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Internal Analysis Del Monte
Internal Analysis Del Monte
INTERNAL ANALYSIS
Mission
Vision
To be one of the fastest growing global branded food and beverage companies.
Vision
companies.”
employees should do to
achieve it.
companies indefinitely.
Mission
the customers
the market
technology
profitability
healthy brand
the employees
healthy
Vision
To be one of the fastest growing global branded food and beverage companies by 2020.
Mission
To bring to life health and wellness which shall be readily available to everyone at all times
Core Values
Championing Together
Healthy Families
Innovation
Excellence in Everything We Do
History
Del Monte Philippines, Inc. was formerly known as Philippine Packing Corporation before
it changed its name in 1988. The company was founded in 1926 and is based in Taguig,
Philippines. Del Monte Philippines, Inc. is a subsidiary of Del Monte Pacific Limited which was
In 1926, Del Monte US sets up operations in the Philippines by planting pineapple crowns
as initial seeds in an experimental plot in Diklum, Bukidnon. In the 1930s, with the purchase of
US-made tractors and trucks, mechanical farming started at the plantation. Additionally, young
women have started to work at the cannery with the help of Tagoloan Mayor Cosin.
During the 1960s, Philpack’s cannery expands processing lines for tomato, papaya, and
tuna and a seaport. Filipinos have also started to rise top management positions in Mindanao
In the 1970s, Philpack ventures into banana-growing for export, in the Davao and Misamis
In 2010, Del Monte Pacific Limited acquires the consumer food business of Del Monte
Corporation in the US. Such acquisition reunites Del Monte Philippines, Inc. with the founding
parent and brings the company’s products directly into the world’s largest consumer market.
At present, Del Monte Philippines, Inc. distributes and markets food and beverage products
under S&W and Contadina brands in the Philippines. It offers processed or packaged fruits, such
as canned pineapple and canned mixed fruits; tomato sauces, spaghetti sauces, meal mixes,
ketchups, and pastas, as well as pasta sauces, recipe sauces, and condiments; and beverages such
as canned, tetra packed, and bottled juices and concentrates, as well as fresh pineapples. Del Monte
Philippines, Inc. also exports its product to affiliated companies such as GTL Limited, S&W Fine
DISTINCTIVE COMPETENCY
Del Monte Philippines, Inc. (DMPI) is a leading producer, distributor and marketer of
quality, healthy food and beverage products. For over 90 years it has be in operations in the
Philippines and is a market leader in the packaged pineapple and mixed fruit, canned and carton
ready-to-drink juices, tomato sauce and spaghetti sauce categories which has made it a household
Philippines, and a factory that is about an hour’s drive away from the plantation. It additionally
operates a frozen fruit process facility in Bukidnon and a PET plant in Cabuyao, Laguna.
MANAGEMENT
Joselito D. Campos, Jr., Executive Director Parag Sachdeva, Chief Financial Officer and
Planning
Del Monte Philippines, Inc. has an established enterprise-wide risk management program
that aims to provide a structured basis for proactively managing financial, operational, compliance,
With regard to operations, as an integrated producer of packaged and fresh fruit products
for the world market, DMPI’s earnings are inevitably subject to certain other risk factors, which
include general economic and business conditions, change in business strategy or development
plans, international business operations, production efficiencies, input costs and availability,
disruption of logistics and transportation facilities, litigious counterparties, insurgent activities and
company develops and executes a long-term strategic plan and annual operating plan, supported
by a business continuity plan, risk management and a corporate sustainability program. It also
manage security risks in its operating units in the Philippines, the Company has strengthened
security measures and improved its stakeholder relations in the communities where it operates.
demonstrates the need to strengthen and improve security of the Company’s systems. Cyber-
attacks can disrupt operations such as exploiting weaknesses in network devices and servers,
corrupting information and stealing confidential data which can lead to financial losses. DMPI
develops and implements measures to counter and eliminate cyber-attacks from outside sources
by adopting industry best practice to strengthen network security such as updating security patches
to the system and encrypting workstations, by designing and implementing security control at each
local site, and by engaging a third party to audit its systems and mitigate such risks.
