CANNED sardines manufacturer Mega Global Corp. announced its plan for an initial public offering (IPO) once it reaches its 50th year.
鈥淲e will be able to take it public when we turn 50,鈥 said Marvin P. Tiu Lim, chief growth and development officer of Mega Global鈥檚 Mega Sardines division, in an interview with ANC Market Edge, adding that the company is now 47 years old.
鈥淲e want make sure to continue our company legacy and continue to grow the business,鈥 he added.
For now, Mr. Tiu Lim expects 鈥渉ealthy鈥 competition after Century Pacific Food, Inc. announced on Dec. 24 its acquisition of the Tung family鈥檚 legacy Ligo sardines brand.
Under the deal, Century Pacific will buy assets and intellectual property related to the manufacturing of Ligo鈥檚 product lineup, which is composed of shelf-stable marine products.
鈥淐ompetition brings the best in all of us and that kind of competition is good to have. It will bring in more innovation, more technology, and make the whole industry livelier. A new entry would be very fun,鈥 Mr. Tiu Lim said.
As for the company鈥檚 Mega Sardines brand, Mr. Tiu Lim anticipates growth for the coming year.
鈥淚 foresee the outlook of our industry is growing because of its affordability. It鈥檚 a staple product, even more so now, where people really have to tighten their belts,鈥 he said.
鈥淲hen the lockdown happened in March 2020, that was the start of the fishing season. Our demand peaked two or three times in those first few months. We were able to supply all the demand,鈥 he added.
However, rising crude oil prices have been a challenge, Mr. Tiu Lim said, adding that the fishing and canning company is hopeful that costs will normalize so it can maintain affordable food products.
鈥淚t is a huge problem, but we are hopeful by the start of our fishing season in March, crude oil prices will soften because this really has a big impact on everything we do,鈥 Mr. Tiu Lim said.
鈥淭in prices are up and raw materials are up. However, since it鈥檚 the start of the season, we also have a buffer stock inventory to make sure we can offset highs we have in the start of the season,鈥 he added.
He said Mega Global made sure not to pass on the full added cost to consumers.
鈥淲e did not pass 100% of the cost because we do understand the situation we are in. We are tightening our belts, the way everyone is. It鈥檚 not all about profits nowadays, we are foregoing some profits to make sure its sustainable and prices don鈥檛 go off because so many people are dependent on our products,鈥 he said.
The canned seafood maker has been working on improving its facilities to boost production.
鈥淲e made a lot of investments in ship building and launched more innovative and efficient fleets to make sure we can catch well, all within the parameters of sustainable fishing,鈥 he said.
鈥淩ight now, we have also increased our fishing fleet size to the largest in the Philippines,鈥 he added.
In June, Mega Global will be launching a state-of-the-art manufacturing plant to increase production.
鈥淲e鈥檙e hoping to expand in the ASEAN (Association of Southeast Asian Nations) markets, but our top priority is still the Philippines. We have to make sure our food security is addressed and make sure our products are widely available, nutritious and affordable. We also make sure the quality reaches global standard, because the Philippines deserves the best,鈥 Mr. Tiu Lim said.
鈥淚t鈥檚 more of advancing digitalization, making sure all our processes are seamless. We have to keep up with technology, that鈥檚 why a lot of innovation and automation are currently in place,鈥 he added. 鈥 Luisa Maria Jacinta C. Jocson
