About the Business, Entrepreneur and the Team

A. ABOUT THE BUSINESS

I. OUR COMPANY

San Miguel Pure Foods Company, Inc. offers a varied group of food products

spanning across the entire value chain ranging from B-Meg feeds and San Miguel

Mills flour to Purefoods hotdogs, Magnolia chicken or Monterey ready-to-eat meat

dishes. Pure Foods offers a supreme breadth of food products that can be consumed

during any time of the day, providing a comprehensive food solution to its customers,

thereby building greater brand loyalty and prestige.

Currently, our company is in the maturity stage. It is a period of slowdown in sales

growth because the product has been achieved acceptance by most of our potential

buyers and the sales and profits started to decline because more competitors enter

the market with more advanced product development. Meanwhile, our company is in

the second phase of maturity stage, stable maturity. Sales flatten on per capita basis

because of market saturation. Most potential consumers have tried the product, and

future sales are governed by population growth and replacement demand.

Contrariwise, Pure Foods’ portfolio of brands includes some of the most well-known

food brands in the Philippines both across and within product categories. Many of

Pure Foods’ brands enjoy first or second market positions in their respective

categories. By providing to a wide set of customer segments with different needs and

preferences, it has been able to consistently maintain its leadership position in the

market. The Food Group’s operations range from breeding, contract growing,

processing and marketing of basic meats, to the manufacture of refrigerated, canned

and ready-to-cook meat products, butter, cheese, margarine, ice cream, flour and

flour-based products as well as animal and aquatic feeds.

Foremost among the Food Group’s partners is Hormel Foods Corporation.

II. OUR HISTORY

San Miguel Pure Foods integrates two outstanding food institutions, the San Miguel

Food Group and Pure Foods Corporation. Both have a rich history and a solid record

of experience and expertise spanning nearly six decades of market leadership in the

food industry.

The San Miguel Food Group had its beginnings in 1953 when San Miguel Polo

Brewery started producing animal feeds from protein-rich by-products of beer

brewing, laying the groundwork for what would later become San Miguel Foods, Inc.

In the 1960s, business operations in feeds, livestock, and dairy were consolidated

under San Miguel Feeds and Livestock Division. Integrated poultry operations began

a decade later through a breeder farm in Cavite , and the first chicken processing

plant was eventually set up in Muntinlupa.

Philippine Dairy Products Corporation—a precursor to Magnolia, Inc.—was

established in 1981 as a 70-30 joint venture between San Miguel and New Zealand

Dairy Board. San Miguel would eventually attain leadership position in the margarine

market following the acquisition of Star and Dari Crème Brands a decade later.

In 1991, San Miguel Feeds and Livestock Division was spun off to become San

Miguel Foods, Inc., managing both feeds and livestock business. These past decades

indeed saw San Miguel Corporation’s food business expand to Include poultry and

livestock, dairy products, fresh and processed meats, and agriculture.

Meanwhile, Pure Foods was founded in 1956 by a group of leading businessmen who

put up a one-building, one-kitchen food facility in Mandaluyong to produce hams,

bacon and sausages. It went on to produce quality meats that became household

names. Several years later, Hormel Foods International acquired substantial interest

in Pure Foods, giving the company exclusive rights to market Hormel products in the

country.

San Miguel Corporation’s acquisition of Pure Foods in May 2001 brought together

these two food industry leaders, ushering in a new era of growth and market

leadership of the integrated businesses.

III. OUR MISSION, VISION AND CORE VALUES AND OBJECTIVES

1. MISSION

It is our fundamental belief that everything is loaned to us by our Creator, to grow

and multiply them for the good of everyone. As such, we value and take care of what

has been entrusted to us - malasakit. It is the core value that permeates all other

values that we espouse: Customer focus, Social Responsibility, Passion for Success,

Integrity, Respect for our People, Innovation, and Teamwork.

It is in this spirit that we will look after the welfare and interest of our stakeholders.

