packaged food in the philippines

PACKAGED FOOD IN THE PHILIPPINES

Euromonitor International

April 2014

P A C K A G E D F O O D I N T H E P H I L I P P I N E S P a s s p o r t I

© E u r o m o n i t o r I n t e r n a t i o n a l

LIST OF CONTENTS AND TABLES

Executive Summary ..................................................................................................................... 1

Packaged Food Maintains Moderate Growth in 2013 ............................................................... 1 Filipino Consumers Seek Variety in Food Choices ................................................................... 1 Nestlé Philippines Maintains the Lead in Packaged Food ........................................................ 1 Modern Grocery Retailers Dominates the Distribution of Packaged Food ................................ 1 Packaged Food Set To Grow at A Slower Pace in the Medium Term ...................................... 1

Key Trends and Developments .................................................................................................... 2

Better Economic Performance in 2013 Boosts the Performance of Packaged Food ................ 2 Manufacturers Cash-in on Filipinos‟ Faster-paced Lifestyles .................................................... 2 New Product Developments Embody Filipinos‟ Increasing Interest in Product Variety ............. 3 Players Go Beyond Traditional Marketing Campaigns To Engage Consumers ........................ 4

Foodservice – Key Trends and Developments ............................................................................. 6

Headlines .................................................................................................................................. 6 Trends – Sales To Foodservice ................................................................................................ 6 Trends – Foodservice ............................................................................................................... 6 Prospects .................................................................................................................................. 7 Category Data .......................................................................................................................... 7

Table 1 Foodservice Sales of Packaged Food by Category: Volume 2008-

2013 ............................................................................................................. 7 Table 2 Foodservice Sales of Packaged Food by Category: % Volume Growth

2008-2013 .................................................................................................... 8 Table 3 Forecast Foodservice Sales of Packaged Food by Category: Volume

2013-2018 .................................................................................................... 8 Table 4 Forecast Foodservice Sales of Packaged Food by Category: %

Volume Growth 2013-2018 .......................................................................... 9

Impulse and Ingulgence Products – Key Trends and Developments ......................................... 10

Headlines ................................................................................................................................ 10 Trends .................................................................................................................................... 10 Competitive Landscape .......................................................................................................... 11 Prospects ................................................................................................................................ 12 Category Data ........................................................................................................................ 13

Table 5 Sales of Impulse and Indulgence Products by Category: Volume

2008-2013 .................................................................................................. 13 Table 6 Sales of Impulse and Indulgence Products by Category: Value 2008-

2013 ........................................................................................................... 13 Table 7 Sales of Impulse and Indulgence Products by Category: % Volume

Growth 2008-2013 ..................................................................................... 13 Table 8 Sales of Impulse and Indulgence Products by Category: % Value

Growth 2008-2013 ..................................................................................... 14 Table 9 NBO Company Shares of Impulse and Indulgence Products: % Value

2009-2013 .................................................................................................. 14 Table 10 LBN Brand Shares of Impulse and Indulgence Products: % Value

2010-2013 .................................................................................................. 15 Table 11 Forecast Sales of Impulse and Indulgence Products by Category:

Volume 2013-2018 ..................................................................................... 16

P A C K A G E D F O O D I N T H E P H I L I P P I N E S P a s s p o r t I I


Table 12 Forecast Sales of Impulse and Indulgence Products by Category:

Value 2013-2018 ........................................................................................ 16 Table 13 Forecast Sales of Impulse and Indulgence Products by Category: %

Volume Growth 2013-2018 ........................................................................ 16 Table 14 Forecast Sales of Impulse and Indulgence Products by Category: %

Value Growth 2013-2018 ........................................................................... 17

Meal Solutions – Key Trends and Developments ....................................................................... 17


Table 15 Sales of Meal Solutions by Category: Volume 2008-2013 ......................... 20 Table 16 Sales of Meal Solutions by Category: Value 2008-2013 ............................ 20 Table 17 Sales of Meal Solutions by Category: % Volume Growth 2008-2013 ......... 20 Table 18 Sales of Meal Solutions by Category: % Value Growth 2008-2013 ............ 21 Table 19 NBO Company Shares of Meal Solutions: % Value 2009-2013 ................. 21 Table 20 LBN Brand Shares of Meal Solutions: % Value 2010-2013 ........................ 22 Table 21 Forecast Sales of Meal Solutions by Category: Volume 2013-2018 .......... 23 Table 22 Forecast Sales of Meal Solutions by Category: Value 2013-2018 ............. 23 Table 23 Forecast Sales of Meal Solutions by Category: % Volume Growth

2013-2018 .................................................................................................. 23 Table 24 Forecast Sales of Meal Solutions by Category: % Value Growth 2013-

2018 ........................................................................................................... 24

Nutrition/staples – Key Trends and Developments ..................................................................... 24


Table 25 Sales of Nutrition/Staples by Category: Volume 2008-2013 ....................... 27 Table 26 Sales of Nutrition/Staples by Category: Value 2008-2013 .......................... 27 Table 27 Sales of Nutrition/Staples by Category: % Volume Growth 2008-2013 ...... 28 Table 28 Sales of Nutrition/Staples by Category: % Value Growth 2008-2013 ......... 28 Table 29 NBO Company Shares of Nutrition/Staples: % Value 2009-2013 .............. 28 Table 30 LBN Brand Shares of Nutrition/Staples: % Value 2010-2013 ..................... 29 Table 31 Forecast Sales of Nutrition/Staples by Category: Volume 2013-2018 ........ 30 Table 32 Forecast Sales of Nutrition/Staples by Category: Value 2013-2018 ........... 30 Table 33 Forecast Sales of Nutrition/Staples by Category: % Volume Growth

2013-2018 .................................................................................................. 31 Table 34 Forecast Sales of Nutrition/Staples by Category: % Value Growth

2013-2018 .................................................................................................. 31

Market Data ................................................................................................................................ 31

Table 35 Sales of Packaged Food by Category: Volume 2008-2013 ........................ 31 Table 36 Sales of Packaged Food by Category: Value 2008-2013 ........................... 32 Table 37 Sales of Packaged Food by Category: % Volume Growth 2008-2013 ....... 33 Table 38 Sales of Packaged Food by Category: % Value Growth 2008-2013 .......... 33 Table 39 GBO Company Shares of Packaged Food: % Value 2009-2013 ............... 34 Table 40 NBO Company Shares of Packaged Food: % Value 2009-2013 ............... 34

P A C K A G E D F O O D I N T H E P H I L I P P I N E S P a s s p o r t I I I


Table 41 LBN Brand Shares of Packaged Food: % Value 2010-2013 ...................... 35 Table 42 Penetration of Private Label by Category: % Value 2008-2013 ................. 36 Table 43 Distribution of Packaged Food by Format: % Value 2008-2013 ................. 36 Table 44 Distribution of Packaged Food by Format and Category: % Value

2013 ........................................................................................................... 37 Table 45 Forecast Sales of Packaged Food by Category: Volume 2013-2018 ......... 39 Table 46 Forecast Sales of Packaged Food by Category: Value 2013-2018 ............ 40 Table 47 Forecast Sales of Packaged Food by Category: % Volume Growth

2013-2018 .................................................................................................. 40 Table 48 Forecast Sales of Packaged Food by Category: % Value Growth

2013-2018 .................................................................................................. 41

Definitions ................................................................................................................................... 42 Sources ...................................................................................................................................... 42

Summary 1 Research Sources ...................................................................................... 42

P A C K A G E D F O O D I N T H E P H I L I P P I N E S P a s s p o r t 1


PACKAGED FOOD IN THE PHILIPPINES

EXECUTIVE SUMMARY

Packaged Food Maintains Moderate Growth in 2013

The local packaged food market is expected to remain vibrant in 2013, reporting current value

growth of 5%. The dynamic economic performance in the Philippines helped to boost incomes,

which led to higher purchasing power. Meanwhile, consumers‟ confidence also increased, and

encouraged spending amongst all income groups. Filipinos‟ consumption of packaged food was

also encouraged by manufacturers‟ efforts to push their products via traditional means such as

tri-media campaigns and price promotions. 2013, however, saw more manufacturers venturing

into more innovative means of engaging consumers, such as a presence in social media and

the organisation of health-related events and activities.

Filipino Consumers Seek Variety in Food Choices

Packaged food manufacturers responded to Filipino consumers‟ increasing demand for

variety through the introduction of products which offered new flavours, convenience and health

benefits. Increasing incomes amongst urban dwellers encouraged the creation of impulse and

indulgence products to satisfy the craving for something new and different. Filipinos also

increasingly looked for convenience products to keep up with their faster-paced lifestyles.

Meanwhile, there was an emerging group of health-conscious consumers looking for healthier

alternatives.

Nestlé Philippines Maintains the Lead in Packaged Food

The local arm of Nestlé SA, Nestlé Philippines Inc, accounts for the highest share in the local

packaged food market, maintaining its lead in dairy and baby food. During 2013 the company

continued to strengthen its product portfolio, whilst building and cementing its relationship with

consumers through its marketing campaigns. Nestlé Philippines continued to emphasise its

commitment to bring wellness via its launch of products which have a health positioning.

Modern Grocery Retailers Dominates the Distribution of Packaged Food

During 2013, modern grocery retailers is expected to continue eating into the share of

traditional channels and emerge as the most important distribution channel for packaged food.

Channels such as hypermarkets, supermarkets, convenience stores and forecourt retailers are

expected to account for more than half of overall value sales of packaged food in 2013. The

recent expansion strategy of chained players such as SM Investments Corp, Puregold Price

Club and Philippine Seven Corp, amongst others, largely contributed to the increase of modern

grocery retailers in packaged food.

Packaged Food Set To Grow at A Slower Pace in the Medium Term

Over the forecast period the packaged food market in the Philippines is expected to continue

to grow. The expected revitalisation of the Philippine economy will play a significant role in

stimulating consumption. Economic growth will continue to improve levels of income and the



propensity to spend. However, growth will be mitigated by the increasing maturity of major

categories including dairy, oils and fats and bakery.

KEY TRENDS AND DEVELOPMENTS

Better Economic Performance in 2013 Boosts the Performance of Packaged Food

The Philippine economy stood out from its Asian peers, as it reported higher than expected

gross domestic product (GDP) growth of 8% during the first quarter of 2013. This uptick in

economic performance was contributed by the strong spending of the government, the influx of

remittances from OFW (overseas Filipino workers) and investment in construction. In the year

as a whole, the Philippine economy is projected to grow by 6%, which is slightly slower than the

7% recorded in 2012.

The strong economic performance in 2013 enabled the packaged food market to maintain its

moderate growth. Total revenue is set to increase by 5% in current terms, which is on a par with

the 2012 growth rate. Improving incomes, especially amongst urban dwellers and families of

OFW, stimulated consumption. Strong consumer confidence in the economy translated into

better spending. Furthermore, the purchase of packaged food was encouraged by low inflation,

which kept the unit prices of major commodities at bay.

Despite the growth in the economy, the highly skewed distribution of incomes in the

Philippines limited the growth to some categories, whilst bringing contraction to others.

Generally, impulse and indulgence products, which appeal to more affluent consumers, is

expected to continue to accelerate in 2013, whilst nutrition/staples, which is more geared

towards the mass-market, is expected to slightly decelerate.

Outlook

Economic experts agree that the Philippines is entering a phase of rapid economic growth, as

fiscal reforms and other recent developments are coming to fruition. Euromonitor International

projects that the local economy‟s real GDP will see moderate annual growth of 5.5% from 2014

to 2018, which is slightly lower than the 6.0% target set by the Philippine government. Economic

growth will be seen on the back of greater spending on infrastructure and the improving

business climate. Key growth drivers such as remittances from OFW, exports and business

process outsourcing will remain robust in the next five years.

Packaged food will continue to benefit from the projected dynamic economic growth over the

forecast period. It should be noted that spending on packaged food will continue to depend on

Filipino consumers‟ level of income and purchasing power. The constant value CAGR for

packaged food over the forecast period is expected to hit 3%. Middle-income Filipinos are likely

to experience the biggest improvement in incomes, as job opportunities will remain concentrated

in urban areas. This trend will offer good prospects for impulse and indulgence products, as well

as categories which are still small, such as meal replacement, snack bars, soy milk, olive oil and

fresh/pasteurised milk. Meanwhile, faster-paced lifestyles amongst consumers in the metropolis

could stimulate demand for meal solutions, especially ready meals.

Manufacturers Cash-in on Filipinos‟ Faster-paced Lifestyles

Filipinos‟ lifestyles are increasingly becoming faster-paced, as more consumers join the

workforce. The opening up of business process outsourcing in key cities nationwide further

increased the number of Filipinos working irregular working hours. Furthermore, the increasing



number of dual-income families challenges Filipino households in terms of food preparation and

spending time with their family.

Manufacturers continued to respond to Filipinos‟ growing demand for convenient products

through the launch of brands which kept up with their busier lifestyles. In 2012, Hunt-Universal

Robina Corp launched its new variant of Hunt‟s Pork „n Beans called Hunt‟s Chili „n Beans in

stand-up pouches. Aside from focusing on its new flavour, the manufacturer also emphasised

the ease of serving the product, as it can be heated in its pouch. On the other hand, Nestlé

Philippines launched Maggi Magic Meals; this allows busy consumers to cook rice and ulam at

the same time.

Aside from the introduction of new products, companies also tried to instil a work-life balance

through the positioning of their brands. Selecta continued to encourage families to bond at the

weekend, and reminded parents that “every weekend counts”. The leader in noodles, Lucky Me,

emphasised the importance of sharing meals with the family through its annual “Famealy Day”

event. During 2013 Oreo positioned itself as the favourite bonding cookie amongst families, and

encouraged parents to log-in Oreo Time, or time that they spend with their families, with a goal

of collecting one million Oreo Time. Milo R2 is geared to reminding workers to pursue other

activities outside work by supplying them with more energy. It should be noted that

manufacturers are tapping into Filipinos‟ close family ties and regard for their families.

Outlook

The good economic prospects in the Philippines will help to create more jobs, especially in

urban areas. The expansion of business processing hubs in more provincial cities will continue

to boost employment in these locations. Because of these developments, Filipinos will continue

to live faster-paced lifestyles. With more women joining the workforce, the number of dual-

income families will also increase. This could lead to greater concern and a greater challenge of

preparing daily meals and spending time with the family.

With these expectations, manufacturers are expected to come up with more products which

will respond to consumers‟ increasing need for convenience. This trend also offers good

opportunities to meal solutions such as ready meals, canned/preserved food, sauces, dressings

and condiments and other nutrition/staples products, such as children‟s breakfast cereals and

packaged/industrial bread. Filipino workers are expected to choose products which will allow

them to save time. Thus, product features such as quick cooking, complete solutions and

microwaveability could emerge to serve the need for convenience.

Aside from new product introductions, companies will remain aggressive in encouraging

consumers to spend more time with their families. Appealing to Filipinos‟ values, family-oriented

campaigns are expected to strengthen the positioning of brands and help to cement customer

loyalty. The focus on spending time with the family is seen to get good support from Filipinos,

especially amongst urban dwellers. Although impulse and indulgence products are more

aggressive in this regard at the moment, it is expected that more players will jump onto the

bandwagon.

New Product Developments Embody Filipinos‟ Increasing Interest in Product Variety

Rising incomes in the Philippines, together with Filipinos‟ exposure to foreign products

through travelling abroad and internet technology, stirred interest in new products and increased

the demand for variety. Young professionals and more affluent customers are increasingly

becoming more interested in “gourmet” and higher-quality products. Meanwhile, aspirational

middle- and lower-income consumers are also becoming more adventurous and willing to try out

new products, especially those which generate a strong buzz.