DMPI’s branded business in the Philippines through the Del Monte brand, and its branded
and non-branded businesses in the international markets, are affected by a number of factors,
including, but not limited to, competition, product innovation and product acceptance, industry
trends, distribution expansion, penetration and business partners’ risks. The company sought to
address such risk by strengthening the core business, expanding the product portfolio and markets;
shifting to branded value-added, packaged products with emphasis on innovation, health and
wellness, convenience, quality, competitiveness and consumer appeal of the categories; expanding
beverages and packaged fruits in alternative packaging formats; with regard to market and
Organizing
For safety reasons, toll manufacturers in the Philippines provide ongoing safety training to
all their employees, impose the use of personal protective equipment required in performing their
assigned duties and responsibilities and conduct periodic Work Environment Measurements for
noise, illumination, nuisance dust particles and fumes to ensure suitability of work environment.
amongst our stakeholders. Key leaders across the organization have been oriented on sustainable
business and sustainability reporting. Each team within the Company has set goals to ratify
commitments to our overall effort and recognize individual share of accountability as we strive to
The company has identified its material sustainability issues by location which may differ
from the Group’s material issues given the business model employed by the business units. As an
example, Del Monte Philippines, Inc. does the cultivation, planting and harvesting of pineapples,
while the US subsidiary uses contract growers to source its fruits, tomatoes and vegetables.
Motivating
Del Monte Philippines, Inc. is committed in building its employees’ competencies to better
DMPI’s GR8 (Great) Del Monte Leadership Competency Model serves as a guide in
developing leaders, to enable them to coach and collaboratively lead teams towards achieving the
company’s operational and business goals. The company balances the leadership equation by
developing Del Monte Leaders who are not only competent but also serve as models who live out
the core values of the company. Each Competency Framework also serves as a foundation for
The company’s “Moving Up to Supervision Series” aims to provide young leaders with
basic leadership skills that will allow them to effectively perform their new role as people
managers. The weekly classroom sessions is a counterpart and supplement of formal technical
trainings, coaching/mentoring and intensive on-the-job experience provided via structured
through formal sessions and benchmarking trips. The Manufacturing University or “ManU” for
short opened a breakthrough for cannery staff to reorient on processes and adapt to new
technologies. ManU also oversees two-year supervisory and trade-traineeship programs for
potential applicants and long-serving employees. Similar development programs are implemented
in Finance through its Finance University and Marketing’s Brand Leadership University (BLU).
A management succession plan is also in place, with deep bench of candidates trained among our
vacancy.
Staffing
The Company is committed to provide its employees a safe and healthy working
environment. It is also committed in upholding fundamental human rights and adhering to labor
standards.
The employees are paid above average rates in the industry, and are also informed of the
terms and conditions of employment prior to their appointment. They undergo annual medical
examinations or whenever such is required. Child and forced labor and any other form of
exploitation are strictly prohibited and not practiced. Discrimination on the grounds of nationality,
The comprehensive package of salaries and fringe benefits for employees is offered and is
considered one of the most upgraded packages for agri-industrial workers in Southern Philippines.
which includes free hospitalization at the company’s 95-bed hospital and accredited
d) Housing Benefits
2. Monthly Housing Subsidy for those not enjoying company housing units.
e) Rice Allowance.
i) Sick leave with pay for 16 to 18 days for the rank-and-file, and 19 to 20 days for supervisors
and executives.
l) Death benefits: 12 months salary based on current rate or the employee’s Personal
whichever is higher, plus 1 week’s pay per year of regular service although not exceeding
6 weeks’ pay.
m) Scholarship programs.
n) Educational, religious and recreational facilities.
p) Maintains and subsidizes schools (Del Monte School, Our Lady of Lourdes Elementary
The company’s agro-industrial workers enjoy one of the most attractive compensation and
benefit packages. To complement the government-mandated privileges for all employees and
qualified dependents, a broad range of free medical and dental services, a comprehensive
retirement package, and voluntary plans for providential and insurance benefits are offered.
In Mindanao, the Plantation employees live with their families in Group-owned houses and
dormitories (for unmarried employees) within housing camps complete with social hall, chapel,
playground and plaza, day care center, primary and secondary schools, camp clinics and a 100-
our workers with services that enhance economic benefits for their families. Cooperative members
Children of the Cannery employees enjoy free year-round weekend tutorials on basketball and,
as scheduled, other sports (tennis, swimming, martial arts) and creative skills (photography, theatre
arts). Core Values are introduced through learning exposure that help them grow a strong sense of
Controlling
Del Monte Philippines, Inc. follows the best practices and international guidelines in
reporting sustainability performance. The company uses the Global Reporting Initiative (GRI)
Sustainability Reporting guidelines. The company has integrated the sustainability strategies and
embedded them in the organization. The Quality Policy, Code of Conduct, Code of Business Ethics
and Sustainability and Environmental Policies enable DMPI to comply with the standards set by
the GRI.
