Metro Pacific Investments Corporation (MPIC), the country’s leading infrastructure investments company, is acquiring a controlling stake in dairy firm Carmen’s Best Group of the Magsaysay family for P198 million.
In a press briefing, MPIC Chairman Manuel V. Pangilinan said they have entered into a strategic partnership with Carmen’s Best Dairy Products, Inc., Carmen’s Best International Dairy Company, Inc., Real Fresh Dairy Farms, Inc., and The Laguna Creamery, Inc. (collectively, the Carmen’s Best Group).
The partnership is aimed at further developing and expanding the operations of the Carmen’s Best Group’s dairy farm and dairy products manufacturing facilities.
Under the partnership, the Carmen’s Best Group will integrate its assets and operations into The Laguna Creamery, Inc. (TLCI), with MPIC owning a 51 percent equity interest in TLCI and the Carmen’s Best Group retaining a 49 percent equity interest.
The Carmen’s Best Group is behind the home-grown premium ice cream brand, Carmen’s Best Ice Cream, and the country’s only locally pasteurized and homogenized fresh milk, Holly’s Milk. It produces yogurt and artisanal cheeses under the Carmen’s Best Natural Cheese and Holly’s brands.
Earlier this year, MPIC announced that it is seeking to ramp up investments in the agricultural sector and reduce the country’s dependence on food imports amid ongoing global supply chain disruptions and high inflation.
This transaction presents a significant growth opportunity for MPIC and the Philippines, as the country currently imports 99 percent of its annual dairy requirements. Aside from the dairy venture, MPIC has a stake in Roxas Holdings, which is engaged in sugar production.
“The agricultural sector presents a wide range of possibilities that can help us achieve several goals –to strengthen the food supply chain and augment the accessibility of resources for all Filipinos as well as provide more opportunities for growth in an otherwise underserved business. Ultimately, the country should aim for substantial independence in food. And we must feed our people first,” said Pangilinan.
MPIC and Carmen’s Best Group envision transforming TLCI into a fully integrated dairy business, serving local demand and eventually competing globally.
“Carmen’s Best has always had family at the heart of its brand – from the humble beginnings of my father and his friend's dairy farming project, to the touch of creativity I added to turn it into a modest ice cream business,” said Francisco Delgado Magsaysay.
He added that, “This union makes us appreciative that MPIC sees the value of what we already built, while also elevating Carmen’s Best to a level beyond what we envisioned.”
The transaction values the Carmen’s Best Group at P288 million and is conditional upon customary regulatory confirmation and approvals.
MPIC said this venture in agribusiness affirms its resolve to be the largest catalyst for a Sustainable Philippines to contribute to national progress and help improve lives of Filipinos.
It is also aligned with the company’s efforts to contribute to the United Nations Sustainable Development Goals (UN SDGs), particularly Goal 2: End hunger, achieve food security, improve nutrition and promote sustainable agriculture.