CENTURY Pacific Food Inc. (CNPF), the largest food canner in the Philippines, is poised to further expand its export market with its recent acquisition of distribution companies in China for $2.56 million or about P127.9 million.
In a statement, CNPF said it will sign an equity purchase agreement for 100 percent interest in the group of entities which currently distribute Century Tuna canned products in China.
Since Century Tuna set foot in China in the early 1990s, the company said it has grown its presence there to become China’s number one canned tuna brand.
The $2.56 million transaction value approximates the distribution companies’ net asset values. CNPF said it will be funding the transaction with cash.
The acquisition is expected to support the expansion of CNPF’s international branded segment, currently still a small part of its business.
“We are excited about this newest addition to our export presence. China could be a future growth market for us with its total canned food market estimated to be increasing [in]double digits annually,” Gregory Banzon, CNPF vice president and general manager, said.
Just this October, CNPF also acquired the license for the Kamayan trademark in North America. Kamayan is one of the top names in the US market for shrimp paste, a novelty condiment in Philippine cuisine locally known as bagoong.
“We look forward to growing our product portfolio and expanding the distribution network in China,” Banzon said.
“We are currently studying opportunities to enter adjacent categories to take advantage of this new market,” he added.
The China distribution companies were 50-50 owned by Thai Union Manufacturing Co. Ltd., a wholly owned subsidiary of Thailand-listed Thai Union Frozen, and Century Pacific Group Inc., the parent company of CNPF.
To date, CNPF’s branded products are sold and distributed in more than 55 countries globally. Flagship product Century Tuna is now reportedly among the leading brands in China, Vietnam, and the Middle East.
CNPF is targeting double-digit growth rates in net income and sales for 2016, hoping to surpass its 14 percent revenue growth and 21 percent net income growth in 2015.
Incorporated in 2013, listed food manufacturer CNPF has established market leadership mainly for its canned tuna, meat and milk brands such as Century Tuna, Argentina Corned Beef, 555 Sardines, and Birch Tree.