Virginia Foods invest P40M for export plans

Cebu-based meat processor Virginia Foods Inc. (VFI) is preparing to go international in the next two years with an investment of at least P40 million to improve its production capacity and attain international quality standard requirements.

In a press conference held recently, VFI president and chief executive officer (CEO) Felix Tiukinhoy said in the next two years the company's plant located at the 7-hectare property in Canamucan-Cogon, Compostela, Cebu will undergo improvements to add high-tech equipment to prepare itself for global venture.

The P40 million investments will not only involve acquisition of new equipment and machinery but also expenses for international standard accreditation for its processed meat products, prioritizing the brand's entry to Halal acceptance in the Middle East.

According to Tiukinhoy the company will move up into full export licensing accreditation and two years from now, the company's wide array of product lines will be initially exported to the Middle East and China.

VFI, which was originally owned by the Chiongbian family, started in 1977, now making its aggressive marketing wave to compete not only against the meat processing giant competitors in the Philippines, but also in the global landscape.

VFI is the maker of several processed meat products, such as El Rancho, Australian and Winner brands.

Tiukinhoy claimed that the company managed to take the number one position in its hotdog line in the Visayas and Mindanao markets, with two brands, Winner and Champion hotdog.

VFI was bought by a Manila-based Avalon Holdings Inc. from the Chiongbians in 2002. Now, the company boasts of its reliable team of food specialist and sales personnel that would bring up the company's corporate banner and market penetration with emphasis on Research and Development (R&D).

With its strengthened R&D team, Tiukinhoy said consumers shall expect more innovative products from Virginia foods in the next few months, such as the introduction the combination of beef loaf and corned beef in one canned packaging, chicken hotdog product and marinated chicken.

In October of this year, the company posted a 20 percent growth, attributing to the company's active marketing programs, packaging improvement and enhanced product quality.

The company spent about P12 million to P15 million in injecting new technology for its processing plant in order to produce more competitive product lines, as it faces stiffer competition.

Making Cebu its base, VFI's products are shipped everyday to the provinces of Luzon, and neighboring regions in the Visayas and all throughout Mindanao, and the rest of the southern provinces.

Aside from its extensive network distribution for retail, VFI has also established wholesale partnerships with institutions like Macro Asia's Eurest Flight Catering Services, which services international airlines, WG&A Super Logistics. Plantation Bay Resort, Parklane Hotel and Badian Island Resort, as well as restaurants like Orange Brutus, AA's Barbeque and Pancake House.

VFI is closely competing with Purefoods, CDO, Pacific Meat and a growing number of meat processors in the Philippines.