Century Pacific to expand to other market segments

MANILA, Philippines - Soon-to-be-listed Century Pacific Food Inc. of the Po family is maintaining its focus on the growing consumer segment in the Philippines even as it looks at opportunities to expand in Southeast Asia.

The country’s largest canned goods producer will expand its presence in other market segments like coconut water and premium meat products, executives said.

“We believe in what’s happening in the Philippines right now with its higher growth trajectory and the opportunities that will come out,” Century Pacific CEO Christopher Po.

Po said the company is looking in and out of its present category for possible acquisitions.

“The Philippines is in a good position as far as tuna is concerned. We’ll leverage what’s here at home,” Po said.

Century Pacific is listing in the local bourse next month. A total of 229.654 million shares will be offered at P12.50 to P14.50, which will generate P2.87 billion to P3.329 billion in fresh capital.

Po said the listing will also make the company better prepared for the Southeast Asian economic integration in 2015.

“As the market integrates, we will be more prepared as a public company with a strong balance sheet,” Po said.

For instance, import duties in Vietnam for canned meat products is set to decline through the economic integration while Indonesia will also be a potential market, Po said.

The bulk of the IPO proceeds will be used to pay existing debts, with the remaining funds allotted for capital expenditures, potential opportunistic acquisitions and general working capital.

The company is being advised by Evercore Asia Ltd. while the offer will be underwritten jointly by BDO Capital, BPI Capital and First Metro Investment Corp. (FMIC).

“Century Pacific is right in the heart of the consumer sector in the Philippines,” said FMIC president Roberto Juanchito Dispo, adding that the company is well latched into the growth of consumption.

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 tuna manufacturer plans to strengthen its market leadership through new products and partnerships while venturing into new categories like coconut water and premium meat products. Century Pacific will distribute and market a US coconut water brand.

For the canned meats business, Century Pacific vice-president Teodoro Po said the acquisition of Swift brand in 2012 allows the company to venture into premium canned meats.

“One of the things we saw is the opportunity to reposition Swift brand to the premium segment,” he said.