Century Pacific sets expansion plan

MANILA, Philippines - Century Pacific Food Inc., the country’s largest canned goods producer, has outlined its expansion program to maintain its market leadership and establish a foothold in other segments.

The tuna manufacturer will strengthen its market leadership through new products and partnerships while venturing into new categories like coconut water and premium meat products, supported by a P3.29-billion initial public offering (IPO) this year.

In its IPO filing with the Securities and Exchange Commission (SEC), Century Pacific said it intends to cement its top position in the Philippines and expand its operations here and abroad.

Century Pacific said it will “actively develop and manage product and brand portfolios to target different price points and respond to emerging market trends.”

In particular, the company said there is an opportunity in the canned meat market and the premium segment by developing the Swift brand that was acquired from RFM Corp. in 2012.

“Over the last 35 years Century Pacific has established a strong brand and product portfolio through, and supported by, continuous product innovation and acquisition of brands from third parties,” the company said.

Century Pacific, the firm behind Century Tuna, Argentina and 555, is the Philippines’ largest producer of canned goods, cornering 84.1 percent of the domestic canned tuna market, 42.5 percent for corned beef and 25.6 percent for meat loaf.

“The company believes that the established reputations and market leading positions of its brands provide a strong platform to maintain and grow its market shares through new product, product line extensions and expansion of its distribution networks,” Century Pacific said.

While it already holds the pole position in the canned and preserved foods sector, there is still room for growth.

Based on data from Euromonitor, Century Pacific said the canned and preserved food consumption per capita in the Philippines stood at $10.2 in 2012, lagging behind the $67 in the United Kingdom, $61.6 in the US, $53.5 in Japan and $20.2 in Singapore and South Korea.

Canned and preserved food sales in the Philippines jumped to P33.3 billion in 2012, up from P25.1 billion in 2008, data from Euromonitor showed.

For the dairy market, in which Century Pacific is top three locally, the company said it will introduce new formulations for the Angel brand while Birch Tree will expand into adult and children’s milk.

“In 2014, the company plans to start marketing and distributing beverage products such as coconut water,” it added. Century Pacific is also the local distributor of coffee products of Indonesian firm Kapal Ali.

For the tuna segment, the company plans to enter into distribution agreements with several large retailers in North America. Private label and branded processed tuna products of Century Pacific are sold in 42 countries so far.

To improve cost management, the company is looking at building a second tin can manufacturing facility in November.