Packaged Food in The Philippines

PACKAGED FOOD IN THE
PHILIPPINES
Euromonitor International
April 2015
PACKAGED FOOD IN THE PHILIPPINES
LIST OF CONTENTS AND TABLES

Executive Summary ..................................................................................................................... 1
Economy Continues To Benefit Packaged Food in the Philippines in 2014 .............................. 1
Increasingly Busy and Faster-paced Lifestyles Influence Packaged Food Consumers ............ 1
Multinationals Continue To Dominate Competition in Packaged Food ..................................... 1
Distribution of Packaged Food Continues To Be Dominated by Modern Grocery Retailers ..... 1
Packaged Food Expected To Continue on Positive Growth Trend for the Forecast Period ...... 1
Key Trends and Developments .................................................................................................... 2
Modern Grocery Channels Continue To Grow in Number ........................................................ 2
Improving Economic Condition Encourages Foreign Brands To Enter Packaged Food ........... 3
Increasingly Busy Lifestyles Continues To Benefit Packaged Food in 2014............................. 4
Growingly Sophisticated Consumers Lead To Opportunities for New Product Developments . 5
Foodservice Key Trends and Developments ............................................................................. 5
Headlines.................................................................................................................................. 5
Trends Sales To Foodservice ................................................................................................ 5
Trends foodservice ................................................................................................................. 6
Prospects .................................................................................................................................. 6
Category Data .......................................................................................................................... 7
Table 1
Table 2
Table 3
Table 4
Foodservice Sales of Packaged Food by Category: Volume 20092014 ............................................................................................................. 7

Foodservice Sales of Packaged Food by Category: % Volume Growth
2009-2014 .................................................................................................... 7
Forecast Foodservice Sales of Packaged Food by Category: Volume
2014-2019 .................................................................................................... 8
Forecast Foodservice Sales of Packaged Food by Category: %
Volume Growth 2014-2019 .......................................................................... 8
Impulse and Ingulgence Products Key Trends and Developments ........................................... 9

Headlines.................................................................................................................................. 9
Trends ...................................................................................................................................... 9
Competitive Landscape .......................................................................................................... 10
Prospects ................................................................................................................................ 11
Category Data ........................................................................................................................ 12
Table 5
Table 6
Table 7
Table 8
Table 9
Table 10
Table 11
Sales of Impulse and Indulgence Products by Category: Volume

2009-2014 .................................................................................................. 12
Sales of Impulse and Indulgence Products by Category: Value 20092014 ........................................................................................................... 13
Sales of Impulse and Indulgence Products by Category: % Volume
Growth 2009-2014 ..................................................................................... 13
Sales of Impulse and Indulgence Products by Category: % Value
Growth 2009-2014 ..................................................................................... 13
NBO Company Shares of Impulse and Indulgence Products: % Value
2010-2014 .................................................................................................. 14
LBN Brand Shares of Impulse and Indulgence Products: % Value
2011-2014 .................................................................................................. 15
Forecast Sales of Impulse and Indulgence Products by Category:
Volume 2014-2019 ..................................................................................... 15
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Table 12
Table 13
Table 14
Forecast Sales of Impulse and Indulgence Products by Category:

Value 2014-2019 ........................................................................................ 16
Forecast Sales of Impulse and Indulgence Products by Category: %
Volume Growth 2014-2019 ........................................................................ 16
Forecast Sales of Impulse and Indulgence Products by Category: %
Value Growth 2014-2019 ........................................................................... 16
Meal Solutions Key Trends and Developments ....................................................................... 17

Headlines................................................................................................................................ 17
Trends .................................................................................................................................... 17
Prospects ................................................................................................................................ 18
Category Data ........................................................................................................................ 19
Table 15
Table 16
Table 17
Table 18
Table 19
Table 20
Table 21
Table 22
Table 23
Table 24
Sales of Meal Solutions by Category: Volume 2009-2014 ......................... 19

Sales of Meal Solutions by Category: Value 2009-2014 ............................ 19
Sales of Meal Solutions by Category: % Volume Growth 2009-2014 ......... 19
Sales of Meal Solutions by Category: % Value Growth 2009-2014 ............ 20
NBO Company Shares of Meal Solutions: % Value 2010-2014 ................. 20
LBN Brand Shares of Meal Solutions: % Value 2011-2014........................ 21
Forecast Sales of Meal Solutions by Category: Volume 2014-2019 .......... 22
Forecast Sales of Meal Solutions by Category: Value 2014-2019 ............. 22
Forecast Sales of Meal Solutions by Category: % Volume Growth
2014-2019 .................................................................................................. 22
Forecast Sales of Meal Solutions by Category: % Value Growth 20142019 ........................................................................................................... 23
Nutrition/staples Key Trends and Developments ..................................................................... 23

Headlines................................................................................................................................ 23
Trends .................................................................................................................................... 23
Prospects ................................................................................................................................ 25
Category Data ........................................................................................................................ 26
Table 25
Table 26
Table 27
Table 28
Table 29
Table 30
Table 31
Table 32
Table 33
Table 34
Sales of Nutrition/Staples by Category: Volume 2009-2014....................... 26

Sales of Nutrition/Staples by Category: Value 2009-2014.......................... 27
Sales of Nutrition/Staples by Category: % Volume Growth 2009-2014 ...... 27
Sales of Nutrition/Staples by Category: % Value Growth 2009-2014 ......... 27
NBO Company Shares of Nutrition/Staples: % Value 2010-2014 .............. 28
LBN Brand Shares of Nutrition/Staples: % Value 2011-2014 ..................... 29
Forecast Sales of Nutrition/Staples by Category: Volume 2014-2019 ........ 29
Forecast Sales of Nutrition/Staples by Category: Value 2014-2019 ........... 30
Forecast Sales of Nutrition/Staples by Category: % Volume Growth
2014-2019 .................................................................................................. 30
Forecast Sales of Nutrition/Staples by Category: % Value Growth
2014-2019 .................................................................................................. 31
Market Data ................................................................................................................................ 31

Table 35
Table 36
Table 37
Table 38
Table 39
Table 40
Sales of Packaged Food by Category: Volume 2009-2014 ........................ 31

Sales of Packaged Food by Category: Value 2009-2014 ........................... 32
Sales of Packaged Food by Category: % Volume Growth 2009-2014 ....... 32
Sales of Packaged Food by Category: % Value Growth 2009-2014 .......... 33
GBO Company Shares of Packaged Food: % Value 2010-2014 ............... 33
NBO Company Shares of Packaged Food: % Value 2010-2014 ............... 34
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II
Table 41
Table 42
Table 43
Table 44
Table 45
Table 46
Table 47
Table 48
LBN Brand Shares of Packaged Food: % Value 2011-2014 ...................... 35

Penetration of Private Label by Category: % Value 2009-2014 ................. 36
Distribution of Packaged Food by Format: % Value 2009-2014 ................. 36
Distribution of Packaged Food by Format and Category: % Value
2014 ........................................................................................................... 37
Forecast Sales of Packaged Food by Category: Volume 2014-2019 ......... 39
Forecast Sales of Packaged Food by Category: Value 2014-2019 ............ 40
Forecast Sales of Packaged Food by Category: % Volume Growth
2014-2019 .................................................................................................. 40
Forecast Sales of Packaged Food by Category: % Value Growth
2014-2019 .................................................................................................. 41
Definitions................................................................................................................................... 41
Sources ...................................................................................................................................... 41
Summary 1
Research Sources ...................................................................................... 41
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III
PACKAGED FOOD IN THE

PHILIPPINES
EXECUTIVE SUMMARY
Economy Continues To Benefit Packaged Food in the Philippines in
2014
Philippine packaged food continued to benefit from improving economic conditions over the
review period. The positive economic environment not only helped consumer confidence, but
also generally widened purchasing options for consumers. With more and more consumers able
to afford and purchase products across various price segments, purchasing options generally
widened not just in terms of price but also as manufacturers strived to increase their
competitiveness through increased flavour offerings.
Increasingly Busy and Faster-paced Lifestyles Influence Packaged

Food Consumers
The positive economic environment led to increasingly busy lifestyles for Filipinos. While this
may have brought in increased purchasing power for these consumers, the faster-paced
lifestyles also greatly influenced purchasing decisions. Not only was it increasingly important to
be able to source products through more accessible and convenient retail outlets, the response
to increasingly busy lifestyles was also seen in product innovations not just in terms of
packaging, but also the products themselves.
Multinationals Continue To Dominate Competition in Packaged Food

The competitive environment of packaged food in the Philippines continued to be dominated
by multinationals. While local competitors do take the lead in certain sectors and product
categories, the leading players in packaged food were generally able to maintain their positions
towards the end of the review period. Nestl Philippines Inc, the local arm of Nestl SA, retained
its lead in packaged food overall, owed highly to their strong lead in dairy and baby food.
Alongside strengthening their product portfolio through effective marketing campaigns, their
focus on wellness also benefits from the growing health consciousness trend.
Distribution of Packaged Food Continues To Be Dominated by Modern

Grocery Retailers
The strength of modern grocery retailers as a retail channel for packaged food continued to
grow towards the end of the review period, as well as contributing to the loss of share for
traditional channels. Large retailers such as SM Retail and Puregold Price Club have
supermarkets alone grow even further in strength as the leading retail outlet. These players
expanded not only in terms of geographical reach across the country, but also made efforts to
address changing consumer spending habits.
Packaged Food Expected To Continue on Positive Growth Trend for the

Forecast Period
Packaged food is expected to continue growing positively over the forecast period. With many
of its main products such as dairy, oils and fats and bakery reaching maturity, this may be at a
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slower pace especially the medium-term. Improving economic conditions will continue to
increase purchasing power and overall spending, but manufacturers are then faced with the
challenge to be able to continuously adapt to changing consumer needs, as well.
KEY TRENDS AND DEVELOPMENTS

Modern Grocery Channels Continue To Grow in Number
Major supermarket chains remain aggressive in their expansion of outlets with a particular
focus on areas in the country which lack modern grocery channels. As their network of outlets
grows, consumers increasingly prefer these channels which offer better convenience being a
one-stop shop for all their packaged food needs. Consumers are also becoming more
discerning as their buying capacity improves brought about by better employment opportunities
that developments in the countrys economy provides. As such, the value sales contribution of
modern grocery retailers in 2014 marginally improved to hold 51% share, while traditional
grocery retailers declined to rest at 45%.
To facilitate their growth, established companies either enter into joint a venture, franchising
agreement or acquire independent/small players. For instance, Varejo Corp, a subsidiary of
Ayala Land Inc entered into a joint venture with Estenso Equities Inc, a subsidiary of Puregold
Price Club Inc, to build a new brand of supermarkets to cater to the ABC income brackets.
Robinsons Supermarket Corp, meanwhile, acquired Eurogrocer in 2013 giving it full ownership
to its six supermarkets in Tarlac. Puregold Price Club Inc, on the other hand, bought a total of
40 stores since 2012 and is on the second year of its 5-year plan to set up at least 25 new
stores annually. SM Retail Inc is also expanding aggressively and plans to erect a minimum of
20 Savemore Markets and SM Hypermarkets outside of Metro Manila in 2014. SM Investments
Corp, meanwhile, acquired a 34% stake in CityMall Commercial Centers Inc, a subsidiary of
DoubleDragon Properties Corp. This will give SM an access to CityMalls network of outlets to
be located mostly in Visayas and Mindanao.
Aside from supermarkets and hypermarkets, convenience store brands also increased. After
Ayala Land Inc introduced the Japanese brand, Family Mart in 2013, Puregold Price Club Inc
entered into an agreement with the Japanese retailer, Lawson Inc, in 2014 to put up a chain of
convenience stores in the country. Lawson which owns the brands, Lawson, Lawson Store 100
and Natural Lawson will take 30% of the joint venture while the remainder will be owned by
Puregold. These modern grocery channels pose more of a threat to other grocery retailers such
as sari-sari stores since some of the outlets are situated near residential neighbourhoods. Also,
the availability of hot meals or snacks through convenience stores and its 24-hour operation
gives the channel an edge over sari-sari stores which do not provide such a service.
Improvements, meanwhile, are also carried out by upscale retailers. Rustans Supermarket, for
instance, opened the Marketplace in its outlet in Rockwell, Makati which carries imported
brands, artisanal and gourmet products. Other new high-end stores include Epicurious, Vom
Fass and Lartizan which all raised the bar in the retail of packaged food.
Outlook
The establishment of modern grocery channels is likely to be more aggressive in suburban
areas or in fast-developing provinces over the forecast period. Companies are likely to focus on
areas outside of Metro Manila which have a flourishing business process outsourcing industry,
thriving real estate development or lively tourism-related activities. Retailers in urban areas,
meanwhile, are likely to improve their customer service and focus on providing consumers with
a better over-all shopping experience. Aside from bricks-and-mortar stores, non-store retailing,
particularly online channels, is also likely to witness improvements over the forecast period. In
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2014, SM Investments Corp made known its plan to launch a full-scale e-commerce website by
2016 to complement its retail operations. This has the potential to attract other companies to
venture as well into online retailing and encourage more consumers to try out making purchases
through the internet.
As outlets of supermarkets, hypermarkets and convenience stores grow, more consumers are
expected to shop through these modern grocery channels. Since Filipinos prefer to make
frequent small quantity purchases rather than buy less often in bulk, there are more chances for
companies to interact with their customers. Companies can take advantage of the regular trips
of shoppers at short intervals to build their brands or sustain recall through in-store promotions.
They can also encourage impulse purchases through creative merchandising. Sari-sari stores,
meanwhile, are likely to decrease in number especially since competition among convenience
store brands is expected to intensify. These traditional grocery channels, however, are not
predicted to be totally wiped out. Being situated within residential neighbourhoods, sari-sari
stores will remain a convenient channel for small quantity purchases for instances when one
unexpectedly runs out of cooking ingredients or other basic necessities for which a trip to the
nearest supermarket or convenience store would be impractical.
Improving Economic Condition Encourages Foreign Brands To Enter

