Corned beef, chicken drive Pure Foods sales
MANILA, Philippines – Filipinos' love for corned beef and chicken has been boosting San Miguel Pure Foods sales.
The food arm of the diversified conglomerate, San Miguel Corp, has been reporting double digit growth in its processed meat business over the last 10 years, noted San Miguel's president and COO Ramon Ang.
In 2012, the company’s processed meats business posted a 13% revenue growth driven by strong performance of the core products, which include Tender Juicy Hotdogs, Purefoods Corned Beef, Star Hotdog, as well as the fast growing Purefoods nugget line.
“The branded products of San Miguels Pure Foods is one of the best businesses in the food company. It has the best margin, good brands, good value and that part of the business has a very good valuation,” said Ang on the sidelines of San Miguel Pure Foods stockholders meeting on Friday, May 10.
Due to the strong demand for their nugget products, the company has expanded capacity.
“We’ve had double digit growth for the last 10 years. Increasing every year. That’s why we’re forced to build a new plant,” said Ang.
San Miguel is the dominant player in the processed meats category with a market share of 61% for Hotdogs, 70% for nuggets and 56% for premium-canned meats.
The two main products driving the growth, according to Ang, are the Pure Foods Corned Beef and chicken nuggets.
“So many Filipinos want to bring Pure Foods corned beef to the US,” said Ang, referring to Filipinos living overseas who come home to visit or vacation, then return to their host country.
“The chicken nuggets are also very popular. It’s convenient and cheaper,” he added.
The price range is also an attractive part of buying processed meat. “Only 1% of consumers would eat premium meat like wagyu. More people can afford hotdogs, chicken nuggets, corned beef,” said Ang. – Rappler.com