San Miguel Purefoods eyes P2-B sales from new products

San Miguel Purefoods Co. Inc. expects sales from new products to hit P2 billion this year, according to a top company official.

Purefoods president Francisco Alejo said new products launched by the company in the past months had been received warmly by the consuming public. Among these new products are the Eaji snack foods, coffee, condiments, ice cream, cooking oil, and pancake mix.

Alejo said sales of Eaji for instance, went 40 percent higher than what management projected.

Sales of its ice cream, coffee and dairy products like cheese have also been doing well, he said.

With the successful launch of new products, Purefoods expects sales to continue growing this year. "Volumes are up across all businesses," Alejo said.

Alejo said poultry remains the company’s major revenue contributor given the improvement in the industry.

Purefoods has set aside P2 billion this year for the continued expansion of its business as part of efforts to boost revenues and enhance shareholder value.

The company also expects to offer instant noodles to add to its stable of products which include processed meat.

Aside from investments in new businesses, the capital budget will be used for the continued improvement of the company’s ice cream operations, under the brand name Magnolia, which was relaunched in 2004 after a five-year absence.

The Magnolia brand is by far the dominant player in the margarine segment, where the brand is claimed to have cornered 90 percent of the market for non-refrigerated margarines and 80 percent of the market for refrigerated margarines.

Purefoods plans to bring in more of Australia’s National Foods products into the domestic market through subsidiary Magnolia Inc. and hopes to extend product reach to include provincial areas.

National Foods produces leading Australian consumer brands such as Pura and Skinny milk, Big M flavored milk, King Island and Farmers Union cheese, and Yoplait and Fruche dairy desserts.

Purefoods will also continue to improve efficiencies in its agro-industrial businesses by implementing new and advanced technologies that will expand its feeds and broiler farm capabilities.