Packaged Food
The improvements in the countrys economic performance are predicted to be sustained in
2014 with predicted GDP growth of 6%. Although this is marginally slower than in 2013 which
stood at 7%, the projected GDP growth for 2014 remained promising. This will come as the
government remains steadfast in its efforts to make economic reforms to attract more investors
to the country. Growth will also be driven by the thriving business process outsourcing industry
which provides better employment for Filipinos and assists in the expansion of the middle class.
OFW remittances will also help sustain spending among families. As the purchasing power of
consumers improve, they become more discriminating in their product choices. They make
upgrades in purchases and become more open to patronising foreign brands. Familiarity with
products of international companies is also facilitated by social media and online sources.
Cheap airfares and travel packages also made holidays outside the country accessible to more
Filipinos allowing them to become acquainted with foreign brands. This facilitated greater
openness for high-tier brands which made the country attractive for foreign companies to
venture into.
Among the new foreign brands is Cold Stone Creamery which set up shop at Serendra in
Bonifacio Global City through a franchise agreement with Arizon Ice Cream Corp. BaskinRobbins, meanwhile, made a comeback in 2014 through a franchise deal with IceDream Inc.
Baskin-Robbins re-entered with a wider range of product offerings to include ice cream cakes,
sundaes and beverages, among others, as the market is seemingly more open to pricier brands.
American ice cream brand, Blue Bell is another new entrant which was brought to the country by
Visfood Corp. Upscale artisanal bakeries, Eric Kayser and Paul Maison De Qualit, also opened
stores at Rockwell and SM Aura, respectively. Japanese snack food company, Calbee Inc,
meanwhile, entered into a 50:50 joint venture with Universal Robina Corp for the distribution of
its products in the market. French company, Groupe Casino, on the other hand, entered into an
agreement with Rustans Supercenters Inc for the exclusive distribution of its brand, Casino,
through Rustans and Shopwise outlets. Consumer and industrial products of Malaysian
company, Delima Oil Products Sdn Bhd, meanwhile, are made available through its local
partner, Intisari Mulia International Inc.
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Outlook
Local companies are likely to pave the way for more foreign brands to enter packaged food
over the forecast period through franchise deals or distribution agreement with international
companies. This will be a favoured strategy by domestic companies who want to take
advantage of the vibrant prospects offered by established well-known brands. This will also be a
more efficient method of expanding a companys product portfolio rather than investing in
research and development. A greater likelihood of success, meanwhile, is expected to be
achieved by international brands which adapt their product offerings to the purchasing habits or
preferences of the locals. The decision of Delima Oil Products Sdn Bhd to offer small packaging
sizes, thus, will work well for the company given the popularity of sachets among low-income
consumers. Cold Stone Creamerys inclusion of dried mango and Hany milk chocolate for their
mix-ins is also an illustration of efforts by foreign brands to localise their offerings which is
expected to facilitate in its acceptance among consumers.
The greater availability of foreign brands will not only improve the product choices of
consumers but will also raise their standards and expectations. Domestic companies, thus, will
be challenged to improve their product offerings as consumers become more discriminating.
Local brands which target the middle to upper income groups are expected to be most affected
by the influx of foreign brands compared to those which serve the low income segment. Foreign
brands are also predicted to have the most impact for impulse and indulgence products since
consumers are more open to making upgrades in purchases for these goods which are viewed
as affordable luxuries. Local companies, thus, can focus instead on nutrition/staples or meal
solutions where price tends to play a more significant role in the purchase decision of
consumers. To enhance the appeal of their products to consumers, domestic companies can
also make improvements in their packaging with the aim of making dispensing and storage
more convenient.
Increasingly Busy Lifestyles Continues To Benefit Packaged Food in

2014
Alongside improving economic conditions, increasingly busy lifestyles also influenced
consumer purchasing decisions in 2014. With more people joining the general workforce,
packaged food in general is just one of the many things that consumers are increasingly able to
afford. With less time for preparing, cooking, and even eating food, the convenience offered by
packaged food is appealing especially to the growing workforce.
Increasingly busy lifestyles have also greatly aided the growth of various food products,
especially those that are able to offer increased convenience to consumers. These include
canned/preserved food and instant noodles, among many others. Further aiding the growth of
these products is their availability in the growing retail channel format, convenience stores,
making them available not just in a growing number of locations nationwide, but at any hour of
the day due to their 24-hour operations.
Outlook
With the expected continued performance of the economy in the following years, lifestyles are
expected to continue to be busy, even increasingly so. Improving economic conditions are
expected to aid the continued growth of packaged food. This is helped as well by the specific
business sectors where growth is significant such as business process outsourcing, where
convenience is a key factor.
Manufacturers may then react accordingly and come up with further innovations in their
products to attract increasingly busy consumers. Be it innovations in packaging or new product
formats that are easy to prepare or consume, manufacturers may try to tap these growingly
busy consumers.
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Growingly Sophisticated Consumers Lead To Opportunities for New

Product Developments
An increasing demand for variety was aided by not just the exposure of Filipino consumers to
more and more products but also their being increasingly able to afford them. With increased
income in Filipino households comes not just greater exposure to products from leisurely
activities such as travelling, but general interest has also risen for premium-priced products,
especially among affluent households. Middle- and lower-income households also continued to
show increased willingness to try new products and variants.
New product developments came in the form of not just new products, but new flavours. In
sauces, dressings and condiments for example, more and more flavours especially from
neighbouring Asian countries, with mixes and sauces increasingly available to add and
incorporate into household meals. Innovations included addressing the growing health and
wellness trend, which at times placed products at a premium but consumers are growingly able
to afford. Consumers now faced with more options have a greater ability to afford and choose
products even beyond price.
Outlook
With the economic prospects in the upcoming years, it could only be expected that consumers
will grow increasingly sophisticated. Not only does growing household income lead to greater
freedom in purchasing decisions, consumers will likely be continuously exposed as well to more
and more products and product variants.
Positive economic prospects could be attractive to many players, both local and international,
to growing their reach and market in the Philippines. Not only could players increasingly try to
gain a bigger share of the market, this is increasingly attractive as well to foreign brands in
growing their reach by exposing more and more Filipino consumers to their products. Factors
such as flavour and variety will continue to gain significance, leaving not just price as the only
driver for purchasing decisions.
FOODSERVICE KEY TRENDS AND DEVELOPMENTS

Headlines
Foodservice continues with a positive performance in 2014
Frozen processed poultry continues to record the highest growth in 2014 of 6%
The slowest growth in 2014 was by other RTE cereals, which contracted by 6%
The number of foodservice outlets increases by 1% in 2014
Foodservice is expected to continue on an upward growth trend over the forecast period
Trends Sales To Foodservice

Improving economic conditions continued to benefit consumer foodservice in the Philippines
over the review period. Fast food and full-service restaurants also benefited from increasingly
busy lifestyles, with Filipinos being able to eat out more, especially among working
professionals. The convenience of eating out also positively contributed to foodservice, with
increasingly busy lifestyles along with improving economic conditions.
Frozen processed food continued to perform well in 2014, with a 5% increase in foodservice
volume sales. This is generally attributable to the popularity of breakfast meals in various
chains. One display of the popularity of breakfast food items in foodservice chains was seen
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in KFC. For a limited time period and in certain branches only, KFC offered a breakfast buffet
with Filipino breakfast favourites such as frozen processed meat products, usually paired with
rice.
Frozen processed poultry recorded the highest volume growth of 6%, a popular breakfast
food item. Meanwhile, RTE cereals showed the slowest growth, contracting in 2014. This may
be linked to the growing popularity of frozen processed meat products, instead.
Universal Robina Corp and San Miguel Pure Foods Co Inc, both local companies, continued
to be the most prominent companies over the review period. As long established names
across industries, their networks allow them to serve everything from the smallest bakeries
and makeshift foodservice stalls or carinderias, to their established partnerships with chained
consumer foodservice brands. In terms of sauces, dressings and condiments on the other
hand, Unilever Foods Philippines (CMC) and Del Monte Pacific Ltd and Southeast Asia Food
also continued to be some of the largest suppliers to foodservice players of sauces, dressings
and condiments.
Trends foodservice
Foodservice continued to experience growth in 2014. Aided mostly by increasingly busy
lifestyles and even more so, generally improving economic conditions, the frequency of
eating-out also increased. The expansion of restaurants as well in key cities nationwide also
benefited this growth. The number of consumer foodservice outlets continued on its positive
growth in 2014, increasing by 1%.
In 2014, foodservice volume sales increased by 3%. Improving economic conditions as well
as spending power aided eating-out as it continued to be a favourite pastime, be it for bonding
between family members, friends or co-workers. While this volume growth slowed compared
to the previous year, the difference is marginal and foodservice volume sales continued to be
positive.
Filipinos continued to generally eat at home, most of the time. There was not much interplay
between the retail and foodservice segments, as while eating-out at foodservice
establishments continued to be increasingly popular, the frequency remained limited not just
among families but also working professionals. The two however managed to adapt to similar
flavour trends with for example, Korean and Japanese cuisines seen not just growing in
popularity in terms of the foreign foodservice chains opening in the country, but also these
flavours influencing popular packaged food items.
Prospects
With economic conditions expected to continue on an upward trend, consumer foodservice
can expect to benefit over the forecast period. There remains potential for growth in consumer
foodservice, to the benefit of packaged food in the Philippines. These untapped provincial
areas could be explored by foodservice players, as eating-out is expected to continue growing
in popularity for Filipinos.
It is expected that trends witnessed the review period will continue for consume foodservice,
with various foreign foodservice chains opening, especially closer to the capital of Metro
Manila. These chains, if proven successful over the following years, may also opt to
eventually further expand to other key locations nationwide.
Positive growth is expected to continue for foodservice volumes over the forecast period,
driven mostly by the growing need for convenience, partnered with growing spending power
due to improving economic conditions. At the same time, with the presence of chains both
foreign and local continuing to grow across the country, foodservice volume sales are
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expected to be marginally lower alongside the maturity of this market. While growth is still
positive, increasing competition may be affecting these outlets, lowering transactions per
outlet as consumers are continuously offered more options.
The challenge is for foodservice companies to remain competitive through these conditions, in
order to possibly benefit from the positive climate for growth. Companies may look unique
product offerings to cater to niche markets as just one possible way of differentiating
themselves. Price will continue to be an important factor for foodservice players, and
strengthened partnerships between customers and suppliers will remain key.
Category Data
Table 1
Foodservice Sales of Packaged Food by Category: Volume 2009-2014
'000 tonnes
Baby Food
Bakery
Canned/Preserved Food
Chilled Processed Food
Confectionery
Dairy
Dried Processed Food
Frozen Processed Food
Ice Cream
Meal Replacement
Noodles
Oils and Fats
Pasta
Ready Meals
Sauces, Dressings and
Condiments
Snack Bars
Soup
Spreads
Sweet and Savoury Snacks
Impulse and Indulgence
Products
Nutrition/Staples
Meal Solutions
Packaged Food
Source:
2009
2010
2011
2012
2013
2014
103.2
33.3
16.6
2.9
49.8
49.8
66.3
4.2
14.3
120.1
16.4
0.3
49.9
104.8
35.3
17.5
2.9
50.6
52.8
74.5
4.3
14.8
126.6
18.3
0.3
51.8
106.5
37.2
18.4
3.0
51.4
54.7
78.9
4.3
15.4
132.2
19.1
0.3
53.7
108.3
39.1
19.3
3.1
52.3
56.7
83.2
4.4
15.9
138.0
20.1
0.3
55.4
110.3
41.0
20.2
3.1
53.1
58.4
87.6
4.5
16.4
144.2
20.8
0.3
57.1
112.4
42.9
21.2
3.2
54.0
59.9
91.9
4.5
16.9
150.9
21.4
0.3
58.8
0.4
3.6
18.4
61.2
0.4
3.6
19.0
62.6
0.4
3.7
19.6
63.9
0.4
3.7
20.0
65.3
0.4
3.8
20.5
66.7
0.4
3.9
20.9
68.2
290.7
166.7
518.1
302.1
179.8
543.8
311.3
188.9
563.5
321.2
197.8
583.7
331.1
206.7
603.9
341.4
215.4
624.4
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 20092014
% volume growth
Baby Food
Bakery
Confectionery
2013/14
2009-14 CAGR
2009/14 Total
1.9
4.6
4.6
2.1
1.7
5.2
5.0
2.1
8.9
28.6
27.9
10.9
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Dairy
Ice Cream
Meal Replacement
Noodles
Oils and Fats
Pasta
Ready Meals
Sauces, Dressings and Condiments
Snack Bars
Soup
Spreads
Impulse and Indulgence Products
Nutrition/Staples
Meal Solutions
Packaged Food
Source:
1.7
2.6
4.9
1.6
3.0
4.6
3.0
2.4
2.9
4.5
1.6
2.0
2.1
3.1
4.2
3.4
1.7
3.8
6.7
1.5
3.5
4.7
5.5
3.0
3.3
4.2
1.3
2.6
2.2
3.3
5.3
3.8
8.6
20.3
38.5
7.6
18.6
25.6
30.6
15.7
17.9
22.7
6.9
13.5
11.4
17.4
29.2
20.5
Table 3
Forecast Foodservice Sales of Packaged Food by Category: Volume 20142019
'000 tonnes
Baby Food
Bakery
Confectionery
Dairy
Ice Cream
Meal Replacement
Noodles
Oils and Fats
Pasta
Ready Meals
Condiments
Snack Bars
Soup
Spreads
Products
Nutrition/Staples
Meal Solutions
Packaged Food
Source:
Table 4
2014
2015
2016
2017
2018
2019
112.4
42.9
21.2
3.2
54.0
59.9
91.9
4.5
16.9
150.9
21.4
0.3
58.8
114.7
44.7
22.1
3.3
55.0
61.2
95.7
4.6
17.4
158.0
22.0
0.3
60.3
117.1
46.6
23.0
3.3
55.9
62.5
99.6
4.7
17.9
165.6
22.5
0.3
61.8
119.7
48.5
23.8
3.4
56.9
63.6
103.3
4.8
18.3
173.8
22.9
0.3
63.3
122.5
50.3
24.7
3.5
58.0
64.6
107.0
4.9
18.7
182.6
23.3
0.3
64.7
125.5
52.1
25.5
3.6
59.0
65.5
110.7
5.1
19.1
192.0
23.7
0.3
66.1
0.4
3.9
20.9
68.2
0.5
3.9
21.3
69.6
0.5
4.0
21.6
71.1
0.5
4.0
21.8
72.5
0.5
4.1
22.0
74.1
0.6
4.1
22.3
75.7
341.4
215.4
624.4
352.2
223.7
644.8
363.6
231.8
665.7
375.4
239.9
687.1
388.0
247.6
708.9
401.2
255.4
731.4
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Forecast Foodservice Sales of Packaged Food by Category: % Volume

Growth 2014-2019
Passport
% volume growth
Baby Food
Bakery
Confectionery
Dairy
Ice Cream
Meal Replacement
Noodles
Oils and Fats
Pasta
Ready Meals
Snack Bars
Soup
Spreads
Nutrition/Staples
Meal Solutions
Packaged Food
Source:
2014/15
2014-19 CAGR
2014/19 Total
2.4
3.7
3.3
2.5
1.8
1.4
3.4
2.6
2.0
5.2
1.6
1.7
2.1
6.6
1.4
0.9
2.2
3.4
3.1
3.2
2.2
4.0
3.8
2.4
1.8
1.8
3.8
2.2
2.4
4.9
2.0
1.9
2.4
5.7
1.5
1.3
2.1
3.3
3.5
3.2
11.6
21.7
20.4
12.4
9.2
9.4
20.5
11.4
12.8
27.2
10.6
9.9
12.5
32.0
7.5
6.4
11.0
17.5
18.6
17.2
trade sources
IMPULSE AND INGULGENCE PRODUCTS KEY TRENDS AND

