OLEO-FATS Inc. (OFI), a unit of listed firm D&L Industries Inc., expects to ship its food raw materials products to Southeast Asian markets within the year, in line with its recently signed partnership venture with US-based food manufacturer Ventura Foods LLC.
Alvin Lao, D&L chief financial officer, told The Manila Times in a text message that OFI foresees distributing its export products to countries in the Asean region “in a few months.”
“Hopefully in a few months, we can already start shipping. Yes, it will likely start within the year,” Lao said.
Lao said that the deal between OFI and Ventura also includes cooking up brand new products for Ventura, as well as manufacturing Ventura’s products by OFI.
“We’re discussing new products we can develop for them. The product lines are still confidential but we will also manufacture products for Ventura,” he said.
“Basically, OFI will manufacture, Ventura will distribute. Can’t comment yet on contribution to revenue or income, but we expect this to be a fruitful long-term relationship,” Lao added.
OFI manufactures food raw materials such as specialty fats and oils, refined vegetable oils, specialty ingredients, and food safety products.
Ventura, on the other hand, is behind the branded and custom-made products such as frying oils (Mel-Fry and Extend), dressings (Marie’s), dressings and culinary bases (Marie’s and Classic Gourmet), butter blends (SunGlow), liquid butter alternatives (Phase, Savory), pan coatings (White Cap and Gold-n-Sweet), buttery spreads (Smart Balance) and prepared dressings (Hidden Valley).
The manufacturing agreement signed by both parties in early August involves development and production of specialty oils and food ingredients by OFI, and its distribution to different networks in the region by Ventura.
Last week, the firm said the manufacturing will be done at OFI’s Mercury Plant located in Quezon City.
OFI has been growing fast with over 650 food ingredient formulations, serving more than 1,200 customers in the food and beverage industry.
Parent firm D&L increased its first half net income by 22 percent to P799 million from P655 million, while revenues grew 26 percent to P6.225 billion in the same period from P4.939 billion last year.
Despite being a chemical manufacturing firm fundamentally, D&L is fast growing its food business, having oleo-fats sales grow by 149 percent in the first half than a year ago due to its Southeast Asian operations.
Established in 1963 and listed in December 2012, D&L has four main businesses: food raw materials (OFI), plastics (D&L Polymer and Colours Inc. and First in Colours Inc.), aerosols (Aero-Pack Industries Inc.), and chemicals (Chemrez Technologies Inc.).