CANNED SARDINES PRODUCER SEES DWINDLING OF SALES
Canned sardines manufacturer Mega Global Corp., one of the few companies that bucked the downtrend amid the strict lockdown last year, said it was expecting sales to dwindle this year as the continued weakening of the Filipinos’ purchasing power would likely translate to lower consumption of canned goods.
Company vice president for business development Michael Tiu Lim said at a virtual briefing that last year’s “phenomenal” sales might not be replicated this year as consumers were now opting to buy more affordable food products amid talks of another lockdown.
Mega’s CEO Michelle Tiu Lim Chan added that the company would not ramp up production anytime soon, noting the seasonality in the supply of fish for manufacturing canned good products.
Even before the COVID-19 pandemic triggered the need for more canned goods as emergency food staples, Mega said that it had been posting double-digit growths.
It was during the height of the lockdown, however, when the company was able to register triple-digit growth rates for a month across all its brands.
Aside from the pains in distribution during the pandemic, Michael said production costs also increased, prompting the company to raise prices of its sardine products but, at the same time, introduce new affordable ones, including the corned sardines line.
For now, Mega is focusing on the establishment of its first manufacturing plant in Luzon, expected to be fully operational by next year, and its 60-day nutrition program.
Already in its third year, the program aims to feed 870 children across six cities and provinces with nutritious meal plans that include Mega Global products. The nutrition program will be rolled out in Navotas, Valenzuela, Batangas, Samar, Surigao del Sur and Zamboaga.