Our Core Purpose

It is in this spirit that we will look after the welfare and interest of our
stakeholders.
We will delight our Customers with products and services of
uncompromising quality, great taste and value, and are easily within
their reach.
We will create value and provide fair returns on our Shareholders
investments.
We will work hand-in-hand with our Suppliers and other Business
Partners, helping them grow with us and assuring them of reasonable
returns.
We will develop and motivate our Employees to become best-in-class
through cognitive and affective programs, competitive compensation
and benefits, and diverse career growth opportunities. We will help
improve the quality of life in Communities where we operate.
Collectively, we will give and do what is right and become proponents of
good stewardship.

Vivid Description
We will intimately understand our consumers, winning their
hearts by providing-tasting and innovative products and services
that anticipate and respond to their needs.
We will ensure that our products are of uncompromising quality
and easily within reach.

We will be the leading provider of good nutrition for families,

offering a wide spectrum of products. And, to complete our
portfolio, we will engage in organic food segments.
We will revolutionize the food service and retail industries.

BOARD OF DIRECTORS

Eduardo M. Cojuangco, Jr.

Chairman of the Board
Chairman, Executive Committee
Ramon S. Ang
Vice Chairman of the Board
Member, Executive Committee
Member, Executive Compensation
Committee

Director
Carmelo L. Santiago
Independent Director
Chairman, Audit Committee
Chairman, Nomination and Hearing
Committee
Member, Executive Compensation
Committee

Francisco S. Alejo III

President
Member, Executive Committee
Member, Nomination and Hearing
Committee

Angelina S. Gutierrez
Independent Director
Member, Executive Committee
Member, Audit Committee

Menardo R. Jimenez
Chairman, Executive Compensation
Committee
Member, Audit Committee
Member, Nomination and Hearing
Committee

Edgardo P. Cruz
Independent Director
Member, Audit Committee

Mario C. Garcia

Silvestre H. Bello III

Independent Director

Mr. Eduardo M. Cojuanco, Jr., serves as the

Chairman and Chief Executive Officer of San
Miguel Properties Inc. Mr. Cojuanco has
been the Chairman of the Board and Chief
Executive Officer for San Miguel Corporation
since July 7, 1998. Mr. Cojuanco has been an
Executive Chairman and Chief Executive
Officer at Ginebra San Miguel Inc. since
October 21, 1998. He served as President &
Chief Executive Officer of United Coconut
Planters Bank and President of United
Coconut Life

KEY EXECUTIVES
Eduardo M. Cojuangco, Jr.
Chairman
Ramon S. Ang
Vice Chairman
Francisco S. Alejo III
President
Zenaida M. Postrado
Chief Finance Officer & Treasurer
Ma. Soledad E. Olives
Compliance Officer
Alexandra B. Trillana
Corporate Secretary & General Counsel

 SAN MIGUEL FOODS, INC.

Rita Imelda B. Palabyab
President
SAN MIGUEL MILLS, INC.
Florentino C. Policarpio
President
THE PUREFOODS-HORMEL COMPANY, INC.
MAGNOLIA, INC.
SAN MIGUEL SUPER COFFEEMIX CO., INC.
Raul B. Nazareno
President
P.T. SAN MIGUEL PURE FOODS INDONESIA
SAN MIGUEL-HORMEL (VN) CO., LTD.
Oscar R. Saez
Vice President, International Operations & Exports

Ms. Rita Imelda B. Palabyab,

Filipino serves as the
President of San Miguel
Foods Inc. and Head of the
Agro-Industrial Cluster for
San Miguel Pure Foods
Company, Inc. Ms. Palabyab
served as the General
Manager of San Miguel
Foods, Inc.'s Poultry Business
from April 2004 to January
2010 and Business Planning
Manager of January 2002 to
March 2004.San Miguel
Foods, Inc.

History
had its beginnings in 1953
In 1972, the companys integrated poultry operations
started with its first breeder farm in Cavite.
The first chicken processing plant which produced the
Magnolia Fresh Chicken was set up in
Muntinlupa in 1973.
San Miguels acquisition of Pure Foods in 2001 brought
together two food industry leaders, ushering in a new era
of growth and market leadership for the integrated
businesses.
Monterey Foods Corporation which housed the
companys meats business, was merged into SMFI in 2010
to form what is now called the Poultry & Meats Business.