The phenomenal success of Magnum ice cream in 2011 signalled the presence of a

consumer segment willing to try out premium products. This led to a number of high-priced ice

cream brands which are positioned to offer new experiences to consumers. An example of this

is Nestlé Crunch, which capitalises on Filipinos‟ love of chocolate. Nestlé Crunch is single-

portion dairy ice cream which is made up of three layers of chocolate – crispy and crunchy

chocolate outer shell, chocolate fudge filling in the centre and creamy chocolate ice cream

sandwiched in between. Another interesting launch for Nestlé was its first flavoured coffee

whitener, Coffee-mate Creamy Caramel.

Manufacturers also responded to consumers‟ preference for new products through the launch

of more innovative flavours. Some products preferred to stick with flavours which are considered

classic and well-loved. Universal Robina Corp launched its newest Pancit ni Mang Juan noodle

brand, which features familiar Filipino dishes such as abodo and sweet and spicy barbecue. It

should be noted that this move veered away from the recent popularity of Chinese, Japanese

and Korean flavours in noodles. Star margarine launched its newest flavours, chocolate and

vanilla, rivalling other spreads brands. Monde Nissin Corp‟s Sky Flakes introduced new biscuits

filled with condensed milk and chocolate. Nestlé Philippines offered two new flavours of its Nido

Fortified powder milk (chocolate and melon).

Outlook

Increasing incomes amongst young professionals in the Philippines will continue to increase

the demand for better product variety. Filipinos‟ exposure to wider cuisine outside their homes

will raise their standards and make them more adventurous in terms of the food that they

consume at home. This could continue to encourage manufacturers to improve their offerings

and widen their product portfolios to include more flavour innovations. Amongst middle- and

lower-income consumers, variety is needed to sustain consumers‟ interest in brands. The

number of alternatives present in the market could also facilitate more frequent consumption, as

consumers are given more choice.

Gourmet products are expected to become more prominent in categories targeting more

affluent consumers and young professionals. Indulgence products such as ice cream, chocolate

confectionery, cakes and pastries would strongly benefit from a premium positioning. The use of

higher-quality ingredients, especially those which are sourced abroad, could help to create an

upscale image. Another opportunity in the medium term is the launch of products which are

popular in consumer foodservice. For instance, companies could take advantage of the growing

prominence of Mexican, Korean and Japanese full-service restaurants by launching ready

meals and canned/preserved food which feature dishes from these cuisines.

Flavour innovation will continue to be a popular strategy in order to maintain the interest of the

mass-market. As in 2013, manufacturers are expected to launch flavours which are familiar to

and well-loved by Filipinos in order to minimise risk. Chocolate flavour will continue to be very

popular in ice cream, confectionery, bakery and dairy. Filipino dishes will dominate

canned/preserved food, sauces, dressings and condiments and ready meals, but Asian dishes

are also expected to emerge.

Players Go Beyond Traditional Marketing Campaigns To Engage Consumers

Traditionally, manufacturers in the local packaged food market utilised tri-media advertising

campaigns to inform consumers about new product launches and to build their brand image.

Meanwhile, in-store promotions such as free tasting events were also carried out to encourage

trial purchases. Promotional pricing, including bundling and discount offers, were also carried

out to compete head-on with competitors and emphasise value for money. Whilst these



strategies remain popular in the Philippines, players are resorting to more engaging campaigns

which necessitate the participation and direct contribution of consumers.

Packaged food manufacturers jumped onto the bandwagon, following players which had

established a presence on social networking sites. Companies‟ fan pages serve as a means to

communicate directly with their target market. Consumers are informed of new launches,

company news and promotional campaigns in real time. In addition, exclusive online promotions

are made available to fans.

In 2013, companies continued to use social media in order to complement their traditional

strategies. Starting in 2012, Selecta was aggressive in the promotion of the new use for its

Selecta Super Thick Ice Cream variant. Consumers were encouraged to make their own ice

cream cake and post pictures on the company‟s Facebook page. Snickers launched its own

Facebook page to support its “You‟re Not You When You‟re Hungry” promotion. Meanwhile,

Nestlé Philippines‟s “Break Movement” for Kit Kat also found a home on Facebook. Gardenia

Philippines‟s Health and Wellness Campaign also reflected in the health-related posts it made

on Facebook. Interestingly, television advertisements from packaged food manufacturers

encouraged consumers to check out their Facebook pages for additional information and join

promotions. Maggi went a step further by posting a series of celebrity cooking videos which

feature its brands in sauces, dressings and condiments.

Aside from social media, companies also tapped into the increasing health and wellness

concerns in the Philippines. Nestlé Philippines launched its Wellness Expo to cement its image

as a healthy company. Meanwhile, brands such as Alaska, Ensure, Yakult and NutriBar

sponsored running events and other sports activities, emphasising their commitment to help

Filipinos to live a healthier lifestyle.

Outlook

Manufacturers will continue to align their marketing campaigns with emerging trends in the

local landscape. Even though tri-media campaigns and other traditional advertising efforts are

expected to remain popular in the medium term, manufacturers of packaged food will

increasingly use new schemes in order to reach consumers. The use of social media is

expected, especially for mid-priced and premium brands, which are geared towards the high-

end of the market. Filipinos‟ improved access to the internet via cheaper subscription plans,

wider coverage and the availability of cheaper smartphones and tablets will all contribute to the

popularity of social networking sites and the use of the internet in purchasing decisions.

Social networking sites such as Facebook and Twitter are expected to be seen from more

manufacturers in the medium term. Manufacturers will continue to refer buyers to their fan

pages, and will even use their traditional advertising campaigns to inform consumers about their

online presence. Using social networks will facilitate direct interaction between companies and

consumers. By posting relevant posts and helpful tips, companies can strengthen their brand

image whilst they deepen their relationship and involvement with customers. An online presence

is also seen to be a lower-cost alternative than television advertising, and could be used

especially when tapping small consumer groups.

Meanwhile, companies are also expected to work on aligning their marketing campaigns to

serve the growing interests of the Filipino population. As consumers are becoming more

informed about health and nutrition, marketing campaigns are expected to involve more experts,

and studies about the health benefits of products. This is especially true amongst middle-income

consumers. The use of sporting activities as a means to engage and capture the interest of

health-conscious Filipinos will also be popular in the medium term. Aside from organising fun

runs, manufacturers are expected to be more creative, and could support other fitness activities,

such as marathons, cycling, swimming and others.



FOODSERVICE – KEY TRENDS AND DEVELOPMENTS

Headlines

Foodservice volume demand continues to improve, on the back of the dynamic performance

of consumer foodservice

Frozen processed poultry is the fastest volume growth with 7% in 2013

Other RTE cereals contracts by 6% in volume terms in 2013

The total number of consumer foodservice outlets inches up by 1% in 2012

Foodservice faces bright prospects

Trends – Sales To Foodservice

There remained strong demand for packaged food from consumer foodservice in 2013. This

was driven by the dynamic eating-out trend in the Philippines as the economy improved. The

emergence of high-income young professionals maintained the growth in fast food and full-

service restaurants. This significantly improved demand amongst chained consumer

foodservice players for packaged food.

Frozen processed food is expected to be among the fastest growth in 2013, with volume sales

jumping by 5%. It should be noted that frozen processed poultry reported a stellar

performance during recent years, as consumer foodservice giant Jollibee Foods Corp

introduced its chicken nugget meal in the market. Catering to children, these products

continued to experience strong demand in 2013. In addition, breakfast meals are gaining

popularity in the market, thereby contributing to the strong demand for well-loved processed

food including hot dogs, longganisa and tocino, amongst others.

The demand for other RTE cereals continued to decline, with volume sales expected to

contract by 6% in 2013. For breakfast, Filipinos continue to prefer rice and ulam, which is

usually frozen processed meat products. Other RTE cereals declined in both retail and

foodservice volumes due to consumers‟ preference for children‟s breakfast cereals.

Local manufacturers Universal Robina Corp and San Miguel Pure Foods are amongst the

largest players in consumer foodservice. Aside from serving chained consumer foodservice

brands, these two companies also serve the needs of smaller independent players, especially

bakeries and carinderias. On the other hand, Unilever Foods Philippines (CMC), Del Monte

Pacific and Southeast Asia Foods are amongst the biggest suppliers of sauces, dressings and

condiments to consumer foodservice players.

Trends – Foodservice

During 2012, consumer foodservice in the Philippines was accelerating, benefiting from the

dynamic performance of the Philippine economy. Eating-out amongst urban households has

become more frequent, whilst the expansion of chained fast food and full-service restaurants

in key cities nationwide has also generated demand from middle-income consumers in these

locations. In 2012 the number of consumer foodservice outlets increased by 1%.

In terms of foodservice sales, a volume increase of 5% is expected in 2013. Eating-out is still

a favourite family bonding activity amongst Filipino households. For young professionals,

eating-out is a form of relaxation and indulgence. The faster pace of life in the country

encourages consumers to spend on eating-out and other leisure activities. This trend is

supported by the increasing level of income amongst urban workers.



Despite the increasing frequency of eating out, most Filipinos still eat at home most of the

time. Most Filipino households consider eating out as a weekly affair, whilst busy

professionals eat out more often. Thus, there is not yet much interplay between packaged

food and consumer foodservice. In recent years, packaged food manufacturers tried to launch

flavours from popular consumer foodservice cuisine. For instance, manufacturers of noodles

cashed-in on the popularity of Chinese and Korean cuisine in consumer foodservice by

launching Chinese and Korean flavours.

Prospects

The packaged food market will continue to benefit from the bright prospects for consumer

foodservice in the Philippines. As consumer foodservice players eye untapped provincial

locations, the demand for packaged food is expected to expand in order to serve their needs.

Meanwhile, the niche of more affluent consumers in Metro Manila could lead to the opening of

high-end consumer foodservice brands, and offers opportunities to imported and premium

packaged food products.

Foodservice volumes in the Philippines are expected to continue to experience growth over

the forecast period. With the expansion of more international or local chained consumer

foodservices players in the Philippines expected in the forecast period, demand for

foodservice is likely to grow. The growing incomes of consumers and the higher demand for

convenience are likely to drive this growth.

Compared with the review period, foodservice volume sales are expected to be slower as the

market matures. There is an opportunity to increase the frequency of eating-out in the

country, but this will be limited to Metro Manila and other key cities. Furthermore, newly

opened outlets in the provinces will not yield the same level of transactions generated by city-

based outlets. Thus, despite the opening of more outlets, the transactions per outlet could

decline.

Manufacturers of packaged food catering to foodservice companies will continue to keep

themselves competitive via keeping their unit prices stable. It should be noted that price will

remain a primary consideration of foodservice players. However, customisability of products,

good customer service and stable supply will also affect the purchasing decision. Strategic

partnerships between customers and suppliers will be strengthened through the use of

technology which connects the operations between these two players, allowing both to be

more efficient and responsive to needs which arise.

Category Data

Table 1 Foodservice Sales of Packaged Food by Category: Volume 2008-2013

'000 tonnes 2008 2009 2010 2011 2012 2013 Baby Food - - - - - - Bakery 102.6 103.2 104.8 106.5 108.3 110.3 Canned/Preserved Food 31.4 33.3 35.3 37.2 39.1 41.0 Chilled Processed Food 15.6 16.6 17.5 18.4 19.3 20.2 Confectionery 2.8 2.9 2.9 3.0 3.1 3.1 Dairy 49.1 49.8 50.6 51.4 52.3 53.1 Dried Processed Food 47.3 49.8 52.8 54.7 56.7 58.3 Frozen Processed Food 57.8 66.3 74.5 78.9 83.2 87.6 Ice Cream 3.0 3.0 3.1 3.1 3.1 3.2 Meal Replacement - - - - - -



Noodles 13.7 14.3 14.8 15.4 15.9 16.4 Oils and Fats 114.5 120.1 126.6 132.2 138.0 144.2 Pasta 14.9 16.4 18.3 19.1 20.1 20.7 Ready Meals 0.3 0.3 0.3 0.3 0.3 0.3 Sauces, Dressings and 47.8 49.9 51.8 53.7 55.4 57.1 Condiments Snack Bars - - - - - - Soup 0.3 0.4 0.4 0.4 0.4 0.4 Spreads 3.6 3.6 3.6 3.7 3.7 3.8 Sweet and Savoury Snacks 17.8 18.4 19.0 19.5 20.0 20.4 Impulse and Indulgence 59.0 60.0 61.3 62.7 64.0 65.4 Products Nutrition/Staples 281.6 290.7 302.1 311.3 321.2 330.9 Meal Solutions 153.3 166.7 179.8 188.9 197.8 206.7 Packaged Food 493.4 516.9 542.6 562.3 582.4 602.4

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 2 Foodservice Sales of Packaged Food by Category: % Volume Growth 2008-2013

% volume growth 2012/13 2008-13 CAGR 2008/13 Total Baby Food - - - Bakery 1.8 1.5 7.5 Canned/Preserved Food 4.7 5.4 30.3 Chilled Processed Food 4.8 5.3 29.6 Confectionery 2.0 2.0 10.4 Dairy 1.6 1.6 8.3 Dried Processed Food 2.7 4.3 23.2 Frozen Processed Food 5.2 8.7 51.4 Ice Cream 1.6 1.4 7.1 Meal Replacement - - - Noodles 3.2 3.7 19.8 Oils and Fats 4.5 4.7 25.9 Pasta 3.0 6.9 39.3 Ready Meals 2.6 3.0 16.0 Sauces, Dressings and Condiments 3.0 3.6 19.5 Snack Bars - - - Soup 4.4 4.0 21.5 Spreads 1.6 1.1 5.6 Sweet and Savoury Snacks 2.2 2.8 15.0 Impulse and Indulgence Products 2.1 2.1 10.8 Nutrition/Staples 3.0 3.3 17.5 Meal Solutions 4.5 6.2 34.8 Packaged Food 3.4 4.1 22.1


Table 3 Forecast Foodservice Sales of Packaged Food by Category: Volume 2013-2018

'000 tonnes 2013 2014 2015 2016 2017 2018 Baby Food - - - - - -



Bakery 110.3 112.4 114.7 117.1 119.7 122.5 Canned/Preserved Food 41.0 42.8 44.7 46.5 48.4 50.2 Chilled Processed Food 20.2 21.2 22.1 22.9 23.8 24.7 Confectionery 3.1 3.2 3.3 3.3 3.4 3.5 Dairy 53.1 54.0 54.9 55.8 56.8 57.8 Dried Processed Food 58.3 59.7 61.0 62.3 63.4 64.4 Frozen Processed Food 87.6 91.9 95.7 99.6 103.4 107.0 Ice Cream 3.2 3.3 3.3 3.4 3.4 3.5 Meal Replacement - - - - - - Noodles 16.4 16.9 17.4 17.9 18.3 18.7 Oils and Fats 144.2 150.9 158.0 165.6 173.8 182.6 Pasta 20.7 21.3 21.8 22.3 22.8 23.2 Ready Meals 0.3 0.3 0.3 0.3 0.3 0.3 Sauces, Dressings and 57.1 58.7 60.3 61.8 63.3 64.7 Condiments Snack Bars - - - - - - Soup 0.4 0.4 0.5 0.5 0.5 0.5 Spreads 3.8 3.9 3.9 4.0 4.0 4.1 Sweet and Savoury Snacks 20.4 20.8 21.2 21.5 21.7 21.9 Impulse and Indulgence 65.4 66.8 68.2 69.6 71.1 72.6 Products Nutrition/Staples 330.9 341.2 352.0 363.3 375.1 387.6 Meal Solutions 206.7 215.4 223.6 231.7 239.8 247.5 Packaged Food 602.4 622.7 643.0 663.9 685.2 706.9

Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

Table 4 Forecast Foodservice Sales of Packaged Food by Category: % Volume Growth 2013-2018

% volume growth 2017/18 2013-18 CAGR 2013/18 Total Baby Food - - - Bakery 2.3 2.1 11.0 Canned/Preserved Food 3.7 4.2 22.6 Chilled Processed Food 3.5 4.0 21.8 Confectionery 2.4 2.3 11.8 Dairy 1.7 1.7 8.8 Dried Processed Food 1.6 2.0 10.5 Frozen Processed Food 3.6 4.1 22.2 Ice Cream 2.4 2.0 10.4 Meal Replacement - - - Noodles 2.2 2.6 13.8 Oils and Fats 5.0 4.8 26.6 Pasta 1.8 2.3 11.9 Ready Meals 1.7 2.0 10.6 Sauces, Dressings and Condiments 2.2 2.5 13.2 Snack Bars - - - Soup 6.2 5.3 29.5 Spreads 1.5 1.6 8.1 Sweet and Savoury Snacks 1.0 1.4 7.4 Impulse and Indulgence Products 2.1 2.1 10.9 Nutrition/Staples 3.3 3.2 17.1 Meal Solutions 3.2 3.7 19.8 Packaged Food 3.2 3.3 17.4




IMPULSE AND INGULGENCE PRODUCTS – KEY TRENDS AND DEVELOPMENTS

Headlines

Impulse and indulgence products increases by 5% in current value terms to reach Ps124.0

billion in 2013

Improving incomes in the Philippines help to boost demand

Biscuits sees the most dynamic performance, with sales increasing by 7% in current value

terms in 2013

Unit prices increase in all categories except snack bars

Universal Robina Corp accounts for the highest value share of 22% in 2013

Impulse and indulgence products is expected to see a constant value CAGR of 3% in the

forecast period

Trends

Impulse and indulgence products is expected to increase by 5% in current value terms in

2013, supported by increasing purchasing power amongst Filipino consumers. The better

performance of the Philippine economy allowed incomes to rise, especially amongst urban

dwellers. Impulse and indulgence products offer convenience and relaxation to consumers

with a faster pace of life. Being readily consumable and available, these products can be

convenient as snacks. Products such as ice cream, chocolate confectionery and cakes serve

as a treat after a long day‟s work.

