050907: Alaska Milk sees '07 revenues at P9B with new brands

May 09, 2007
Updated 04:49:59 (Mla time)
Elizabeth Sanchez-Lacson
Inquirer

MANILA, Philippines -- Alaska Milk Corp. expects sales of P9 billion this year, compared with P6 billion in 2006, thanks to its acquisition of brands from Nestlé company president Wilfred Steven Uytengsu Jr. said Tuesday.

Alaska Milk recently bought three Philippine-registered liquid milk trademarks -- "Alpine," "Liberty" and "Krem-top" from Swiss company Societe des Produits Nestlé S.A..

Alaska also got license from Nestlé to import, manufacture, distribute and sell in the Philippines two other liquid milk products using the cooking milk brand "Carnation" and the sweetened condensed milk brand "Milkmaid."

Alpine, Liberty and Milkmaid are said to be strong brands in Visayas and Mindanao while Carnation is said to have a strong base in the Northern Luzon market.

Krem-Top is said to have an established record in the food service category.

Uytengsu told Alaska Milk shareholders at their annual meeting that acquisition of the brands would "allow us to pursue long-term growth."

"This transaction alone will add about P3 billion in annual revenues to our business while providing the company with established brands that mirror our corporate strategy in growing the milk category," he said.

The agreement to buy the brands was sealed last April.

Uytengsu said he expected the brands to contribute P2 billion to total revenues this year.

The company president noted the impact of cost pressures this year on earnings, with a rise in prices of skim milk powder.

"Prices had averaged $2,100 a ton and now they are up at $4,500 a ton," he said, pointing to a global shortage of milk powder and strong demand in Asia.

Alaska Milk reported 2007 first-quarter revenues of P1.67 billion, up 33 percent from P1.26 billion a year earlier, with increased sales volumes and an average of five percent increase in selling prices in line with industry increases for selected products, like powdered milk and sweetened condensed milk. With INQUIRER.net

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