DEVELOPMENTS
Headlines
Impulse and indulgence products grows by 6% to reach PHP132 billion in 2014
Habitual eating of impulse and indulgence products during snack time drives demand
Packaged/industrial pastries records the highest retail value growth in 2014 at 9%
Unit price of all categories increases in 2014 except for snack bars
Universal Robina Corp takes the lead with 23% value share in 2014
Impulse and indulgence products is expected to post a value CAGR of 3% at constant 2014
prices over the forecast period
Trends
Demand for impulse and indulgence products was sustained in 2014 with value growth of 6%
which was marginally faster compared to 2013 at 5%. Despite being a discretionary food item,
consumers continued to allot a proportion of their budget to impulse and indulgence products
since it is customary for them to eat snack foods such as pastries, biscuits or sweet and
savoury snacks during their break time. Impulse and indulgence products make relaxation
time more pleasing as one nibbles on food that one enjoys or is rich in flavour. Whether it is at
home, office or school, individuals of varying demographic profiles strongly associate snack
time or break time with eating impulse and indulgence products which also helps one get by
between main meals.
Packaged/industrial pastries recorded the most vibrant performance in 2014 with value growth
of 9%. This was attributable to the innovations and differentiated product offerings which led
to renewed consumer interest for packaged/industrial pastries as a snack food. Among the
new product offerings for 2013 was the cronut which caught the attention of consumers as a
healthier version of the deep fried doughnut. International brands, Krispy Kreme and J Co
Donut, however, were still able to drive demand with their differentiated products to assist the
growth of packaged/industrial pastries in 2014. While these are mainly patronised by well-off
consumers, the expansion in outlets of leading bake shops, Goldilocks and Red Ribbon, were
instrumental for improving the accessibility of packaged/industrial pastries among mass
market consumers.
Snack bars recorded a dismal performance in 2014 with a value sales decline of 8%. The
poor performance of snack bars is due to the limited product distribution and few brand
choices available to consumers. Local companies are not keen on introducing snack bars due
to its unpopularity. Bread or rice with viand is commonly taken for breakfast while biscuits,
pastries and sweet and savoury snacks are more preferred as snacks. As such, dominant
companies in snack bars are multinational players which cater to athletes or fitness fanatics
with their energy and nutrition bars distributed mainly through sports specialty stores or health
food shops.
Supermarkets and other grocery retailers such as sari-sari stores are the key distribution
channels for impulse and indulgence products. The continuous expansion in outlets of
supermarkets encourages preference for these modern grocery channels as they are
increasingly accessible to households. Other grocery retailers such as sari-sari stores,
however, remain significant especially for spur of the moment purchases and small quantity
requirements given their proximity being usually situated within residential neighbourhoods.
No packaging innovations were introduced for impulse and indulgence products in 2013.
Companies, however, continued to gravitate towards small packaging sizes to improve the
affordability of their products. Consumers generally prefer to purchase small volume
quantities so their limited budget can accommodate their various needs.
The unit price of various categories is projected to increase by 1-5% in 2014. An exception is
snack bars which is likely to record a decline in unit price by 2% in 2014. The moderate
increase in unit price will be driven by the upgrades in purchases undertaken by the growing
middle class as their buying capacity improves. Companies, on their part, are expected to
respond through improved choices of premium-priced products or introduction of imported
brands. The unit price of snack bars, meanwhile, will decrease as products widely distributed
through supermarkets are economy brands. Companies price their products affordably to
stimulate trial of snack bars given the numerous alternative options available to consumers.
Competitive Landscape
Universal Robina Corp led other players offering impulse and indulgence products in 2014
with value share of 23%. This is due to the lead attained by its brands in confectionery and
sweet and savoury snacks. Its Jack n Jill brand, for one, is strong both in confectionery and
sweet and savoury snacks. Maxx, meanwhile, is another strong brand for confectionery while
Granny Goose contributes to its prominence in sweet and savoury snacks. The companys
products are able to gain the patronage of mass market consumers due to their competitive
prices and flavours suited to the taste preference of locals.
KSK Food Products earned the biggest increase in value sales in 2014 at 24%. The company
continuously outpaced other players in 2014 to record value sales growth of 15%. KSKs
Passport
10
robust growth is driven by the lead of its brand, Boy Bawang, in other sweet and savoury
snacks. Aside from being affordably priced, Boy Bawang is able to drive demand as it
provides consumers with more flavour choices of the popular snack food, toasted corn bits,
which is typically seasoned only with salt and garlic. Through popular local flavours such as
adobo, lechon manok and barbecue, among others, Boy Bawang is able to provide a new
twist to an all-time favourite snack food.
Universal Robina Corp and Monde Nissin Corp are the two leading players for impulse and
indulgence products. While Universal Robina Corp dominates confectionery and sweet and
savoury snacks, Monde Nissin leads in biscuits. A common factor shared by these two
companies is their wide product portfolios allowing them to cater to consumers of varying
taste preferences. They also make their products accessible to consumers with their wide
distribution and affordable prices.
Magnum Gold is the latest addition to the Magnum brand and the first one to have a golden
coloured white chocolate coating. It is marginally more expensive than other Magnum
products which are sold at PHP50 while Magnum Gold retails for PHP55. Although the
product was adequately promoted, its high price positioning will limit patronage among well-off
consumers while cheaper alternatives will be a preferred option among price conscious
individuals.
Krispy Liyempo ni Mang Juan was added to the Jack n Jill line of products for sweet and
savoury snacks in 2014. It is available in two variants, sarsa (sauce) and toyo, suka at sili (soy
sauce, vinegar and chili). The product is able to achieve differentiation having a flavour taken
from a popular local dish, liempo (pork belly). This is expected to support the lead of Jack n
Jill in sweet and savoury snacks as it widens its product offerings to include locally popular
flavours.
Promotional events, tri-media and online advertisements are predominantly use by companies
to build awareness for their brands. Unilever RFM Ice Cream Inc, meanwhile, stood out with
the opening of Magnum Manila caf in April 2014 at SM Aura Taguig. The caf was erected in
order to promote the Magnum brand and is set to operate for only one year. Aside from
entres and ice cream desserts, the caf also features a Magnum bar where diners can
customise their own Magnum ice cream with a selection of 18 different toppings.
Economy brands are able to drive sales through their low prices, wide distribution and
significant presence through traditional grocery retailers such as sari-sari stores. Availability
through channels frequented by low- income consumers is essential for them to reach their
target market. Standard brands, meanwhile, are able to justify their marginally higher prices
mainly through their differentiated offerings and reputation for quality. Premium brands, on the
other hand, are preferred by affluent consumers for their perceived superiority in taste and
quality. Private label, on the other hand, is available although very limited in product choices
resulting in its negligible market share despite competitive prices.
With price remaining a significant consideration in the purchasing decision of consumers,
local companies are able to dominate multinational players through their competitively-priced
products. Foreign companies, meanwhile, improve the accessibility of their products through
the use of small packaging sizes which helps lower the selling price. Foreign companies, in
general, are able to serve the needs of middle to upper income consumers while local players
create affordable counterparts to cater to mass market consumers aspiring for imported
brands which are beyond their budget.
Prospects
The consumption of impulse and indulgence products during snack time is expected to be
sustained over the forecast period. While rice will be continuously preferred for main meals,
Passport
11
biscuits, pastries and sweet and savoury snacks will be staple snack food items. However,
there will be greater preference for biscuits which will outpace other impulse and indulgence
products with a value CAGR of 4% at constant 2014 prices and volume CAGR of 5% over the
forecast period. The wide product choices, affordability and perception of biscuits as healthy
snack options will assist purchases over alternatives which are loaded either with sugar or
salt.
Impulse and indulgence products is expected to register improvements over the forecast
period with a value CAGR of 3% at constant 2014 prices which will be marginally faster that
its review period performance which recorded a value CAGR of 1%. The presence of
economy brands will allow even those with a limited budget to include impulse and indulgence
products on their grocery list even if it is a discretionary food item. The growing middle class
and affluent shoppers, meanwhile, will drive the faster value growth through their purchase of
imported or premium brands.
The growing awareness on the harms of too much salt or sugar in food can pose threats to
the growth of impulse and indulgence products. Although consumption is not likely to
discontinue altogether, consumers are expected to limit their intake or prefer healthier
variants. Opportunities, thus, exist for companies to introduce more healthy alternatives to
meet the growing interest among consumers to achieve wellness through their food choices.
Companies are likely to improve the formulation of their products especially since the
Department of Education seeks to regulate the selling of junk food in schools. Though
implementation is predicted to be weak, companies are expected to balance off any
unfavourable impact of this regulation by creating fortified or healthy biscuits which could
offset any potential decline in volume sales of sweet and savoury snacks. The introduction of
new flavour variants or product formats, meanwhile, will remain prevalent for pastries, cakes
and ice cream. Small packaging or low volume sizes, on the other hand, will continually be
used to improve the affordability especially of standard brands. Promotion through social
networking sites, meanwhile, will improve while tri-media advertisements will slowly give way
as tablets and smartphones are becoming more accessible with the improved availability of
low-priced gadgets.
Unit price is expected to remain stable over the forecast period. Although some categories are
expected to post declines in unit price while others will witness an increase, the movement is
minimal and would remain between -2% and 1%. This is indicative of the sustained
preference for economy and standard brands. Unit price increases, however, will be recorded
for ice cream and cakes which are regarded as an affordable luxury. Consumers are more
open to purchasing pricier options for ice cream and cakes especially for social gatherings or
special occasions. Snack bars will also witness growth in unit price amidst the dominance of
foreign brands especially for energy and nutrition bars which cater to active individuals.
Magnum Gold and Jack n Jill Krispy Liyempo ni Mang Juan are both likely to attain limited
success over the forecast period. Magnum Golds high price will be the main hindrance
towards wide patronage. Jack n Jills new variant, meanwhile, will remain as one of the
options consumers will occasionally purchase to put variety to their snack food choices. Other
companies are not expected to create similar offerings. Instead, they will likely focus on
creating new flavours that will contribute to improved product choices of consumers.
Category Data
Table 5
Sales of Impulse and Indulgence Products by Category: Volume 2009-2014
tonnes
Passport
12
Confectionery
Pastries
Cakes
Biscuits
Ice Cream
Snack Bars
Products
Source:
Passport
2009
2010
2011
2012
2013
2014
88,018.8
43,624.1
30,085.5
119,204.4
42,755.1
118,875.6
16.8
442,580.4
89,284.9
44,203.1
30,358.2
124,693.4
43,851.7
123,558.3
16.1
455,965.7
87,703.4
44,919.6
30,629.4
130,516.6
45,770.9
128,779.0
8.4
468,327.4
87,925.7
45,692.6
30,901.1
136,996.4
47,877.2
137,466.3
0.7
486,860.2
90,658.0
46,525.9
31,206.2
144,032.3
48,804.8
150,273.7
0.7
511,501.6
93,441.6
47,578.5
31,560.3
151,327.0
49,730.6
159,837.5
0.6
533,476.1
Table 6
Sales of Impulse and Indulgence Products by Category: Value 2009-2014
PHP million
Confectionery
Pastries
Cakes
Biscuits
Ice Cream
Snack Bars
Products
Source:
2009
2010
2011
2012
2013
2014
28,808.9
6,093.4
8,302.0
20,038.5
8,176.7
30,367.0
12.6
101,799.0
29,690.3
6,382.2
8,578.2
21,355.2
8,547.8
31,765.0
12.2
106,331.0
29,743.4
6,720.2
8,896.0
22,906.4
8,911.0
33,881.2
6.6
111,064.8
30,404.7
7,103.6
9,202.5
24,735.0
9,405.4
37,177.9
0.9
118,029.9
31,903.5
7,536.0
9,490.9
26,758.8
9,821.0
41,589.9
0.8
127,101.0
33,479.5
8,031.0
9,809.6
28,924.8
10,246.1
45,222.4
0.7
135,714.1
Table 7
Sales of Impulse and Indulgence Products by Category: % Volume Growth

2009-2014
% volume growth
Confectionery
Pastries
Cakes
Biscuits
Ice Cream
Snack Bars
Source:
2013/14
2009-14 CAGR
2009/14 Total
3.1
2.3
1.1
5.1
1.9
6.4
-6.3
4.3
1.2
1.8
1.0
4.9
3.1
6.1
-48.0
3.8
6.2
9.1
4.9
26.9
16.3
34.5
-96.2
20.5
Table 8
Sales of Impulse and Indulgence Products by Category: % Value Growth

2009-2014
% current value growth
Confectionery
2013/14
2009-14 CAGR
2009/14 Total
4.9
3.1
16.2
13
Passport
Pastries
Cakes
Biscuits
Ice Cream
Snack Bars
Source:
5.7
3.4
7.6
4.6
8.3
-43.4
5.9
31.8
18.2
44.3
25.3
48.9
-94.2
33.3
Table 9
NBO Company Shares of Impulse and Indulgence Products: % Value 20102014
% retail value rsp

Company
Universal Robina Corp
Monde Nissin Corp
Liwayway Marketing Corp
Unilever RFM Ice Cream
Inc
Mondelez Philippines Inc
Nestl Philippines Inc
Food Industries Inc
Tobi Marketing Inc
Republic Biscuit Corp
Columbia International
Food Products Inc
JBC Corp
Delfi Foods Philippines
Inc
Perfetti Van Melle
Philippines Inc
GFI Enterprises Inc
Regent Foods Corp
SPI Corp
Leslie Corp
Wrigley Philippines Inc
Goldilocks Bake Shop Inc
Procter & Gamble
Philippines Inc
Hershey Philippines Inc
Mars Philippines Inc
Big E Food Products
Frito-Lay Co
Red Ribbon Bake Shop Inc
Suncrest Foods Inc
San Miguel Pure Foods
Co Inc
Grand Alphatech
International Corp
Martinez & Co Inc,
Felicisimo
Ferrero Group
Artisanal
Others
Total
Source:
6.6
3.4
8.1
4.3
8.7
-8.0
6.8
2010
2011
2012
2013
2014
21.3
6.7
4.1
3.7
21.8
6.9
4.2
3.7
22.7
7.0
4.3
3.8
23.8
7.1
4.5
3.8
24.4
7.1
4.6
3.7
3.6
2.7
2.4
2.2
2.2
3.5
2.7
2.4
2.2
2.2
3.5
2.7
2.5
2.3
2.1
3.4
3.4
2.7
2.4
2.3
2.0
3.4
3.4
2.7
2.5
2.3
2.0
1.6
1.6
1.7
1.5
1.7
1.6
1.7
1.6
1.7
1.6
1.7
1.6
1.6
1.6
1.5
1.5
1.5
1.7
1.0
1.7
1.0
0.8
1.5
1.5
1.6
1.0
1.4
1.0
0.9
1.5
1.5
1.5
1.1
1.2
1.1
0.9
1.5
1.5
1.4
1.2
1.2
1.1
1.0
1.5
1.5
1.4
1.2
1.2
1.1
1.0
1.1
0.9
0.8
0.6
0.7
0.7
0.7
1.0
0.9
0.8
0.7
0.7
0.7
0.7
1.0
0.9
0.8
0.7
0.7
0.7
0.7
0.9
0.9
0.8
0.7
0.7
0.7
0.7
0.9
0.8
0.8
0.8
0.7
0.7
0.7
0.6
0.6
0.6
0.6
0.6
0.6
0.6
0.6
0.6
0.5
0.5
6.8
22.8
100.0
0.5
6.7
22.5
100.0
0.5
6.5
21.7
100.0
0.5
6.1
17.7
100.0
0.5
5.8
17.4
100.0
14
Table 10
Passport
LBN Brand Shares of Impulse and Indulgence Products: % Value 2011-2014
% retail value rsp

