Saturday, November 08, 2008 Meat processing firm foresees 50 percent sales growth in Dec.
WHILE the export sector has been feeling the pinch of the global financial crisis, the Philippine food industry has yet to experience the effects of crunch since food is a basic need.
Cebu-based meat processor Virginia Food Inc. (VFI) even expects a 50-percent increase in sales as its products, particularly spaghetti sauce, are often used in festivities.
VFI vice-president for sales and marketing Stanley Go said the tradition of Filipinos to celebrate Noche Buena and Christmas parties will boost their sales.
He added that their sales for spaghetti sauce are higher from October to December than from January to September.
The company, he said, has no plans to increase its prices until the end of 2008 as it intends to absorb the unstable and high cost of tin cans.
Expansion
VFI produces corned beef, hotdog, ham, beef loaf, sausages, luncheon meat, flavored chicken, bacon, tocino, tapa and other frozen and canned processed meat products. It owns the Virginia, Winner, El Rancho and Champion brands.
Like other companies, VFI is not waiting for the global financial storm to subside. After establishing its foothold in the Visayas and Mindanao market, the company will expand and bring its products to Manila.
“Manila has a very big potential as a market. It comprises about 72 percent of the canned goods market in the country while Vis-Mindanao is only 28 percent,” Go said.
He said there are also fewer competitors in Luzon, mostly national players, compared to Vis-Mindanao where there are both national and local players to contend with.
VFI coordinated with 10 Puregold stores in Manila and started displaying its products there last month.
VFI’s presence in the capital is expected to go full blast on Nov. 15. It has lined up a series of events “to create excitement,” such as free food sampling and promotion of value packs.
This will also mean an increase in the volume of production for the company, said Go.
Although the food sector is less affected by what is happening in the United States, VFI continues to eye the manufacturing of low-cost food products to cater to the low-end market.
“The trend now is more value for your money, so we are challenged to come up with products that are both affordable and delicious,” said Go.
In line with this, VFI is planning to produce food products packed in alternative packaging that “shelf-stable” and cheaper than tin cans. (NRC)