We will delight our Customers with products and services of uncompromising quality,

great taste and value, and are easily within their reach.

We will create value and provide fair returns on our Shareholders’ investments.

We will work hand-in-hand with our Suppliers and other Business Partners, helping

them grow with us and assuring them of reasonable returns.

We will develop and motivate our Employees to become best-in-class through

cognitive and affective programs, competitive compensation and benefits, and

diverse career growth opportunities. We will help improve the quality of life in

Communities where we operate.

Collectively, we will give and do what is right and become proponents of good

stewardship.

2. VISION

By 2020, San Miguel Purefoods Company, Inc. will be a P520 billion company

with an income of P42 billion.

3. CORE VALUES AND OBJECTIVES

We will intimately understand our consumers, winning their hearts by

providing-tasting and innovative products and services that anticipate and

respond to their needs.

We will ensure that our products are of uncompromising quality and easily

within reach.

We will be the leading provider of good nutrition for families, offering a wide

spectrum of products. And, to complete our portfolio, we will engage in

nutraceuticals and organic food segments.

We will revolutionize the foodservice and retail industries.

We will aggressively bring our products and services worldwide, spanning the

Asia-Pacific, Middle East, South Africa, and Europe.

We will develop a regional network of manufacturing capabilities that will

provide us with least cost advantage in raw material sourcing, production,

and logistics costs.

We will develop a regional network of manufacturing capabilities that will

provide us with least cost advantage in raw material sourcing, production,

and logistics costs.

We will become the benchmark of innovation, systems and technology, and

people development in the industry.

We will play an active role in improving the lives of the communities where we

operate.

We will be the Filipino company that nurtures families worldwide.

B. ABOUT THE ENTREPRENEUR AND THE TEAM

I. ABOUT THE ENTREPRENEUR

Jhemar Laspiñas Maac is the President of San Miguel Pure Foods Co. Inc., and

also serves as the Chairman and Chief Executive Officer of Monterey Foods

Corporation. As the President of Pure Foods, he also serves as the team

governor of the B-Meg Derby Ace Llamados in the Philippine Basketball

Association (PBA).

Maac has been the President of San Miguel Pure Foods Co. Inc. since January

2030, and The Pure Foods-Hormel Company since 2027, a company with a 60-

40-percent joint venture between San Miguel Corporation and Hormel

Netherlands B.V.

http://en.wikipilipinas.org/index.php/Philippine_Basketball_Association

http://en.wikipilipinas.org/index.php/Philippine_Basketball_Association

http://en.wikipilipinas.org/index.php/San_Miguel

Maac also serves as the Chairman and Chief Executive Officer of Monterey

Foods Corporation, and the President of Magnolia, Inc., San Miguel Foods, Inc.,

and San Miguel Super Coffeemix Company, Inc. He also serves as the Chairman

and President of Sugarland Corporation and Star Dari, Inc.

Maac served as Senior Vice President of San Miguel Pure Foods Company, Inc.

last January 2020, and was the Senior Vice President and Division Head of

various divisions last October 2023 and Senior Vice President of various

divisions from May to September 2025. He also served as the President of MPM

Noodles Corp. from January 2027 to December 2029. Mr. Maac has been a

Director of San Miguel Pure Foods Co. Inc. last May 22, 2019 where he serves a

Member of the Nominations Committee and Executive Committee.

Other San Miguel subsidiaries he serves as Director are: San Miguel Foods and

Beverage International Limited (BVI), San Miguel Pure Foods Investment (BVI)

Ltd., San Miguel Pure Foods International, Limited (BVI) and SMPFC Capital

Investments, Limited (Cayman Islands); and President Commissioner of PT San

Miguel Pure Foods Indonesia.

II. ABOUT THE TEAM

The team compromises the following members: Executive Vice President, Ms.

