MANILA, Philippines - Alaska Milk Manufacturing Corp. is gearing up to expand in Southeast Asia to capitalize on rising demand for nutritional products, backed by rising incomes and awareness of the benefits of dairy in the emerging world.
On the sidelines of the company’s annual stockholders meeting yesterday, Alaska president Wilfred Steven Uytengsu said they are considering widening the firm’s geographic base by penetrating the overseas market either through acquisitions, joint ventures or exports.
“If you look at growth prospects in Southeast Asia, the emergence of the middle class coupled with population growth really bodes well. This is the time that you want to be in Southeast Asia and our prospects look good. The fundamentals of the Philippines is perhaps the strongest we have ever been,” Uytengsu said.
Earlier reports indicate that the global dairy market will offer strong growth prospects in the next five years with emerging markets like China, India and Southeast Asia, filling the ranks of the fastest-growing consumption regions with an expected share of 82 percent.
Uytengsu said Alaska’s partnership with Dutch dairy giant Royal Friesland Campina, will boost the prospects of an overseas presence for Alaska.
Royal Friesland has taken over Alaska with the purchase of the Uytengsu family’s 60.8-percent stake in the local milk manufacurer for P12.86 billion. The transaction has brought Royal Friesland’s total shareholdings in Alaska to 68.9 percent from only 8.1 percent.
Royal Friesland has presence in Thailand, Indonesia, Malaysia, China, Vietnam, India, Hong Kong and Singapore. It also produces and sells dairy products in the Middle East and Africa.
Royal Friesland also brings to the deal a portfolio of dairy products ranging from raw material ingredients to higher value-added products such as infant formula, cheese, butter and yoghurts.
Uytengsu said Alaska will become a private company upon completion of the tender offer for shares held by minority shareholders, which is expected in August or September this year.
Royal Friesland is seen to increase its shareholdings in Alaska to around 90 percent should minority investors decide to tender their shares.
Alaska has emerged as the leading player in the Philippine milk industry for more than 30 years. It has also recently expanded into higher value-added milk products, particularly in the ready-to-drink milk category.
The Uytengsu family has relinquished control of the Philippines’ leading milk maker to prepare it for the next stage of growth.