DMPI periodically performs a third-party risk assessment and evaluates controls and
procedures for the Company’s highest risk third parties. Criteria used for evaluating risk are:
a. the country where third parties are based and the associated Corruption Perception Index
of that country;
DMPI has implemented the Whistleblower Policy that aims to deter and uncover any
unethical, illegal, corrupt, and fraudulent acts or conduct which may be detrimental to the interest
The Audit and Risk Committee (ARC) reviews the policy and arrangements by which staff
of the Corporation and any other persons may raise concerns about possible improprieties in
matters of financial reporting or other matters. The ARC's objective is to ensure that arrangements
are in place for concerns to be raised and to be independently investigated, and for appropriate
follow-up action to be taken. The existence of a whistle-blowing policy should be disclosed in the
Corporation's Annual Report, and procedures for raising such concerns should be publicly
disclosed as appropriate.
Human Resource
Del Monte Philippines, Inc. is a people-driven organization committed to growing wellness
and a high quality of life through healthy working relationships. Given that the company’s most
valuable resource are its employees, it is committed to the fundamental human rights and
The company has a Code of Conduct for employees and suppliers that strengthens its
commitment to fundamental human rights and adherence to labor standards. The company is a
member of the Supplier Ethical Data Exchange that ensures compliance in the supply chain. It also
performs periodic audits of contract manufacturers and certain direct suppliers. Independent and
unannounced audits are routinely in effect to address quality assurance and compliance issues. The
Labor-Management Cooperation (LMC) councils meet regularly to deliberate and decide on issues
affecting the employees, their families, the Company and the communities where DMPI operates.
DMPI work committees identify potential safety risks and hazards, and devise action plans
to mitigate or avoid its occurrence. Safety programs are implemented and process improvements
are made to ensure workplace health and safety. The company regularly and consistently
implements safety training to employees and also enforce the use of protective equipment required
The Workplace Environment Monitoring program verifies the company’s compliance with
the standards of the Occupational Safety and Health Center of Department of Labor and
Employment which includes measurements of workplace’s air quality, noise level, temperature,
Del Monte Philippines, Inc. nurtures their employees by curating continuous employee
engagement activities. The company engages employees in various activities that would promote
The Human Resources Department has created an online HR Information System called
MyHR to improve employee communication, utilizing technology for fast and accurate
employment transactions. Other employee engagement initiatives are the “Montee” stores where
A survey developed by DMPI called “Our Voice, Our Choice” aimed to acquire
employee feedback which was beneficial in creating an environment that fosters employee
The main office is located in BGC, Manila while the plantation and cannery are in southern
Philippines, specifically in Bukidnon and Cagayan De Oro which is about 1.5 hour flight from
Manila. In Laguna, about 1.5 hour drive from Manila, is where the beverage PET plant is located.
Del Monte Philippines, Inc. operates the world's largest integrated pineapple operation. It
produces its pineapple in its 25,000-hectare plantation in an area ideal for growing and outside the
typhoon belt. The company’s processing facility has an annual capacity to process nearly 700,000
tonnes of pineapples and adjacent to the plantation is the frozen fruit processing facility which
Del Monte Philippines, Inc.’s fully integrated operations guarantee an efficient supply
chain from production to market and the delivery of products. Operations by the company continue
operations have consistently maintained a high standard of quality control and product assurance
as they meet food standards set by our customers worldwide and by a number of international
agencies.
Global Positioning System (GPS) technology is also now being used to monitor the
plantation and truck deliveries to ensure efficiency, productivity and safety at work.
In selecting suppliers, DMPI uses its Supplier Quality Management Program (SQMP)
which assesses the quality and delivery performance, feedback, recognition and continuous
improvement program for all direct materials suppliers and toll manufacturers. The Company
performs periodic audits of contract manufacturers and direct suppliers. Additionally, independent
and unannounced audits are in effect to address the quality assurance and compliance issues.
MARKETING
Distribution
Del Monte Philippines, Inc. no longer focus solely on retail centre-of-store, but also on
retail perimeter, convenience stores and foodservice such as 7-Eleven, Ministop, Jollibee,
One-third of the company’s sales are through exports. DMPI sells products to its affiliated
companies such as S&W Fine Food International, Ltd. and Del Monte Foods Inc.
Product Innovation
Innovation is at the heart of being able to nourish families with delicious food and
beverages. Significant steps have been made in introducing new, healthy, more convenient and
learning about the ingredients in their food and are often looking for positive health properties of
low-fat or low-sugar. This emphasis on health impacts and benefits has ongoing implications for
product design and sourcing. Del Monte Fit ‘n Right has widened its product range by introducing
the Del Monte Fit ‘n Right Active Isotonic Drink with L-Carnitine that replenishes body fluids
during exercise or intense workout which also helps reduce body fat. Del Monte Juice and Chews
was also introduced. The beverage is a snack-in-a-drink combining nata and pineapple with fruit
frozen pineapple spears in Japan which are produced in Bukidnon. Known as the Pineapple Stick,
14,000 stores in Japan. With the Nice Fruit revolutionary technology, frozen pineapple, when
For the culinary portfolio, the Contadina line was launched consisting of olive oil, pasta, sauces
providers in order to sell more products online. Consumers have been changing the way they shop.