Anjobel Cabaja-an; ; VP in Market Promotions, Mrs. Bianca R. Cruz and her

task is to plan, to analyze, to implement and to control of carefully formulated

programs designed to build, create and maintain beneficial exchanges with the

target market for the purpose of achieving individual and organizational objective;

VP in Market Research, Mr. Angelyko Cruz, his task is to systematize the

exhaustive gathering, analyzing and recording of facts related to any problem in

the field of marketing to facilitate decision-making ;VP in Public Relations, Mrs.

http://en.wikipilipinas.org/index.php?title=Magnolia,_Inc.&action=edit&redlink=1

http://en.wikipilipinas.org/index.php/Monterey_Foods_Corporation

http://en.wikipilipinas.org/index.php/Monterey_Foods_Corporation

Joan R. Nova, her task is to organize, to plan, and to continue effort to establish

or promote public good will and maintain mutual understanding between

organization and its various public, to communicate information through the right

channels in the right people; VP in Grading and Standardization, Mrs. Pauline N.

Duran, her task is to compare, separate, and inspect products according to

established specifications as set standards of size, color, weight, performance

and quality; VP in Advertising, Ms. Dina Dinco, her task is to promote about the

product to create brand awareness and brand loyalty; VP in Accounting, Lea

Dela Cruz, her task is to analyze, maintain, correct the business records of the

organization and prepare forms and reports for tax and other financial purposes;

VP in Budget and Finance, Mrs. Annejhay B. Fuentebella, her task is

concerned primarily with estimating future sales and then allocating expenses

and cost factors appropriately to achieve both sales and profit objectives; VP in

Product Planning and Development, Mr. Nasser Ferrer, his task is to make out

and supervise the search, screening, product development and

commercialization of new products, the modification of existing line and or

discontinuance of marginal or unprofitable items.

H. COMPETITION

I. CDO

One of CDO’s finest hotdogs, Bibbo! is a meaty and juicy premium red hotdog fit for the

discriminating taste of the upper class market. Whether served plain, with bun, or rice, this

hotdog is a sure hit on rich kids and adults alike.

http://www.cdo.com.ph/cdo_brands/Bibbo_Hotdog/CDO_Bibbo_Hotdog.aspx

SKU Variant

Packing Size

Barcode Weight Per Box

Box Shelf Life

Boxes Per

PalletProduct Box Dimension(mm) Cubic

MeterCheesedog Classic-Size 230g

230g x 25 packs

4-800249-110500

14-800249-286264

5.75 kg 255 x 205 x 200 0.0105 180 days

95

Cheesedog Classic-Size 1.0kg

1.0kg x 10 packs

4-800249-286168

14-800249-286165

10 kg 295 x 295 x 215 0.0187 180 days

55

Cheesedog Super Jumbo 490g

490g x 12 packs

4-800249-286298

14-800249-286295

5.88 kg 255 x 205 x 200 0.0105 180 days

95

Cheesedog Super Jumbo

1.0g

1.0 kg x 10 packs

4-800249-286199

14-800249-286196

10 kg 295 x 295 x 215 0.0187 180 days

55

Cheesedog

Chubbies 250 g

250g x 20 packs

4-800249-286281

14-80 249-

286281

5kg 255 x 205 x 200 0.0105 180 days

95

Cheesedog

Chubbies l.0kg

1.0kg X 10 packs

4-800244-286274

14-800249-286271

10 kg 340 x 247 x 213 0.0179 180 days

55

http://www.cdo.com.ph/cdo_brands/Bibbo_Hotdog/CDO_Bibbo_Hotdog.aspx

II. Frabelle

Pack Size

Number of

pieces per

pack

Description Features Benefits

Frabelle Foods

Yummy Combo Pack

250kgN/A N/A

Frabelle Foods

Yummy Cheesedogs Supersized

1kg. 16 pcs.Frabelle Foods Yummy! Cheesedogs are made from combination of pork and beef stuffed and cooked with the right blend of creaminess of cheese and spices. The meat blend is reduced to a homogeneous mass called emulsion, stuffed into clear cellulose casings of different diameters, and then cooked to the required internal temperature.

