US-based Heinz ties up with UFC catsup maker

The US-based H. J. Heinz has tied up with Nutri-Asia, the country's biggest catsup manufacturer, for the distribution of its products in the Philippines through a joint venture company called Heinz UFC Philippines Inc.

Heinz UFC, the US firm's first venture in the Philippines, will be the sole distributor of Heinz tomato catsup, sauced and condiments. It will compete directly with Del Monte Philippines, currently the leader in the tomato catsup market.

"Heinz has a tradition of doing its business aggressively," said Heinz executive vice president David Williams. "With this joint venture, we want to bring in some of our most popular products into the country."

The new company is 50 percent owned by Heinz and 50 percent by Nutri-Asia, maker of the popular UFC banana catsup as well as other sauces and condiments.

Heinz will invest on market and brand development, distribution and promotion of its products. Williams said they have no immediate plans to invest on plant facilities.

"For now, we would be importing these products from our production facilities elsewhere," Williams said. "Our catsup, for instance, would most likely be coming from Indonesia where we invested on a manufacturing plant about a year ago."

Eventually, however, William said Heinz would be looking at the possibility of investing on a manufacturing plant.

Nutri-Asia chairman Joselito D. Campos Jr. said his company will benefit from the joint venture in terms of technology transfer as NutriAsia explores the possibility of expanding its business and improving capacities in its existing manufacturing facilities in Tarlac, Alabang and Davao.

"The partnership will also allow us to go into markets aside from condiments but most importantly, we would benefit form Heinz's distribution for our own products." Campos said.

Heinz' business development manager Lowell J. Grunman said there is a market for banana catsup especially within South East Asia were consumers share more or less the same tastes in food.

"We want UFC and NutriAsia's other brands to get into the markets that have not been tapped," Gruman said. "Initially, we see this market in Asia but eventually, we want to see banana catsup in the mainstream market."

On the other hand, William said Heinz UFC is ready to compete with Del Monte for the Philippine market for tomato catsup. He said there will be no direct competition between Heinz tomato catsup and any of NutriAsia banana catsup lines.

At present, banana catsup accounts for 90 percent of the catsup market and NutriAsia has a virtual monopoly in this segment, accounting for 95 percent of total sales.

With sales of over $9 billion, Heinz is one of the world's leading manufacturer and distributor of branded foods to supermarkets and away from home eating establishments, with 50 companies operating in some 200 countries.

Among its most popular brands are Heinz, Starkist, Ore-lda, 90-Lives. Weight Watchers, Wattle's Plasmon, Farley's, Smart Ones, The Budget Gourmet and Skippy.