SMC’s Nat’l Foods posts 4.3% sales hike in 2 mos

Australian dairy giant National Foods Ltd., a subsidiary of San Miguel Corp., reported a 4.3-percent growth in sales across all its principal products in the first two months of the year.

In a statement, National Foods said the volume increases on different distribution channels were accounted for by milk sales in route, juice and yogurt in groceries and bulk cream and cheese sales in new areas.

The distribution focus and better coverage is a result of the close coordination and/or the combined sales team of National Foods and juice company Berri Ltd., a sister firm, the statement further said.

Meanwhile, National Foods’ exports, cheese and gourmet foods and other specialty products, grew in excess of 30 percent from a lower base.

A greater proportion of higher margin products were likewise delivered across different channels, resulting in net sales growth of six percent to A$268 million year-to-date.

EBIT (earnings before interest and taxes) growth for the same period grew nine percent, driven partly by the synergy benefits from the integration.

To ensure continued growth, National Foods said it will intensify its marketing strategy for new and exciting products in milk and juice.

A new packaging design will be rolled out for the Big M brand and more below-the-line activities are planned for Farmers Union Iced Coffee, National Foods said.

In the juice category, the media campaign of Daily Juice and Australian Fresh is being well-received by consumers, opening new opportunities to create excitement in the market.

National Foods and Berri alone add over $1 billion to San Miguel’s revenue and a handful of household names to the portfolio of brands and products, now covering an entire spectrum of food and beverage products from beer to milk and juice and from basic meats to specialty cheese, yogurt and dessert.

San Miguel paid A$1.9 billion for National Foods last year, giving the company 37 percent of Australia’s fresh milk sales and a third of its yogurt and dairy dessert sales. The brands of National Foods include Pura milk, Yoplait yogurt and Zooper Dooper ice snacks.

San Miguel has been expanding overseas to cut its dependence on sales at home, where it controls 70 percent of the softdrinks market and 70 percent of processed meat sales.