MANILA, Philippines - Foodsphere Inc., the maker of the CDO brand of canned and refrigerated meats and the San Marino tuna brand, said it will not be raising prices amid rising costs of raw materials.
“The trend for this year is rising food prices driven by climate change but for us we are not yet increasing our prices for this year,” Foodsphere president Jerome Ang said in an interview on the sidelines of the launch of its food service unit.
“We absorb part of the increase in cost but if the price of raw materials like tin cans continue to go up, we may consider raising our price,” he added.
Ang said the last time they adjusted their prices was in April last year when they hiked prices by three percent. He said they source pork from both the local and international markets but all their beef requirements are imported from either Brazil, Australia and New Zealand.
Last year, Ang said their sales grew 21 percent when compared to 2009. However, he conceded that this year may not be as robust, expecting to grow by only 12 percent.
Ang said that they will try to expand their export business this year because it only accounts for less than one percent of their total business. Currently, he said they are exporting to the Middle East but are looking at other countries.
Foodsphere launched its food service unit during the 2011 Chefs on Parade held at the SMX Convention Center.
The firm has been providing customized meat products, canned marine products and cheese to some of the largest fast food chains and restaurants like Shangri-la Hotel, Jollibee, KFC and Philippine Airlines.
The company launched the CDO Foodservice as an integral part of its sales division composed of food specialists and research development professionals who have been specially trained to provide products and solutions to the market.
The local food service industry is a rapidly growing sector that supports the growth of the hotel and restaurant industry. It generates annual revenues of more than P200 billion and directly employs 250,000.