Mega Global allots P500 million for expansion

MANILA, Philippines — Mega Global Corp., maker of the country’s top sardines brand, has earmarked P500 million to expand its business through increased canning capacity and acquisitions as it looks to take advantage of increased demand for its products amid the pandemic.

“We are allocating at least P500 million for expansion this year and next year,” Mega Global chief operating officer Michelle Chan said during an online press briefing.

Mega Global chief growth and development officer Marvin Tiu Lim said part of the amount would be spent for a new manufacturing facility in Luzon.

The firm, which makes canned food products such as sardines, tuna, vegetables, as well as noodles and sauces and is celebrating its 45th year of operations, has canning facilities in Zamboanga.

Chan said the firm intends to increase its canning capacity by 20 percent this year.

Apart from increasing capacity, the additional capital would also be used to expand into other categories through brand acquisitions.

“With regards to consumer products, we are very much open to accept or acquire or partner with any products that can fit our target market, meaning it’s complementary to where we currently distribute now which are supermarkets, sari-sari stories, public markets. Any product that you could see on the shelves, preferably food but not necessarily limited to food, we are very much open to it,” Lim said.

Asked if the firm is looking to go public, he said the firm has not made any final decision but may be considering doing so in two to five years.

Mega Global founder and chief executive officer William Tiu Lim said the firm is expanding despite an ongoing pandemic to seize the opportunity to grow.

“A lot of friends are asking, why are you expanding? These are bad times. You have to conserve your cash so that at least we have more leeway. But sometimes, the best time to invest is when everything is down. And that is why you are prepping yourself for the improvement. When the economy picks up, you are there. So that is what we are doing,” he said.

The firm has seen an increase in sales as demand increased during the lockdown imposed to contain the spread of the coronavirus disease 2019 or COVID-19.

In particular, sales of sardines almost doubled for a few months, while canned tuna, noodles, and sauces registered double-digit to triple-digit growth for a month or two.

Chan said there was also an increase in demand for exports since the pandemic.