The finished product has a distinct brown skin color. It has a tender skin, is firm and meaty. It is smoked with 100% natural imported wood chips that give the cheesedogs their natural smoky aroma and flavor.

• Made from choice meat cuts and the right blend of spices• Passes through abrupt special freezing method• Contains ample amount of cheese per serving• Naturally smoked using imported woodchips• Has a diameter of 23mm for regular, 28mm for super-sized variant

• Superior taste; meaty and firm; does not wrinkle even when placed under ambient temperature for extended period of time• Flavors and nutrients are locked in• Creamy and delicious• Smoky aroma and flavor• Fuller to the bite

Frabelle Foods

Yummy Cocktails Hotdogs

500 kg. 24 pcs. Frabelle Foods Yummy! Hotdogs are made from choice cut of fresh meat; processed with the right blend of spices to

• Made from choice meat cuts and the right blend of spices• Passes through abrupt special freezing method

• Superior taste; meaty and firm; does not wrinkle even when placed under ambient temperature for

give that meaty and slight salty taste and aroma. The meat blend is reduced to a homogeneous mass called emulsion, stuffed into red color cellulose casings of different diameters, and then cooked to the required internal temperature.

The finished product has a cherry red skin color. It has a tender skin, is firm and meaty. It is smoked with 100% natural imported wood chips that give the hotdogs their natural smoky aroma and flavor. The product is processed under strict manufacturing practices.

• Naturally smoked using imported woodchips• Has a diameter of 23mm for regular, 28mm for super-sized variant

extended period of time• Flavors and nutrients are locked in• Creamy and delicious• Smoky aroma and flavor• Fuller to the bite

Frabelle Foods Yummy Supersized Hotdogs

1 kg. 16 pcs.Frabelle Foods Yummy! Hotdogs are made from choice cut of fresh meat; processed with the right blend of spices to give that meaty and slight salty taste and aroma. The meat blend is reduced to a homogeneous mass called emulsion, stuffed into red color cellulose casings of different diameters, and then cooked to the required internal temperature.


• Made from choice meat cuts and the right blend of spices• Passes through abrupt special freezing method• Naturally smoked using imported woodchips• Has a diameter of 23mm for regular, 28mm for super-sized variant


Frabelle Foods

Yummy Jumbo

Hotdogs

500 kg/ 1kg.

12 pcs/ 6 pcs.

Frabelle Foods Yummy! Hotdogs are made from choice cut of fresh meat; processed with the right blend of spices to give that meaty and slight salty taste and aroma. The meat blend is reduced to a

• Made from choice meat cuts and the right blend of spices• Passes through abrupt special freezing method• Naturally smoked using imported woodchips• Has a diameter of

• Superior taste; meaty and firm; does not wrinkle even when placed under ambient temperature for extended period of time• Flavors and nutrients are locked

homogeneous mass called emulsion, stuffed into red color cellulose casings of different diameters, and then cooked to the required internal temperature.


23mm for regular / cocktails, 28mm for super-sized and jumbo variant,/li>

in• Smoky aroma and flavor• Fuller to the bite

Frabelle Foods

Yummy Cheesedogs

Regular

250 kg/ 500 kg/ 1 kg.

6 pcs/ 12 pcs/ 24 pcs.

Frabelle Foods Yummy! Cheesedogs are made from combination of pork and beef stuffed and cooked with the right blend of creaminess of cheese and spices. The meat blend is reduced to a homogeneous mass called emulsion, stuffed into clear cellulose casings of different diameters, and then cooked to the required internal temperature.


• Made from choice meat cuts and the right blend of spices• Passes through abrupt special freezing method• Contains ample amount of cheese per serving• Naturally smoked using imported woodchips• Has a diameter of 23mm for regular / cocktails, 28mm for super-sized and jumbo variant,/li>


Frabelle Foods

Yummy Regular Hotdogs

250 kg/ 500 kg/ 1 kg.