Brand
Jack 'n' Jill
Sky Flakes
Oishi
Selecta
Nagaraya
Tobi
Maxx
Rebisco
Happy
Growers
Nestl
Leslie's
Goldilocks
Pringles
Mentos
Eggnog
Goya
Bingo
Granny Goose
Regent
Fita
Lemon Square
Red Ribbon
Oreo
Doublemint
Magnolia
Tempura
Knick Knacks
Chips Delight
La Pacita
Oreo
Company
2011
2012
2013
2014

Monde Nissin Corp
Unilever RFM Ice Cream Inc
Food Industries Inc
Tobi Marketing Inc
JBC Corp
GFI Enterprises Inc
Leslie Corp
Procter & Gamble
Philippines Inc
Perfetti Van Melle
Philippines Inc
Monde Nissin Corp
Inc
Monde Nissin Corp
Regent Foods Corp
Monde Nissin Corp
Big E Food Products
Red Ribbon Bake Shop Inc
Wrigley Philippines Inc
Co Inc
Regent Foods Corp
Inc
Grand Alphatech
International Corp
Martinez & Co Inc,
Felicisimo
Kraft Foods
(Philippines) Inc
18.1
3.6
3.3
3.4
2.7
2.3
2.3
1.8
1.7
1.5
1.6
1.0
1.0
0.9
19.0
3.7
3.5
3.4
2.7
2.3
2.2
1.8
1.7
1.5
1.6
1.1
1.1
0.9
20.1
3.7
3.6
3.3
2.7
2.3
2.1
1.8
1.7
1.5
1.5
1.2
1.1
1.0
20.8
3.8
3.7
3.3
2.7
2.3
2.1
1.8
1.7
1.5
1.5
1.2
1.1
1.0
1.0
1.0
1.0
0.9
0.9
0.9
0.9
1.0
0.9
0.9
0.9
0.9
0.8
0.7
0.9
0.7
0.8
0.7
0.7
0.7
0.8
0.8
0.9
0.8
0.8
0.7
0.7
0.7
0.8
0.8
0.8
0.8
0.8
0.7
0.7
0.7
0.7
0.9
0.9
0.8
0.8
0.8
0.7
0.7
0.7
0.7
0.6
0.5
0.6
0.6
0.6
0.6
0.6
0.6
0.6
0.6
0.6
0.6
0.6
0.6
0.6
0.5
0.6
0.6
6.7
36.2
100.0
6.5
35.0
100.0
6.1
34.2
100.0
5.8
33.6
100.0
2018
2019
Artisanal
Others
Total
Source:
Table 11
Forecast Sales of Impulse and Indulgence Products by Category: Volume

2014-2019
tonnes
2014
2015
2016
2017
15
Confectionery
Pastries
Cakes
Biscuits
Ice Cream
Snack Bars
Products
Source:
Passport
93,441.6
47,578.5
31,560.3
151,327.0
49,730.6
159,837.5
0.6
533,476.1
96,347.5
48,826.8
32,014.3
158,280.3
50,724.4
169,495.0
0.6
555,689.0
99,197.5
50,044.0
32,444.8
165,165.2
51,655.2
179,370.1
0.6
577,877.4
102,158.5
51,403.6
32,967.2
172,650.4
52,885.9
189,441.1
0.5
601,507.2
105,269.7
52,858.5
33,557.6
180,767.2
54,392.1
199,648.2
0.5
626,493.9
108,504.7
54,394.4
34,213.0
189,383.8
56,099.3
209,948.8
0.5
652,544.4
trade sources
Table 12
Forecast Sales of Impulse and Indulgence Products by Category: Value 20142019
PHP million
Confectionery
Pastries
Cakes
Biscuits
Ice Cream
Snack Bars
Products
Source:
2014
2015
2016
2017
2018
2019
33,479.5
8,031.0
9,809.6
28,924.8
10,246.1
45,222.4
0.7
135,714.1
34,187.0
8,171.1
9,941.7
30,076.0
10,501.0
47,818.2
0.7
140,695.8
34,870.0
8,305.2
10,072.5
31,219.3
10,749.6
50,448.5
0.7
145,665.7
35,611.7
8,458.5
10,243.7
32,463.5
11,064.1
53,046.8
0.6
150,888.9
36,403.5
8,617.2
10,441.6
33,834.3
11,439.0
55,615.5
0.6
156,351.7
37,226.9
8,784.8
10,655.2
35,303.0
11,858.9
58,118.4
0.6
161,947.7
trade sources
Table 13
Forecast Sales of Impulse and Indulgence Products by Category: % Volume

Growth 2014-2019
% volume growth
Confectionery
Pastries
Cakes
Biscuits
Ice Cream
Snack Bars
Source:
2014/15
2014-19 CAGR
2014/19 Total
3.1
2.9
2.0
4.8
3.1
5.2
-3.3
4.2
3.0
2.7
1.6
4.6
2.4
5.6
-4.4
4.1
16.1
14.3
8.4
25.1
12.8
31.4
-20.0
22.3
trade sources
Table 14
Forecast Sales of Impulse and Indulgence Products by Category: % Value

Growth 2014-2019
% constant value growth
Confectionery
Pastries
2014/2015
2014-19 CAGR
2014/19 TOTAL
2.3
1.9
2.1
1.8
11.2
9.4
16
Cakes
Biscuits
Ice Cream
Snack Bars
Source:
Passport
2.0
4.3
3.7
4.5
-2.5
3.6
1.7
4.1
3.0
5.1
-3.6
3.6
trade sources
MEAL SOLUTIONS KEY TRENDS AND DEVELOPMENTS

Headlines
Meal solutions grows by 3% in retail volume terms
Growth of meal solutions continues to be driven by the demand for convenience in 2014
Ready meals exhibits the highest value growth at 9% for 2014
Unit price increases for all categories in 2014
Value share is led by The Purefoods-Hormel Co Inc at 22%
Meal solutions is predicted to record a value CAGR of 3% at constant 2014 prices for meal
solutions over the review period
Trends
Alongside improving economic conditions in the country, Filipinos are increasingly
experiencing faster-paced lifestyles. Busier lifestyles call for greater convenience, which meal
solutions benefit from, benefiting categories such as canned/preserved food, frozen
processed food, chilled processed food, and more. The positive impact of these factors on
this category was evident in the marginal increase in value sales growth for meal solutions in
2014, at 7%.
With 5% volume growth and 9% value growth for 2014, ready meals continued to record the
fastest growth under meal solutions. A dynamic area, ready meals continue to show much
room for growth not just in terms of competition but also flavours and overall product variety.
Meanwhile, sauces, dressings and condiments recorded the slowest volume growth in 2014,
and was marginally slower compared to the previous year. A developed area with not much
room for growth and much competition already present, sauces, dressings and condiments as
the biggest category continued to show moderate growth.
While traditional channels such as mom-and-pop sari-sari stores continued to be a highly
popular distribution channel for meal solutions, growing in popularity as well were modern
grocery retailers such as supermarkets and even more significantly, convenience stores. With
these modern grocery retailers continuously expanding in outlet count and nationwide reach,
their ability to bring these products even closer to the consumers helps them gain even more
significance as distribution channels for meal solutions.
With unit price increasing for all categories in 2014, the challenge for manufacturers is then to
find ways to keep costs low and maintain the affordability of their products. One method was
evident in the growing popularity of stand-up pouches as packaging for meal solutions.
Brands such as Hunts Pork n Beans, Mega Sardines and Fresca Tuna offered their products
in smaller sizes using these stand-up pouches.
8.6
22.1
15.7
28.5
-16.8
19.3
17
Throughout the years, The Purefoods-Hormel Co Inc was able to maintain its position, leading
sales of meal solutions in 2013 and 2014. With 22% value share for meal solutions, its strong
lead was maintained by the highly positive performance of its products. Its flagship brand,
Purefoods, continued in strength in products such as canned/preserved meat and meat
products, chilled processed meat, frozen processed red meat and frozen processed poultry.
With consumers remaining loyal to this trusted brand, these are also sectors that witnessed
continued growth due to the convenience provided and increasingly busy lifestyles given
improving economic conditions.
Ranked second in terms of meal solutions, CDO Foodsphere Inc was not left behind, either.
Showing the greatest increase in value share for meal solutions overall, it continued to grow in
strength. This domestic player had the advantage as well of its long presence in the business,
with its strength in canned/preserved food, chilled processed food, and frozen processed food
among many others. Its increase in value share showed the ability CDO Foodsphere Inc has
to increasingly gain favour amongst Filipino consumers, even against the top leading brands
of The Purefoods-Hormel Co.
Considering the products under meal solutions, a key strategy continued to be effective
advertising, as witnessed in leading players for meal solutions. Especially for new brands
entering the market, effective endorsement is a key factor, usually through partnerships with
local celebrities. The continued demand for variety may have called for innovation in terms of
flavours and product offerings, but gaining the trust and loyalty of consumers.
In 2014, some new product developments included the new Del Monte Spaghetti Sauce with
Purefoods Tender Juicy Hotdog. Incorporating the very common practice of adding hotdogs
into Filipino-style spaghetti, this new sauce by Del Monte Philippines Inc removes the extra
step and already adds in the hotdogs to the spaghetti sauce for the consumer. The
Purefoods-Hormel Co Inc on the other hand released Purefoods Fun Stuff Nuggets Medley, a
mix of its various flavours and varieties of chicken nuggets such as Pepperoni & Cheese,
Bacon & Cheese and Cheese Overload in one bag.
While imported premium brands continued to be available, meal solutions continued to be
dominated by standard products, with consumers generally loyal to their trusted brands.
Economy brands also continued to grow in presence, especially with the growing strength of
private label such as SM Bonus, but consumers showed a tendency to remain loyal to their
preferred brands.
Prospects
Improving economic conditions as well as the growing need for convenience will continue to
benefit meal solutions over the forecast period. With an expected value CAGR of 3% at
constant 2014 prices over the forecast period, meal solutions is expected to continue onwards
a stable positive growth trend.
A potential forecast threat to growth continues to be the growing health consciousness trend
among Filipino consumers. While meal solutions provide convenience among many other
advantages, its nature as processed food may also hinder its attractiveness to increasingly
health-conscious consumers.
Companies will likely continue expansion efforts through flavours, especially from Asian
cuisines such as Korean and Japanese, which continued to be increasingly popular in the
Philippines.
The conveniently packed Del Monte Spaghetti Sauce with Purefoods Tender Juicy Hotdog is
expected to succeed over the review period, indicated also by how competing spaghetti sauce
Passport
18
Passport
player UFC also rushed to make its own version of sauce incorporating hotdogs. Purefoods
Fun Stuff Nuggets Medley on the other hand is also expected to see success, following the
overall growth of frozen processed poultry products, especially as a popular breakfast item for
Filipinos.
Within meal solutions, ready meals with a value CAGR of 5% at constant 2014 prices is
expected to record the best growth over the forecast period. Unit price movement on the other
hand may witness a slow decline in the medium-term if companies continued to innovate in
terms of packaging, such as smaller pack sizes.
Category Data
Table 15
Sales of Meal Solutions by Category: Volume 2009-2014
'000 tonnes
Ready Meals
Dessert Mixes
Dinner Mixes
Condiments
Soup
Meal Solutions
Source:
2009
2010
2011
2012
2013
2014
11.6
223.0
102.1
0.4
82.8
187.7
12.0
234.5
105.7
0.4
86.5
195.8
12.6
245.6
111.9
0.4
89.8
203.7
13.1
256.6
116.1
0.4
92.9
210.7
13.8
267.5
119.8
0.4
96.0
217.2
14.4
277.8
123.2
0.4
99.0
223.0
3.9
611.5
4.0
639.0
4.2
668.1
4.3
694.2
4.5
719.1
4.6
742.5
Table 16
Sales of Meal Solutions by Category: Value 2009-2014
PHP million
Ready Meals
Dessert Mixes
Dinner Mixes
Condiments
Soup
Meal Solutions
Source:
2009
2010
2011
2012
2013
2014
2,570.0
26,874.1
24,450.9
122.4
14,336.8
20,158.6
2,752.9
28,807.3
25,920.4
128.6
15,053.6
21,239.5
2,960.6
30,976.9
28,148.2
135.6
15,881.6
22,425.2
3,204.4
33,251.3
30,208.5
142.4
16,834.5
23,702.5
3,442.4
35,514.8
32,022.6
149.7
17,878.2
25,016.5
3,758.1
38,300.0
34,320.2
159.4
19,183.3
26,599.3
1,220.3
89,733.1
1,317.1
95,219.4
1,423.7
101,951.8
1,540.4
108,884.0
1,637.8
115,661.9
1,767.2
124,087.5
Table 17
Sales of Meal Solutions by Category: % Volume Growth 2009-2014
% volume growth
Ready Meals
2013/14
2009-14 CAGR
2009/14 Total
5.0
3.9
4.6
4.5
25.0
24.6
19
Passport

Dessert Mixes
Dinner Mixes
Soup
Meal Solutions
Source:
2.8
3.5
3.1
2.7
3.9
3.2
3.8
3.2
3.6
3.5
3.4
4.0
20.6
16.8
19.6
18.8
18.0
21.4
Table 18
Sales of Meal Solutions by Category: % Value Growth 2009-2014
Ready Meals
Dessert Mixes
Dinner Mixes
Soup
Meal Solutions
Source:
2013/14
2009-14 CAGR
2009/14 Total
9.2
7.8
7.2
6.5
7.3
6.3
7.9
7.3
7.9
7.3
7.0
5.4
6.0
5.7
7.7
6.7
46.2
42.5
40.4
30.2
33.8
32.0
44.8
38.3
Table 19
NBO Company Shares of Meal Solutions: % Value 2010-2014
% retail value rsp

Company
Purefoods-Hormel Co
Inc, The
CDO Foodsphere Inc
Century Canning Corp
Pacific Meat Co Inc
Unilever Foods
Philippines (CMC)
Del Monte Philippines Inc
Ajinomoto Philippines
Corp
A Tung Chingco Trading
SM Retail Inc
New Seorito Frozen
Food Co
Maunlad Canning Corp
Dole Philippines Inc
Campbell Soup Co
Kraft Foods
(Philippines) Inc
Superb Catch Inc
King Sue Ham & Sausage
Co Inc
Southeast Asia Food Inc
Silver Swan Mfg Corp Inc
UFC Philippines Inc
2010
2011
2012
2013
2014
21.7
21.9
22.2
22.3
22.5
6.8
7.0
3.8
5.2
7.1
7.0
3.9
5.2
7.3
7.0
5.6
5.2
7.4
7.0
5.5
5.2
7.6
7.0
5.5
5.2
3.7
4.2
3.8
4.0
3.8
3.9
3.8
3.8
3.8
3.7
2.4
2.3
1.6
2.4
2.3
1.7
2.4
2.3
1.7
2.5
2.3
1.8
2.5
2.4
1.8
1.7
1.6
1.5
1.3
1.6
1.6
1.5
1.3
1.6
1.6
1.5
1.3
1.6
1.6
1.5
1.2
1.6
1.6
1.5
1.2
1.1
1.2
1.1
1.2
1.1
1.2
1.2
1.1
1.2
1.1
1.0
0.9
0.9
1.0
0.9
1.0
1.0
0.9
1.0
1.0
1.0
1.0
1.1
1.0
1.0
20
Sara Lee Corp