Accordingly, DMPI will increase the share of digital marketing. Millennials are spending more
Since then, Del Monte Philippines, Inc. has been utilizing electronic and print for
promotion and marketing. Its advertisements are aired on radio, television and published in
newspapers, magazines and displayed on billboards along highways. Del Monte Philippines, Inc.
is also promoting with the help of Social media such as Facebook and Twitter with their Del Monte
Kitchenomics. DMPI also has a cooking show which is aired on GMA every Sunday from 11:55am
to 12:00nn.
Product Packaging
Del Monte Philippines, Inc. has a convenient packaging for ketchups in Stand-up Pouches
(SUP) with enclosable spout. To make products more accessible for consumers, the company
developed and introduced a low-cash outlay pack in SUP for our tomato and pineapple tidbits
products. Packaging of juices are also innovated; it now comes in resealable one litre-cartons.
Additionally, all packaging materials in the cannery and the company’s toll packers are 100%
BPA-Non Intent
RESEARCH AND DEVELOPMENT
Del Monte Philippines, Inc. conducts research in all regions where it is active to discover
new products or develop more efficient ways of producing existing products. The research and
development department is responsible for improving fruit varieties, conducting taste-panels and
One of the projects developed to maintain the company’s world class plantation
management system was the Drone Programme which allows to monitor the condition of the
25,000-hectare pineapple field in Bukidnon, Philippines. The drone captures pictures which
includes topography and color which help determine the health of the plants.
practice and to better serve the Group’s operating needs. This policy is posted in facilities,
communicated to facility management and also incorporated in the training for environmental and
operations staff. Over 90 years of operations, the land use practices are mainly aimed at improving
plantation yield through ecologically friendly land preparation, plant disease management and
chemical application, efficient water sourcing and drainage and use of sustainable planting
materials.
DMPI researchers investigate crop density as a way to increase yield per hectare while
cutting pesticide and fertilizer use. They continue to explore the possibility of rolling out high-
density techniques to other crops. The agricultural teams work closely with local farmers to adopt
agronomic measures that can mitigate adverse consequences of crop agriculture on soil and water
conservation. Responsible farming focuses on sustainable crop cultivation and efficient drainage
surface water during heavy rain and to slow down water flow, positioning grass strips at strategic
points. DMPI researchers look for ways to optimize water use in all of our toll manufacturing
operations, reduce water usage and increase water reuse and recycling.
With the increasing global incidence of cyber-attacks on companies’ servers and websites,
we have committed to strengthen and improve the security of the company’s systems. The
company has implemented an Enterprise Resource Planning system, Systems, Applications and
Products (SAP), in the US and outsourced its finance and accounting functions to a reputable
global service provider in the Philippines. Given the new systems and processes involved, there
are risks to timely and accurate processing of documents, monitoring of expenditures, along with
the change of service provider and decision-making which is associated with the flow of quality
information.
The plantation in North and South Bukidnon is Global Good Agricultural Practices
GLOBALG.A.P. is a globally recognized private sector body that sets voluntary standards for
agricultural products. The plantation and pack house for fresh fruits have been certified ISO
9001:2015 for growing, harvesting and packing of fresh fruits by SGS United Kingdom Ltd
Systems and Services Certification body. The participation in the GLOBALG.A.P. certification
process was voluntary and was a strategic response to customers’ demand for food safety
worldwide. To attest the company’s farms grow, pack and distributed fresh produce to conform
with international standards on food safety and quality, a Philippine Good Agricultural Practices
At the PET Plant located in Cabuyao, Laguna, the plan to improve the GMP quality
scorecard by closing out gaps via a monthly technical meeting with the building lessor for
structural deficiencies, updating corrections and checking building condition, and conducting
Financial ratios
Liquidity
Current Ratio
1.2 1.6
Quick Ratio
0.4 0.3
Leverage
Efficiency
Inventory Turnover
0.3 0.3
Fixed Asset Turnover
0.7 0.6
Total Asset Turnover
0.72 0.90
Profitability
Weighted
Key Internal Factors Weight Rating
Score
Strengths
Large Scalable Global Business 0.15 4 0.60
Weaknesses
Limited Product Mix 0.10 2 0.20
Analysis:
The score 3.00 shows that Del Monte Philippines, Inc. has a strong internal position since the
strengths overcome the weaknesses of the company.
