FOOD and beverage firm RFM Corp. said on Tuesday it is allocating P400 million this year for expansion, a portion of which will be spent to upgrade the equipment of its flour mill lines.
“We are adding a bit of capacity but we are modernizing it so that we can produce all-purpose flour, higher valued flour,” RFM Corp. President and Chief Executive Officer Joey Concepcion told reporters on the sidelines of the company’s annual stockholders’ meeting in Mandaluyong City.
“Not much [additional capacity]but it’s really the ability to produce high-quality flour that has a better price so you don’t play the commodity market anymore,” he added.
He said the company is continuously looking for acquisitions but potential companies have yet to show interest in selling their businesses.
“Nobody’s selling. Everybody wants to list someday their company on the stock market,” Concepcion said.
“Basically, we are looking to continue to grow through food and beverages, but not in the area of soft drinks and juices,” he said, adding they are looking at areas where there is less competition.
Meanwhile, he said RFM Corp. is planning to increase its wheat milk prices in the Philippines after getting caught short when wheat prices unexpected shot up earlier.
“We have to increase prices because we are all caught short,” Concepcion said. “It was all of a sudden. We didn’t think high protein wheat will go up this fast,” he added.
RFM is engaged in the processing and manufacturing of flour and flour-based products such as pasta, sauces and cake mixes, milk and juice drinks, canned and processed meats, as well as ice cream.
Aside from Selecta ice cream and its Fiesta and Royal pasta brands, its popular brands include Sunkist Juices, Selecta Milk, Vitwater and Alo Green Tea for beverages, and White King Hot Cake and Butterfresh Margarine for cake mixes.