The Philippines, turning up the heat on new foods - IFI FebMar 10Historically, the Philippines was not counted among the four Asian ‘Tiger’ economies. With good reason, though, it is commonly included (along with Malaysia, Indonesia and Thailand) among the four New Asian Tigers. And it is a particularly stealthy big cat. The ethnic and cultural diversity of this Pacific Rim economy has served it especially well in areas such as food and drink. Cultures overlapping on the islands over the centuries include the Malays, the Chinese, the Spanish and most recently the US. North American culture in particular has helped to foster a taste for – and understanding of – western brands and products. And while domestic food markets reflect many of the simpler and more cost-conscious priorities of other Southeast Asian countries, there are unexpected examples of value-added and functional products on the shelves. Recent launches have included San Mig Pro-Slim Coffee which is sugar-free and (surprisingly perhaps) lists among its ingredients the not-so-common L-carnitine. In beverages, Water Plus’s zero calorie water is also sugar free, and contains zinc and vitamin B6 for better immune health. In fact, the functional foods market remains fairly circumscribed. In many ways, the Philippines follows the more common developing-market pattern of using fortification with minerals and vitamins. That said, domestic manufacturers clearly think there is a small but growing market for functional foods – maybe hoping to follow the example of Japan in this regard. The LiteChoice-branded Rice & Oats product uses a ‘free-from’ as well as a slimming message. Many of these packs (and ingredients listings) would not look out of place in a Western European supermarket. In many ways, there is a keener appreciation of the West’s marketing strategies than in some other East Asian economies. For instance, energy and alertness products, so popular in Europe and North America, have found a foothold in the Philippines. One example is Alpha Mints Energy sugar-based gum, “spiked with caffeine to jolt the hell out of you!” In some cases, there seems to be a ‘leapfrogging’ of market development stages typical of western economies. So there is a leap to ‘energy’ messages, bypassing the more basic sugar-free level, and to high-value ingredients such as L-carnitine. In terms of the way new products are positioned, Innova data shows that convenience has remained the first priority. This is largely in line with trends in other developing markets. Only at a later stage, the theory goes, do other priorities such as health and premium choice begin to make themselves felt. One of the more specific growth areas among new launches during 2009 were seasonal products. This was particularly important in the confectionery industry, where the number of new launches more than doubled between 2008 and 2009. Baked goods also saw increased launch activity. In both cases, this can largely be put down to a greater responsiveness to seasonal opportunities, from Valentines Day to Halloween and Christmas. Surprisingly, perhaps, dairy was one of the few categories which actually saw a falling off in the number of new launches tracked between 2008 and 2009. The San Mig Pro-Slim product illustrates another aspect of industry sophistication and economic integration. It is the result of a 2004 joint venture between Philippines-based San Miguel Pure Foods Company and Singapore-based Super Coffeemix. It is one of many such joint ventures and partnerships which have flourished around the region. Many of the links between the Philippines and its immediate neighbours involve mainland China, with its growing opportunities for more varied and higher-value foods. Shorter supply chains and closer cultural affinities may provide Filipino entrepreneurs with advantages not shared by European or North American competitors. Philippines-based snack manufacturer Liwayway group, for instance, has established a strong presence in mainland China. Its Oishi potato chips brand was reported by Euromonitor to have made sales second only to PepsiCo’s Lay’s brand in 2007. It also holds second place in the extruded snacks category (after a domestic Chinese manufacturer) and in popcorn. The future could see Filipino manufacturers and the ingredients suppliers which support them playing an even more high-profile role in the region and beyond. Introducing Fi Asia Philippines In the Philippines we take food very seriously. It is our Number One national industry, writes Marty Panganiban. As such, we at the Philippine Association of Food Technologists (PAFT) are delighted to be welcoming the Fi series of shows to the country. We see the show as an important vehicle for developing the local food production industry, which accounts for 40% of economic activity. Food is a key source of export activity in the Philippines, as well as a way of feeding the 90 million mouths that we have here. The key objective of the PAFT is to raise the base of knowledge within the food production sector. In order to achieve this aim, we have been running our annual conference. Our conference is the key forum here in the Philippines where professionals in the food sector share knowledge on best practice to find out about new developments in areas such as health, nutrition and food safety. The PAFT is proud to be organising the 50th anniversary edition of our conference in 2011. We are delighted that it will take place alongside the inaugural Fi Philippines here in Manila. The conference regularly attracts upwards of 600 delegates from both the large multinationals and indigenous food processing companies, and for our 50th anniversary we are working with the Fi team to make our anniversary edition the best attended yet, with some top international speakers from around the world. If you are an ingredients company interested in getting more business from the Philippines then I would advise you to exhibit at Fi Philippines, which will take place alongside the conference. We have a robust local food processing sector, with some strong names here such as RFM Corporation, Universal Robina and San Miguel. As regular attendees to our conference, we attract those involved in formulation, marketing and R&D to our event. I would like to extend an invitation to the readers of International Food Ingredients magazine to come to our beautiful country and attend our conference in 2011, whether that be as delegates or exhibitors. Marty Panganiban is president of PAFT. | ||||||||||||||||||||
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