The purchase of US biscuits maker Nabisco International by US-based giant
Philip Morris for US$14.9bn last year is having far reaching consequences,
and Uytengsu-owned food company Alaska Milk Corp (AMC) now stands to lose
out on about P350m in annual revenues.
Nabisco terminated its contract with AMC following the takeover, ending a four-year
agreement during which the local company has exclusively selling Nabisco snack
brands, such as Ritz crackers, Chips-Ahoy! or Oreo Cookies.
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"It will be Kraft which will now handle the distribution.
Nabisco significantly contributes to the overall revenues of the company, but
we will try to look for other companies to replace what we will lose. In terms
of people who are with the Nabisco division, there will be no problem since
we will be absorbing them," said AMC corporate affairs director Santiago
A. Polido.
Nabisco had contributed to about 8% of AMC’s total food sales during the length
of the contract and the business was fully developed through a sales team created
by AMC in 1999.
After Swiss behemoth Nestlé, Philip Morris is the second largest
food company in the world, a position bolstered by its Nabisco acquisition.
It also controls Kraft Foods and the popular brands such as Minute Rice
and Jell-O.
Polido suggested that AMC would now be searching for acquisition targets or
strategic partners in other food companies that compliment its existing operations.
The company will continue to exclusively distribute Quaker Oats‘ breakfast
cereals.
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By GlobalData
