MANILA, Philippines - San Miguel Purefoods Co. is putting up a P350-million ice cream plant in Sta. Rosa, Laguna as it aims to capture a larger share of the market.
Purefoods president Francisco Alejo said the new plant will produce ice cream products under the Magnolia brand consisting of bulk ice cream and cones as well as frozen novelties in sticks.The facility, which is currently under construction, will churn out five million gallons a year when completed in the middle of next year.
Alejo said this would be the first ice cream plant to be constructed by the company. The group is currently outsourcing the production of its ice cream.
He said the company is hoping to further increase its share in the industry which is currently dominated by food and beverage conglomerate RFM Corp. On second spot is Nestle, followed by Magnolia which currently holds 10 percent of the market.
Aside from this, the company is expanding its poultry and processed meat business.
At the same time, Alejo said its parent firm San Miguel remains in talks with US food maker Hormel Foods Corp. and other foreign groups for the sale of at least 40 percent of Purefoods. “We’re still evaluating the proposals. Many are foreign investors willing to invest. I don’t have the names but they have offered to acquire 40 percent of the company,” he said.
Alejo said San Miguel’s strategy is to maintain majority control of the businesses it is in. It announced as early as last year plans to sell a potion of its major subsidiaries through strategic partnerships or a share offering and retain 51 percent as diversifies into heavy industry.
Hormel owns 40 percent of processed meats firm The Pure Foods-Hormel Co, a subsidiary of Pure Foods.
In April, San Miguel announced a P9.93-billion capital expenditure program for its food group with bulk of it or P4.89 billion going to the expansion of its hog farms and another P3.37 billion to beef up its poultry operations.
About P840 million has been set aside to raise the production of feeds from 39.7 million bags to 43.5 million bags.
The nuggets line of Purefoods-Hormel Corp. will also be getting P231 million to produce 8,500 metric tons from its present capacity of 1,500 MT.