Compared with 2012, when impulse and indulgence products increased by 5% in current

value terms, 2013 is expected to see a slightly better performance. This is due to the above-

expected performance of the Philippine economy and the local elections, which brought more

job opportunities. Smaller categories such as cakes, ice cream and pastries also remained

dynamic as the market expanded.

Biscuits is expected to see the strongest growth in impulse and indulgence products in 2013.

Sales of biscuits are expected to increase by 7% in current value terms, as manufacturers‟

aggressive marketing campaigns came to fruition. Leading players such as Republic Biscuit

Corp, Monde Nissin Corp and Mondelez Philippines all heavily invested in tri-media

campaigns which were aimed at generating better demand amongst school children. The

emphasis on health benefits via the products‟ nutritional content was successful in making

biscuit brands from these companies the number one choice as school snacks.

Snack bars is expected to remain the smallest and slowest growing category in impulse and

indulgence products in 2013. There are only a few of brands available, and availability

remains limited. The dominance of higher-priced imported products makes unit prices

prohibitive. Furthermore, snack bars are not commonly consumed as snacks, but as a

supplement for health-conscious and active consumers. In 2013 current value sales of these

products are expected to decline by 1%, whilst volume sales are expected to recover by 4%.

The increasing demand for lower-priced local brand NutriBar facilitated this contrasting trend

in volume and value terms.

Proximity is one of the most important considerations when consumers purchase impulse and

indulgence and products. Although modern grocery retail channels such as supermarkets and

convenience stores continue to increase their contribution, traditional outlets such as sari-sari



stores remain the key distribution channels for these products. Located in neighbourhoods,

Filipinos often buy sweet and savoury snacks, biscuits and confectionery from these

channels.

There were no significant changes in the packaging of impulse and indulgence products in

2013.

Most impulse and indulgence categories saw 2-3% price increases in 2013. These slight price

increases were due to the increasing prominence of mid-priced and upscale brands in urban

areas. Even though price is still a very important factor in the purchasing decision, middle-

income consumers, especially young professionals, are willing to pay a premium for comfort

products such as ice cream, sweet and savoury snacks, chocolate confectionery and cakes.

Competitive Landscape

As the leader in biscuits, confectionery and sweet and savoury snacks, Universal Robina

Corp accounts for the highest value share in impulse and indulgence products. The local

manufacturer is expected to account for a 22% share of value sales in 2013. The company‟s

largest brands include Jack „n‟ Jill in sweet and savoury snacks and Maxx in medicated

confectionery. Universal Robina Corp‟s thrust in creating products which suit the taste profile

and purchasing power of local consumers helped it to gain loyalty amongst consumers.

Impulse and indulgence products is dominated by domestic players. Following Universal

Robina Corp are Monde Nissin Corp and Liwayway Marketing Corp. The top three companies

in impulse and indulgence products are expected to account for a 33% share of sales in 2013,

whilst producers of artisanal offerings will account for another 7%. In 2013, it is estimated that

local brands accounted for 60% of total sales in impulse and indulgence products.

The dominance of local brands in the Philippines is largely attributable to their more

competitive pricing compared with multinationals. Impulse and indulgence products are

usually consumed as snacks in the Philippines. Filipinos often have two snack sessions, one

in the morning and one in the afternoon. Most Filipinos choose more affordable products.

Local players‟ aggressive marketing campaigns also enabled them to maintain consumers‟

loyalty and interest in their brands.

Multinational companies focus on serving categories where the presence of local players is

limited or weak, including snack bars and ice cream. Another strategy employed by foreign

companies is tapping into middle-income and more affluent consumers. Multinational

companies are able to push their brands by positioning them as better-quality, thereby

warranting the higher price. In biscuits and confectionery, Mondelez Philippines positions its

products for middle-income consumers to generate demand.

The leader Universal Robina Corp continued to beef-up its impulse snacks through the launch

of Jack „n‟ Jill Nova Vegie Good Yogurt and Onion. The newly launched brand taps into the

growing number of health-conscious consumers in the Philippines. Made solely from

vegetable ingredients (primarily peas), this new brand takes advantage of the strong health

positioning of Nova as a multigrain snack. The use of yoghurt flavours also emphasises its

health positioning, as yoghurt is perceived to be a health food in the Philippines.

Nestlé Philippines took advantage of the increasing affluence of urban Filipino consumers

through the launch of Nestlé Ice Cream Temptations Flavours of the World. Available in three

western flavours, namely Belgian Chocolate Praline, French Salted Caramel and Italian

Coffee Affogato, this new product taps into young professionals, who are very interested in

new and indulgent ice cream flavours. Nestlé Ice Cream Temptations Flavours of the World

stirred the interest of its target market through its promotional campaigns, which included the



use of ice cream trucks which provide free ice cream at business hubs, and the launch of the

Flavours of the Ice Cream Festival, which featured musical performances.

Marketing campaigns were essential in strengthening the positioning of brands in the local

market. Although tri-media advertising campaigns remained the most popular way of reaching

the mass-market, manufacturers also continued to look into newer and more innovative ways

of engaging consumers and gaining their loyalty. Chocolate confectionery brands Kit Kat and

Snickers both encouraged workers to take a break, relax and satisfy their hunger through their

“Break Movement” and “You‟re Not You When You‟re Hungry” campaigns. Although these

campaigns were highly advertised in print and on television, these campaigns were also

strongly supported by social media. Ice cream brand Selecta and filled biscuits brand Oreo

emphasise the Filipino value of family togetherness.

Prospects

Impulse and indulgence products are expected to experience a CAGR value growth of 3% in

constant terms over the forecast period. The increasing population in the country, coupled

with the expected dynamic economic growth, will provide a good environment for the growth

of impulse and indulgence products. As a result, the growth over the forecast period is

expected to outpace the CAGR growth rate experienced during the historic period which grew

by 1% CAGR in constant value.

Biscuits will remain a bright spot in impulse and indulgence products, with a constant value

CAGR of 4%. The strategy of players of positioning their brands as healthy snacks for

children, creating the perception that biscuits are more filling and healthier, could help to

sustain healthy growth in the forecast period. The wide array of innovation possibilities in

terms of flavours and packaging sizes could be used by manufacturers to expand their

consumer base.

In retail volume, snack bars is expected to experience a recovery over the forecast period at

5% CAGR. After experiencing heavy losses during the review period as a result of strong

competition from cheaper alternatives such as biscuits and confectionery, snack bars growth

is expected to normalise as consumers seek healthier alternatives. Over the forecast period, it

is expected that the base of health conscious consumers is expected to increase.

Manufacturers will cash-in on the growing affluence in the urban areas through the launch of

indulgence products. Young professionals are expected to increase their spending on

indulgence products, and will be willing to pay a premium for exciting launches and higher-

quality brands. Thus, the launch of more expensive and high-end brands in ice cream and

chocolate confectionery is expected.

Social media will be increasingly used in the marketing mix of manufacturers, especially those

which cater to teenagers and middle-aged consumers. It is projected that social networking

sites such as Facebook and Twitter will continue to be popular amongst these age groups.

Wider internet access through smartphones and tablets could facilitate more frequent usage

amongst these demographics. As such, manufacturers are expected to establish and

strengthen their presence online in order to connect directly with consumers. Products

positioned as high-end are also expected to benefit from social media buzz.

Jack „n‟ Jill Nova Vegie Good and Nestlé Temptations Flavours of the World are both

expected to see limited success in the market. Whilst Jack „n‟ Jill Nova Vegie Good‟s launch

coincided with the increasing health-consciousness in the country, its appeal will be limited to

a few consumers who are also willing to pay a higher price. The availability of other extruded

snacks brands, such as Marty‟s, which are also marketed as healthy, will be a challenge.

Nestlé Temptations Flavours of the World‟s high pricing strategy is prohibitive, and will limit

sales to only a few more affluent consumers.



Category Data

Table 5 Sales of Impulse and Indulgence Products by Category: Volume 2008-2013

tonnes 2008 2009 2010 2011 2012 2013 Confectionery 87,033.6 88,018.8 89,274.7 87,689.9 87,251.8 88,591.0 Pastries 43,649.3 43,624.1 44,203.1 44,919.6 45,692.6 46,525.9 Cakes 30,177.4 30,085.5 30,358.2 30,629.4 30,901.1 31,206.2 Biscuits 114,047.0 119,204.4 124,693.4 130,516.6 136,919.0 143,418.1 Ice Cream 42,061.2 42,755.1 43,851.7 45,770.9 47,880.6 48,817.9 Sweet and Savoury Snacks 116,604.8 121,230.0 125,971.5 131,247.7 136,541.3 141,908.0 Snack Bars 19.6 16.8 16.1 8.4 0.7 0.8 Impulse and Indulgence 433,592.8 444,934.7 458,368.7 470,782.6 485,187.2 500,467.9 Products


Table 6 Sales of Impulse and Indulgence Products by Category: Value 2008-2013

Ps million 2008 2009 2010 2011 2012 2013 Confectionery 28,018.1 28,808.9 29,676.7 29,725.4 30,054.4 30,896.5 Pastries 5,827.8 6,093.4 6,382.2 6,720.2 7,103.6 7,536.0 Cakes 8,067.5 8,302.0 8,578.2 8,896.0 9,202.5 9,490.9 Biscuits 18,891.4 20,038.5 21,355.2 22,906.4 24,735.7 26,569.2 Ice Cream 7,889.8 8,176.7 8,547.8 8,914.2 9,414.2 9,830.2 Sweet and Savoury Snacks 29,601.8 31,896.2 33,340.0 35,394.4 37,682.2 40,149.2 Snack Bars 14.8 12.6 12.2 6.6 0.9 0.9 Impulse and Indulgence 98,311.1 103,328.2 107,892.4 112,563.1 118,193.6 124,472.9 Products


Table 7 Sales of Impulse and Indulgence Products by Category: % Volume Growth 2008-2013

% volume growth 2012/13 2008-13 CAGR 2008/13 Total Confectionery 1.5 0.4 1.8 Pastries 1.8 1.3 6.6 Cakes 1.0 0.7 3.4 Biscuits 4.7 4.7 25.8 Ice Cream 2.0 3.0 16.1 Sweet and Savoury Snacks 3.9 4.0 21.7 Snack Bars 3.9 -47.8 -96.1 Impulse and Indulgence Products 3.1 2.9 15.4




Table 8 Sales of Impulse and Indulgence Products by Category: % Value Growth 2008-2013

% current value growth 2012/13 2008-13 CAGR 2008/13 Total Confectionery 2.8 2.0 10.3 Pastries 6.1 5.3 29.3 Cakes 3.1 3.3 17.6 Biscuits 7.4 7.1 40.6 Ice Cream 4.4 4.5 24.6 Sweet and Savoury Snacks 6.5 6.3 35.6 Snack Bars -0.7 -43.3 -94.1 Impulse and Indulgence Products 5.3 4.8 26.6


Table 9 NBO Company Shares of Impulse and Indulgence Products: % Value 2009-2013

% retail value rsp Company 2009 2010 2011 2012 2013 Universal Robina Corp 20.6 21.0 21.5 22.0 22.3 Monde Nissin Corp 6.3 6.6 6.8 7.0 7.2 Liwayway Marketing Corp 4.0 4.0 4.1 4.2 4.3 Unilever RFM Ice Cream 3.5 3.7 3.7 3.9 3.9 Inc Mondelez Philippines Inc - - - - 3.4 Nestlé Philippines Inc 4.0 3.5 3.4 3.4 3.3 Food Industries Inc 2.7 2.7 2.7 2.7 2.8 Tobi Marketing Inc 2.4 2.4 2.4 2.5 2.5 Republic Biscuit Corp 2.1 2.2 2.2 2.3 2.3 Columbia International 2.1 2.1 2.1 2.1 2.1 Food Products Inc JBC Corp 1.6 1.6 1.7 1.7 1.7 Delfi Foods Philippines 1.5 1.5 1.5 1.6 1.6 Inc Perfetti Van Melle 1.7 1.7 1.6 1.6 1.6 Philippines Inc GFI Enterprises Inc 1.4 1.4 1.5 1.5 1.5 SPI Corp 1.7 1.7 1.6 1.5 1.5 Regent Foods Corp 1.4 1.4 1.4 1.5 1.4 Wrigley Philippines Inc 1.6 1.6 1.4 1.3 1.2 Goldilocks Bake Shop Inc 0.9 1.0 1.0 1.1 1.1 Leslie Corp 0.9 1.0 1.0 1.0 1.1 Hershey Philippines Inc 1.2 1.1 1.0 1.0 0.9 Procter & Gamble 0.8 0.8 0.9 0.9 0.9 Philippines Inc Mars Philippines Inc 0.9 0.9 0.9 0.9 0.8 Big E Food Products 0.8 0.8 0.8 0.8 0.8 Suncrest Foods Inc 0.7 0.7 0.7 0.7 0.7 Red Ribbon Bake Shop Inc 0.6 0.7 0.7 0.7 0.7 Frito-Lay Co 0.6 0.6 0.7 0.7 0.7 San Miguel Pure Foods 0.7 0.7 0.7 0.7 0.7 Co Inc Grand Alphatech 0.6 0.6 0.6 0.6 0.6 International Corp Martinez & Co Inc, 0.6 0.6 0.6 0.6 0.5



Felicisimo Ferrero Group 0.5 0.5 0.5 0.5 0.5 Cadbury Adams 2.1 - - - - Philippines Inc First Choice Food Corp 0.5 - - - - Artisanal 6.8 6.7 6.6 6.5 6.2 Others 21.9 24.1 23.6 22.8 19.1 Total 100.0 100.0 100.0 100.0 100.0