Large Scalable Global Business
This factor is given a weight of 0.15 and a score of 4 because being a reputable and globally
recognized brand would influence consumers to purchase the company’s products having in mind
that the products are worth the price and top quality. Such reputation would also result to a strong
customer base.
Del Monte Philippines is the market leader in the canned and pineapple and mixed fruit,
canned and ready-to-drink juices, tomato sauce and other spaghetti sauces. It is one of the largest
food and beverage companies in the Philippines, wherein it has one of the fastest growing
This factor is given a weight of 0.05 and a score of 4 because have a strong shareholder
support would influence investors to invest on the company. Furthermore, having a strong core
management team with wide-ranging experience is an advantage given that plans of action and
Del Monte Philippines, Inc. has a strong shareholder support given that its parent company
is Del Monte Pacific Ltd. (DMPL) which is listed in Singapore and Philippines. DMPL is in turn
majority-owned by NutriAsia Pacific Limited (NPL) and Bluebell Group Holdings Ltd., which are
beneficially-owned by the Campos family. NPL has been the majority shareholder of DMPL since
This factor is given a weight of 0.15and a score of 4 because the company has better
opportunities to realize more profit since their products are available and accessible to consumers.
convenience stores, sari-sari stores and even fastfood chains. Some of its distributors are 7-11, SM,
Puregold, Robinson’s Malls, Jollibee, and McDonald’s. Additionally, one-third of the company’s
sales are through exports. DMPI sells products to its affiliated companies such as S&W Fine Food
This factor is given a weight of 0.10 and a score of 4 since the company’s sales have
increased, it indicates that their products are popular and frequently purchased and it also indicates
In the past three years since DMPI generated sales of P22 billion in FY2015, sales have
grown by P5.6 billion to P27.6 billion at a compounded annual growth rate of 7.9%, higher than
GDP growth. The Company expanded sales in the Philippines across all categories led by culinary,
followed by beverages and packaged fruits, as well as all channels led by foodservice, followed
This factor is given a weight of 0.05 and a score of 4 because it indicates that the company’s
food services among consumers which will garner more sales and realize profit.
Philippines sales in Fiscal year 2018 were higher by 5% at P17.2 billion as foodservice
sales grew by a robust 15% to P3 billion, riding on the rapid expansion of quick service restaurants
and convenience stores as well as the company’s growth of its juice dispensers, meal partnerships
This factor is given a weight of 0.10 and a score of 2 because consumers can easily find
alternatives to the company’s products and the company would also lose the opportunity of optimal
Del Monte Philippines Inc.’s products are concentrated on the healthy aspect which is why
they use fresh fruits and other produce for their products. Because of this, they have limited
products. DMPI has no snack products nor dairy products since they focus on healthy fruit drinks,
This factor is given a weight of 0.10 and a score of 2 because finding cheaper or more
affordable alternatives could greatly affect DMPI’s sales. It could be seen in grocery stores that
there are cheaper alternatives such as products from Clara Ole, and RFM Corporation; Del Monte
This factor is given a weight of 0.05 and a score of 2 because it would be costly on the part
of the company to spend on operations to ensure quality and safety of the products. Also in line
cannery and its toll packers. From a recent study, it was established that consumption of a small
can of Del Monte Pineapple Tidbits a day increased the production of granulocytes, which make
up 60% of the body’s white blood cells, known as the body’s first line of defense against infection.
In order to make the product more accessible everyday for consumers, a low-cash outlay pack
format was developed. Del Monte Pineapple Tidbits was introduced in a stand-up pouch (SUP)
format, the first in the market to offer an affordable format that encourages increased consumption,
Has not been able to completely penetrate the emerging economies as compared to other leaders
This factor is given a weight of 0.15 and a score of 2 because Del Monte Philippines, Inc.
could have the opportunity of having better sales and realize more profit if it offered and catered
DMPI also exports to America, Asia and Europe to Del Monte companies and strategic
private labels such as GTL Limited, S&W Fine Foods International, Ltd. and Del Monte Foods,
Inc. The company is yet to export its products to Central America, South America, and the African
Continent.
This factor is given a weight of 0.10 and a score of 2 because lack of product advertisements
compared to other competitor companies may put DMPI at a disadvantage since consumers would
reputation. Del Monte Philippines Inc. does not have a problem with regard to its popularity given
that it is a household name; Filipinos know that the company produces top quality products. What
sets DMPI’s products apart from other companies is that its products are very healthy since they