Canned tuna manufacturer Century Pacific Food Inc. acquired distribution companies in China for $2.56 million in a bid to further expand its branded exports.
Century Pacific said in a disclosure to the stock exchange it would purchase a 100 percent stake in a group that currently distributes Century Tuna products in China.
“We are excited about this newest addition to our export presence. China could be a future growth market for us with its total canned food market estimated to be increasing double-digits annually,” Century Pacific vice president and general manager Gregory Banzon said.
The acquisition is expected to support the expansion of Century Pacific’s international branded segment, which is currently still a small part of the business.
Century Pacific will finance the transaction in cash.
“We look forward to growing our product portfolio and expanding the distribution network in China,” said Banzon.
The company is also studying opportunities to enter allied categories to take advantage of the new market.
Prior to the acquisition, the Chinese companies were owned 50 percent each by Thai Union Manufacturing Co Ltd., a wholly owned subsidiary of Bangkok-listed Thai Union Frozen, and Century Pacific Group Inc., parent company of Century Pacific.
Century Pacific has expanded its presence to become the country’s number one canned tuna brand since its entry into China during the early 1990s.
The company recently acquired the license for the Kamayan trademark in North America, one of the top names in the US market for shrimp paste—a popular condiment in Philippine cuisine.
Century Pacific is the country’s largest canned food company engaged in the development, marketing, and distribution of processed fish, meat, dairy, and coconut under its own brands, as well as the brands of others. It maintains market leadership locally in the canned fish and canned meat segments, while actively expanding its presence in canned and powdered milk.
It is the Philippines’ leading exporter of private label tuna and coconut products.