Table 10 LBN Brand Shares of Impulse and Indulgence Products: % Value 2010-2013

% retail value rsp Brand Company 2010 2011 2012 2013 Jack 'n' Jill Universal Robina Corp 17.4 17.9 18.3 18.7 Sky Flakes Monde Nissin Corp 3.4 3.6 3.7 3.8 Oishi Liwayway Marketing Corp 3.2 3.3 3.3 3.4 Selecta Unilever RFM Ice Cream Inc 3.3 3.3 3.4 3.4 Nagaraya Food Industries Inc 2.7 2.7 2.7 2.8 Tobi Tobi Marketing Inc 2.3 2.3 2.3 2.3 Maxx Universal Robina Corp 2.4 2.3 2.2 2.2 Rebisco Republic Biscuit Corp 1.7 1.8 1.8 1.8 Happy JBC Corp 1.6 1.7 1.7 1.7 Nestlé Nestlé Philippines Inc 1.5 1.5 1.6 1.6 Growers GFI Enterprises Inc 1.4 1.5 1.5 1.5 Goldilocks Goldilocks Bake Shop Inc 1.0 1.0 1.1 1.1 Leslie's Leslie Corp 1.0 1.0 1.0 1.1 Mentos Perfetti Van Melle 1.1 1.0 1.0 1.0 Philippines Inc Goya Delfi Foods Philippines 0.9 0.9 1.0 1.0 Inc Eggnog Monde Nissin Corp 0.9 0.9 0.9 0.9 Pringles Procter & Gamble 0.8 0.9 0.9 0.9 Philippines Inc Bingo Monde Nissin Corp 0.7 0.8 0.8 0.9 Regent Regent Foods Corp 0.9 0.9 0.9 0.9 Fita Monde Nissin Corp 0.7 0.7 0.8 0.8 Lemon Square Big E Food Products 0.8 0.8 0.8 0.8 Granny Goose Universal Robina Corp 0.7 0.7 0.7 0.8 Doublemint Wrigley Philippines Inc 0.7 0.7 0.7 0.7 Red Ribbon Red Ribbon Bake Shop Inc 0.7 0.7 0.7 0.7 Oreo Mondelez Philippines Inc - - - 0.7 Magnolia San Miguel Pure Foods 0.7 0.7 0.7 0.7 Co Inc Chips Delight Grand Alphatech 0.6 0.6 0.6 0.6 International Corp Knick Knacks Delfi Foods Philippines 0.5 0.5 0.6 0.6 Inc Tempura Regent Foods Corp 0.5 0.5 0.6 0.6 La Pacita Martinez & Co Inc, 0.6 0.6 0.6 0.5 Felicisimo Oreo Kraft Foods 0.6 0.6 0.6 - (Philippines) Inc Artisanal 6.7 6.6 6.5 6.2 Others 38.0 37.1 35.9 35.4 Total 100.0 100.0 100.0 100.0




Table 11 Forecast Sales of Impulse and Indulgence Products by Category: Volume 2013-2018

tonnes 2013 2014 2015 2016 2017 2018 Confectionery 88,591.0 90,313.1 92,236.3 94,394.7 96,744.0 99,275.5 Pastries 46,525.9 47,562.9 48,660.3 49,902.3 51,247.4 52,666.5 Cakes 31,206.2 31,589.6 31,978.1 32,452.6 33,018.0 33,643.7 Biscuits 143,418.1 150,131.6 157,027.4 164,215.6 171,859.2 179,835.1 Ice Cream 48,817.9 49,814.1 50,751.1 51,904.6 53,232.8 54,693.6 Sweet and Savoury Snacks 141,908.0 146,927.4 151,719.5 157,054.8 162,843.6 169,029.2 Snack Bars 0.8 0.8 0.8 0.9 0.9 1.0 Impulse and Indulgence 500,467.9 516,339.4 532,373.6 549,925.4 568,946.0 589,144.6 Products


Table 12 Forecast Sales of Impulse and Indulgence Products by Category: Value 2013-2018

Ps million 2013 2014 2015 2016 2017 2018 Confectionery 30,896.5 31,040.5 31,319.8 31,698.9 32,162.9 32,691.1 Pastries 7,536.0 7,649.1 7,761.9 7,892.2 8,035.3 8,191.6 Cakes 9,490.9 9,590.7 9,683.7 9,823.7 9,992.7 10,185.0 Biscuits 26,569.2 27,648.7 28,752.7 29,906.2 31,143.4 32,432.6 Ice Cream 9,830.2 10,075.8 10,312.2 10,597.3 10,922.2 11,278.4 Sweet and Savoury Snacks 40,149.2 41,471.1 42,677.4 44,043.8 45,549.0 47,128.8 Snack Bars 0.9 0.8 0.8 0.8 0.8 0.8 Impulse and Indulgence 124,472.9 127,476.8 130,508.6 133,962.9 137,806.3 141,908.3 Products


Table 13 Forecast Sales of Impulse and Indulgence Products by Category: % Volume Growth 2013-2018

% volume growth 2017/18 2013-18 CAGR 2013/18 Total Confectionery 2.6 2.3 12.1 Pastries 2.8 2.5 13.2 Cakes 1.9 1.5 7.8 Biscuits 4.6 4.6 25.4 Ice Cream 2.7 2.3 12.0 Sweet and Savoury Snacks 3.8 3.6 19.1 Snack Bars 5.0 4.7 25.9 Impulse and Indulgence Products 3.6 3.3 17.7




Table 14 Forecast Sales of Impulse and Indulgence Products by Category: % Value Growth 2013-2018

% constant value growth 2013-18 CAGR 2013/18 TOTAL Confectionery 1.1 5.8 Pastries 1.7 8.7 Cakes 1.4 7.3 Biscuits 4.1 22.1 Ice Cream 2.8 14.7 Sweet and Savoury Snacks 3.3 17.4 Snack Bars -2.4 -11.2 Impulse and Indulgence Products 2.7 14.0


MEAL SOLUTIONS – KEY TRENDS AND DEVELOPMENTS

Headlines

Meal solutions sees strong 6% current value growth in 2013, with sales reaching Ps115.0

billion

Increasing demand for convenience maintains growth in meal solutions

Ready meals surpasses all other categories, with current value growth of 7%

The average unit price of meal solutions increases by 3% in 2013

The Purefoods-Hormel Co leads meal solutions with a value share of 22% in 2013

Meal solutions is expected to see a constant value CAGR of 3% over the forecast period

Trends

2013 saw rapid economic growth in the Philippines, which brought about stronger consumer

confidence. This economic trend was helpful in sustaining the moderate growth in meal

solutions in 2013. Meal solutions is expected to increase by 6% in current value terms, which

is on a par with the 7% growth in 2012. By 2013, it is estimated that sales will reach Ps115.0

billion.

Faster-paced lifestyles, especially amongst urban consumers, stimulated demand for

convenience products such as ready meals, frozen and chilled processed food and

canned/preserved food. Meal solutions offer easy and convenient alternatives for college

students and workers. The growing number of flavours available in the market offers a wide

choice to consumers, whilst the availability of sachet and pouch packaging makes these

products affordable to all income levels.

Ready meals is expected to see the fastest growth in meal solutions in 2013. Contributing

sales of Ps3.4 billion to the overall sales of Ps115.0 billion in meal solutions, ready meals is

still at a dynamic stage, with huge room for growth. In 2013, manufacturers continued to beef-

up their portfolios, and offered new flavours and dishes to consumers. These new alternatives

stimulated consumers‟ interest and added to the available choices.



As the biggest category, sauces, dressings and condiments is expected to see the slowest

growth in sales, increasing by 6% in current value terms. This still moderate performance

reflects Filipino households‟ growing use of readily available products in home meal

preparations. During recent years manufacturers were keen to launch products which allowed

consumers to prepare a wider range of dishes at home more conveniently. The emphasis on

cost and time efficiency in using sauces, dressings and condiments stimulated demand from

both rural and urban dwellers.

The distribution of meal solutions is largely undertaken by supermarkets and traditional

channels such as sari-sari stores. The share of supermarkets is on an upwards trend, as

chained players such as SaveMore and Puregold Jr open up more neighbourhood

supermarkets in Metro Manila and in key cities nationwide. Other modern grocery channels,

such as hypermarkets and convenience stores, are also becoming more significant channels

for sales of meal solutions, because of the growth in outlet numbers and proximity to high-

income locations.

The average unit price of meal solutions is expected to increase by 3% in 2013. This price

increase was mainly due to the increase in tin prices in the global market, which also pushed

up the cost of canned/preserved food. Price is a very important factor in the purchasing

decisions of Filipino consumers. Filipinos remain value-conscious, value being attributed to

the affordability of a product. As such, manufacturers continue to find ways to bring down the

costs and prices of their products. Stand-up pouch packaging gained popularity in recent

years. Brands such as Mega Sardines, Fresca Tuna, Del Monte Pineapple, Del Monte Fruit

Snacks and Hunt‟s Pork „n Beans are all available in pouch packaging.


The Purefoods-Hormel Co is the largest manufacturer of meal solutions in the Philippines.

The company‟s flagship brand Purefoods is strong in canned/preserved meat and meat

products, chilled processed meat, frozen processed red meat and frozen processed poultry.

In 2013 the company is expected to account for a 22% share of value sales in meal solutions.

The leadership of the company is attributable to the strong loyalty of consumers to its

products, which is sustained with exciting product launches and aggressive marketing

campaigns. Despite the company‟s higher pricing strategy, its products are perceived as

higher quality than other brands.

Domestic players lead meal solutions, with players such as CDO Foodsphere and Century

Canning Corp following the leader. It is estimated that local companies accounted for a 70%

share of overall sales in meal solutions in 2013. Whilst multinationals dominate in smaller

categories such as sauces, dressings and condiments, soup and dessert mixes, local players

excel in categories in which logistics limit the operation of multinationals. These categories

include canned/preserved food, chilled processed food and frozen processed food.

The success of a product in meal solutions is often highly dependent on the marketing

campaign launched to support the introduction and growth of the brand. New brands in the

market often benefit from high-profile endorsements which generate a buzz and curiosity from

consumers. Innovation is a very important part of players‟ strategies, as consumers are

increasingly demanding variety. Filipinos are brand-conscious and are loyal to their favourite

brands. However, they can be encouraged to try other brands through promotional pricing and

even advertising schemes.

During 2013, manufacturers continued to invest in advertising campaigns to increase

consumers‟ awareness of new product launches. CDO Foodsphere launched tri-media

campaigns to strengthen the position of its CDO Idol Cheesedog brand and its newly

launched CDO Karne Norte Afritada and Kaldereta. Meanwhile, the leader The Purefoods-



Hormel Co remained aggressive in differentiating its Purefoods Tender Juicy Hotdog brand

from other lower-priced alternatives in the market. The company continued its long-running

“Kids Can Tell” campaign, which emphasises the well-loved taste of its product.

One of the most exciting launches in meal solutions was Maggi Magic Meals. Appealing to

busy mothers, workers and college students, Maggi Magic Meals is an innovative product that

cuts cooking time by allowing the consumer to cook their favourite ulam together with rice.

Maggi Magic Meals is a powdered recipe mix with a plastic bag, into which the user can put

meat, vegetables and the recipe mix. The plastic bag containing the ingredients is placed in

the rice cooker, and cooks whilst the rice cooks.

Hunt-Universal Robina Corp tried to bring excitement to the market through the launch of its

Hunt‟s Chili Beef and Beans in November 2012. This new product is available in a stand-up

pouch, allowing it to be priced at Ps13.80 per 100g. The new packaging boosts of ease in

opening and reheating, making it suitable for people on-the-go.

Standard products dominate meal solutions. Filipinos‟ loyalty to standard brands cements the

dominance of these products. There are a number of imported premium brands available,

although their shares remain very small. Economy brands are gaining prominence, with the

popularity of smaller single-serve packaging and stand-up pouches.

Prospects

Meal solutions will benefit from the upwards trend in incomes, as the Philippine economy is

expected to enter a rapid growth phase in the medium term. The creation of more jobs in the

country does not only lead to higher disposable incomes, but also increases demand for

convenient products. Filipino consumers‟ confidence will also remain strong amidst these

developments, thereby furthering the demand for meal solutions.

Meal solutions is expected to see a constant value CAGR of 3% over the forecast period.

Growth is expected to remain stable due to the better economic prospects expected in the

future. Growth for meal solutions will be driven by the continued demand for convenience as

more consumers have less time to cook and prepare meals.

Rising health-consciousness in the Philippines threatens to limit purchases amongst middle-

income consumers. It should be noted that educated consumers are becoming increasingly

wary of consuming processed products, especially those which are laden with preservatives.

However, the number of these buyers remains small compared with the overall consumer

base. Furthermore, the availability of brands which are marketed as healthy alternatives is

small. Better for you products and fortified products are perceived as generally healthy.

Manufacturers are expected to focus on expanding their product lines to offer more flavours.

Consumers‟ demand for variety will be met through the availability of products which feature

Filipino dishes, although there is the opportunity of launching new Asian flavours, recognising

the popularity of Japanese and Korean cuisine in the Filipino market.

Tri-media campaigns will remain the most popular for advertisements, although

manufacturers are expected to increasingly tap into social media and social networking sites

to advertise their products. This is especially true as meal solutions are geared towards busy

individuals who typically frequently access and update their Facebook and Twitter accounts.

The use of Facebook fan pages and Twitter allows for direct communication between

consumers and manufacturers, and could allow the establishment of a rapport between

brands and buyers.

Ready meals is expected to continue to see the fastest growth in meal solutions, with a

constant value CAGR of 5% over the next five years. Consumers are expected to be

increasingly interested in ready meals brands which contain both meat and vegetables.



Stand-up pouch packaging could also increase the consumer base of ready meals, to include

lower-income consumers.

The average unit price of meal solutions might decline in the medium term, due to the

popularity of pouch packaging. The increasing popularity of economy brands, especially in

canned/preserved food, frozen processed food and chilled processed food, is also expected

to bring unit prices down in the next five years.

