RFM eyes strategic tie-ups to strengthen food brands

After selling its major cash cow – Cosmos Bottling Corp. – to San Miguel Corp. last year, the Concepcion-controlled RFM Corp. is now focusing its efforts on strengthening its branded food products through strategic partnerships with foreign or local firms.

RFM president and chief executive officer Jose A. Concepcion III said the company intends to expand its relationship with existing joint venture partners and enter into strategic partnerships which can help grow its food manufacturing business.

The company intends to focus on the food business under subsidiaries RFM Foods Inc., Swift Foods Inc. and Selecta Dairy Products Inc. RFM’s objectives are to recreate food products to exceed customer expectations and tap the international market to boost its profitability.

"RFM is revitalizing all its brands, by making superior or distinctive products," the company said.

RFM is particularly keen on expanding its relationship with Taiwanese food giant Uni-President Enterprises for its instant noodles business.

Two of the largest conglomerates in Asia, Uni-President and RFM entered into a joint venture agreement on March 1 last year to form a corporation that will manufacture noodle products. The two companies have set up RFM-President Enterprises Corp. (RFM-PEC) as the corporate vehicle for their planned project.

RFM-PEC launched Thursday its P500 million modern food manufacturing facility located in Philtown Industrial Estate in Tanauan, Batangas. To further make its presence felt in the food industry, the company intends to introduce a new line of exciting and innovative food products to meet the demands, needs and distinct food tastes of Filipinos.

As a starter, RFM-PEC will offer "Saucy Mi", the only instant pancit canton that captures the sauciness of an authentic Chinese pancit canton with its luscious mix of oriental spices and ingredients. Saucy Mi will come in original, toyomansi and hot and spicy flavors in convenient pouch packs.

It will also introduce another first to the Filipino consumers – Nooda Crunch – a ready-to-eat, healthy snack in unique noodle form.

Uni-President Group president Jason Lim said the company "has long desired to be a part of the Philippines’ business community because it has always believed in the country’s future and in its people," he said.

Apart from Uni-President, RFM has signed alliances with Unilever Thai Holdings Ltd. and Iglo (M) Sdn Bhd. which aim to bring RFM products and services to the rest of the region.

Of RFM’s subsidiaries, Swift and Selecta are considered to be the "next-best" businesses of the Concepcion-led group since the other firms are all suffering from the slowdown in their respective markets.

Swift – engaged in the manufacturing and trading of poultry and meat products – controls some 21 percent of the dressed chicken market, second only to San Miguel, which controls 33 percent.

It sells products like dressed chicken, choice cuts, processed chilled meat, canned meat, and feeds under brand names Swift, Rica, Goldstock, and Blue Ribbon.

Ice cream unit Selecta is also seen by analysts as another future revenue-generating unit should RFM be successful in bringing back its popularity in the market.

To boost sales, RFM is considering outsourcing its operations even to China if it could offer lower costs.

RFM’s businesses also include franchising and realty development. It owns the Little Ceasar Pizza, Sunroast and Dairy Queen franchises. The group, through subsidiary Philtown Property Development Company, constructed the luxurious One McKinley Place highrise building.