MAGNOLIA FRESH CHICKEN

CONTRACT FARMING
SMFIs Poultry Live
Operations cover a
vast network of over
100 breeder farms for
Grandparent
and
Parent stocks, 21
hatcheries, and more
than 1,400 contracted
broiler farms that

currently
supply
majority
of
the
countrys
annual
broiler capacity.

 Since 2004, SMFI has spearheaded a

successful transformation of its broiler
chicken grow-out operations from
traditional naturally ventilated poultry
houses to tunnel ventilated facilities.
Resulting in more stable broiler supply
and superior performance, the new
technology also delivered higher
incomes to contract growers who have
invested in tunnel ventilated facilities.

Leading the Way in Quality and Food

Safety

SMFI controls over 40 poultry

processing plants nationwide. Along
with its farm-level modernization,
hatchery operations have also
successfully employed single-stage
hatchery incubation systems.

 processing operations managed by SMFI

consist of cutting, deboning, portioning,
skewering and marinating. Generally,
these further processing activities are
done manually to meet stringent and
specific requirements for both domestic
and foreign customers. All equipment
are compliant to the requirements of
food
safety
standards.

 Majority of our poultry plants have

been granted with accreditation from
external government bodies and its
foodservice costumers. SMFI plants are
the first in the Philippines to be certified
to HACCP and GMP/SSOP by the
National Meat Inspection Service, the
government regulating agency and have
managed to retain its accreditation
every renewal period

 Its San Fernando plant is the only poultry

processing plant to-date to have been
installed in the Hall of Fame for the Best Meat
Establishment. Since the inception of the
search for the Best Poultry Processing Plant in
1995, majority of the regional and national
winners in the AAA category have always
been SMFI plants.

 SMFI plants, particularly in Mindanao, where a

large segment of the Philippines Muslim
population are concentrated are HALALaccredited. Some plants in Luzon are also
HALAL-certified, as the company gears to
serve export requirements in the Middle East.

Delighting Consumers with an

Exciting Purchase Experience
The most convenient
found at the Magnolia Chicken Station are
pre-marinated chicken, called the Cook-Easy
line, ideal for various types of flavorful,
mouthwatering dishes such as Asian-inspired
Korean barbecue or Chicken Teriyaki, grilling
staples such as Chicken on sticks and Chicken
Inasal, or even party favorites like Chicken
Fingers, Chicken Bites, or Chicken Balls

 Aside from the Magnolia Chicken Stations,

Magnolia also launched the Manukang Bayan,
Atbp. another branded retail outlet. These
are strategically located nationwide. Aside
from Magnolia Fresh Chicken wholes and cutups, Manukang Bayan Atbp.also offers pork
and beef products that are guaranteed safe
and fresh at a very affordable price.

Gearing up for the rest of the World

San Miguel Foods Inc. is now looking towards
the rest of the world as it expands its product
distribution outside the country. In line with
the vision of becoming one of Asias best
sources of meats and poultry it has
consolidated both businesses to maximize
organizational synergies and expand the
availability of its products domestically and
internationally.

Market Year

Domestic Consumption

Unit of Measure

Growth Rate

1982

180

(1000 MT)

NA

1983

170

(1000 MT)

-5.56 %

1984

137

(1000 MT)

-19.41 %

1985

154

(1000 MT)

12.41 %

1995

399

(1000 MT)

159.09 %

1996

464

(1000 MT)

16.29 %

1997

497

(1000 MT)

7.11 %

1998

493

(1000 MT)

-0.80 %

1999

512

(1000 MT)

3.85 %

2000

538

(1000 MT)

5.08 %

2001

594

(1000 MT)

10.41 %

2002

644

(1000 MT)

8.42 %

2003

657

(1000 MT)

2.02 %

2004

684

(1000 MT)

4.11 %

2005

675

(1000 MT)

-1.32 %

2006

679

(1000 MT)

0.59 %

2007

699

(1000 MT)

2.95 %

2008

751

(1000 MT)