Category Data

Table 15 Sales of Meal Solutions by Category: Volume 2008-2013

'000 tonnes 2008 2009 2010 2011 2012 2013 Ready Meals 11.2 11.6 12.0 12.6 13.1 13.8 Canned/Preserved Food 212.9 223.0 234.5 245.6 256.6 267.4 Frozen Processed Food 99.1 102.1 105.7 111.9 116.1 119.9 Dessert Mixes 0.3 0.4 0.4 0.4 0.4 0.4 Dinner Mixes - - - - - - Chilled Processed Food 80.0 82.8 86.5 89.8 92.9 96.0 Sauces, Dressings and 178.9 187.7 195.8 203.7 210.7 217.3 Condiments Soup 3.8 3.9 4.0 4.2 4.3 4.5 Meal Solutions 586.2 611.5 639.0 668.1 694.2 719.2


Table 16 Sales of Meal Solutions by Category: Value 2008-2013

Ps million 2008 2009 2010 2011 2012 2013 Ready Meals 2,438.2 2,570.0 2,752.9 2,960.6 3,204.4 3,440.9 Canned/Preserved Food 25,078.2 26,874.1 28,807.3 30,976.9 33,251.3 35,483.7 Frozen Processed Food 22,943.7 24,450.9 25,920.4 28,148.2 30,208.5 32,005.3 Dessert Mixes 117.2 122.4 128.6 135.6 142.4 149.6 Dinner Mixes - - - - - - Chilled Processed Food 13,785.4 14,336.8 15,053.6 15,881.6 16,834.5 17,853.1 Sauces, Dressings and 19,062.9 20,158.6 21,239.5 22,425.2 23,702.5 25,001.7 Condiments Soup 1,123.0 1,220.3 1,317.1 1,423.7 1,540.4 1,635.5 Meal Solutions 84,548.4 89,733.1 95,219.4 101,951.8 108,884.0 115,569.8


Table 17 Sales of Meal Solutions by Category: % Volume Growth 2008-2013

% volume growth 2012/13 2008-13 CAGR 2008/13 Total Ready Meals 4.6 4.2 22.7 Canned/Preserved Food 4.2 4.7 25.6 Frozen Processed Food 3.3 3.9 21.0 Dessert Mixes 3.4 3.0 15.8



Dinner Mixes - - - Chilled Processed Food 3.3 3.7 20.0 Sauces, Dressings and Condiments 3.1 4.0 21.5 Soup 3.5 3.3 17.4 Meal Solutions 3.6 4.2 22.7


Table 18 Sales of Meal Solutions by Category: % Value Growth 2008-2013

% current value growth 2012/13 2008-13 CAGR 2008/13 Total Ready Meals 7.4 7.1 41.1 Canned/Preserved Food 6.7 7.2 41.5 Frozen Processed Food 5.9 6.9 39.5 Dessert Mixes 5.0 5.0 27.7 Dinner Mixes - - - Chilled Processed Food 6.1 5.3 29.5 Sauces, Dressings and Condiments 5.5 5.6 31.2 Soup 6.2 7.8 45.6 Meal Solutions 6.1 6.5 36.7


Table 19 NBO Company Shares of Meal Solutions: % Value 2009-2013

% retail value rsp Company 2009 2010 2011 2012 2013 Purefoods-Hormel Co 22.3 21.7 21.9 22.2 22.3 Inc, The CDO Foodsphere Inc 6.3 6.8 7.1 7.3 7.4 Century Canning Corp 6.8 7.0 7.0 7.0 7.0 Unilever Foods 5.1 5.2 5.2 5.2 5.2 Philippines (CMC) Del Monte Philippines Inc 3.6 3.7 3.8 3.8 3.8 Ajinomoto Philippines 4.3 4.2 4.0 3.9 3.8 Corp Pacific Meat Co Inc 3.7 3.8 3.9 3.7 3.6 A Tung Chingco Trading 2.4 2.4 2.4 2.4 2.5 SM Retail Inc 2.2 2.3 2.3 2.3 2.3 RFM Corp 1.9 1.9 1.9 2.0 2.0 New Señorito Frozen 1.6 1.6 1.7 1.7 1.8 Food Co Maunlad Canning Corp 1.7 1.7 1.6 1.6 1.6 Dole Philippines Inc 1.6 1.6 1.6 1.6 1.6 Campbell Soup Co 1.5 1.5 1.5 1.5 1.5 Kraft Foods 1.3 1.3 1.3 1.3 1.2 (Philippines) Inc Superb Catch Inc 1.0 1.1 1.1 1.1 1.2 King Sue Ham & Sausage 1.4 1.2 1.2 1.2 1.1 Co Inc Southeast Asia Food Inc 1.0 1.0 1.0 1.0 1.0 UFC Philippines Inc 0.9 0.9 1.0 1.0 1.0 Silver Swan Mfg Corp Inc 0.9 0.9 0.9 0.9 1.0 Sara Lee Corp 1.0 1.0 1.0 0.9 0.9



Bambi Foods Mfg Corp 0.8 0.9 0.9 0.9 0.8 Del Monte Foods Co 0.7 0.8 0.8 0.8 0.8 Alson's Aqua 0.7 0.7 0.7 0.8 0.8 Technologies Inc HDR Foods Corp 0.7 0.7 0.7 0.7 0.7 Bagumbuhay Industrial 0.6 0.7 0.7 0.7 0.7 Corp Marigold Commodities Corp 0.5 0.6 0.6 0.6 0.6 B2 Maling Foods Corp 0.7 0.6 0.6 0.6 0.6 Nestlé Philippines Inc 0.7 0.7 0.6 0.5 0.5 Maple Leaf Food Royal 0.5 0.5 0.5 0.5 0.5 Greenland International Others 21.5 21.2 20.8 20.5 20.1 Total 100.0 100.0 100.0 100.0 100.0


Table 20 LBN Brand Shares of Meal Solutions: % Value 2010-2013

% retail value rsp Brand Company 2010 2011 2012 2013 Purefoods Purefoods-Hormel Co 21.5 21.7 22.0 22.2 Inc, The CDO CDO Foodsphere Inc 6.8 7.1 7.3 7.4 555 Century Canning Corp 3.8 3.8 3.8 3.8 Argentina Pacific Meat Co Inc 3.8 3.9 3.7 3.6 Ajinomoto Ajinomoto Philippines Corp 3.9 3.8 3.6 3.5 Century Century Canning Corp 3.2 3.2 3.2 3.2 Del Monte Del Monte Philippines Inc 3.1 3.2 3.2 3.2 Knorr Unilever Foods 2.8 2.8 2.8 2.8 Philippines (CMC) Ligo A Tung Chingco Trading 2.4 2.4 2.4 2.5 SM Bonus SM Retail Inc 2.3 2.3 2.3 2.3 Swift RFM Corp 1.8 1.8 1.9 1.9 New Señorito New Señorito Frozen 1.6 1.7 1.7 1.8 Food Co Youngstown Maunlad Canning Corp 1.7 1.6 1.6 1.6 Lady's Choice Unilever Foods 1.6 1.6 1.6 1.6 Philippines (CMC) Campbell's Campbell Soup Co 1.4 1.4 1.4 1.3 Seaking Superb Catch Inc 1.1 1.1 1.1 1.2 King Sue King Sue Ham & Sausage 1.2 1.2 1.2 1.1 Co Inc Dole Dole Philippines Inc 1.2 1.1 1.1 1.1 Sara Lee Sara Lee Corp 1.0 1.0 0.9 0.9 Silver Swan Silver Swan Mfg Corp Inc 0.9 0.9 0.9 0.9 Datu Puti Southeast Asia Food Inc 0.9 0.9 0.9 0.9 Kraft Kraft Foods 0.8 0.8 0.8 0.9 (Philippines) Inc Bambi Bambi Foods Mfg Corp 0.9 0.9 0.9 0.8 Sarangani Bay Alson's Aqua 0.7 0.7 0.8 0.8 Technologies Inc Del Monte Del Monte Foods Co 0.8 0.8 0.8 0.8 Mother's Best HDR Foods Corp 0.7 0.7 0.7 0.7 Master Bagumbuhay Industrial Corp 0.7 0.7 0.7 0.7 Bestfoods Unilever Foods 0.7 0.7 0.7 0.7 Philippines (CMC) Mama Sita Marigold Commodities Corp 0.6 0.6 0.6 0.6



Maling B2 Maling Foods Corp 0.6 0.6 0.6 0.6 Others 25.6 25.2 24.8 24.4 Total 100.0 100.0 100.0 100.0


Table 21 Forecast Sales of Meal Solutions by Category: Volume 2013-2018

'000 tonnes 2013 2014 2015 2016 2017 2018 Ready Meals 13.8 14.4 15.2 15.9 16.8 17.6 Canned/Preserved Food 267.4 277.7 287.1 296.8 307.4 318.4 Frozen Processed Food 119.9 123.2 126.0 129.0 132.2 135.5 Dessert Mixes 0.4 0.4 0.4 0.4 0.5 0.5 Dinner Mixes - - - - - - Chilled Processed Food 96.0 99.0 101.9 105.0 108.2 111.6 Sauces, Dressings and 217.3 222.9 227.8 232.9 238.1 243.2 Condiments Soup 4.5 4.6 4.8 5.0 5.2 5.4 Meal Solutions 719.2 742.3 763.2 785.0 808.2 832.2


Table 22 Forecast Sales of Meal Solutions by Category: Value 2013-2018

Ps million 2013 2014 2015 2016 2017 2018 Ready Meals 3,440.9 3,598.3 3,763.6 3,946.4 4,147.4 4,361.0 Canned/Preserved Food 35,483.7 36,691.9 37,778.1 38,914.6 40,139.6 41,434.5 Frozen Processed Food 32,005.3 32,866.1 33,622.9 34,464.9 35,362.4 36,316.2 Dessert Mixes 149.6 152.7 156.1 159.7 163.5 167.6 Dinner Mixes - - - - - - Chilled Processed Food 17,853.1 18,370.9 18,848.5 19,357.4 19,899.4 20,456.6 Sauces, Dressings and 25,001.7 25,486.9 25,902.4 26,331.0 26,767.0 27,204.6 Condiments Soup 1,635.5 1,692.8 1,747.4 1,800.7 1,860.0 1,920.6 Meal Solutions 115,569.8 118,859.6 121,819.0 124,974.7 128,339.2 131,861.1


Table 23 Forecast Sales of Meal Solutions by Category: % Volume Growth 2013-2018

% volume growth 2017/18 2013-18 CAGR 2013/18 Total Ready Meals 5.2 5.1 28.1 Canned/Preserved Food 3.6 3.5 19.1 Frozen Processed Food 2.5 2.5 13.1 Dessert Mixes 3.9 3.7 19.9 Dinner Mixes - - - Chilled Processed Food 3.1 3.1 16.3 Sauces, Dressings and Condiments 2.2 2.3 12.0 Soup 3.8 3.8 20.6



Meal Solutions 3.0 3.0 15.7


Table 24 Forecast Sales of Meal Solutions by Category: % Value Growth 2013-2018

% constant value growth 2013-18 CAGR 2013/18 TOTAL Ready Meals 4.9 26.7 Canned/Preserved Food 3.1 16.8 Frozen Processed Food 2.6 13.5 Dessert Mixes 2.3 12.0 Dinner Mixes - - Chilled Processed Food 2.8 14.6 Sauces, Dressings and Condiments 1.7 8.8 Soup 3.3 17.4 Meal Solutions 2.7 14.1


NUTRITION/STAPLES – KEY TRENDS AND DEVELOPMENTS

Headlines

Nutrition/staples sees 5% current value growth to reach Ps225.0 billion in 2013

Health-consciousness in the Philippines influences new product launches

Packaged/industrial bread sees the fastest growth in 2013, with a 10% current value increase

The average unit price in nutrition/staples sees a minimal increase in 2013

Nestlé Philippines leads nutrition/staples with a value share of 18% in 2013

Nutrition/staples is expected to see a constant value CAGR of 3% in the forecast period

Trends

Nutrition/staples benefited from population growth and the good economic performance of the

Philippines in 2013. It is expected to see growth of 5% in current value terms, which is on a

par with the 5% growth seen in 2012. Filipino consumers tend to improve their consumption of

nutrition/staples as their incomes improve. The demand for these products remains largely

contributed by middle-income consumers who buy from supermarkets. It should be noted that

products such as rice, oils and fats, plain noodles and pasta are often sold loose in wet

markets.

Middle-income Filipino consumers are becoming more health-conscious. There is an

emerging consumer segment interested in purchasing and consuming products which are

positioned as healthier alternatives. This health-consciousness led to the launch of better for

you and fortified/functional products. Another effect was the increasing interest in products

such as olive oil, brown rice, whole wheat bread and fresh/pasteurised milk, which are all

marketed as being healthier than their counterparts.

Packaged/industrial bread is expected to surpass all other categories in nutrition/staples in

2013, with sales jumping by 10%. This performance was buoyed by the faster pace of life

amongst consumers, which strengthened the demand for convenient and easy to prepare



products. It should be noted that Filipinos are mainly rice eaters, but many urban dwellers are

choosing to eat bread at meal times because of its ease of preparation. The marketing

campaign by the leader in packaged/industrial bread, Gardenia, was also very effective in

stimulating demand for these products.

Dairy is expected to see the slowest growth in 2013, with a current value increase of 3%.

Dairy is already at a mature stage, although some categories, such as flavoured milk drinks

and yoghurt, are still seeing rapid growth. The largest category in dairy, powder milk, was also

adversely affected by the increase in age bands for some toddler powder baby milk brands.

The availability of baby food products which cater to the specific needs of different age groups

led to strong competition with powder milk brands for children.

Supermarkets is the main distribution channel for nutrition/staples in the Philippines. Most

middle-income consumers shop in supermarkets, where a wide array of brands and products

is available. Traditional retailers such as sari-sari stores and health and beauty retailers also

account for sizeable shares, and cater to mostly rural dwellers. In 2013 the share of modern

grocery retailers is expected to continue to rise, as chained brands expanded their outlet

networks to cover more developing cities and municipalities nationwide.

The average unit price in nutrition/staples is expected to see a minimal increase in 2013.

Manufacturers limited price increases in order to maintain robust demand.

Smaller packaging is being launched in order to encourage more frequent consumption of

products. Processed spreadable cheese brand Chiz Whiz launched its Ps20 squeezable

pack, which stimulated demand from middle- and lower-income consumers. Meanwhile, pasta

brand Del Monte introduced its single-serve merienda pack with pasta sauce, encouraging

consumers to prepare pasta as a snack for their children.


Nestlé Philippines Inc, the local arm of Nestlé SA, is the largest manufacturer of

nutrition/staples in the Philippines. The company dominates key categories such as dairy and

baby food. In 2013 Nestlé Philippines‟s share is expected to reach 18%. The company

continued to capitalise on strong consumer loyalty to its brands, brought about by its long-

standing presence in the country. The company‟s health and wellness campaigns enabled it

to position itself as an authority in nutrition.

Multinational and local players have an equal footing in nutrition/staples. Whilst multinational

brands lead in dairy, baby food, breakfast cereals, meal replacement and spreads, domestic

companies take the lion‟s share in oils and fats, rice, pasta and noodles. It should be noted

that multinationals are stronger in terms of research into intensive nutrition products, whilst

local players lead in staples.

Following Nestlé Philippines is local player Alaska Milk Corp, which is expected to see a

share of 8% in 2013, solely derived from dairy. Alaska dominates condensed/evaporated milk

and is strong in powder milk through its wide array of well-loved brands. Meanwhile, the third

largest player, San Pablo Manufacturing Corp, generates all its sales from oils and fats, and is

the undisputed leader in vegetable and seed oil. Other important players include Mead

Johnson Philippines, which has a significant share in baby food, and Monde Nissin Corp, the

leader in noodles.

Despite increasing incomes in the Philippines, Filipino consumers remain generally price-

conscious, and opt for value for money. Smaller packaging has successfully made products

more affordable to lower- income consumers, as these smaller products enable brands to be

distributed in traditional retailers such as sari-sari stores. During recent years smaller

packaging allowed manufacturers to widen their consumer base and deepen their penetration.



Another key success factor in nutrition/staples is intensive marketing campaigns which inform

consumers about product benefits. Investment in tri-media campaigns, especially those

featuring high-profile celebrities, is essential, especially in categories such as dairy, baby food

and pasta.

In 2013 Nestlé Philippines continued to widen its dairy product portfolio with brands

specifically geared for adults. Milo R2 was its newest brand, which boasts of nutrients that re-

energise and refuel consumers even after a long day‟s work. Milo R2 claims to give

consumers all the energy that they need to accomplish work-related tasks, whilst giving them

enough of a boost to tackle physical activities such as sports. This new brand capitalises on

the positioning of Milo as energy-giving.

In a bid to compete head-on with the leading brand Lucky Me, Universal Robina Corp

launched its Pancit ni Mang Juan brand in instant noodles. This new product features flavours

of well-loved Filipino dishes such as adobo and sweet and spicy barbecue.

Advertising campaigns are used by manufacturers to increase consumers‟ awareness of new

brands and strengthen brand positioning. Nestlé Philippines continues to leverage its strong

financial muscle to finance high-profile advertising campaigns which feature influential

celebrities. The company continues to promote more frequent consumption of milk in the

Philippines by informing consumers about their calcium needs. Meanwhile, Alaska Milk Corp

eagerly shared new uses for its evaporated/condensed milk, whilst encouraging

entrepreneurship amongst consumers. Gardenia Philippines took a step further and visited

business hubs to conduct free medical check-ups and consultations in order to strengthen the

positioning of Gardenia as a healthy product.

Prospects

Growth in nutrition/staples will be supported by an increase in the Philippine population and a

dynamic economic performance in the forecast period. It should be noted that the

consumption of nutrition/staples is dependent on income and population level. The positive

trends in these macroeconomic factors are expected to create growth opportunities for

nutrition/staples in the forecast period.