Alson's Aqua
Technologies Inc
Del Monte Foods Inc
Bambi Foods Mfg Corp
Bagumbuhay Industrial
Corp
HDR Foods Corp
Marigold Commodities Corp
B2 Maling Foods Corp
Ram Food Products Inc
Maple Leaf Food Royal
Greenland International
Del Monte Foods Co
Others
Total
Source:
Passport
1.0
0.7
1.0
0.7
0.9
0.8
0.9
0.8
0.9
0.8
0.9
0.7
0.9
0.7
0.9
0.7
0.8
0.7
0.8
0.8
0.7
0.7
0.6
0.6
0.7
0.4
0.5
0.7
0.6
0.6
0.6
0.5
0.5
0.7
0.6
0.6
0.5
0.5
0.5
0.7
0.6
0.6
0.5
0.5
0.5
0.7
0.6
0.6
0.5
0.5
0.5
0.8
22.6
100.0
0.8
22.2
100.0
0.8
20.1
100.0
0.8
19.8
100.0
19.5
100.0
Table 20
LBN Brand Shares of Meal Solutions: % Value 2011-2014
% retail value rsp

Brand
Purefoods
CDO
555
Argentina
Ajinomoto
Century
Del Monte
Knorr
Ligo
SM Bonus
Swift
New Seorito
Youngstown
Lady's Choice
Campbell's
Seaking
King Sue
Dole
Datu Puti
Silver Swan
Sara Lee
Kraft
Sarangani Bay
Bambi
Del Monte
Master
Mother's Best
Company
2011
2012
2013
2014
Purefoods-Hormel Co
Inc, The
CDO Foodsphere Inc
Pacific Meat Co Inc
Ajinomoto Philippines Corp
Unilever Foods
Philippines (CMC)
SM Retail Inc
Pacific Meat Co Inc
New Seorito Frozen
Food Co
Maunlad Canning Corp
Unilever Foods
Philippines (CMC)
Campbell Soup Co
Superb Catch Inc
King Sue Ham & Sausage
Co Inc
Dole Philippines Inc
Southeast Asia Food Inc
Silver Swan Mfg Corp Inc
Sara Lee Corp
Kraft Foods
(Philippines) Inc
Alson's Aqua
Technologies Inc
Bambi Foods Mfg Corp
Del Monte Foods Inc
Bagumbuhay Industrial Corp
HDR Foods Corp
21.7
22.0
22.2
22.4
7.1
3.8
3.9
3.8
3.2
3.2
2.8
7.3
3.8
3.7
3.6
3.2
3.2
2.8
7.4
3.8
3.6
3.5
3.2
3.2
2.8
7.6
3.8
3.6
3.5
3.3
3.2
2.9
2.4
2.3
1.7
2.4
2.3
1.9
1.7
2.5
2.3
1.9
1.8
2.5
2.4
1.9
1.8
1.6
1.6
1.6
1.6
1.6
1.6
1.6
1.5
1.4
1.1
1.2
1.4
1.1
1.2
1.3
1.2
1.1
1.3
1.2
1.1
1.1
1.0
0.9
1.0
0.8
1.1
1.0
0.9
0.9
0.8
1.1
1.0
0.9
0.9
0.9
1.1
1.0
0.9
0.9
0.9
0.7
0.8
0.8
0.8
0.9
0.7
0.7
0.9
0.7
0.7
0.8
0.7
0.7
0.8
0.8
0.7
0.7
21
Best Foods
Unilever Foods
Philippines (CMC)
Marigold Commodities Corp
B2 Maling Foods Corp
Del Monte Foods Co
RFM Corp
Mama Sita
Maling
Del Monte
Swift
Others
Total
Source:
Passport
0.7
0.7
0.7
0.7
0.6
0.6
0.8
1.8
25.1
100.0
0.6
0.6
0.8
24.7
100.0
0.6
0.6
0.8
24.3
100.0
0.6
0.6
24.0
100.0
Table 21
Forecast Sales of Meal Solutions by Category: Volume 2014-2019
'000 tonnes
Ready Meals
Dessert Mixes
Dinner Mixes
Condiments
Soup
Meal Solutions
Source:
2014
2015
2016
2017
2018
2019
14.4
277.8
123.2
0.4
99.0
223.0
15.2
287.9
126.3
0.4
101.9
228.2
16.0
297.6
129.1
0.5
104.6
232.6
16.8
307.8
132.1
0.5
107.7
237.5
17.6
318.6
135.5
0.5
111.2
242.9
18.6
330.2
139.1
0.5
115.1
248.7
4.6
742.5
4.8
764.9
5.0
785.2
5.2
807.6
5.4
831.8
5.6
857.8
trade sources
Table 22
Forecast Sales of Meal Solutions by Category: Value 2014-2019
PHP million
Ready Meals
Dessert Mixes
Dinner Mixes
Condiments
Soup
Meal Solutions
Source:
2014
2015
2016
2017
2018
2019
3,758.1
38,300.0
34,320.2
159.4
19,183.3
26,599.3
3,940.3
39,517.5
35,214.3
162.9
19,701.3
27,056.5
4,128.0
40,714.3
36,016.9
166.6
20,159.9
27,424.8
4,335.6
41,982.1
36,931.5
170.6
20,702.8
27,841.2
4,556.4
43,335.0
37,927.1
174.6
21,312.2
28,304.6
4,793.3
44,778.3
38,980.7
178.6
21,981.5
28,812.2
1,767.2
124,087.5
1,826.4
127,419.3
1,882.2
130,492.6
1,941.4
133,905.1
2,003.4
137,613.3
2,071.7
141,596.4
trade sources
Table 23
Forecast Sales of Meal Solutions by Category: % Volume Growth 2014-2019
% volume growth
Ready Meals
2014/15
2014-19 CAGR
2014/19 Total
5.3
3.6
2.7
5.2
3.5
2.5
28.6
18.8
12.9
22
Dessert Mixes
Dinner Mixes
Soup
Meal Solutions
Source:
Passport
3.8
3.4
2.4
3.7
3.1
3.8
3.1
2.2
3.8
2.9
20.7
16.3
11.5
20.3
15.5
trade sources
Table 24
Forecast Sales of Meal Solutions by Category: % Value Growth 2014-2019
Ready Meals
Dessert Mixes
Dinner Mixes
Soup
Meal Solutions
Source:
2014/2015
2014-19 CAGR
2014/19 TOTAL
5.2
3.3
2.8
2.3
3.1
1.8
3.4
2.9
5.0
3.2
2.6
2.3
2.8
1.6
3.2
2.7
27.5
16.9
13.6
12.0
14.6
8.3
17.2
14.1
trade sources
NUTRITION/STAPLES KEY TRENDS AND DEVELOPMENTS

Headlines
Nutrition/staples posts 5% value growth to reach PHP234 billion in 2014
Nutrition/staples remains an essential food item despite increasing frequency of dining out
Pasta records the highest value growth in 2014 at 10%
Unit price increases moderately in 2014
Nestl Philippines Inc dominates nutrition/staples with value share of 18% in 2014
Nutrition/staples is expected to record a value CAGR of 3% at constant 2014 prices over the
forecast period
Trends
The continued expansion of shopping centres is helping to assist the growth of restaurants.
With the wide range of choices from budget restaurants to more extravagant ones, consumers
can afford to eat out more often without significantly straining their budget. Nutrition/staples,
however, remained an essential food item which most households cannot do without, despite
the rising tendency to dine out. For 2014, nutrition/staples grew by 5% in value terms which
was marginally faster than the recorded growth in 2013. This was due to the price increases
in vegetable and seed oil which is troubled by supply issues and the growing number of
upscale artisanal bakeries, amongst others. The faster value growth will also be spurred by
the willingness of parents to purchase fortified brands of baby food to ensure their children are
receiving the right nutrients
23
Pasta outpaced other area of nutrition/staples in 2014 with value sales increase of 10%. While
rice is a staple for regular everyday meals, pasta is a must-have for celebrations. During
social gatherings, it is typical for a pasta dish to be included, especially for birthday parties of
children. Thus, while consumers might not have a need for pasta for their everyday meal, a
constant demand for it arises whenever there are special occasions.
Cheese underperformed in 2014 as it recorded the most sluggish value growth at 2%. This is
due to the popularity of affordable processed cheese among consumers and low appreciation
for pricier gourmet variants. Cheese is commonly used as a bread spread, an ingredient for
cooking dishes such as stews or a garnish for pasta dishes such that spreadable processed
cheese and quick melt cheeses are most preferred by consumers. Thus, affordable variants
are more widely distributed being patronised by a greater number of consumers than artisanal
cheese. More expensive variants such as Camembert, Brie and Emmental are unknown to
regular households who are unfamiliar with its use in food preparation.
Supermarkets was the key distribution channel for breakfast cereals, dairy products, oils and
fats, spreads, pasta and rice. The growing number of outlets of supermarket chains makes
this modern grocery channel more accessible to households for the purchase of essential
food items. Other grocery retailers such as sari-sari stores, meanwhile, are prominent for the
distribution of noodles. Being located in neighbourhoods, sari-sari stores are convenient
channels for the purchase of noodles by low-income consumers who usually buy per piece as
the need arises or whenever their budget will permit. The purchase of baby food and meal
replacement products, on the other hand, is more prevalent through health and beauty
specialist retailers which carry a more comprehensive range of brands with some
drugstores/parapharmacies offering a valuable 24-hour service. Food specialist retailers,
meanwhile, is preferred for the purchase of warm and freshly baked bread.
There were no significant packaging innovations for nutrition/staples in 2014. It is common,
however, for companies to use sachets or pouches to improve the affordability of their
products. This is evident for categories such as spreadable processed cheese and vegetable
and seed oil. Other companies, meanwhile, offer small packaging sizes in response to the
greater preference among consumers to purchase often in small quantities rather than buy
less frequently in bulk.
Unit price of nutrition/staples is expected to rise moderately in 2014 with 4% being the highest
increase to be recorded for some categories. This is because consumers are expected to
prefer low-end or standard brands for everyday food items. The openness for pricier
alternatives would usually be more prevalent for occasionally purchased goods such as
impulse/indulgence products. Companies, on their part, control their price increases or offer
small-sized packaging to maintain consumer preference for their brands.
Nestl Philippines Inc led nutrition/staples in 2014 with value share of 18%. This is due to the
leadership of its brands in baby food excl milk formula and drinking milk products. Its brands
are also strong contenders in milk formula, yoghurt and sour milk products, breakfast cereals,
other dairy and convalescence. The companys established reputation for quality drives
consumer preference for its brands. Nestl also holds numerous promotional activities which
improve the positioning of its brands as beneficial for achieving overall wellness.
Molino Nicoli SpA exited the market following the cessation in distribution of its breakfast
cereal locally. Its brand, Nicoli Flakes, struggled against those offered by prominent
companies such as Kellogg Co and Nestl Philippines Inc. Unilever Foods Philippines (CMC),
meanwhile, lagged behind other players in 2014 declining by 50% following the acquisition of
RFM Corp of its pasta brand, Royal.
Passport
24
Successful companies for nutrition/staples are those who are able to provide quality products
at reasonable prices. With nutrition/staples being a regularly purchased item, consumers often
prefer standard or economy brands. Companies are able to respond to this by utilizing small
packaging size which improves the affordability of their products without sacrificing on quality.
Fortification or the use of naturally healthy ingredients also helps increase the value of a
product and improves its appeal among consumers.
Liwayway Marketing Corp expanded its product portfolio with the introduction of Oishi Choco
Chug and Oishi Oaties Milk in 2013. These two new brands are the first drinking milk products
to contain finely ground oats. Available in 250ml and 1litre brick liquid carton, the product is
likely to be received well by youngsters, especially those in need of a healthy breakfast or
snack food in a convenient format.
The UFC Birthday Pack was launched in 2013 which bundles together dried pasta and pasta
sauce, available in 1kg and 500g options. The products main benefit is the savings in cost
being sold at a lower price than if the two products were purchased separately. As such, the
product is likely to be patronised mainly by price- conscious consumers, while the greater
majority would opt to have the freedom to choose the pasta sauce to be paired with their dried
pasta.
Events are widely used for the promotion of various nutrition/staples. Nestl Philippines Inc,
however, is most active in holding events which are centred on promoting wellness. The
company, for instance, annually holds the Choose Wellness Expo which ran on its sixth year
in 2013. Nestl also engages consumers through various fitness activities such as Zumba,
muay thai, yoga and aqua training, amongst others. Nutritional counselling is also utilised by
Nestl to educate consumers on how to make better food choices.
Private label has minimal presence in nutrition/staples and is limited to vegetable and seed
oil, hot cereals and packaged/industrial bread. As such, economy brands are the best option
for consumers with a limited budget. Affordable brands however are just as active as standard
brands are in investing in tri-media advertisements, marketing events and social media
campaigns. Premium products, meanwhile, often bank on the high equity of their brand to
attract affluent shoppers who are more focused on quality, taste or nutritional content rather
than price.
Multinationals have a marginally bigger value share against local companies in
nutrition/staples. Foreign companies have the greater capability to create more innovative
products than local companies since several of them have a centralised research and
development department. Domestic players, meanwhile, are able to outperform their foreign
counterparts in oils and fats where affordability is significant for an item such as vegetable
and cooking oil which is essential for cooking and can take up a significant proportion of a
households budget.
Prospects
Demand for nutrition/staples is expected to be sustained over the forecast period despite the
growing number of restaurants in urban areas. Consumers will continue to purchase
nutrition/staples to ensure a steady supply of food in a household for instances when eating
out is inconvenient such as when there is a heavy downpour of rain. Furthermore, regular
eating out is only likely among affluent consumers while regular households are expected to
balance this out with the preparing of home cooked food to ensure that their expenses do not
exceed their budget.
Nutrition/staples is projected to record a value CAGR of 3% at constant 2014 prices over the
forecast period which will be marginally better than its review period performance where it
posted a value CAGR of 2% at constant 2014 prices. The marginally faster value growth will
Passport
25
Passport
arise as consumers will continually purchase nutrition/staples such as rice, vegetable and
seed oil, bread and baby food despite fluctuations in price. Pasta is expected to contribute
most to growth which is predicted to record a value CAGR of 6% at constant 2014 prices over
the forecast period. The robust value growth of pasta will be driven by the preference to
prepare pasta dishes during social gatherings. Pasta will also have the most vibrant increase
in volume sales with a CAGR of 5% over the forecast period. The fast volume growth will
arise as economy brands, bundle packs and pasta sauces with hotdogs are likely to
encourage more frequent cooking of pasta dishes for regular meals as it becomes more
affordable and easy to prepare.
No factors are predicted to significantly threaten the growth of nutrition/staples over the
forecast period. Consumers will continuously patronise nutrition/staples, especially rice and
vegetable and seed oil which are essentials for everyday food preparation. With no available
substitutes, consumers are likely to downgrade to economy brands in the event of price
increases or opt for smaller size packaging while they find ways to minimise their usage.
More healthy variants are likely to be introduced over the forecast period. The increasingly
hectic lifestyles of consumers, meanwhile, could encourage the development of more 2-in-1
products or bundle packs which provide convenience and cost savings. Packaging will
continue to lean towards small sizes. This will be particularly relevant for new product
launches in order to facilitate trial. While advertisements can build brand awareness,
incentives through added volume or price discounts are likely to be more effective in driving
sales. Consumers are predicted to remain practical rather than patronise brands based on
endorsements alone by popular celebrities.
Changes in unit price for nutrition/staples will be minimal over the forecast period. The
increase will be 1% at most while decreases will not be lower than 2%. This is indicative of the
sustained preference for affordable products among consumers. Companies, thus, are likely
to keep their prices stable and offer incentives in the form of price discounts, added volume,
bundling and buy-1-take-1 promotions which will remain prominent for bread.
Oishi Choco Chug and Oishi Oaties Milk both have the potential to perform well. Prospective
consumers are not limited to younger age groups but can include adults as well. The addition
of finely ground oats makes it more nutritious as it contains fibre not found in competing
drinking milk products. These new launches can encourage other companies to create similar
offerings or to find alternative means to achieve differentiation beyond the usual fortification
with vitamins and minerals.
The UFC Birthday Pack is expected to witness limited success over the forecast period. Aside
from price- conscious consumers, only those loyal to the UFC brand will find value to the
bundled product. Also, consumers desire for variety will limit its purchase since the bundle
restricts ones choice of pasta sauce. Even if other players create similar offerings, demand
for dried pasta and pasta sauces sold separately are unlikely to be significantly affected by
such bundles.
Category Data
Table 25
Sales of Nutrition/Staples by Category: Volume 2009-2014
'000 tonnes
Bread
Breakfast Cereals
Dairy
2009
2010
2011
2012
2013
2014
130.6
13.2
340.6
132.0
13.6
351.2
135.6
14.1
362.7
139.5
14.6
376.4
142.2
15.2
388.9
145.0
15.8
399.3
26
Meal Replacement
Oils and Fats
Baby Food
Spreads
Pasta
Noodles
Rice
Nutrition/Staples
Source:
Passport
1.2
467.3
53.3
14.3
31.7
168.7
90.2
1,311.1
1.3
486.5
53.5
14.4
34.6
178.4
91.5
1,356.9
1.2
506.3
53.6
13.6
35.6
189.4
93.4
1,405.4
1.2
525.0
54.0
12.7
37.8
200.1
95.7
1,456.9
1.3
545.2
54.5
12.7
39.8
210.8
98.5
1,509.1
1.3
564.7
55.5
13.0
41.9
220.6
101.7
1,558.8
Table 26
Sales of Nutrition/Staples by Category: Value 2009-2014
PHP million
Bread
Breakfast Cereals
Dairy
Meal Replacement
Oils and Fats
Baby Food
Spreads
Pasta
Noodles
Rice
Nutrition/Staples
Source:
2009
2010
2011
2012
2013
2014
13,908.3
3,237.1
60,569.3
1,535.0
39,536.2
30,459.7
3,667.1
2,408.5
19,299.8
4,047.7
178,668.7
14,649.2
3,393.3
67,203.1
1,800.4
41,952.2
31,648.5
3,727.3
2,805.9
20,567.6
4,169.2
191,916.6
15,566.6
3,585.3
70,020.9
1,937.8
44,996.4
32,287.4
3,671.0
2,946.2
22,061.6
4,398.5
201,471.7
16,618.8
3,810.6
72,977.6
2,202.2
48,032.6
32,988.1
3,598.2
3,285.0
23,602.4
4,662.4
211,777.9
17,529.2
4,056.4
76,137.1
2,417.6
50,854.6
34,143.8
3,710.3
3,580.6
25,204.1
4,928.1
222,561.9
18,493.2
4,332.9
79,096.2
2,630.0
54,299.0
35,546.4
3,825.2
3,928.0
27,211.2
5,302.7
234,664.8
Table 27
Sales of Nutrition/Staples by Category: % Volume Growth 2009-2014
% volume growth
Bread
Breakfast Cereals
Dairy
Meal Replacement
Oils and Fats
Baby Food
Spreads
Pasta
Noodles
Rice
Nutrition/Staples
Source:
Table 28
2013/14
2009-14 CAGR
2009/14 Total
2.0
3.9
2.7
2.9
3.6
1.8
1.8
5.1
4.7
3.3
3.3
2.1
3.7
3.2
2.2
3.9
0.8
-1.9
5.7
5.5
2.4
3.5
11.0
19.7
17.2
11.4
20.8
4.2
-9.3
32.1
30.8
12.8
18.9
Sales of Nutrition/Staples by Category: % Value Growth 2009-2014
Bread
2013/14
2009-14 CAGR
2009/14 Total
5.5
5.9
33.0
27
Passport
Breakfast Cereals
Dairy
Meal Replacement
Oils and Fats
Baby Food
Spreads
Pasta
Noodles
Rice
Nutrition/Staples
Source:
6.8
3.9
8.8
6.8
4.1
3.1
9.7
8.0
7.6
5.4
6.0
5.5
11.4
6.6
3.1
0.8
10.3
7.1
5.5
5.6
33.9
30.6
71.3
37.3
16.7
4.3
63.1
41.0
31.0
31.3
Table 29
NBO Company Shares of Nutrition/Staples: % Value 2010-2014
% retail value rsp

