RFM set to acquire meat processing unit of Swift

RFM Corp., the food and beverage concern of the Concepcion-Araneta family, said yesterday that its board of directors has approved the proposal to acquire the meat processing business unit of Swift Foods Inc. as part of efforts to focus on its poultry and agri-business ventures.

RFM informed the Philippine Stock Exchange (PSE) that the proposed acquisition is still subject to the approval of directors of Swift. In exchange for the acquisition, RFM will assume the trade liabilities of Swift.

The acquisition will include all rights, interest and ownership of Swift over the assets of its meat processing business except a manufacturing plant in Cabuyao, Laguna.

Also included in the package is Swift’s plant equipment and trademarks. RFM will likewise assume contracts entered into by Swift for its meat processing business.

After selling its major cash cow, Cosmos Bottling Corp., to San Miguel Corp. last year, RFM is now focusing its efforts on strengthening its branded food products through strategic partnerships with foreign or local firms.

The company intends to focus on the food business under subsidiaries RFM Foods Inc., Swift, and Selecta Dairy Products Inc. RFM’s objectives are to recreate food products to exceed customer expectations and tap the international market to boost its profitability.

Of RFM’s subsidiaries, Swift and Selecta are considered to be the "next-best" businesses of the Concepcion-led group since the other firms are all suffering from the slowdown in their respective markets.

Swift – engaged in the manufacturing and trading of poultry and meat products – controls some 21 percent of the dressed chicken market, second only to San Miguel, which controls 33 percent.

It sells products like dressed chicken, choice cuts, processed chilled meat, canned meat, and feeds under brand names Swift, Rica, Goldstock, and Blue Ribbon.

Ice cream unit Selecta is also seen by analysts as another future revenue-generating unit should RFM be successful in bringing back its popularity in the market.

To boost sales, RFM is considering outsourcing its operations even to China if it could offer lower costs.

RFM’s businesses also include franchising and realty development. It owns the Little Ceasar Pizza, Sunroast and Dairy Queen franchises. The group, through subsidiary Philtown Property Development Co., constructed the luxurious One McKinley high-rise building.