Nutrition/staples is expected to see a constant value CAGR of 3% in the forecast period.

Growth is expected to come from middle- and lower-income consumers, who will be able to

afford to buy more such products. Amongst lower- and middle-income consumers, the

consumption of nutrition/staples remains stable as these are products seen as daily

necessities. With levels of income improving, these consumer groups can now afford to buy

more of these products.

Pasta is expected to be the brightest spot in nutrition/staples, with a projected constant value

CAGR of 6%. The demand for pasta will be driven by more frequent consumption amongst

Filipino consumers. Aside from being a celebration food, manufacturers will continue to

market this product as a daily snack and a convenient baon for children. The availability of

smaller packaging in pasta and pasta sauce could help to make consumption more frequent

and more affordable for consumers.

Despite the overall slowdown in nutrition/staples, manufacturers will be looking at high-

potential niches in order to boost sales. Another strategy by manufacturers will be to

encourage better consumption from lower-income consumers by the introduction of smaller

packaging. Smaller packaging does not only make products more affordable, but enables

players to distribute their products in traditional grocery retailers such as sari-sari stores. On

the other hand, manufacturers could bank on the health and wellness trend in order to tap into

the middle-income consumer group. Fortification of products with vitamins, minerals and fibre,

positioning products as healthy alternatives and the introduction of better for you variants are



all expected to appeal to middle-income consumers who are pursuing healthier and more

active lifestyles.

Pancit ni Mang Juan‟s higher pricing strategy could discourage demand from the mass-

market. Although Filipino flavours appeal to the general market, more adventurous consumers

are gravitating towards Japanese and Korean flavours, which were very successful recently.

Thus, the success of the brand is expected to be limited.

The failure of Nestlé Philippines‟s Milo for Adults in the past shows that Filipino adults might

not be ready for another flavoured milk drink brand, limiting the performance of Milo R2. The

product could appeal to a few consumers, as its positioning as a healthy drink for workers

who are also engaged in sport sits well with the increasingly active lifestyles amongst people

in urban areas. However, its price is still high compared with other products, such as 3-in-1

coffee, which is popular amongst consumers.

Category Data

Table 25 Sales of Nutrition/Staples by Category: Volume 2008-2013

'000 tonnes 2008 2009 2010 2011 2012 2013 Bread 131.0 130.6 132.0 135.6 139.5 144.1 Breakfast Cereals 12.8 13.2 13.6 14.1 14.6 15.2 Dairy 336.7 339.4 349.4 356.4 364.3 369.2 Meal Replacement 1.1 1.2 1.3 1.3 1.4 1.4 Oils and Fats 449.1 467.3 486.5 506.3 525.0 545.0 Baby Food 53.6 53.3 53.5 53.6 54.0 54.5 Spreads 14.5 14.3 14.4 13.6 12.7 12.7 Pasta 29.4 31.7 34.6 35.6 37.8 39.7 Noodles 164.9 168.7 178.4 189.4 200.1 210.6 Rice 89.3 90.2 91.5 93.4 95.7 98.4 Nutrition/Staples 1,282.2 1,309.8 1,355.1 1,399.3 1,445.0 1,490.9


Table 26 Sales of Nutrition/Staples by Category: Value 2008-2013

Ps million 2008 2009 2010 2011 2012 2013 Bread 13,272.7 13,908.3 14,649.2 15,566.6 16,618.8 17,774.8 Breakfast Cereals 3,072.7 3,237.1 3,393.3 3,585.3 3,810.6 4,056.7 Dairy 57,325.1 60,485.6 67,077.9 69,553.1 72,080.9 74,054.6 Meal Replacement 1,431.6 1,535.0 1,800.4 1,937.8 2,054.6 2,160.2 Oils and Fats 36,987.2 39,536.2 41,952.2 44,996.4 48,032.6 50,854.6 Baby Food 29,564.2 30,459.7 31,648.5 32,287.4 32,988.1 34,276.5 Spreads 3,628.4 3,667.1 3,727.3 3,671.0 3,598.2 3,714.2 Pasta 2,140.9 2,408.5 2,805.9 2,946.2 3,285.0 3,547.8 Noodles 18,488.2 19,299.8 20,567.6 22,061.6 23,602.4 25,190.4 Rice 3,910.8 4,047.7 4,169.2 4,398.5 4,662.4 4,920.5 Nutrition/Staples 169,821.8 178,585.0 191,791.4 201,003.8 210,733.6 220,550.3




Table 27 Sales of Nutrition/Staples by Category: % Volume Growth 2008-2013

% volume growth 2012/13 2008-13 CAGR 2008/13 Total Bread 3.3 1.9 10.0 Breakfast Cereals 3.8 3.5 18.6 Dairy 1.3 1.9 9.7 Meal Replacement 2.7 5.1 28.4 Oils and Fats 3.8 3.9 21.4 Baby Food 1.1 0.4 1.9 Spreads 0.6 -2.5 -12.1 Pasta 5.0 6.2 35.1 Noodles 5.2 5.0 27.7 Rice 2.8 2.0 10.2 Nutrition/Staples 3.2 3.1 16.3


Table 28 Sales of Nutrition/Staples by Category: % Value Growth 2008-2013

% current value growth 2012/13 2008-13 CAGR 2008/13 Total Bread 7.0 6.0 33.9 Breakfast Cereals 6.5 5.7 32.0 Dairy 2.7 5.3 29.2 Meal Replacement 5.1 8.6 50.9 Oils and Fats 5.9 6.6 37.5 Baby Food 3.9 3.0 15.9 Spreads 3.2 0.5 2.4 Pasta 8.0 10.6 65.7 Noodles 6.7 6.4 36.3 Rice 5.5 4.7 25.8 Nutrition/Staples 4.7 5.4 29.9


Table 29 NBO Company Shares of Nutrition/Staples: % Value 2009-2013

% retail value rsp Company 2009 2010 2011 2012 2013 Nestlé Philippines Inc 18.6 18.7 18.7 18.5 18.2 Alaska Milk Corp 7.2 8.0 7.8 7.7 7.6 San Pablo Mfg Corp 6.7 6.7 6.9 7.1 7.2 Mead Johnson 7.6 7.4 7.2 7.1 7.1 Philippines Inc Monde Nissin Corp 6.2 6.3 6.5 6.7 6.8 International Oil Factory 6.0 5.8 5.8 5.9 6.0 San Miguel Pure Foods 4.5 4.5 4.6 4.6 4.5 Co Inc Wyeth Philippines Inc 3.7 3.5 3.5 3.5 3.4 Kraft Foods 3.0 3.0 3.0 2.9 2.9 (Philippines) Inc Fonterra Brands (Phils) 2.5 2.7 2.7 2.7 2.7 Inc



Universal Robina Corp 1.9 1.9 1.9 2.1 2.2 Yakult Philippines Inc 2.0 1.9 1.9 2.1 2.1 Gardenia Philippines Inc 1.4 1.4 1.6 1.7 1.8 Supervalue Inc 1.4 1.4 1.4 1.5 1.6 Abbott Laboratories 1.3 1.3 1.3 1.3 1.3 (Phils) Inc UFC Philippines Inc 1.1 1.1 1.1 1.1 1.1 Goldilocks Bake Shop Inc 0.8 0.8 0.8 0.9 0.9 Unilever Foods 1.0 1.0 0.8 0.7 0.7 Philippines (CMC) RFM Corp 0.5 0.6 0.6 0.6 0.7 SM Retail Inc 0.6 0.6 0.6 0.6 0.7 Agana Circle Enterprises 0.6 0.6 0.6 0.6 0.7 Nissin-Universal Robina 0.6 0.6 0.6 0.6 0.6 Corp MLM Foods Inc 0.6 0.6 0.6 0.6 0.6 Quaker Oats Asia Inc 0.6 0.6 0.6 0.6 0.6 Malabon Soap & Oil 0.5 0.5 0.5 0.5 0.5 Industrial Co Inc Poms Venture Corp 0.3 0.3 0.4 0.4 0.4 New Zealand Creamery Inc 0.4 0.4 0.4 0.3 0.3 AD Gothong Mfg Corp 0.4 0.3 0.3 0.3 0.3 AB Food & Beverages 0.4 0.3 0.3 0.3 0.3 Philippines Inc Bongrain SA 0.2 0.2 0.2 0.2 0.2 Royal Friesland Foods NV 0.6 0.5 0.3 0.1 - Artisanal 4.2 4.1 4.0 4.0 4.0 Others 12.6 12.5 12.5 12.2 12.2 Total 100.0 100.0 100.0 100.0 100.0


Table 30 LBN Brand Shares of Nutrition/Staples: % Value 2010-2013

% retail value rsp Brand Company 2010 2011 2012 2013 Minola San Pablo Mfg Corp 6.7 6.9 7.1 7.2 Lucky Me Monde Nissin Corp 6.3 6.5 6.7 6.8 Alaska Alaska Milk Corp 7.2 7.0 6.7 6.6 Baguio International Oil Factory 5.8 5.8 5.9 6.0 Bear Brand Nestlé Philippines Inc 5.6 5.7 5.7 5.6 Milo Nestlé Philippines Inc 3.9 3.9 3.8 3.7 Lactum Mead Johnson 3.6 3.5 3.5 3.5 Philippines Inc Nido Nestlé Philippines Inc 2.4 2.4 2.5 2.5 Magnolia San Miguel Pure Foods 2.2 2.3 2.2 2.2 Co Inc Payless Universal Robina Corp 1.8 1.8 2.0 2.1 Yakult Yakult Philippines Inc 1.9 1.9 2.1 2.1 Anchor Fonterra Brands (Phils) 1.8 1.8 1.8 1.8 Inc Gardenia Gardenia Philippines Inc 1.4 1.6 1.7 1.8 Star San Miguel Pure Foods 1.6 1.7 1.7 1.7 Co Inc Kraft Kraft Foods 1.7 1.7 1.7 1.7 (Philippines) Inc SM Bonus Supervalue Inc 1.4 1.4 1.5 1.6 Enfalac Mead Johnson 1.4 1.4 1.4 1.4



Philippines Inc Nestlé Nestlé Philippines Inc 1.1 1.1 1.2 1.2 Nan Nestlé Philippines Inc 1.1 1.1 1.1 1.1 UFC UFC Philippines Inc 1.1 1.1 1.1 1.1 Promil Wyeth Philippines Inc 1.0 1.0 1.0 1.0 Nestogen Nestlé Philippines Inc 1.0 1.0 1.0 1.0 Goldilocks Goldilocks Bake Shop Inc 0.8 0.8 0.9 0.9 Anlene Fonterra Brands (Phils) 0.9 0.9 0.9 0.9 Inc Alacta Mead Johnson 0.9 0.9 0.9 0.9 Philippines Inc S-26 Wyeth Philippines Inc 0.8 0.8 0.8 0.8 Carnation Alaska Milk Corp 0.8 0.8 0.8 0.8 Chuckie Nestlé Philippines Inc 0.7 0.7 0.7 0.7 Bonamil Wyeth Philippines Inc 0.7 0.7 0.7 0.7 SM Bonus SM Retail Inc 0.6 0.6 0.6 0.7 Artisanal 4.1 4.0 4.0 4.0 Others 27.8 27.1 26.5 26.3 Total 100.0 100.0 100.0 100.0


Table 31 Forecast Sales of Nutrition/Staples by Category: Volume 2013-2018

'000 tonnes 2013 2014 2015 2016 2017 2018 Bread 144.1 147.4 149.9 152.5 155.2 158.2 Breakfast Cereals 15.2 15.8 16.4 17.1 17.8 18.6 Dairy 369.2 375.4 381.7 388.2 394.6 400.8 Meal Replacement 1.4 1.4 1.5 1.6 1.6 1.7 Oils and Fats 545.0 564.4 583.1 601.4 620.3 639.2 Baby Food 54.5 55.5 56.7 58.0 59.2 60.5 Spreads 12.7 13.0 13.2 13.5 13.9 14.2 Pasta 39.7 41.7 44.0 46.3 48.7 51.1 Noodles 210.6 220.6 230.1 239.5 249.0 258.7 Rice 98.4 101.6 105.2 109.0 112.9 117.0 Nutrition/Staples 1,490.9 1,536.9 1,581.9 1,627.0 1,673.2 1,720.0


Table 32 Forecast Sales of Nutrition/Staples by Category: Value 2013-2018

Ps million 2013 2014 2015 2016 2017 2018 Bread 17,774.8 18,349.1 18,827.7 19,347.8 19,910.8 20,528.9 Breakfast Cereals 4,056.7 4,185.5 4,320.9 4,475.2 4,651.8 4,843.6 Dairy 74,054.6 74,964.4 76,218.0 77,754.6 79,426.0 81,257.7 Meal Replacement 2,160.2 2,229.6 2,321.2 2,433.6 2,569.5 2,718.7 Oils and Fats 50,854.6 52,116.3 53,395.8 54,718.0 56,167.2 57,716.8 Baby Food 34,276.5 35,069.8 36,023.6 37,023.7 37,992.6 38,942.1 Spreads 3,714.2 3,711.1 3,718.2 3,743.5 3,777.4 3,819.4 Pasta 3,547.8 3,750.0 3,967.5 4,189.7 4,424.3 4,672.1 Noodles 25,190.4 26,086.3 26,985.0 27,852.3 28,722.4 29,573.8 Rice 4,920.5 5,073.0 5,235.4 5,413.4 5,592.0 5,787.7 Nutrition/Staples 220,550.3 225,535.1 231,013.3 236,951.8 243,234.1 249,860.9




Table 33 Forecast Sales of Nutrition/Staples by Category: % Volume Growth 2013-2018

% volume growth 2017/18 2013-18 CAGR 2013/18 Total Bread 1.9 1.9 9.7 Breakfast Cereals 4.3 4.1 22.4 Dairy 1.6 1.7 8.6 Meal Replacement 4.9 4.1 22.1 Oils and Fats 3.0 3.2 17.3 Baby Food 2.1 2.1 10.9 Spreads 2.5 2.2 11.6 Pasta 5.1 5.2 29.0 Noodles 3.9 4.2 22.8 Rice 3.7 3.5 19.0 Nutrition/Staples 2.8 2.9 15.4


Table 34 Forecast Sales of Nutrition/Staples by Category: % Value Growth 2013-2018

% constant value growth 2013-18 CAGR 2013/18 TOTAL Bread 2.9 15.5 Breakfast Cereals 3.6 19.4 Dairy 1.9 9.7 Meal Replacement 4.7 25.9 Oils and Fats 2.6 13.5 Baby Food 2.6 13.6 Spreads 0.6 2.8 Pasta 5.7 31.7 Noodles 3.3 17.4 Rice 3.3 17.6 Nutrition/Staples 2.5 13.3


MARKET DATA

Table 35 Sales of Packaged Food by Category: Volume 2008-2013

'000 tonnes 2008 2009 2010 2011 2012 2013 Baby Food 53.6 53.3 53.5 53.6 54.0 54.5 Bakery 331.7 336.7 344.9 355.8 367.6 380.5 Canned/Preserved Food 212.9 223.0 234.5 245.6 256.6 267.4 Chilled Processed Food 80.0 82.8 86.5 89.8 92.9 96.0 Confectionery 87.0 88.0 89.3 87.7 87.3 88.6



