Magnolia to launch new food products next year

Magnolia Inc., a subsidiary of San Miguel Pure Foods Co. Inc., is introducing new, affordable products next year as a way to help consumers make the most out of their shrinking take-home pay.

To be launched are a new chocolate milk drink and various breadfill products.

"Price and value are key priorities today. We are working to improve our offer to our customers by continuing to deliver new and innovative products of the highest quality in different price ranges," San Miguel president and chief operating officer Ramon S. Ang said.

"The harsher economic environment has sharpened our focus on becoming a better business. We are continuously challenging ourselves to deliver even more value to our consumers, offering them products to suit their budget and lifestyle. We have to become more innovative," he said.

Ang said Magnolia is also repackaging its existing brands in formats that are making these accessible at lower prices. It has, for instance, started selling product favorites like "Cheezee" cheese spread and "Star" margarine in sachets.

"Cheezee" sold in sachets now account for a quarter of the Cheezee Spread’s total sales.

"We measure how successful we are on how good a job we did on a consumer’s last shopping trip, so we make an effort to invest in developing products that cater to the things that really matter to them," Magnolia marketing manager Regi Baylosis said.

"These days, cost is a huge factor in determining whether they reach for our products, so we’re looking for ways to extend our offer of quality, healthy eating, and value into affordable, convenient options for consumers," Baylosis said.

Other San Miguel food units have signed on to the same packaging strategy. Purefoods’ popular "Supremo Cane Vinegar," previously only available in plastic bottles, is now being sold in sachets and pouches.

One of Magnolia’s best-performing new products is "Magnolia Best Fruits." Since its launch in October last year, Magnolia has sold close to a million packs.

Unlike other local jams, "Magnolia Best Fruits" comes in a child-friendly plastic cup with an easy tear-off seal and re-sealable lid. Innovative packaging has allowed Magnolia to keep prices low.

While Magnolia has successfully capitalized on innovative product development to expand into new categories beyond its traditional consumer base, innovation has had downstream benefits for retailers who carry Magnolia and San Miguel products.

"Sari-sari store owners have thanked us for helping them generate sales and for introducing new products that have their customers coming back for more," Baylosis said.