Monde Nissin Corp in Packaged Food (Philippines)

MONDE NISSIN CORP IN PACKAGED FOOD (PHILIPPINES) Euromonitor International April 2014

MONDE NISSIN CORP IN PACKAGED FOOD (PHILIPPINES)

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

Monde Nissin Corp: Key Facts ................................................................ ..... 1

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

Monde Nissin Corp: Competitive Position 2013 ........................... ................ 2

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MONDE NISSIN CORP STRATEGIC DIRECTION 

Monde Nissin Corp will strengthen its foothold in the Philippine market with the introduction of new product variants in noodles and biscuits. Whilst the company will focus on new flavours, it is expected that better for you and fortified products will form a significant part of its new launches. Investments in promotion and advertising campaigns will also be important in terms of strengthening consumers’ loyalty and brand image.

KEY FACTS Summary 1

Monde Nissin Corp: Key Facts

Full name of company:

Monde Nissin Corp

Address:

22F & 23 F 6750 Office Tower, Ayala Avenue, Makati City, Philippines

Tel:

+63 (2) 810 3350; +63 (2) 815 6676

Fax:

+63 (2) 819 3302; +63 (2) 810 9207

www:

www.mondenissin.com

Activities:

Manufacturer and distributor of packaged food

Source:

Euromonitor International from company reports, company research

COMPANY BACKGROUND 

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Monde Nissin Corp, a privately-owned company, is engaged in the manufacture of bakery products and noodles. Established in 1980, the c ompany’s venture into the local market was in biscuits. Filipino consumers warmly received its products, leading to the prominence of variants such as Nissin Butter Coconut and Nissin Wafer. Nine years later, Monde Nissin Corp launched its line of Lucky Me instant noodles and pancit canton. The company has been successful in its ventures, and has become a formidable player i n biscuits and instant noodles. In order to maintain consumers’ interest, the company continued to invest in research and development and in the introduction of new variants within bakery products and noodles. During recent years, Monde Nissin Corp expanded its product line to cater to increasingly health-conscious Filipino consumers. In biscuits, the company launched Sky Flakes Fit with oat fibre, which helps to regulate the digestion. In instant noodles, Monde Nissin Corp offered Lucky Me N-rich with moringa oleifera. In addition, it also stresses that its noodles variants have no artificial preservatives added during production. Monde Nissin Corp’s products are distributed nationwide through modern and traditional grocery channels. The bulk of the company’s sales are accounted for by smaller retailers, including sari-sari stores and independent small grocers, which cater to middle- and lowerincome consumers.

In an effort to emphasise its concern for the health of its customers, Lucky Me introduced two new light variants in the market. With 30% less sodium than traditional variants, Lucky Me


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Beef Lite and Lucky Me Chicken Lite were launched in the market in early 2013, and target health-conscious mothers who want to provide healthier alternatives for their children.

PRODUCTION 

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Monde Nissin Corp manufactures its biscuits and noodles in its production plants located in the provinces of Laguna, Pampanga and Cebu. During 2012 the company completed its manufacturing facility in Davao City, which caters to consumers in Mindanao. Aside from catering to the Philippine market, Monde Nissin Corp also exports its products to Africa, Asia, Australia, Europe, the Middle East, North America and Pacific Islands.

COMPETITIVE POSITIONING 

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Monde Nissin Corp maintained its position as the third largest manufacturer of packaged food in the Philippines in 2012, accounting for a 5% share of value sales. The company led three categories, namely noodles, dried processed food and biscuits. Monde Nissin Corp continues to strengthen its foothold in the Philippine market by its aggressive marketing campaigns and investment in research and development. It should be noted that the company’s share improved from 2011, and it is expected to increase further in 2013. Over the years, Monde Nissin Corp has been keen to l aunch new brands and variants in order to cater to changing consumer needs and lifestyles. In biscuits, Monde Nissin Corp beefed-up its line of high fibre and low fat savoury biscuits and crackers, which cater to health-conscious consumers. In noodles, the main thrust was a focus on the introduction of more Asian flavours, which tap into the growing interest in Japanese and Korean cuisine in the Philippines. The introduction of speciality flavours in pouch packaging was also instrumental in making these products more affordable and accessible to middle - and lowerincome consumers. The company’s innovation strategy allowed it to keep consumers interested in its brands. Monde Nissin Corp pushes to maintain its lead in biscuits and noodles. During recent years the company launched marketing campaigns which supported Filipino family values such as eating dinner together. Its noodles brand Lucky Me started holding an annual “Famealy Day” event which emphasise the value of sharing meals as a family. This strategy helped to bolster its sales and created a family-oriented image for Lucky Me. The company’s halal certification also widened its consumer base to include Muslims in the Philippines and abroad. Monde Nissin’s strong position in the Philippines can be attributed to its leadership in Noodles and Biscuits. In 2012, Monde Nissin held a 60% share in noodles and 34% share in biscuits. About 63% of its domestic retail sales came from its noodle brand, Lucky Me. The remaining 37% was contributed by its various biscuit brands. Whilst both noodles and biscuits are already la rge and mature categories, these categories are expected to experience moderate growth during the medium term. The continued growth of the population in the Philippines, combined with improvements in purchasing power, is expected to stimulate growth in these categories. Furthermore, the possibility of introducing new product variants gives Monde Nissin Corp good prospects over the next five years. In biscuits, Monde Nissin Corp’s products are mid -priced. In noodles, the prices of the company’s products range from low to medium in order to appeal to a wide target market. For instance, most of its speciality flavours and cup noodles are mid -priced, whilst flavours such as chicken and beef noodle a re economy brands.

Summary 2

Monde Nissin Corp: Competitive Position 2013


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Product type

Retail value share

Rank

Packaged food

5.3%

3

Biscuits

33.7%

1

Noodles

59.9%

1

Dried processed food

43.7%

1

Source:

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


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Monde Nissin Corp in Packaged Food (Philippines)

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