Dairy 336.7 339.4 349.4 356.4 364.3 369.2 Dried Processed Food 285.1 292.1 306.1 319.9 335.2 350.3 Frozen Processed Food 99.1 102.1 105.7 111.9 116.1 119.9 Ice Cream 42.1 42.8 43.9 45.8 47.9 48.8 Meal Replacement 1.1 1.2 1.3 1.3 1.4 1.4 Noodles 164.9 168.7 178.4 189.4 200.1 210.6 Oils and Fats 449.1 467.3 486.5 506.3 525.0 545.0 Pasta 29.4 31.7 34.6 35.6 37.8 39.7 Ready Meals 11.2 11.6 12.0 12.6 13.1 13.8 Sauces, Dressings and 178.9 187.7 195.8 203.7 210.7 217.3 Condiments Snack Bars 0.0 0.0 0.0 0.0 0.0 0.0 Soup 3.8 3.9 4.0 4.2 4.3 4.5 Spreads 14.5 14.3 14.4 13.6 12.7 12.7 Sweet and Savoury Snacks 116.6 121.2 126.0 131.2 136.5 141.9 Impulse and Indulgence 433.6 444.9 458.4 470.8 485.2 500.5 Products Nutrition/Staples 1,282.2 1,309.8 1,355.1 1,399.3 1,445.0 1,490.9 Meal Solutions 586.2 611.5 639.0 668.1 694.2 719.2 Packaged Food 2,288.4 2,352.0 2,437.7 2,522.8 2,608.3 2,693.7


Note: Sum of sectors does not equal total packaged food because of double counting (eg canned soup is included in soups and canned foods)

Table 36 Sales of Packaged Food by Category: Value 2008-2013

Ps million 2008 2009 2010 2011 2012 2013 Baby Food 29,564.2 30,459.7 31,648.5 32,287.4 32,988.1 34,276.5 Bakery 49,132.0 51,579.1 54,358.1 57,674.6 61,471.2 65,427.6 Canned/Preserved Food 25,078.2 26,874.1 28,807.3 30,976.9 33,251.3 35,483.7 Chilled Processed Food 13,785.4 14,336.8 15,053.6 15,881.6 16,834.5 17,853.1 Confectionery 28,018.1 28,808.9 29,676.7 29,725.4 30,054.4 30,896.5 Dairy 57,325.1 60,485.6 67,077.9 69,553.1 72,080.9 74,054.6 Dried Processed Food 25,169.5 26,410.9 28,241.2 30,149.6 32,339.2 34,494.4 Frozen Processed Food 22,943.7 24,450.9 25,920.4 28,148.2 30,208.5 32,005.3 Ice Cream 7,889.8 8,176.7 8,547.8 8,914.2 9,414.2 9,830.2 Meal Replacement 1,431.6 1,535.0 1,800.4 1,937.8 2,054.6 2,160.2 Noodles 18,488.2 19,299.8 20,567.6 22,061.6 23,602.4 25,190.4 Oils and Fats 36,987.2 39,536.2 41,952.2 44,996.4 48,032.6 50,854.6 Pasta 2,140.9 2,408.5 2,805.9 2,946.2 3,285.0 3,547.8 Ready Meals 2,438.2 2,570.0 2,752.9 2,960.6 3,204.4 3,440.9 Sauces, Dressings and 19,062.9 20,158.6 21,239.5 22,425.2 23,702.5 25,001.7 Condiments Snack Bars 14.8 12.6 12.2 6.6 0.9 0.9 Soup 1,123.0 1,220.3 1,317.1 1,423.7 1,540.4 1,635.5 Spreads 3,628.4 3,667.1 3,727.3 3,671.0 3,598.2 3,714.2 Sweet and Savoury Snacks 29,601.8 31,896.2 33,340.0 35,394.4 37,682.2 40,149.2 Impulse and Indulgence 98,311.1 103,328.2 107,892.4 112,563.1 118,193.6 124,472.9 Products Nutrition/Staples 169,821.8 178,585.0 191,791.4 201,003.8 210,733.6 220,550.3 Meal Solutions 84,548.4 89,733.1 95,219.4 101,951.8 108,884.0 115,569.8 Packaged Food 349,644.9 368,402.0 391,418.4 411,760.2 433,733.2 456,224.4





Table 37 Sales of Packaged Food by Category: % Volume Growth 2008-2013

% volume growth 2012/13 2008-13 CAGR 2008/13 Total Baby Food 1.1 0.4 1.9 Bakery 3.5 2.8 14.7 Canned/Preserved Food 4.2 4.7 25.6 Chilled Processed Food 3.3 3.7 20.0 Confectionery 1.5 0.4 1.8 Dairy 1.3 1.9 9.7 Dried Processed Food 4.5 4.2 22.9 Frozen Processed Food 3.3 3.9 21.0 Ice Cream 2.0 3.0 16.1 Meal Replacement 2.7 5.1 28.4 Noodles 5.2 5.0 27.7 Oils and Fats 3.8 3.9 21.4 Pasta 5.0 6.2 35.1 Ready Meals 4.6 4.2 22.7 Sauces, Dressings and Condiments 3.1 4.0 21.5 Snack Bars 3.9 -47.8 -96.1 Soup 3.5 3.3 17.4 Spreads 0.6 -2.5 -12.1 Sweet and Savoury Snacks 3.9 4.0 21.7 Impulse and Indulgence Products 3.1 2.9 15.4 Nutrition/Staples 3.2 3.1 16.3 Meal Solutions 3.6 4.2 22.7 Packaged Food 3.3 3.3 17.7



Table 38 Sales of Packaged Food by Category: % Value Growth 2008-2013

% current value growth 2012/13 2008-13 CAGR 2008/13 Total Baby Food 3.9 3.0 15.9 Bakery 6.4 5.9 33.2 Canned/Preserved Food 6.7 7.2 41.5 Chilled Processed Food 6.1 5.3 29.5 Confectionery 2.8 2.0 10.3 Dairy 2.7 5.3 29.2 Dried Processed Food 6.7 6.5 37.0 Frozen Processed Food 5.9 6.9 39.5 Ice Cream 4.4 4.5 24.6 Meal Replacement 5.1 8.6 50.9 Noodles 6.7 6.4 36.3 Oils and Fats 5.9 6.6 37.5 Pasta 8.0 10.6 65.7 Ready Meals 7.4 7.1 41.1 Sauces, Dressings and Condiments 5.5 5.6 31.2 Snack Bars -0.7 -43.3 -94.1 Soup 6.2 7.8 45.6 Spreads 3.2 0.5 2.4



Sweet and Savoury Snacks 6.5 6.3 35.6 Impulse and Indulgence Products 5.3 4.8 26.6 Nutrition/Staples 4.7 5.4 29.9 Meal Solutions 6.1 6.5 36.7 Packaged Food 5.2 5.5 30.5



Table 39 GBO Company Shares of Packaged Food: % Value 2009-2013

% retail value rsp Company 2009 2010 2011 2012 2013 Nestlé SA 10.5 10.6 10.4 11.9 11.7 San Miguel Corp 7.4 7.2 7.4 7.5 7.5 JG Summit Holdings Inc 6.7 6.7 6.8 7.0 7.1 Monde Nissin Corp 4.8 4.9 5.0 5.2 5.3 San Pablo Mfg Corp 3.2 3.3 3.3 3.4 3.5 Mead Johnson Nutrition Co 3.7 3.6 3.5 3.4 3.4 Royal FrieslandCampina NV 0.3 0.3 0.1 3.4 3.3 International Oil Factory 2.9 2.8 2.8 2.9 2.9 Unilever Group 2.8 2.8 2.8 2.8 2.8 CDO Foodsphere Inc 1.5 1.6 1.7 1.8 1.8 Century Canning Corp 1.7 1.7 1.7 1.7 1.8 Kraft Foods Group, Inc - - - 1.7 1.7 Republic Biscuit Corp 1.7 1.7 1.7 1.7 1.7 Fonterra Co-operative 1.2 1.3 1.3 1.3 1.3 Group Liwayway Marketing Corp 1.2 1.2 1.2 1.2 1.2 Nutri-Asia Inc 1.0 1.0 1.0 1.0 1.0 Yakult Honsha Co Ltd 0.9 0.9 0.9 1.0 1.0 Mondelez International - - - 1.0 1.0 Inc Del Monte Pacific Ltd 0.9 0.9 0.9 1.0 1.0 Ajinomoto Co Inc 1.1 1.0 1.0 1.0 1.0 Pacific Meat Co Inc 0.9 0.9 0.9 0.9 0.9 QAF Ltd 0.7 0.7 0.8 0.8 0.9 RFM Corp 0.7 0.7 0.8 0.8 0.8 Food Industries Inc 0.8 0.7 0.7 0.7 0.8 Goldilocks Bake Shop Inc 0.7 0.7 0.7 0.7 0.7 Tobi Marketing Inc 0.7 0.7 0.7 0.7 0.7 Liberty Gold Fruit Co Inc 0.6 0.6 0.6 0.6 0.6 Abbott Laboratories Inc 0.6 0.6 0.6 0.6 0.6 Mars Inc 0.7 0.7 0.7 0.6 0.6 Columbia International 0.6 0.6 0.6 0.6 0.6 Food Products Inc Artisanal 4.0 3.8 3.8 3.7 3.6 Private Label 1.7 1.8 1.8 1.9 1.9 Others 34.0 33.9 33.6 25.4 25.3 Total 100.0 100.0 100.0 100.0 100.0


Table 40 NBO Company Shares of Packaged Food: % Value 2009-2013



% retail value rsp Company 2009 2010 2011 2012 2013 Nestlé Philippines Inc 10.3 10.3 10.2 10.0 9.8 Universal Robina Corp 6.7 6.7 6.8 7.0 7.1 Monde Nissin Corp 4.8 4.9 5.0 5.2 5.3 Purefoods-Hormel Co 5.0 4.8 5.0 5.1 5.2 Inc, The Alaska Milk Corp 3.5 3.9 3.8 3.7 3.7 San Pablo Mfg Corp 3.2 3.3 3.3 3.4 3.5 Mead Johnson 3.7 3.6 3.5 3.4 3.4 Philippines Inc International Oil Factory 2.9 2.8 2.8 2.9 2.9 San Miguel Pure Foods 2.4 2.4 2.4 2.4 2.4 Co Inc CDO Foodsphere Inc 1.5 1.6 1.7 1.8 1.8 Kraft Foods 2.3 2.9 2.8 2.8 1.8 (Philippines) Inc Century Canning Corp 1.7 1.7 1.7 1.7 1.8 Unilever Foods 1.7 1.7 1.7 1.7 1.7 Philippines (CMC) Wyeth Philippines Inc 1.8 1.7 1.7 1.7 1.7 Fonterra Brands (Phils) 1.2 1.3 1.3 1.3 1.3 Inc Liwayway Marketing Corp 1.2 1.2 1.2 1.2 1.2 Del Monte Philippines Inc 1.0 1.0 1.0 1.0 1.1 Unilever RFM Ice Cream 1.0 1.0 1.0 1.1 1.1 Inc Yakult Philippines Inc 0.9 0.9 0.9 1.0 1.0 Ajinomoto Philippines 1.1 1.0 1.0 1.0 1.0 Corp Mondelez Philippines Inc - - - - 0.9 SM Retail Inc 0.8 0.9 0.9 0.9 0.9 Pacific Meat Co Inc 0.9 0.9 0.9 0.9 0.9 Gardenia Philippines Inc 0.7 0.7 0.8 0.8 0.9 RFM Corp 0.7 0.7 0.8 0.8 0.8 UFC Philippines Inc 0.8 0.7 0.8 0.8 0.8 Food Industries Inc 0.8 0.7 0.7 0.7 0.8 Supervalue Inc 0.7 0.7 0.7 0.7 0.8 Goldilocks Bake Shop Inc 0.7 0.7 0.7 0.7 0.7 Tobi Marketing Inc 0.7 0.7 0.7 0.7 0.7 Artisanal 4.0 3.8 3.8 3.7 3.6 Others 31.7 30.6 30.3 29.9 29.7 Total 100.0 100.0 100.0 100.0 100.0


Table 41 LBN Brand Shares of Packaged Food: % Value 2010-2013

% retail value rsp Brand Company 2010 2011 2012 2013 Purefoods Purefoods-Hormel Co 4.8 4.9 5.0 5.1 Inc, The Jack 'n' Jill Universal Robina Corp 4.8 4.9 5.0 5.1 Minola San Pablo Mfg Corp 3.3 3.3 3.4 3.5 Lucky Me Monde Nissin Corp 3.1 3.2 3.2 3.3 Alaska Alaska Milk Corp 3.5 3.4 3.2 3.2 Baguio International Oil Factory 2.8 2.8 2.9 2.9



Bear Brand Nestlé Philippines Inc 2.7 2.8 2.8 2.7 CDO CDO Foodsphere Inc 1.6 1.7 1.8 1.8 Milo Nestlé Philippines Inc 1.9 1.9 1.9 1.8 Lactum Mead Johnson 1.8 1.7 1.7 1.7 Philippines Inc Magnolia San Miguel Pure Foods 1.3 1.3 1.3 1.3 Co Inc Nido Nestlé Philippines Inc 1.2 1.2 1.2 1.2 Kraft Kraft Foods 1.1 1.1 1.0 1.0 (Philippines) Inc Sky Flakes Monde Nissin Corp 0.9 1.0 1.0 1.0 Payless Universal Robina Corp 0.9 0.9 1.0 1.0 Oishi Liwayway Marketing Corp 0.9 1.0 1.0 1.0 Yakult Yakult Philippines Inc 0.9 0.9 1.0 1.0 Nestlé Nestlé Philippines Inc 1.0 1.0 1.0 1.0 555 Century Canning Corp 0.9 0.9 0.9 1.0 Selecta Unilever RFM Ice Cream Inc 0.9 0.9 0.9 0.9 SM Bonus SM Retail Inc 0.9 0.9 0.9 0.9 Del Monte Del Monte Philippines Inc 0.9 0.9 0.9 0.9 Ajinomoto Ajinomoto Philippines Corp 1.0 0.9 0.9 0.9 Argentina Pacific Meat Co Inc 0.9 0.9 0.9 0.9 Anchor Fonterra Brands (Phils) 0.9 0.9 0.9 0.9 Inc Gardenia Gardenia Philippines Inc 0.7 0.8 0.8 0.9 Star San Miguel Pure Foods 0.8 0.8 0.8 0.8 Co Inc Century Century Canning Corp 0.8 0.8 0.8 0.8 Nagaraya Food Industries Inc 0.7 0.7 0.7 0.8 SM Bonus Supervalue Inc 0.7 0.7 0.7 0.8 Artisanal 3.8 3.8 3.7 3.6 Others 47.8 47.2 46.6 46.4 Total 100.0 100.0 100.0 100.0


Table 42 Penetration of Private Label by Category: % Value 2008-2013

% retail value rsp 2008 2009 2010 2011 2012 2013 Bakery 0.4 0.5 0.6 0.5 0.5 0.5 Chilled Processed Food 2.0 2.0 2.0 2.1 2.2 2.3 Dried Processed Food 5.0 4.9 4.8 4.8 4.9 4.9 Frozen Processed Food 7.7 8.0 8.3 8.1 8.0 8.1 Meal Solutions 2.6 2.7 2.7 2.7 2.7 2.8 Noodles 0.4 0.4 0.4 0.4 0.4 0.4 Nutrition/Staples 2.2 2.3 2.3 2.3 2.4 2.5 Oils and Fats 5.9 6.2 6.3 6.5 6.7 6.7 Packaged Food 1.7 1.7 1.8 1.8 1.9 1.9 Sauces, Dressings and 0.7 0.7 0.7 0.7 0.7 0.8 Condiments