Company
Alaska Milk Corp
San Pablo Mfg Corp
Mead Johnson
Philippines Inc
Monde Nissin Corp
International Oil Factory
Co Inc
Wyeth Philippines Inc
Kraft Foods
(Philippines) Inc
Fonterra Brands (Phils)
Inc
SM Retail Inc
Yakult Philippines Inc
Gardenia Philippines Inc
Abbott Laboratories
(Phils) Inc
RFM Corp
UFC Philippines Inc
Agana Circle Enterprises
Nissin-Universal Robina
Corp
Quaker Oats Asia Inc
MLM Foods Inc
Green Spot Co Ltd
Malabon Soap & Oil
Industrial Co Inc
Poms Venture Corp
Unilever Foods
Philippines (CMC)
New Zealand Creamery Inc
AB Food & Beverages
Philippines Inc
AD Gothong Mfg Corp
Bongrain SA
Royal FrieslandCampina NV
Artisanal
2010
2011
2012
2013
2014
18.7
8.0
6.7
7.4
18.6
7.8
6.8
7.2
18.4
7.6
7.0
7.0
18.3
7.5
7.1
7.1
18.1
7.4
7.3
7.2
6.3
5.8
4.5
6.5
5.8
4.6
6.7
5.9
4.5
6.8
5.9
4.5
6.9
6.0
4.5
3.5
3.0
3.5
2.9
3.5
2.9
3.4
2.8
3.4
2.7
2.7
2.7
2.7
2.6
2.4
2.0
1.9
1.9
1.4
1.3
2.1
1.9
1.9
1.6
1.3
2.2
2.1
2.1
1.7
1.3
2.2
2.1
2.1
1.7
1.3
2.3
2.2
2.1
1.7
1.2
0.6
1.1
0.8
0.6
0.6
0.6
1.1
0.8
0.6
0.6
0.6
1.1
0.9
0.6
0.6
0.7
1.1
0.9
0.6
0.6
1.1
1.1
0.9
0.7
0.6
0.6
0.6
0.5
0.6
0.6
0.2
0.5
0.6
0.6
0.3
0.5
0.6
0.6
0.5
0.5
0.6
0.6
0.5
0.5
0.3
1.0
0.4
0.8
0.4
0.7
0.4
0.7
0.4
0.4
0.4
0.3
0.4
0.3
0.3
0.3
0.3
0.3
0.3
0.3
0.3
0.2
0.5
4.1
0.3
0.2
0.3
4.0
0.3
0.2
0.1
4.0
0.3
0.2
3.9
0.3
0.2
3.9
28
Others
Total
Source:
12.5
100.0
12.2
100.0
12.2
100.0
12.1
100.0
LBN Brand Shares of Nutrition/Staples: % Value 2011-2014
% retail value rsp

Brand
Company
Minola
Lucky Me
Alaska
Baguio
Bear Brand
Milo
Lactum
San Pablo Mfg Corp

Monde Nissin Corp
Alaska Milk Corp
Mead Johnson
Philippines Inc
SM Retail Inc
Co Inc
Co Inc
Kraft Foods
(Philippines) Inc
Inc
Mead Johnson
Philippines Inc
UFC Philippines Inc
Inc
Mead Johnson
Philippines Inc
Mead Johnson
Philippines Inc
Alaska Milk Corp
Abbott Laboratories
(Phils) Inc
Nido
SM Bonus
Payless
Yakult
Magnolia
Gardenia
Star
Kraft
Anchor
Enfalac
Nestl
Nan
UFC
Promil
Nestogen
Goldilocks
Anlene
Alacta
S-26
Enfagrow
Chuckie
Carnation
Ensure
Artisanal
Others
Total
Table 31
12.5
100.0
Table 30
Source:
Passport
2011
2012
2013
2014
6.8
6.5
7.0
5.8
5.7
3.8
3.5
7.0
6.7
6.6
5.9
5.7
3.8
3.4
7.1
6.8
6.5
5.9
5.6
3.8
3.5
7.3
6.9
6.4
6.0
5.5
3.8
3.7
2.4
2.1
1.8
1.9
2.1
2.4
2.2
2.0
2.1
2.1
2.5
2.2
2.1
2.1
2.1
2.6
2.3
2.2
2.1
2.0
1.6
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.6
1.8
1.8
1.7
1.6
1.4
1.4
1.4
1.3
1.1
1.1
1.1
1.0
1.0
0.8
0.9
1.2
1.1
1.1
1.0
1.0
0.9
0.9
1.2
1.1
1.1
1.0
1.0
0.9
0.9
1.1
1.1
1.1
0.9
0.9
0.9
0.9
0.9
0.9
0.8
0.8
0.8
0.4
0.8
0.4
0.8
0.7
0.8
0.7
0.7
0.8
0.5
0.7
0.8
0.6
0.7
0.7
0.6
0.7
0.7
0.7
4.0
27.2
100.0
4.0
26.8
100.0
3.9
26.1
100.0
3.9
26.1
100.0
Forecast Sales of Nutrition/Staples by Category: Volume 2014-2019
29
Passport
'000 tonnes
Bread
Breakfast Cereals
Dairy
Meal Replacement
Oils and Fats
Baby Food
Spreads
Pasta
Noodles
Rice
Nutrition/Staples
Source:
2014
2015
2016
2017
2018
2019
145.0
15.8
399.3
1.3
564.7
55.5
13.0
41.9
220.6
101.7
1,558.8
147.7
16.4
409.3
1.4
583.7
56.6
13.2
44.1
230.1
105.4
1,608.0
150.2
17.1
418.4
1.4
601.4
57.6
13.5
46.5
239.2
109.4
1,654.7
152.8
17.8
427.3
1.5
619.6
58.9
13.8
49.0
248.5
113.4
1,702.6
155.6
18.6
435.5
1.5
638.0
60.2
14.1
51.5
258.3
117.4
1,750.7
158.5
19.4
443.1
1.6
656.5
61.7
14.5
54.0
268.5
121.5
1,799.2
trade sources
Table 32
Forecast Sales of Nutrition/Staples by Category: Value 2014-2019
PHP million
Bread
Breakfast Cereals
Dairy
Meal Replacement
Oils and Fats
Baby Food
Spreads
Pasta
Noodles
Rice
Nutrition/Staples
Source:
2014
2015
2016
2017
2018
2019
18,493.2
4,332.9
79,096.2
2,630.0
54,299.0
35,546.4
3,825.2
3,928.0
27,211.2
5,302.7
234,664.8
18,990.8
4,482.7
80,714.0
2,742.5
55,668.0
36,419.6
3,825.2
4,153.7
28,142.0
5,477.2
240,615.6
19,499.4
4,642.5
82,395.3
2,868.4
57,039.4
37,272.2
3,834.0
4,399.3
29,019.7
5,675.1
246,645.4
20,054.9
4,824.0
84,299.1
3,009.3
58,529.5
38,231.2
3,865.3
4,648.3
29,914.8
5,866.9
253,243.3
20,658.1
5,023.4
86,379.0
3,165.3
60,132.7
39,264.4
3,916.6
4,905.4
30,810.6
6,063.9
260,319.5
21,310.9
5,239.8
88,609.9
3,335.7
61,848.1
40,397.4
3,984.9
5,163.0
31,739.7
6,267.5
267,896.9
trade sources
Table 33
Forecast Sales of Nutrition/Staples by Category: % Volume Growth 20142019
% volume growth
Bread
Breakfast Cereals
Dairy
Meal Replacement
Oils and Fats
Baby Food
Spreads
Pasta
Noodles
Rice
Nutrition/Staples
Source:
2014/15
2014-19 CAGR
2014/19 Total
1.9
4.3
1.7
4.2
2.9
2.4
2.6
4.9
4.0
3.5
2.8
1.8
4.2
2.1
4.0
3.1
2.1
2.2
5.2
4.0
3.6
2.9
9.3
23.1
11.0
21.8
16.3
11.0
11.7
28.8
21.7
19.5
15.4
trade sources
30
Table 34
Passport
Forecast Sales of Nutrition/Staples by Category: % Value Growth 2014-2019
Bread
Breakfast Cereals
Dairy
Meal Replacement
Oils and Fats
Baby Food
Spreads
Pasta
Noodles
Rice
Nutrition/Staples
Source:
2014/2015
2014-19 CAGR
2014/19 TOTAL
3.2
4.3
2.6
5.4
2.9
2.9
1.7
5.3
3.0
3.4
2.9
2.9
3.9
2.3
4.9
2.6
2.6
0.8
5.6
3.1
3.4
2.7
15.2
20.9
12.0
26.8
13.9
13.6
4.2
31.4
16.6
18.2
14.2
trade sources
MARKET DATA
Table 35
Sales of Packaged Food by Category: Volume 2009-2014
'000 tonnes
Baby Food
Bakery
Confectionery
Dairy
Ice Cream
Meal Replacement
Noodles
Oils and Fats
Pasta
Ready Meals
Condiments
Snack Bars
Soup
Spreads
Products
Nutrition/Staples
Meal Solutions
Packaged Food
Source:
Note:
2009
2010
2011
2012
2013
2014
53.3
336.7
223.0
82.8
88.0
340.6
292.1
102.1
42.8
1.2
168.7
467.3
31.7
11.6
187.7
53.5
344.9
234.5
86.5
89.3
351.2
306.1
105.7
43.9
1.3
178.4
486.5
34.6
12.0
195.8
53.6
355.8
245.6
89.8
87.7
362.7
319.9
111.9
45.8
1.2
189.4
506.3
35.6
12.6
203.7
54.0
367.7
256.6
92.9
87.9
376.4
335.2
116.1
47.9
1.2
200.1
525.0
37.8
13.1
210.7
54.5
379.2
267.5
96.0
90.7
388.9
350.8
119.8
48.8
1.3
210.8
545.2
39.8
13.8
217.2
55.5
391.2
277.8
99.0
93.4
399.3
365.9
123.2
49.7
1.3
220.6
564.7
41.9
14.4
223.0
0.0
3.9
14.3
118.9
442.6
0.0
4.0
14.4
123.6
456.0
0.0
4.2
13.6
128.8
468.3
0.0
4.3
12.7
137.5
486.9
0.0
4.5
12.7
150.3
511.5
0.0
4.6
13.0
159.8
533.5
1,311.1
611.5
2,350.9
1,356.9
639.0
2,437.0
1,405.4
668.1
2,526.5
1,456.9
694.2
2,621.9
1,509.1
719.1
2,722.9
1,558.8
742.5
2,817.1
Sum of categories does not equal total packaged food because of double counting (eg canned soup is
included in soups and canned foods)
31
Table 36
Passport
Sales of Packaged Food by Category: Value 2009-2014
PHP bn
Baby Food
Bakery
Confectionery
Dairy
Ice Cream
Meal Replacement
Noodles
Oils and Fats
Pasta
Ready Meals
Condiments
Snack Bars
Soup
Spreads
Products
Nutrition/Staples
Meal Solutions
Packaged Food
Source:
Note:
2009
2010
2011
2012
2013
2014
30.5
51.6
26.9
14.3
28.8
60.6
26.4
24.5
8.2
1.5
19.3
39.5
2.4
2.6
20.2
31.6
54.4
28.8
15.1
29.7
67.2
28.2
25.9
8.5
1.8
20.6
42.0
2.8
2.8
21.2
32.3
57.7
31.0
15.9
29.7
70.0
30.1
28.1
8.9
1.9
22.1
45.0
2.9
3.0
22.4
33.0
61.5
33.3
16.8
30.4
73.0
32.3
30.2
9.4
2.2
23.6
48.0
3.3
3.2
23.7
34.1
65.4
35.5
17.9
31.9
76.1
34.5
32.0
9.8
2.4
25.2
50.9
3.6
3.4
25.0
35.5
69.6
38.3
19.2
33.5
79.1
37.3
34.3
10.2
2.6
27.2
54.3
3.9
3.8
26.6
0.0
1.2
3.7
30.4
101.8
0.0
1.3
3.7
31.8
106.3
0.0
1.4
3.7
33.9
111.1
0.0
1.5
3.6
37.2
118.0
0.0
1.6
3.7
41.6
127.1
0.0
1.8
3.8
45.2
135.7
178.7
89.7
367.0
191.9
95.2
390.0
201.5
102.0
410.7
211.8
108.9
434.6
222.6
115.7
461.0
234.7
124.1
489.7
Table 37
Sales of Packaged Food by Category: % Volume Growth 2009-2014
% volume growth
Baby Food
Bakery
Confectionery
Dairy
Ice Cream
Meal Replacement
Noodles
Oils and Fats
Pasta
Ready Meals
Snack Bars
2013/14
2009-14 CAGR
2009/14 Total
1.8
3.2
3.9
3.1
3.1
2.7
4.3
2.8
1.9
2.9
4.7
3.6
5.1
5.0
2.7
-6.3
0.8
3.0
4.5
3.6
1.2
3.2
4.6
3.8
3.1
2.2
5.5
3.9
5.7
4.6
3.5
-48.0
4.2
16.2
24.6
19.6
6.2
17.2
25.3
20.6
16.3
11.4
30.8
20.8
32.1
25.0
18.8
-96.2
32
Passport
Soup
Spreads
Nutrition/Staples
Meal Solutions
Packaged Food
Source:
Note:
3.9
1.8
6.4
4.3
3.3
3.2
3.5
3.4
-1.9
6.1
3.8
3.5
4.0
3.7
18.0
-9.3
34.5
20.5
18.9
21.4
19.8
Table 38
Sales of Packaged Food by Category: % Value Growth 2009-2014
Baby Food
Bakery
Confectionery
Dairy
Ice Cream
Meal Replacement
Noodles
Oils and Fats
Pasta
Ready Meals
Snack Bars
Soup
Spreads
Nutrition/Staples
Meal Solutions
Packaged Food
Source:
Note:
2013/14
2009-14 CAGR
2009/14 Total
4.1
6.5
7.8
7.3
4.9
3.9
8.1
7.2
4.3
8.8
8.0
6.8
9.7
9.2
6.3
-8.0
7.9
3.1
8.7
6.8
5.4
7.3
6.2
3.1
6.2
7.3
6.0
3.1
5.5
7.2
7.0
4.6
11.4
7.1
6.6
10.3
7.9
5.7
-43.4
7.7
0.8
8.3
5.9
5.6
6.7
5.9
16.7
34.9
42.5
33.8
16.2
30.6
41.4
40.4
25.3
71.3
41.0
37.3
63.1
46.2
32.0
-94.2
44.8
4.3
48.9
33.3
31.3
38.3
33.4
Table 39
GBO Company Shares of Packaged Food: % Value 2010-2014
% retail value rsp