16 pcs/ 12 pcs/ 24 pcs.

Frabelle Foods Yummy! Cheesedogs are made from combination of pork and beef stuffed and cooked with the right blend of creaminess of cheese and spices. The meat blend is reduced to a homogeneous mass called emulsion,

• Made from choice meat cuts and the right blend of spices• Passes through abrupt special freezing method• Contains ample amount of cheese per serving• Naturally smoked using imported woodchips

• Superior taste; meaty and firm; does not wrinkle even when placed under ambient temperature for extended period of time• Flavors and nutrients are locked in• Creamy and

stuffed into clear cellulose casings of different diameters, and then cooked to the required internal temperature.


• Has a diameter of 23mm for regular / cocktails, 28mm for super-sized and jumbo variant,/li>

delicious• Smoky aroma and flavor• Fuller to the bite

Frabelle Market Corporation (FMC) is engaged in the business of manufacturing,

processing and trading of goods such as frozen foods, seafood, meat, vegetables on

wholesale and retail basis. We own the Ocean Fresh and Seaglow brand. FMC is under

the parent company Frabelle Fishing Corporation.

http://www.linkedin.com/company/frabelle-market-corporation

Factor Purefoods(RANKING WITH

OTHER COMPETITOR)

Strengths Weaknesses CDO(Competitor A)

Frabelle(Competitor B)

Importance to

ConsumerProducts 1 2 2 2 3 3Price 2 1 1 1 3 1

http://www.linkedin.com/company/frabelle-market-corporation

Quality 1 1 1 1 1 2Selection 2 1 2 2 1 1

Service 1 3 3 3 4 4Reliability 1 1 5 1 2 1Stability 2 1 4 1 1 1Expertise 1 1 3 2 1 2Company Reputation

1 1 5 1 1 1

Location 1 1 4 1 1 2Appearance 2 1 3 1 2 2Sales Method

2 2 2 3 2 1

Credit Policies

2 2 5 2 3 2

Advertising 3 2 1 3 1 1Image 1 1 5 1 2 1

Table 1. Competitive Analysis (1 = critical; 5 = not very important)

Table 2. Competitive Analysis (according to consumer)

According to our market research, the top three hotdog manufacturing companies are

Purefoods, CDO and Frabelle (wikianswers.com). The table says that determining the value of

Products

Price

Quality

Selec

tion

Servi

ce

Reliab

ility

Stabilit

y

Experti

se

Company R

eputati

on

Locati

on

Appearan

ce

Sales

Meth

od

Credit P

olicies

Adverti

sing

Imag

e0

1

2

3

4

5

6

PurefoodsCDOFrabelle

the product, quality, service, reliability, expertise, company reputation, location and image, San

Miguel Purefoods has the best factors compared to our competitors- CDO and Frabelle. On the

other hand, the price, selection, stability, appearance, sales method, credit policies and

advertising takes its weaknesses compared to our local competitors. Thus, brand loyalty and

brand awareness created by San Miguel that really help them to have its reputation now, really

means alot when producing hotdogs image compared to other companies. Some of the

consumer's insights about our product tell that the packaging of Purefoods has balloons and

party hat that really catches the attention of the kids. On the other hand, it is more attractive to

our target market, mommies who want their child to be healthy and have its nutritious food if the

packaging has its Vitamin A and B1 compared to other competitors. When we cooked hotdogs

in different styles, the flavor of Purefood pan-fried hotdogs are too overwhelming. They couldn't

quite decide whether they were too sweet or too salty. Some consumers appreciated the

relative blandness of hotdogs that has less artificial flavorings. When we tackled about the

texture, the Purefood Tender Juicy hotdogs were too cloying. And when they ate it slowly, they

noticed how salty it was but more juicier compared to other competitors.

The hotdog face off Purefoods Tender Juicy versus Swift Mighty Meaty.htm

Documents

About the Business, Entrepreneur and the Team