Alaska Milk Corp., the country’s largest condensed and evaporated milk producer, said more Filipinos are now drinking milk driving sales to grow double-digit this year.
Company Chairman Wilfred Steven Uytengsu Jr. told reporters on the sidelines of the Makati Business Club General Membership Meeting (GMM) in Makati the double-digit growth forecast in 2018 would be higher than last year.
Growth is driven by increasing consumption of milk as improved income has enabled more Filipinos to drink milk.
He cited the growing population. “As disposable income rises, food is generally a beneficiary of that growth so we expect to be part of that growth,” he added. Their prices have remained constant and as a result the growth of products are doing very well.
Uytengsu, however, said they are meeting to assess price situation as weak peso could be impacting on their imports of raw materials although they have not increased prices so far.
He said that supplies of skimmed milk powder, which accounts for almost 50 percent of production cost, are all imported from Australia, New Zealand, US and Europe, depending in their availability.
“Those are the two items we have to keep an eye on to ensure we keep milk affordable,” he added.
Alaska is number one in condensed and evaporated milk market. It has also a sizeable presence in powdered and fresh milk and a small infant formula. Alaska implemented around P1 billion capacity expansion program two years ago, ensuring enough volume for this growing market demand.
They are also improving distribution to keep pricing in check.
“We realize that in order to grow we have to be leader first in nutrition,” he said.
Exports have been very minimal depending on orders for a targetted Filipino market overseas.
Source: Manila Bulletin