Century Pacific Food Inc. (CNPF), one of the leading food companies in the Philippines, is seeking to strengthen its presence in the vast Chinese market by appointing a new distributor, Shanghai Ikai International Trading Co.
In a disclosure to the Philippine Stock Exchange (PSE), CNPF stated that its new distributor will directly cover the Chinese market and enhance the company's presence in the region. Shanghai Ikai is an omni-channel distribution company with capabilities in online, offline, and food service channels.
"We are pleased to be working with our partner distributor, Shanghai Ikai," said Gregory Francis H. Banzon, CNPF Executive Vice President and Chief Operating Officer.
He added, "their expertise and omni-channel focus are clear strengths that we believe can be leveraged to efficiently enhance our market coverage in Eastern China. This aligns with our strategy to optimize operations and leverage local market expertise to accelerate growth in China. Moving forward, we plan to use this successful model to scale up our presence in other parts of the country."
With the appointment of this new distributor, CNPF will transition from directly servicing its customers through its China-based entities to a full distributorship model with Shanghai Ikai.
To facilitate this transition, CNPF's Board of Directors approved the dissolution of CNPF subsidiaries involved in the distribution of its products in China, namely Century International Company, Ltd. (CIC) and Century (Shanghai) Trading Company Limited (CST).
The dissolution of CST has been completed, while CIC's dissolution process is ongoing, with various statutory and regulatory requirements being addressed.
In 2023, CNPF's exports business in China contributed less than half a percent to the company's audited revenues and profits.