Table 43 Distribution of Packaged Food by Format: % Value 2008-2013

% retail value rsp



2008 2009 2010 2011 2012 2013 Store-Based Retailing 99.8 99.9 99.8 99.8 99.8 99.8 - Grocery Retailers 95.4 95.4 95.5 95.6 95.7 95.7 -- Modern Grocery 48.6 49.1 49.5 49.9 50.3 50.6 Retailers --- Convenience Stores 1.3 1.3 1.3 1.3 1.4 1.4 --- Discounters - - - - - - --- Forecourt Retailers 0.2 0.1 0.2 0.2 0.2 0.2 --- Hypermarkets 4.6 4.9 5.5 5.9 6.1 6.3 --- Supermarkets 42.6 42.8 42.6 42.5 42.6 42.8 -- Traditional Grocery 46.8 46.3 45.9 45.7 45.4 45.1 Retailers --- Food/drink/tobacco 4.2 4.2 4.1 4.1 4.1 4.1 specialists --- Independent Small 12.7 11.8 11.1 10.6 10.3 10.0 Grocers --- Other Grocery 29.9 30.4 30.8 31.1 31.0 30.9 Retailers - Non-Grocery Retailers 4.4 4.4 4.4 4.2 4.1 4.1 -- Health and Beauty 4.4 4.4 4.3 4.2 4.1 4.1 Retailers -- Mixed Retailers 0.0 0.0 0.0 0.0 0.0 0.0 -- Other Non-Grocery 0.0 0.0 0.0 0.0 0.0 0.1 Retailers Non-Store Retailing 0.2 0.1 0.2 0.2 0.2 0.2 - Vending 0.0 0.0 0.0 0.0 0.0 0.0 - Homeshopping - - - - - - - Internet Retailing 0.0 0.0 0.0 0.0 0.0 0.0 - Direct Selling 0.1 0.1 0.1 0.2 0.2 0.2 Total 100.0 100.0 100.0 100.0 100.0 100.0


Table 44 Distribution of Packaged Food by Format and Category: % Value 2013

% retail value rsp BF B CPF CHP C D Store-Based Retailing 100.0 100.0 100.0 100.0 99.8 99.7 Grocery Retailers 57.8 98.5 100.0 100.0 93.9 99.7 Modern Grocery Retailers 47.2 30.7 61.0 58.7 45.5 53.3 Convenience Stores 1.1 0.4 1.3 1.6 4.2 1.8 Discounters 0.0 0.0 0.0 0.0 0.0 0.0 Forecourt Retailers 0.0 0.2 0.3 0.0 0.6 0.1 Hypermarkets 6.0 3.9 7.2 7.1 5.7 6.5 Supermarkets 40.0 26.3 52.1 50.0 34.9 44.9 Traditional Grocery 10.6 67.8 39.0 41.3 48.4 46.4 Retailers Food/drink/tobacco 0.0 26.5 0.0 0.0 4.1 0.0 specialists Independent Small Grocers 10.6 5.0 15.9 5.8 8.1 10.9 Other Grocery Retailers 0.0 36.3 23.1 35.5 36.2 35.5 Non-Grocery Retailers 42.3 1.5 0.0 0.0 5.9 0.0 Health and Beauty 42.3 1.5 0.0 0.0 5.9 0.0 Retailers Mixed Retailers 0.0 0.0 0.0 0.0 0.0 0.0 Other Non-Grocery 0.0 0.0 0.0 0.0 0.0 0.0 Retailers



Non-Store Retailing 0.0 0.0 0.0 0.0 0.2 0.3 Vending 0.0 0.0 0.0 0.0 0.0 0.0 Homeshopping 0.0 0.0 0.0 0.0 0.0 0.0 Internet Retailing 0.0 0.0 0.0 0.0 0.2 0.0 Direct Selling 0.0 0.0 0.0 0.0 0.0 0.3 Total 100.0 100.0 100.0 100.0 100.0 100.0 DPF FPF IC MR NOO OF Store-Based Retailing 100.0 99.9 100.0 76.2 100.0 100.0 Grocery Retailers 100.0 99.9 100.0 36.7 100.0 99.5 Modern Grocery Retailers 52.7 74.1 80.9 22.4 46.9 58.2 Convenience Stores 2.4 1.1 2.1 0.0 2.2 0.1 Discounters 0.0 0.0 0.0 0.0 0.0 0.0 Forecourt Retailers 0.2 0.0 0.4 0.0 0.2 0.0 Hypermarkets 6.5 9.5 10.5 2.8 5.8 7.1 Supermarkets 43.7 63.5 67.9 19.6 38.7 51.0 Traditional Grocery 47.3 25.8 19.1 14.4 53.1 41.3 Retailers Food/drink/tobacco 0.0 0.0 0.1 0.0 0.0 0.0 specialists Independent Small Grocers 12.3 12.0 15.3 14.4 10.5 6.8 Other Grocery Retailers 35.0 13.8 3.8 0.0 42.6 34.5 Non-Grocery Retailers 0.0 0.0 0.0 39.5 0.0 0.5 Health and Beauty 0.0 0.0 0.0 39.5 0.0 0.0 Retailers Mixed Retailers 0.0 0.0 0.0 0.0 0.0 0.0 Other Non-Grocery 0.0 0.0 0.0 0.0 0.0 0.5 Retailers Non-Store Retailing 0.0 0.1 0.0 23.8 0.0 0.0 Vending 0.0 0.0 0.0 0.0 0.0 0.0 Homeshopping 0.0 0.0 0.0 0.0 0.0 0.0 Internet Retailing 0.0 0.1 0.0 0.0 0.0 0.0 Direct Selling 0.0 0.0 0.0 23.8 0.0 0.0 Total 100.0 100.0 100.0 100.0 100.0 100.0 P RM SDC SB SOU SPR Store-Based Retailing 100.0 100.0 100.0 100.0 100.0 100.0 Grocery Retailers 100.0 100.0 100.0 95.4 100.0 100.0 Modern Grocery Retailers 58.5 80.0 45.5 95.4 66.7 59.9 Convenience Stores 2.4 5.3 1.1 3.1 5.9 1.1 Discounters 0.0 0.0 0.0 0.0 0.0 0.0 Forecourt Retailers 0.0 2.7 0.2 1.2 2.0 0.9 Hypermarkets 6.9 8.5 5.4 11.7 7.3 7.3 Supermarkets 49.2 63.5 38.8 79.4 51.5 50.6 Traditional Grocery 41.5 20.0 54.5 0.0 33.3 40.1 Retailers Food/drink/tobacco 0.0 0.0 0.0 0.0 0.0 0.0 specialists Independent Small Grocers 14.0 15.0 5.6 0.0 15.4 16.3 Other Grocery Retailers 27.5 5.0 48.9 0.0 17.9 23.8 Non-Grocery Retailers 0.0 0.0 0.0 4.6 0.0 0.0 Health and Beauty 0.0 0.0 0.0 0.5 0.0 0.0 Retailers Mixed Retailers 0.0 0.0 0.0 0.0 0.0 0.0 Other Non-Grocery 0.0 0.0 0.0 4.1 0.0 0.0 Retailers Non-Store Retailing 0.0 0.0 0.0 0.0 0.0 0.0 Vending 0.0 0.0 0.0 0.0 0.0 0.0 Homeshopping 0.0 0.0 0.0 0.0 0.0 0.0



Internet Retailing 0.0 0.0 0.0 0.0 0.0 0.0 Direct Selling 0.0 0.0 0.0 0.0 0.0 0.0 Total 100.0 100.0 100.0 100.0 100.0 100.0 SSS Store-Based Retailing 100.0 Grocery Retailers 98.7 Modern Grocery Retailers 38.2 Convenience Stores 1.5 Discounters 0.0 Forecourt Retailers 0.2 Hypermarkets 4.9 Supermarkets 31.6 Traditional Grocery 60.5 Retailers Food/drink/tobacco 0.0 specialists Independent Small Grocers 15.3 Other Grocery Retailers 45.2 Non-Grocery Retailers 1.2 Health and Beauty 1.2 Retailers Mixed Retailers 0.0 Other Non-Grocery 0.0 Retailers Non-Store Retailing 0.0 Vending 0.0 Homeshopping 0.0 Internet Retailing 0.0 Direct Selling 0.0 Total 100.0


Key: BF = baby food; B = bakery; CPF = canned/preserved food; CHP = chilled processed food; C = confectionery; D = dairy; DPF = dried processed food; FPF = frozen processed food; IC = ice cream; MR = meal replacement; NOO = noodles; OF = oils and fats; P = pasta; RM = ready meals; SDC = sauces, dressings and condiments; SB = snack bars; SOU = soup; SPR = spreads; SSS = sweet and savoury snacks

Table 45 Forecast Sales of Packaged Food by Category: Volume 2013-2018

'000 tonnes 2013 2014 2015 2016 2017 2018 Baby Food 54.5 55.5 56.7 58.0 59.2 60.5 Bakery 380.5 392.5 404.0 416.2 429.2 442.9 Canned/Preserved Food 267.4 277.7 287.1 296.8 307.4 318.4 Chilled Processed Food 96.0 99.0 101.9 105.0 108.2 111.6 Confectionery 88.6 90.3 92.2 94.4 96.7 99.3 Dairy 369.2 375.4 381.7 388.2 394.6 400.8 Dried Processed Food 350.3 365.7 381.0 396.5 412.3 428.7 Frozen Processed Food 119.9 123.2 126.0 129.0 132.2 135.5 Ice Cream 48.8 49.8 50.8 51.9 53.2 54.7 Meal Replacement 1.4 1.4 1.5 1.6 1.6 1.7 Noodles 210.6 220.6 230.1 239.5 249.0 258.7 Oils and Fats 545.0 564.4 583.1 601.4 620.3 639.2 Pasta 39.7 41.7 44.0 46.3 48.7 51.1 Ready Meals 13.8 14.4 15.2 15.9 16.8 17.6 Sauces, Dressings and 217.3 222.9 227.8 232.9 238.1 243.2



Condiments Snack Bars 0.0 0.0 0.0 0.0 0.0 0.0 Soup 4.5 4.6 4.8 5.0 5.2 5.4 Spreads 12.7 13.0 13.2 13.5 13.9 14.2 Sweet and Savoury Snacks 141.9 146.9 151.7 157.1 162.8 169.0 Impulse and Indulgence 500.5 516.3 532.4 549.9 568.9 589.1 Products Nutrition/Staples 1,490.9 1,536.9 1,581.9 1,627.0 1,673.2 1,720.0 Meal Solutions 719.2 742.3 763.2 785.0 808.2 832.2 Packaged Food 2,693.7 2,778.0 2,859.0 2,942.5 3,030.0 3,120.0



Table 46 Forecast Sales of Packaged Food by Category: Value 2013-2018

Ps million 2013 2014 2015 2016 2017 2018 Baby Food 34,276.5 35,069.8 36,023.6 37,023.7 37,992.6 38,942.1 Bakery 65,427.6 67,423.2 69,347.1 71,445.1 73,734.0 76,181.8 Canned/Preserved Food 35,483.7 36,691.9 37,778.1 38,914.6 40,139.6 41,434.5 Chilled Processed Food 17,853.1 18,370.9 18,848.5 19,357.4 19,899.4 20,456.6 Confectionery 30,896.5 31,040.5 31,319.8 31,698.9 32,162.9 32,691.1 Dairy 74,054.6 74,964.4 76,218.0 77,754.6 79,426.0 81,257.7 Dried Processed Food 34,494.4 35,766.5 37,064.7 38,350.7 39,655.5 40,971.8 Frozen Processed Food 32,005.3 32,866.1 33,622.9 34,464.9 35,362.4 36,316.2 Ice Cream 9,830.2 10,075.8 10,312.2 10,597.3 10,922.2 11,278.4 Meal Replacement 2,160.2 2,229.6 2,321.2 2,433.6 2,569.5 2,718.7 Noodles 25,190.4 26,086.3 26,985.0 27,852.3 28,722.4 29,573.8 Oils and Fats 50,854.6 52,116.3 53,395.8 54,718.0 56,167.2 57,716.8 Pasta 3,547.8 3,750.0 3,967.5 4,189.7 4,424.3 4,672.1 Ready Meals 3,440.9 3,598.3 3,763.6 3,946.4 4,147.4 4,361.0 Sauces, Dressings and 25,001.7 25,486.9 25,902.4 26,331.0 26,767.0 27,204.6 Condiments Snack Bars 0.9 0.8 0.8 0.8 0.8 0.8 Soup 1,635.5 1,692.8 1,747.4 1,800.7 1,860.0 1,920.6 Spreads 3,714.2 3,711.1 3,718.2 3,743.5 3,777.4 3,819.4 Sweet and Savoury Snacks 40,149.2 41,471.1 42,677.4 44,043.8 45,549.0 47,128.8 Impulse and Indulgence 124,472.9 127,476.8 130,508.6 133,962.9 137,806.3 141,908.3 Products Nutrition/Staples 220,550.3 225,535.1 231,013.3 236,951.8 243,234.1 249,860.9 Meal Solutions 115,569.8 118,859.6 121,819.0 124,974.7 128,339.2 131,861.1 Packaged Food 456,224.4 467,307.6 478,574.4 490,902.7 504,150.9 518,145.7



Table 47 Forecast Sales of Packaged Food by Category: % Volume Growth 2013-2018

% volume growth 2017/18 2013-18 CAGR 2013/18 Total Baby Food 2.1 2.1 10.9 Bakery 3.2 3.1 16.4 Canned/Preserved Food 3.6 3.5 19.1



Chilled Processed Food 3.1 3.1 16.3 Confectionery 2.6 2.3 12.1 Dairy 1.6 1.7 8.6 Dried Processed Food 4.0 4.1 22.4 Frozen Processed Food 2.5 2.5 13.1 Ice Cream 2.7 2.3 12.0 Meal Replacement 4.9 4.1 22.1 Noodles 3.9 4.2 22.8 Oils and Fats 3.0 3.2 17.3 Pasta 5.1 5.2 29.0 Ready Meals 5.2 5.1 28.1 Sauces, Dressings and Condiments 2.2 2.3 12.0 Snack Bars 5.0 4.7 25.9 Soup 3.8 3.8 20.6 Spreads 2.5 2.2 11.6 Sweet and Savoury Snacks 3.8 3.6 19.1 Impulse and Indulgence Products 3.6 3.3 17.7 Nutrition/Staples 2.8 2.9 15.4 Meal Solutions 3.0 3.0 15.7 Packaged Food 3.0 3.0 15.8



Table 48 Forecast Sales of Packaged Food by Category: % Value Growth 2013-2018

% constant value growth 2013-18 CAGR 2013/18 TOTAL Baby Food 2.6 13.6 Bakery 3.1 16.4 Canned/Preserved Food 3.1 16.8 Chilled Processed Food 2.8 14.6 Confectionery 1.1 5.8 Dairy 1.9 9.7 Dried Processed Food 3.5 18.8 Frozen Processed Food 2.6 13.5 Ice Cream 2.8 14.7 Meal Replacement 4.7 25.9 Noodles 3.3 17.4 Oils and Fats 2.6 13.5 Pasta 5.7 31.7 Ready Meals 4.9 26.7 Sauces, Dressings and Condiments 1.7 8.8 Snack Bars -2.4 -11.2 Soup 3.3 17.4 Spreads 0.6 2.8 Sweet and Savoury Snacks 3.3 17.4 Impulse and Indulgence Products 2.7 14.0 Nutrition/Staples 2.5 13.3 Meal Solutions 2.7 14.1 Packaged Food 2.6 13.6





DEFINITIONS Explanations of words and/or terminology used in this report are as follows:

Sari-sari store – Local traditional mom and pop shops

Baon – Packed snack/lunch

SOURCES Sources used during the research included the following:

Summary 1 Research Sources

Official Sources Camara Oficial Española de Comercio Industria y Navegacion en Filipinas, Inc

Department of Agriculture

Department of Health

Industrial Technology Development Institute- Department of Science & Technology

National Dairy Authority

National Food Authority

National Statistical Coordination Board

National Statistics Office

Philippine Stock Exchange

Trade Associations Association of Filipino Franchisers Inc

Philippine Association of Meat Processors Inc

Philippine Coconut Oil Producers Association

Philippine Federation of Bakers Association Inc

Rice Association

Trade Press Business World Online

Food & Agribusiness Monitor

Source: Euromonitor International

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