retail channels from neighbourhood sari-sari stores, leading supermarkets and hypermarkets and more.

PRODUCTION 

San Miguel Pure Foods Inc has manufacturing facilities in the Philippines, but also exports certain products to support international operations in Indonesia and Vietnam. San Mig coffee products for example are imported from Singapore.

COMPETITIVE POSITIONING 

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San Miguel Pure Foods Co Inc ranked ninth overall in Packaged Food for 2014. Its growing strength also as a major player i n many packaged food categories helped it maintain its strength in the Philippines. A leader in many categories, San Miguel Pure Foods Co Inc was able to maintain its position as a trusted brand. While share may have very marginally declined from 2013 due mainly to strengthening competition from other leading players, San Miguel Pure Foods Co was able to maintain its rank at ninth. Competing in various categories and given its large scale and influence, it is able t o innovate in categories where it leads. With the advantage of being able to effectively offer products at attractive prices due to its economies of scale, innovation is a key factor in these categories such as cheese, margarine and ice cream, especially in terms of flavour. San Miguel Pure Foods Co Inc gene rally focuses on the products of strength which it already has advantage over. Its strong presence in these areas allows i t to maintain its influence on overall packaged food. With its product offerings such as margarine and cheese generally in the more mature, less dynamic areas of the market, while still possible, room for innovation remains limited. The influence of San Miguel Pure Foods Co Inc, coupled with its presence in various sectors allows it to tap into different markets, depending on the product as well. For example, when it comes to margarine, with its brands Star, Dari Creme and Buttercup, San Miguel Pure Foods Co Inc is able to target different ends of th e market from lower to higher end consumers.

Summary 2

San Miguel Pure Foods Co Inc: Competitive Position 2014

Product type

Retail value share

Rank

Packaged food

2.3%

9

Dairy

4.2%

6

Spreads

2.6%

10

Ice cream

8.9%

3

Oils and fats

13.1%

3

Sauces, dressings and condiments

0.0%

29

Source:

Euromonitor International from company reports, company research, trade press, trade sources, trade interviews

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