MANILA, Philippines - Gokongwei-led food and beverage firm Universal Robina Corp. is exploring potential targets in the snacks and confectionery business as it eyes opportunities for growth and expansion, according to a top company official.
BJ Sebastian, senior vice-president and chief strategist at URC, said the company intends to further strengthen its commanding position in the snack food industry through acquisitions.
He said the firm is also looking to beef up its beverage business but declined to give more details.
Sebastian refused to comment whether these planned acquisitions involved domestic or international brands.
Funding for the planned acquisitions, will come from proceeds of a recently concluded sale of treasury shares. URC raised P7.4 billion from the offering of 120 million common shares previously held as treasury shares at P62 each share.
URC, the country’s snack foods giant, markets well-known products such as Chiz Curls, Potato Chips, Chippy, Piattos, V-Cut, Taquitos, Mr. Chips, Tostillas, Tortillos, Spuds and Sea Crunch, all under the Jack n’ Jill brand.
URC is also the dominant market leader in candies, chocolates, biscuits, cup noodles and tea beverage.
The company is a trendsetter in the beverage industry with its coffee and ready-to-drink products. It grew the local non-carbonated beverage market with the successful launch of C2 Cool & Clean Green Tea, building on the global trend towards health and wellness.
URC later forayed into other areas of the non-carbonated beverage market, such as juices, energy drinks, and ready-to-drink coffee, among others.
Founded in 1954 by its chairman, Taipan John L. Gokongwei Jr., URC has been the aggressive and innovative frontrunner in the snack food industry, making it the leading snack food supplier to supermarkets in the Philippines.
The company’s products are available in the Philippines, China, Indonesia, Malaysia and Thailand. Plans are now underway to set up shop in Burma as it expects international operations to grow as big as its domestic business in five years.
International operations currently account for about a third of URC’s total business.