Bernie Cahiles-Magkilat
Filipino-owned Universal Canning Inc., maker of Family’s sardines, is investing P500 million this year for the acquisition of other sardine brands and upgrading of existing and establishment of new facilities to support an aggressive market diversification here and abroad.
Universal managing director Dr. Leoncio Kaw Jr. said the newly acquired sardine brands are Master, Atami and Mikado.
The company has also put up its own blast freezer and cold storage facilities in its Zamboanga-based production facilities. In addition, the family-owned company has also purchased a new club can equipment that would enable the company to produce flat canned sardines for the exports market on top of the traditional jitney sardines.
Kaw said the new facilities would be operational middle this year in time for the resumption of production of the three newly acquired sardine brands.
All these initiatives are in support of the company’s aggressive market diversification program. At present, the company’s original sardine brand "Family’s" has strong presence in Mindanao and Visayas regions, approximately 50 percent and 35 percent market share, respectively, but has a poor market reach in Luzon.
According to Kaw, the acquisition of the Master sardines, a premium brand from Bagong Buhay Industrial Corp. would beef up its presence in the National Capital Region where Master is competing neck on neck with another sardine brand while Atami and Mikado brands would fortify its presence in Davao and Cagayan de Oro areas where they are dominant market players.
The acquisition of Master sardines will make use of Universal’s underutilized canning facilities in Zamboanga. Its Zamboanga cannery has a rated production capacity of 15,000 cases per day but is now operating at 50 percent average capacity.
In terms of exports, Kaw said the company will tap new markets like the European Union and further expand its presence in the US and Middle East countries where the company has been exporting since 2005.
"EU is opening up and is a huge market because it is a premium but is very difficult to break because of its very strict standards and stringent accreditation process from the source of the fish down to the finish product," Kaw said. At present, exports account for only three percent of its total production.
The acquisition of the club can machinery and the blast freezers and cold storage facilities, Kaw said, would enable them to break into EU’s market. Master sardines and Family’s are both positioned for the exports market.
In terms of sales, Kaw said they are aiming for a 50 percent increase in sales of Master sardines over last year’s as it recovers from its temporary closure due to fish supply problem while Family’s is projected to increase sales by a conservative 30 percent.
The revival of the Atami and Mikado sardines production in Navotas would mean 100 percent increase in sales this year.
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