7.44 %

2009

805

(1000 MT)

7.19 %

2010

865

(1000 MT)

7.45 %

2011

892

(1000 MT)

3.12 %

2012

928

(1000 MT)

4.04 %

2013

966

(1000 MT)

4.09 %

2014

1002

(1000 MT)

3.73 %

New products

Carinderia Fiesta

Cook Easy

Convenient Cuts

Chicken BBQ
Chicken Bites
Chicken Burger
Chicken Finger
Chicken Inasal
Chicken Lollipop
Chicken Longganisa
Chicken Lumpia
Chicken Salpicao
Chicken Siomai
Chicken Tapa
Chicken Teriyaki
Chicken Tocino
Korean BBQ
Oriental Wings
Savory Fried Chicken

Adobo Cut
Breast Fillet
Buffalo Wings
Chicks on Stick
Fried Chicken Cut
Giniling
Lollipop
Menudo Cut
RECADO CUT
Thigh Fillet
Tinola Cut

SMFI bags Platinum Award for both

Monterey Meats and Magnolia Fresh
Chicken at the Readers Digest Most
Trusted Brands Awards night.

 (Left to right: Ms. Sue Carney, Editor in Chief Reader's Digest Asia
Pacific; Dr. Leo Obviar, General Manager San Miguel Foods, Inc
Meats & Poultry Business; Ms. Rita Imelda Palabyab President San
Miguel Foods, Inc.)

Total page likes

magnolia 460,792 likes on facebook.

magnolia
1.1K
People Talking About This
460.8K
Total Page Likes
0%from last week
189
New Page Likes
23.5%
This week
Last week

Total page likes

Bounty fresh 757,716 likes on facebook

Bounty fresh
3K
People Talking About This
757.2K
Total Page Likes
0.3%from last week
2.1K
New Page Likes
4.3%
This week
Last week

Case Study: Magnolia Fresh Chicken

SWOT Analysis

SWOT

Strengths

SWOT

weaknesses

1-Customer looses due

to fieres competition
2- Too many products
3-lower customer
follower

Internal Factor Analysis Summary

(IFAS)
Internal stratigic
forces

Weight

Rating

Weighted Score

10%
15%

3
4

0.3
0.6

20%

0.8

10%

0.3

12%
8%

3
4

0.36
0.32

Strengths
S1- convenient
S2- processing
operations
S3-Image and Brand
name
S4- beginnings in
1953
S5-Distribution
S6-marketing
strategy

 S1- cook-easy chicken products that provide the warmth of home-cooked

meals at an affordable cost

S1-automated
convenient
S2feeding and drinking systems. The marination process
utilizes refrigerated tumbling machines to achieve better marinade pickup and uniformity.
S2- processing
S3-"Trusted
Brands" awards, giving these awards a high degree of
credibility
that actually translates into consumers' purchasing decisions.
operations
For Monterey Meats, now on its fourth year as a Platinum awardee, and
Magnolia Chicken, now a Platinum awardee after three years as Gold,
the Trusted Brand recognition is a testament to our strong connection
with consumers. S6-marketing
S3-Image
Brand
name
S4-Being
one ofand
the strategy
oldest
poultry
industry in the country, make them
stonger and ear more customers and more knolegable.
S4- beginnings
in distributor
1953 in the country, and they go
S5-They
are number one
exporting alreary and had a god brand name standing outside the
country.
S5-Distribution

S6They give promo like buy one take one, to atract more consumer to
buy there product. And one way to intruduce there new product.

Internal Factor Analysis Summary

(IFAS)
Internal stratigic forces

Weight

Rating

Weighted Score

W1-Customer looses
due to fieres
competition

12%

0.3

W2- Too many

products

8%

0.24

W3-lower customer
follower

10%

0.16

 W1-Magnolia had to compete with many strong

brand name in chicken industry such as bounty
fresh. This fieres competition makes magnolia
loose a large number of customers who prefer
favor of other brands W1-Customer looses due to
fieres competition

