Pilmico & Gold Coin group, the integrated agribusiness and food company of the Aboitiz conglomerate, is opening up its meat products for franchising, completing its food value chain in the Philippines down to the consumer level.
During a briefing in Singapore in time for the launch of the Group’s Aboitiz Data Innovation (ADI), Ebbie Mabatid, Pilmico & Gold Coin senior vice-president and chief finance officer, revealed they have opened a new market channel for its brand “The Good Meat” via franchising.
So far, the company has signed up one franchise deal for “The Gold Meat” with one of its employees. The franchising cost, however, has yet to be disclosed once they formally launch their franchising venture.
Gayle Guzman, VP for finance, investments and treasury, explained they are looking at establishing 4-6 company-owned “The Good Meat” stores this year.
But the franchising model is expected to accelerate growth in “The Good Meat” distribution channel. “The Good Meat” will be stand-alone stores and will serve consumers within a community.
“That can really escalate the number,” Guzman said noting that franchising is seen to bring exponential growth in its brand.
On top of that Pilmico & Gold Coin has also already 290 bybrid distribution channels in Luzon largely due to its partnership with major supermarket chains and other partners, including the modern trade channel that caters to a growing market for product delivery or those that do not want to go to the wet market or the supermarkets.
Although their supply of hogs and chicken will come from its production hub in its Tarlac Meatmasters. The company is also investing in logistics and cold storage facilities to be able to offer franchising opportunities even those outside of Luzon. They can also source from local meat producers in the regions.
The Tarlac facility produces 300 tons of pork per month and 4 million eggs per month.
Mabatid said that since their acquisition of Gold Coin in 2018, Pilmico has established strong presence in Asia as an integrated agribusiness and food company with 29 facilities in eight countries and 6,000 employees. The food group is the third largest subsidiary of Aboitiz and Company.
To support growth, the group is regionalizing its protein footprint, integrating into consumer products, and continued partnerships and acquisitions.
This is possible as the group has strong presence in flour, feeds, farms, and a regional trading in the region in Singapore, making it well-positioned in the markets they operate including Philippines, Malaysia, Vietnam, South China, Brunei, and Indonesia.
“These geographies we are focusing for food, aqua and specialty nutrition,” said Mabatid.
For the past two years, the food group group concentrated their investments in South China and Vietnam for aqua assets.
This time, it is investing in South China in Yunnan for swine. It also further expanding its swine facilities to capture the South Vietnam market.
In addition, Guzman said they are also looking into alternative foods or the healthy protein, but for now the priority is on providing the most cheapest affordable and reliable source protein available to Filipino consumers.
“We are not saying no to alternatives,” Guzman said noting this new food sector is a disruptor. In fact, she said, they already have investments in alternative foods that may not be by the food group but by the Aboitiz group or a venture capitalist.
The group has also ventured into pet foods.
Guzman said they continue to look at deals, but stressed that for a growing multinational company they have also to focus so as not to be distracted with geographies.