Company
2010
2011
2012
2013
2014
Nestl SA
JG Summit Holdings Inc
San Miguel Corp
Monde Nissin Corp
San Pablo Mfg Corp
Mead Johnson Nutrition Co
Royal FrieslandCampina NV
10.6
6.7
7.2
4.9
3.3
3.6
0.3
2.9
10.4
6.8
7.4
5.1
3.4
3.5
0.1
2.9
11.9
7.2
7.5
5.2
3.4
3.4
3.4
2.9
11.7
7.6
7.5
5.2
3.4
3.4
3.3
2.9
11.5
7.8
7.5
5.3
3.5
3.4
3.2
2.9
33
Unilever Group
CDO Foodsphere Inc
Kraft Foods Group, Inc
Pacific Meat Co Inc
Del Monte Pacific Ltd
Fonterra Co-operative
Group Ltd
Nutri-Asia Inc
Yakult Honsha Co Ltd
Mondelez International
Inc
Ajinomoto Co Inc
QAF Ltd
Food Industries Inc
Tobi Marketing Inc
Liberty Gold Fruit Co Inc
Mars Inc
Abbott Laboratories Inc
RFM Corp
Columbia International
Food Products Inc
Artisanal
Private Label
Others
Total
Source:
Passport
2.8
1.6
1.7
1.7
1.2
0.9
0.9
1.3
2.8
1.7
1.7
1.7
1.2
0.9
0.9
1.3
2.8
1.8
1.7
1.7
1.7
1.3
1.4
1.0
1.3
2.7
1.8
1.8
1.7
1.7
1.3
1.3
1.0
1.2
2.5
1.9
1.8
1.7
1.6
1.4
1.3
1.3
1.2
1.0
0.9
-
1.0
0.9
-
1.0
1.0
1.0
1.0
1.0
1.0
1.0
1.0
1.0
1.0
0.7
0.7
0.7
0.7
0.6
0.8
0.6
0.7
0.6
1.0
0.8
0.7
0.7
0.7
0.6
0.7
0.6
0.8
0.6
1.0
0.8
0.7
0.7
0.7
0.6
0.6
0.7
0.3
0.6
0.9
0.8
0.7
0.7
0.7
0.6
0.6
0.6
0.3
0.6
0.9
0.8
0.8
0.8
0.7
0.6
0.6
0.6
0.6
0.6
3.9
1.8
33.6
100.0
3.8
1.8
33.4
100.0
3.7
1.9
25.2
100.0
3.6
1.9
25.2
100.0
3.5
1.9
24.9
100.0
Table 40
NBO Company Shares of Packaged Food: % Value 2010-2014
% retail value rsp

Company
Monde Nissin Corp
Purefoods-Hormel Co
Inc, The
Alaska Milk Corp
San Pablo Mfg Corp
Mead Johnson
Philippines Inc
Co Inc
CDO Foodsphere Inc
SM Retail Inc
Kraft Foods
(Philippines) Inc
Unilever Foods
Philippines (CMC)
Pacific Meat Co Inc
2010
2011
2012
2013
2014
10.4
6.7
4.9
4.8
10.2
6.8
5.1
5.0
10.0
7.2
5.2
5.1
9.9
7.6
5.2
5.1
9.8
7.8
5.3
5.2
3.9
3.3
3.6
3.8
3.4
3.5
3.7
3.4
3.4
3.6
3.4
3.4
3.5
3.5
3.4
2.9
2.4
2.9
2.4
2.9
2.4
2.9
2.4
2.9
2.3
1.6
1.7
1.5
2.9
1.7
1.7
1.6
2.8
1.8
1.7
1.6
2.7
1.8
1.8
1.7
1.7
1.9
1.8
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.7
1.6
1.7
1.6
1.5
1.2
0.9
1.2
0.9
1.3
1.4
1.3
1.3
1.4
1.3
34

Inc
Unilever RFM Ice Cream
Inc
Ajinomoto Philippines
Corp
Food Industries Inc
UFC Philippines Inc
Tobi Marketing Inc
Artisanal
Others
Total
Source:
Passport
1.3
1.3
1.3
1.2
1.2
1.0
1.0
1.0
1.0
1.0
1.0
1.0
1.0
1.1
1.0
0.9
1.0
0.9
1.0
1.0
1.0
1.0
0.9
0.9
1.0
0.9
0.9
0.7
0.7
0.7
0.7
0.7
0.6
0.6
3.9
29.9
100.0
0.8
0.7
0.8
0.7
0.7
0.6
0.6
3.8
29.7
100.0
0.8
0.7
0.8
0.7
0.7
0.6
0.6
3.7
28.9
100.0
0.8
0.7
0.8
0.7
0.7
0.6
0.6
3.6
28.7
100.0
0.8
0.8
0.8
0.8
0.7
0.6
0.6
3.5
28.8
100.0
Table 41
LBN Brand Shares of Packaged Food: % Value 2011-2014
% retail value rsp

Brand
Jack 'n' Jill
Purefoods
Minola
Lucky Me
Alaska
Baguio
Bear Brand
CDO
Milo
Lactum
SM Bonus
Nido
Magnolia
Oishi
Sky Flakes
Payless
Yakult
Kraft
Nestl
555
Selecta
Del Monte
Ajinomoto
Argentina
Gardenia
Century
Star
Company
Purefoods-Hormel Co
Inc, The
San Pablo Mfg Corp
Monde Nissin Corp
Alaska Milk Corp
CDO Foodsphere Inc
Mead Johnson
Philippines Inc
SM Retail Inc
Co Inc
Monde Nissin Corp
Kraft Foods
(Philippines) Inc
Unilever RFM Ice Cream Inc
Ajinomoto Philippines Corp
Pacific Meat Co Inc
Co Inc
2011
2012
2013
2014
4.9
4.9
5.2
5.0
5.5
5.1
5.8
5.2
3.4
3.2
3.4
2.9
2.8
1.7
1.9
1.7
3.4
3.2
3.2
2.9
2.8
1.8
1.9
1.7
3.4
3.3
3.2
2.9
2.7
1.8
1.8
1.7
3.5
3.3
3.1
2.9
2.6
1.9
1.8
1.8
1.6
1.2
1.2
1.6
1.2
1.2
1.7
1.2
1.2
1.7
1.2
1.1
1.0
1.0
0.9
0.9
1.1
1.0
1.0
1.0
1.0
1.0
1.1
1.0
1.0
1.0
1.0
1.1
1.0
1.0
1.0
1.0
1.0
0.9
0.9
0.9
0.9
0.9
0.8
0.8
0.8
1.0
0.9
0.9
0.9
0.9
0.9
0.8
0.8
0.8
1.0
0.9
0.9
0.9
0.9
0.9
0.8
0.8
0.8
1.0
1.0
0.9
0.9
0.9
0.9
0.8
0.8
0.8
35
Nagaraya
Anchor
Food Industries Inc

Inc
Goldilocks
Artisanal
Others
Total
Source:
Passport
0.7
0.9
0.7
0.9
0.7
0.8
0.8
0.8
0.7
3.8
46.4
100.0
0.7
3.7
45.9
100.0
0.7
3.6
45.5
100.0
0.8
3.5
45.3
100.0
Table 42
Penetration of Private Label by Category: % Value 2009-2014
% retail value rsp
Bakery
Meal Solutions
Noodles
Nutrition/Staples
Oils and Fats
Packaged Food
Condiments
Source:
2009
2010
2011
2012
2013
2014
0.5
2.0
4.9
8.0
2.7
0.4
2.3
6.2
1.7
0.7
0.6
2.0
4.8
8.3
2.7
0.4
2.3
6.3
1.8
0.7
0.5
2.1
4.8
8.1
2.7
0.4
2.3
6.5
1.8
0.7
0.5
2.2
4.9
8.0
2.7
0.4
2.4
6.7
1.9
0.7
0.5
2.3
4.9
8.1
2.8
0.4
2.5
6.8
1.9
0.8
0.5
2.4
5.0
8.2
2.8
0.4
2.6
7.0
1.9
0.8
Table 43
Distribution of Packaged Food by Format: % Value 2009-2014
% retail value rsp
Store-Based Retailing
- Grocery Retailers
-- Modern Grocery
Retailers
--- Convenience Stores
--- Discounters
--- Forecourt Retailers
--- Hypermarkets
--- Supermarkets
-- Traditional Grocery
Retailers
--- Food/drink/tobacco
specialists
--- Independent Small
Grocers
--- Other Grocery
Retailers
- Non-Grocery Retailers
-- Health and Beauty
Retailers
-- Mixed Retailers
-- Other Non-Grocery
Retailers
2009
2010
2011
2012
2013
2014
99.9
95.4
49.2
99.8
95.5
49.6
99.8
95.6
49.9
99.8
95.7
50.3
99.8
95.8
50.6
99.8
95.8
51.0
1.3
0.1
4.9
42.8
46.2
1.3
0.2
5.5
42.6
45.9
1.3
0.2
5.9
42.5
45.7
1.4
0.2
6.1
42.6
45.4
1.4
0.2
6.3
42.7
45.1
1.4
0.2
6.4
43.0
44.8
4.2
4.1
4.1
4.1
4.0
4.0
11.7
11.0
10.5
10.3
10.1
9.9
30.3
30.7
31.1
31.0
31.0
30.9
4.4
4.4
4.4
4.3
4.2
4.2
4.1
4.1
4.1
4.0
4.0
4.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
36
Non-Store Retailing
- Vending
- Homeshopping
- Internet Retailing
- Direct Selling
Total
Source:
Passport
0.1
0.0
0.0
0.1
100.0
0.2
0.0
0.0
0.2
100.0
0.2
0.0
0.0
0.2
100.0
0.2
0.0
0.0
0.2
100.0
0.2
0.0
0.0
0.2
100.0
0.2
0.0
0.0
0.2
100.0
Table 44
Distribution of Packaged Food by Format and Category: % Value 2014
% retail value rsp
- Grocery Retailers
-- Modern Grocery
Retailers
--- Discounters
--- Hypermarkets
--- Supermarkets
Retailers
specialists
Grocers
--- Other Grocery
Retailers
Retailers
-- Mixed Retailers
Retailers
Non-Store Retailing
- Vending
- Homeshopping
- Direct Selling
Total
- Grocery Retailers
-- Modern Grocery
Retailers
--- Discounters
--- Hypermarkets
--- Supermarkets
Retailers
specialists
BF
CPF
CHP
100.0
58.0
47.3
100.0
98.5
31.0
100.0
100.0
61.3
100.0
100.0
59.3
99.8
94.1
46.2
99.7
99.7
53.4
1.1
0.0
0.0
6.2
40.0
10.6
0.5
0.0
0.2
4.0
26.3
67.6
1.4
0.0
0.3
7.3
52.4
38.7
1.6
0.0
0.0
7.2
50.5
40.7
4.3
0.0
0.6
5.9
35.4
47.9
1.6
0.0
0.1
6.8
44.9
46.4
0.0
26.1
0.0
0.0
4.0
0.0
10.6
5.0
15.4
5.5
7.9
10.8
0.0
36.5
23.2
35.2
36.0
35.5
42.0
42.0
1.5
1.5
0.0
0.0
0.0
0.0
5.8
5.7
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
100.0
0.0
0.0
0.0
0.0
0.0
100.0
0.0
0.0
0.0
0.0
0.0
100.0
0.0
0.0
0.0
0.0
0.0
100.0
0.2
0.0
0.0
0.2
0.0
100.0
0.3
0.0
0.0
0.0
0.3
100.0
DPF
FPF
IC
MR
NOO
OF
100.0
100.0
53.2
99.9
99.9
75.2
100.0
100.0
81.7
78.9
38.4
23.5
100.0
100.0
47.3
100.0
99.9
59.4
2.4
0.0
0.2
6.7
44.0
46.8
1.2
0.0
0.0
10.0
64.0
24.7
2.0
0.0
0.3
10.8
68.6
18.3
0.0
0.0
0.0
3.0
20.5
14.9
2.3
0.0
0.2
5.9
38.9
52.7
0.1
0.0
0.0
7.3
52.0
40.6
0.0
0.0
0.1
0.0
0.0
0.0
37

