San Miguel launches image-building push

MANILA: Philippine food and beverage conglomerate San Miguel is poised to kick off a print-led campaign to build a stronger corporate profile for its latest food venture.

Breaking later this month, the print campaign aims to project the new venture, San Miguel Pure Foods Company, as a world-class Filipino company.

The entity was set up after San Miguel acquired Pure Foods from local conglomerate, the Ayala Group.

Grey Philippines, which won the corporate assignment in a shootout against Jimenez D'Arcy, said the other objective was to "communicate to consumers the relevance of the integration of two trusted names in the food business".

Grey's vice-president for account servicing, Jev Ramos, added: "The integration means higher quality standards for consumers. The image we want to project is that of a world-class Filipino company with a lot of trusted brands."

Ramos did not rule out a television commercial later on. Grey was handling San Miguel's hot dogs and refrigerated meats business prior to Pure Foods' acquisition.

San Miguel acquired Pure Foods to help it maximise its returns in the business as well as dominate key segments in the local food and beverage industries.

Although the company is already in a dominant position in some segments, it still faces strong competition from Nestle, Universal Robina Corporation, RFM Corporation and to a smaller extent Del Monte.

The new company is involved in a broad range of food products, from processed and fresh meat and poultry to dairy, flour and general agriculture. Its major brands are Tender Juicy Hotdog, Dari Creme, Star Margarine, Magnolia Chicken, Monterey Meats and Pure Foods Fiesta Ham.

With the acquisition, San Miguel claims it has captured 74 per cent of the local hot dog market, 24 per cent for canned meat, 40 per cent for poultry and 17 per cent for milled flour.

The company also said it was developing strategies for product development and food safety as well as strengthening its infrastructure and capitalising on synergies from the integration.

The integration and the strategies have been put in place to allow the company to capitalise on growth opportunities and prepare for competitive threats arising from the market's greater liberalisation.

A key part of its strategy calls for further development of San Miguel Pure Foods' portfolio to offer consumers "a complete range of breakfast to dinner products".

The group, which also owns an animal feed business with a claimed 32 per cent market share, has earmarked US$60 million for the expansion and modernisation of its plants. Over the long term, its aim is to establish an integrated food production and distribution network.