W2- By constantly adding products, some

products have lost value, and they are risky
endeavors.
W2- Too many products

W3-the number of follower, start to decrease

each week.
W3-lower customer
follower

Key External Factors

Weight

Rating

Philippine population is
growing steadily by 1.89%
yearly

0.06

0.18

Fast expansion of fast food

chains nationwide

0.10

0.40

Increase number of
department stores/ groceries
nationwide

0.10

0.40

Chicken meat importation is

increasing

0.07

0.21

Opening of chicken meat

export market

0.07

0.21

Increase consumer
purchasing power

0.07

0.21

Stop operations of backyard

broiler farm across the
country

0.04

0.08

Bird Flu free status of the

Philippines

0.05

0.15

Chicken meat is cheaper than

other meat

0.05

0.10

OPPORTUNITIES

Key External Factors

Weight

Rating

0.06

0.18

THREATS
10 Possible entry of Bird Flu disease in the country

11

Competition for local market versus smuggled

chciken

0.06

0.18

12

High cost of feed and feed ingredients (input

cost)

0.10

0.40

13

Threat of foreign competition as ASEAN market

will be opened

0.07

0.21

14

Typhoons and other natural calamities in the

country

0.05

0.10

0.05

0.10

15 Increased incidence of chicken diseases

TOTAL

1.00

3.11

Strategic Factor Analysis Summary

(SFAS)
Strategic Factor

S1-Image and Brand name

W1-lower Customer follower
O1-Fast expansion of fast food
chains nationwide
T1-High cost of feed and feed
ingredients (input cost)
S2- processing operations
W2-Customer looses due to fires
competition
O2-Increase number of department
stores/ groceries nationwide
T2-Threat of foreign competition as
ASEAN market will be opened

Weight

17%
8%
13%

4
2
3

Weighte
d Score
0.68
0.16
0.39

7%

0.14

15%
13%

3
3

0.45
0.39

11%

0.33

16%

0.80

100%

Rating

3.34

Comments

Brand Identity is extremely

important to the company and
is a long term factor for the
company.
Convenience is also one of the
foundations that the company
grew on and will continue to
maintain their advantage.
Competition as ASEAN market
will opened carried a high risk,
and the company should be
prepared.

ECONOMIC FACTORS
PHIL. BUREAU OF AGRICULTURE STATISTICS

THE DEMAND FOR CHICKEN MEAT IS FORECAST

TO RISE AS A RESULT OF PROJECTED
IMPROVEMENTS IN THE PHIL. ECONOMY AND A
GROWING POPULATION.
HIGH COST OF RAW MATERIALS

POLITICAL,GOVERNMENTAL,LEGAL FACTORS
ASEAN REGION
THE ELIMINATION OF TARIFFS ON MOST FARM
GOODS
DEPT. OF TRADE AND INDUSTRY
PROCESSING PLANTS ARE CERTIFIED ISO
9001:2008 AND 22000-2005V
NATIONAL MEAT SERVICE INSPECTION SERVICE
POULTRY PLANT ARE CERTIFIED TO HACCP/SSOP
HALAL- CERTIFIED

Strategies
1.FRANCHISING BUSINESS
- MAGNOLIA CHICKEN STATION AND HUNGRY JUAN RETAIL OUTLETS
2.OUTSOURCING
-THIRD-PARTY OWNED AND OPERATED FACILITIES
3.ACQUISITION AND MERGER
-PUREFOODS SUPERMANOK AND MOTEREY MEATSHOP
4.CONSUMER CONVENIECE
-FROM WET MARKET HABIT TO SUPERMARKET ENVIRONMENT
5.PRODUCT INNOVATION
-COOK-EASY PRODUCT LINE

SO STRATEGIES

WO STRATEGIES

Increase chicken production capacity

(S5,02)

Update website information

(W3,S1)

Accredit all processing plants to

authorities
(S2,02,03)

ST STRATEGIES

WT STRATEGIES

Strengthen distribution network

(local, region, international)
(S5, T7)

Forward contract for cheaper

ingredients supplier

Design campaign for bird flu free

Philippines.
(S3, T1, T4)

Stop selling unsalable product

(W2, W3, T3)

Prepared by:
Carumba, Maria Bienvenida T.
Arpafo, Edgar Alan T.
Dongallo, Jose Romeo A.
Bergado, Florante L.

THE END