Grocers
--- Other Grocery
Retailers
Retailers
-- Mixed Retailers
Retailers
Non-Store Retailing
- Vending
- Homeshopping
- Direct Selling
Total
- Grocery Retailers
-- Modern Grocery
Retailers
--- Discounters
--- Hypermarkets
--- Supermarkets
Retailers
specialists
Grocers
--- Other Grocery
Retailers
Retailers
-- Mixed Retailers
Retailers
Non-Store Retailing
- Vending
- Homeshopping
- Direct Selling
Total
Passport
11.9
11.5
14.7
14.9
10.2
7.0
34.9
13.2
3.6
0.0
42.5
33.6
0.0
0.0
0.0
0.0
0.0
0.0
40.6
40.6
0.0
0.0
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.0
0.0
0.0
0.0
100.0
0.1
0.0
0.0
0.1
0.0
100.0
0.0
0.0
0.0
0.0
0.0
100.0
21.1
0.0
0.0
0.0
21.1
100.0
0.0
0.0
0.0
0.0
0.0
100.0
0.0
0.0
0.0
0.0
0.0
100.0
RM
SDC
SB
SOU
SPR
100.0
100.0
58.6
100.0
100.0
81.4
100.0
100.0
45.7
100.0
95.6
95.6
100.0
100.0
67.0
100.0
100.0
60.2
2.3
0.0
0.0
7.0
49.3
41.4
5.4
0.0
2.8
8.7
64.5
18.6
1.0
0.0
0.2
5.5
39.0
54.2
3.0
0.0
1.0
12.0
79.6
0.0
5.9
0.0
2.0
7.4
51.7
33.1
1.0
0.0
0.9
7.5
50.8
39.8
0.0
0.0
0.0
0.0
0.0
0.0
13.8
14.0
5.4
0.0
15.5
16.2
27.6
4.6
48.8
0.0
17.5
23.6
0.0
0.0
0.0
0.0
0.0
0.0
4.4
0.5
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
3.9
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
100.0
0.0
0.0
0.0
0.0
0.0
100.0
0.0
0.0
0.0
0.0
0.0
100.0
0.0
0.0
0.0
0.0
0.0
100.0
0.0
0.0
0.0
0.0
0.0
100.0
0.0
0.0
0.0
0.0
0.0
100.0
SSS
- Grocery Retailers
-- Modern Grocery
Retailers
--- Discounters
--- Hypermarkets
--- Supermarkets
100.0
98.7
38.4
1.5
0.0
0.2
5.0
31.7
60.3
38
Retailers
specialists
Grocers
--- Other Grocery
Retailers
Retailers
-- Mixed Retailers
Retailers
Non-Store Retailing
- Vending
- Homeshopping
- Direct Selling
Total
Source:
Key:
Passport
0.0
15.2
45.2
1.2
1.2
0.0
0.0
0.0
0.0
0.0
0.0
0.0
100.0
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 2014-2019
'000 tonnes
Baby Food
Bakery
Confectionery
Dairy
Ice Cream
Meal Replacement
Noodles
Oils and Fats
Pasta
Ready Meals
Condiments
Snack Bars
Soup
Spreads
Products
Nutrition/Staples
Meal Solutions
Packaged Food
Source:
2014
2015
2016
2017
2018
2019
55.5
391.2
277.8
99.0
93.4
399.3
365.9
123.2
49.7
1.3
220.6
564.7
41.9
14.4
223.0
56.6
403.3
287.9
101.9
96.3
409.3
381.4
126.3
50.7
1.4
230.1
583.7
44.1
15.2
228.2
57.6
414.9
297.6
104.6
99.2
418.4
396.9
129.1
51.7
1.4
239.2
601.4
46.5
16.0
232.6
58.9
427.7
307.8
107.7
102.2
427.3
412.7
132.1
52.9
1.5
248.5
619.6
49.0
16.8
237.5
60.2
441.4
318.6
111.2
105.3
435.5
429.0
135.5
54.4
1.5
258.3
638.0
51.5
17.6
242.9
61.7
455.9
330.2
115.1
108.5
443.1
445.9
139.1
56.1
1.6
268.5
656.5
54.0
18.6
248.7
0.0
4.6
13.0
159.8
533.5
0.0
4.8
13.2
169.5
555.7
0.0
5.0
13.5
179.4
577.9
0.0
5.2
13.8
189.4
601.5
0.0
5.4
14.1
199.6
626.5
0.0
5.6
14.5
209.9
652.5
1,558.8
742.5
2,817.1
1,608.0
764.9
2,910.0
1,654.7
785.2
2,998.3
1,702.6
807.6
3,091.3
1,750.7
831.8
3,187.5
1,799.2
857.8
3,287.0
trade sources
39
Note:
Passport
Table 46
Forecast Sales of Packaged Food by Category: Value 2014-2019
PHP bn
Baby Food
Bakery
Confectionery
Dairy
Ice Cream
Meal Replacement
Noodles
Oils and Fats
Pasta
Ready Meals
Condiments
Snack Bars
Soup
Spreads
Products
Nutrition/Staples
Meal Solutions
Packaged Food
Source:
Note:
2014
2015
2016
2017
2018
2019
35.5
69.6
38.3
19.2
33.5
79.1
37.3
34.3
10.2
2.6
27.2
54.3
3.9
3.8
26.6
36.4
71.7
39.5
19.7
34.2
80.7
38.7
35.2
10.5
2.7
28.1
55.7
4.2
3.9
27.1
37.3
73.7
40.7
20.2
34.9
82.4
40.0
36.0
10.7
2.9
29.0
57.0
4.4
4.1
27.4
38.2
76.0
42.0
20.7
35.6
84.3
41.4
36.9
11.1
3.0
29.9
58.5
4.6
4.3
27.8
39.3
78.6
43.3
21.3
36.4
86.4
42.8
37.9
11.4
3.2
30.8
60.1
4.9
4.6
28.3
40.4
81.3
44.8
22.0
37.2
88.6
44.2
39.0
11.9
3.3
31.7
61.8
5.2
4.8
28.8
0.0
1.8
3.8
45.2
135.7
0.0
1.8
3.8
47.8
140.7
0.0
1.9
3.8
50.4
145.7
0.0
1.9
3.9
53.0
150.9
0.0
2.0
3.9
55.6
156.4
0.0
2.1
4.0
58.1
161.9
234.7
124.1
489.7
240.6
127.4
503.7
246.6
130.5
517.6
253.2
133.9
532.6
260.3
137.6
548.6
267.9
141.6
565.4
trade sources
Table 47
Forecast Sales of Packaged Food by Category: % Volume Growth 2014-2019
% volume growth
Baby Food
Bakery
Confectionery
Dairy
Ice Cream
Meal Replacement
Noodles
Oils and Fats
Pasta
Ready Meals
2014/15
2014-19 CAGR
2014/19 Total
2.4
3.3
3.6
3.4
3.1
1.7
3.9
2.7
3.1
4.2
4.0
2.9
4.9
5.3
2.4
2.1
3.1
3.5
3.1
3.0
2.1
4.0
2.5
2.4
4.0
4.0
3.1
5.2
5.2
2.2
11.0
16.5
18.8
16.3
16.1
11.0
21.8
12.9
12.8
21.8
21.7
16.3
28.8
28.6
11.5
40
Snack Bars
Soup
Spreads
Nutrition/Staples
Meal Solutions
Packaged Food
Source:
Note:
Passport
-3.3
3.7
2.6
5.2
4.2
2.8
3.1
3.1
-4.4
3.8
2.2
5.6
4.1
2.9
2.9
3.1
-20.0
20.3
11.7
31.4
22.3
15.4
15.5
16.7
trade sources
Table 48
Forecast Sales of Packaged Food by Category: % Value Growth 2014-2019
Baby Food
Bakery
Confectionery
Dairy
Ice Cream
Meal Replacement
Noodles
Oils and Fats
Pasta
Ready Meals
Snack Bars
Soup
Spreads
Nutrition/Staples
Meal Solutions
Packaged Food
Source:
Note:
2014/2015
2014-19 CAGR
2014/19 TOTAL
2.9
3.5
3.3
3.1
2.3
2.6
3.3
2.8
3.7
5.4
3.0
2.9
5.3
5.2
1.8
-2.5
3.4
1.7
4.5
3.6
2.9
2.9
3.1
2.6
3.2
3.2
2.8
2.1
2.3
3.4
2.6
3.0
4.9
3.1
2.6
5.6
5.0
1.6
-3.6
3.2
0.8
5.1
3.6
2.7
2.7
2.9
13.6
16.8
16.9
14.6
11.2
12.0
18.3
13.6
15.7
26.8
16.6
13.9
31.4
27.5
8.3
-16.8
17.2
4.2
28.5
19.3
14.2
14.1
15.5
trade sources
DEFINITIONS
Explanations of words and/or terminology used in this report are as follows:
Sari-sari stores - local traditional independent mom and pop shops
SOURCES
Sources used during the research included the following:
Summary 1
Research Sources
41
Official Sources
Passport
Camara Oficial Espaola de Comercio

Industria y Navegacion en Filipinas, Inc
Department of Agriculture
Department of Health
Industrial Technology Development InstituteDepartment 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

Cocoa Foundation of the Philippines
Filipino-Chinese Bakery Association Inc
(FCBAI)
Philippine Amalgamated Supermarkets
Association
Philippine Association of Flour Millers
Philippine Association of Meat Processors Inc
Philippine Chamber of Food Manufacturers Inc
Philippine Coconut Oil Producers Association
Philippine Federation of Bakers Association
Inc
Philippine Food Processors & Exporters
Organization Inc
Rice Association
Trade Press
Business World Online

Food & Agribusiness Monitor
Source:
42

Packaged Food in The Philippines

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Packaged Food in The Philippines

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PACKAGED FOOD IN THE

PACKAGED FOOD IN THE PHILIPPINES

LIST OF CONTENTS AND TABLES

Foodservice Sales of Packaged Food by Category: Volume 20092014 ............................................................................................................. 7

Impulse and Ingulgence Products Key Trends and Developments ........................................... 9

Sales of Impulse and Indulgence Products by Category: Volume

PACKAGED FOOD IN THE PHILIPPINES

Forecast Sales of Impulse and Indulgence Products by Category:

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

Sales of Meal Solutions by Category: Volume 2009-2014 ......................... 19

Nutrition/staples Key Trends and Developments ..................................................................... 23

Sales of Nutrition/Staples by Category: Volume 2009-2014....................... 26

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

Sales of Packaged Food by Category: Volume 2009-2014 ........................ 31

PACKAGED FOOD IN THE PHILIPPINES

LBN Brand Shares of Packaged Food: % Value 2011-2014 ...................... 35

Research Sources ...................................................................................... 41

PACKAGED FOOD IN THE PHILIPPINES

PACKAGED FOOD IN THE

Increasingly Busy and Faster-paced Lifestyles Influence Packaged

Multinationals Continue To Dominate Competition in Packaged Food

Distribution of Packaged Food Continues To Be Dominated by Modern

Packaged Food Expected To Continue on Positive Growth Trend for the

PACKAGED FOOD IN THE PHILIPPINES

KEY TRENDS AND DEVELOPMENTS

PACKAGED FOOD IN THE PHILIPPINES

Improving Economic Condition Encourages Foreign Brands To Enter

PACKAGED FOOD IN THE PHILIPPINES

Increasingly Busy Lifestyles Continues To Benefit Packaged Food in

PACKAGED FOOD IN THE PHILIPPINES

Growingly Sophisticated Consumers Lead To Opportunities for New

FOODSERVICE KEY TRENDS AND DEVELOPMENTS

Trends Sales To Foodservice

PACKAGED FOOD IN THE PHILIPPINES

PACKAGED FOOD IN THE PHILIPPINES

Foodservice Sales of Packaged Food by Category: Volume 2009-2014

Foodservice Sales of Packaged Food by Category: % Volume Growth 20092014

PACKAGED FOOD IN THE PHILIPPINES

Forecast Foodservice Sales of Packaged Food by Category: Volume 20142019

Forecast Foodservice Sales of Packaged Food by Category: % Volume

PACKAGED FOOD IN THE PHILIPPINES

IMPULSE AND INGULGENCE PRODUCTS KEY TRENDS AND

PACKAGED FOOD IN THE PHILIPPINES

PACKAGED FOOD IN THE PHILIPPINES

PACKAGED FOOD IN THE PHILIPPINES

Sales of Impulse and Indulgence Products by Category: Volume 2009-2014

PACKAGED FOOD IN THE PHILIPPINES

Sales of Impulse and Indulgence Products by Category: Value 2009-2014

Sales of Impulse and Indulgence Products by Category: % Volume Growth

Sales of Impulse and Indulgence Products by Category: % Value Growth

% current value growth

PACKAGED FOOD IN THE PHILIPPINES

NBO Company Shares of Impulse and Indulgence Products: % Value 20102014

% retail value rsp

PACKAGED FOOD IN THE PHILIPPINES

LBN Brand Shares of Impulse and Indulgence Products: % Value 2011-2014

% retail value rsp

Universal Robina Corp

Forecast Sales of Impulse and Indulgence Products by Category: Volume

PACKAGED FOOD IN THE PHILIPPINES

Forecast Sales of Impulse and Indulgence Products by Category: Value 20142019

Forecast Sales of Impulse and Indulgence Products by Category: % Volume

Forecast Sales of Impulse and Indulgence Products by Category: % Value