A UNIT of Del Monte Pacific Ltd. (DMPL) will venture into other sales channels as it recognized strong growth in the said areas coupled with e-commerce, the Singapore- and Philippine-listed firm said.
“DMFI (Del Monte Foods, Inc.) is now penetrating into other sales channels in the US where it had not sold to, such as club stores, dollar and value stores, convenience stores, drug stores and foodservice establishments,” DMFI Chief Executive Officer Gregory N. Longstreet said in a statement.
“Management is bullish about future growth through these channels and platforms,” Mr. Longstreet added.
The company official said that he expects to grow the business over the next five years by executing similar strategies.
These strategies include rejuvenating the brand, investing more in marketing, innovation, renovation, and customization of its branded portfolio.
Mr. Longstreet said: “DMFI is having a great success executing its playbook around product leadership, branded growth and innovation and much more to come.”
Meanwhile, he reported that the company’s stock and broth segment is profitable and is one of its strongest margin businesses.
As part of the company’s brand expansion, it recently acquired the intellectual property of the Kitchen Basics brand.
“Kitchen Basics is a national brand which could allow DMFI to unlock 75% of the US market,” Mr. Longstreet said.
In the first quarter, DMFI registered $302.4 million in net sales, a 1.5% increase from last year, driven by retail branded sales of canned vegetable, tomato, broth and Joyba bubble tea.
“The newly launched Joyba Bubble Tea line of products would soon reach $60 million in new sales,” Mr. Longstreet said.
However, the company registered a net loss of $45.1 million in the first quarter after its one-off redemption cost of $50 million.
DMFI redeemed its 11.875% senior secured notes to secure a much lower interest rate, before this, DMFI’s net profit rose by 67% to $8 million.
The company’s fiscal year starts in the month of May. — Justine Irish D. Tabile
