Prime Global Group, company founded by former Splash Corp. majority shareholder Rolando Hortaleza, is bullish on the condiments business with a sales target of P1.5 billion in 2020.
The company is launching five new products in 2019, including three high-margin products.
“These new products will be our driver to double our sales to P900 million this year. We will be focusing more on high-profit products we consider will be a hit in the market,” said Hortaleza.
He noted that the local condiments industry had gaps in terms of availability of high-value, high-quality condiments.
Prime Global is determined to fill the gap for high-value condiments that rarely get the interest of consumers, he said.
Shrimp paste, the company’s flagship product, remains the biggest contributor with as much as 70 percent of total sales.
Sales from seasonings and chicken breading in 2018 reached P400 million.
Prime Global is also seriously considering to reduce the percentage of shrimp paste exports sales to an ideal 80 percent for the domestic market and 20 percent for exports.
“We want to have sufficient inventory for the local market. Every Filipino restaurant use this condiment for domestic dishes and even at home, shrimp paste is a preferred food seasoning,” said Hortaleza.
The export ratio of shrimp export is currently 60:40, which the company plans to lower further to 70:30 this year.
Hortaleza bought the rights for Barrio Fiesta Manufacturing Corp. from the Ongpaucos in 2011.
Top markets for the shrimp paste were the US and the Middle East and the growing Filipino communities abroad and the increasing number of overseas Filipino workers.
Hortaleza announced recently the sale of its personal care company Splash Corp. to transnational firm Wipro Consumer Corp.
Hortaleza said he would continue to assist the company in the next two years, providing market support until Wipro strengthened its appreciation of the Philippine personal care market.