RFM evaluating buyout offers for Swift unit
A number of local food companies have expressed interest to either buy out or acquire an interest in Swift, a heritage brand in the processed and canned meat sector owned by food and beverage firm RFM Corp.
That RFM has received unsolicited proposals was confirmed by RFM CEO Jose Concepcion III on Thursday, who said that the company was open to considering “win-win opportunities” to further grow the Swift brand.
The sale or joint venture “will definitely be positive for RFM,” Concepcion told the Inquirer. “What is important if we go [via] joint venture is that the potential partner will be able to add value.”
“Swift has been around for more than 35 years so it has been able to build a loyal following,” said Concepcion.
Swift mainly produces hotdogs, bacon, ham, corned beef, luncheon meat, meat loaf under such trademarks as Swift Mighty Meaty and Sweet and Juicy. These are distributed through key accounts, major supermarkets and groceries nationwide and produced out of a newly refurbished plant in Cabuyao, Laguna.
Swift is one of the leading brands under the wing of RFM. Others include market leading Selecta ice cream, Fiesta pasta, Selecta Milk, White King flour and Sunkist juices.
As of end-May this year, RFM’s income reached P240.98 million, 40 percent more than what was recorded in the same period the previous year, and came out of P4.32 billion in total sales in the first five months.
Concepcion said during the company’s annual stockholders’ meeting that the company’s income growth was due to better margins from its production processes following the easing of commodity prices, especially milk and sugar.
He said all brands had shown growth from 2011, led by Selecta, the ice cream joint venture with Unilever, White King Fiesta pasta, Selecta milk and Sunkist juice.
“We are amazed in particular by the spectacular consumer acceptance of our newly launched Magnum ice cream which has become a craze among the youth market,” Concepcion said earlier.
RFM reported that, aside from Selecta ice cream and Fiesta pasta, sales of Selecta milk, Sunkist juice drinks and Swift Corned Beef and Karne Norte in sachets also posted double-digit growth rates.
The growth was attributed to efforts to make operations more efficient as well introduction of new packaging, aggressive merchandising and advertising.
