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Asia-Pacific - Canned Food 0200 - 2210 - 2013

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MarketLine Industry Profile

Canned Food in Asia-Pacific September 2014

Reference Code: 0200-2210

Publication Date: September 2014

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EXECUTIVE SUMMARY

Market value The Asia-Pacific canned food market grew by 2.9% in 2013 to reach a value of $12,985.3 billion.

Market value forecast In 2018, the Asia-Pacific canned food market is forecast to have a value of $15,448.3 billion, an increase of 19% since

2013.

Market volume The Asia-Pacific canned food market grew by 2.7% in 2013 to reach a volume of 2,478.1 billion kg.

Market volume forecast In 2018, the Asia-Pacific canned food market is forecast to have a volume of 2,870.2 billion kg, an increase of 15.8%

since 2013.

Category segmentation Canned fish/seafood is the largest segment of the canned food market in Asia-Pacific, accounting for 34.9% of the

market's total value.

Geography segmentation Japan accounts for 26.3% of the Asia-Pacific canned food market value.

Market share Hagoromo Foods Corp. is the leading player in the Asia-Pacific canned food market, generating a 5.9% share of the

market's value.

Market rivalry The canned food market is highly fragmented which contributes to a strong degree of rivalry among market players.



TABLE OF CONTENTS

Executive Summary ....................................................................................................................................................... 2

Market value ............................................................................................................................................................... 2

Market value forecast ................................................................................................................................................. 2

Market volume ............................................................................................................................................................ 2

Market volume forecast .............................................................................................................................................. 2

Category segmentation .............................................................................................................................................. 2

Geography segmentation ........................................................................................................................................... 2

Market share .............................................................................................................................................................. 2

Market rivalry .............................................................................................................................................................. 2

Market Overview ............................................................................................................................................................ 7

Market definition ......................................................................................................................................................... 7

Market analysis .......................................................................................................................................................... 7

Market Data ................................................................................................................................................................... 8

Market value ............................................................................................................................................................... 8

Market volume ............................................................................................................................................................ 9

Market Segmentation ................................................................................................................................................... 10

Category segmentation ............................................................................................................................................ 10

Geography segmentation ......................................................................................................................................... 11

Market share ............................................................................................................................................................ 12

Market distribution .................................................................................................................................................... 13

Market Outlook ............................................................................................................................................................. 14

Market value forecast ............................................................................................................................................... 14

Market volume forecast ............................................................................................................................................ 15

Five Forces Analysis .................................................................................................................................................... 16

Summary .................................................................................................................................................................. 16

Buyer power ............................................................................................................................................................. 17

Supplier power ......................................................................................................................................................... 18

New entrants ............................................................................................................................................................ 19

Threat of substitutes ................................................................................................................................................. 20

Degree of rivalry ....................................................................................................................................................... 21

Leading Companies ..................................................................................................................................................... 22



Berkshire Hathaway, Inc. ......................................................................................................................................... 22

Century Pacific Food Inc .......................................................................................................................................... 25

J. R. Simplot Company ............................................................................................................................................ 26

Appendix ...................................................................................................................................................................... 27

Methodology ............................................................................................................................................................. 27

Industry associations ................................................................................................................................................ 28

Related MarketLine research ................................................................................................................................... 28



LIST OF TABLES

Table 1: Asia-Pacific canned food market value: $ billion, 2009–13 .............................................................................. 8

Table 2: Asia–Pacific canned food market volume: billion kg, 2009–13 ......................................................................... 9

Table 3: Asia–Pacific canned food market category segmentation: $ billion, 2013 ...................................................... 10

Table 4: Asia–Pacific canned food market geography segmentation: $ billion, 2013 ................................................... 11

Table 5: Asia-Pacific canned food market share: % share, by value, 2013 .................................................................. 12

Table 6: Asia-Pacific canned food market distribution: % share, by value, 2013 ......................................................... 13

Table 7: Asia-Pacific canned food market value forecast: $ billion, 2013–18 ............................................................... 14

Table 8: Asia–Pacific canned food market volume forecast: billion kg, 2013–18 ......................................................... 15

Table 9: Berkshire Hathaway, Inc.: key facts ............................................................................................................... 22

Table 10: Berkshire Hathaway, Inc.: key financials ($) ................................................................................................. 23

Table 11: Berkshire Hathaway, Inc.: key financial ratios .............................................................................................. 23

Table 12: Century Pacific Food Inc: key facts .............................................................................................................. 25

Table 13: J. R. Simplot Company: key facts ................................................................................................................ 26



LIST OF FIGURES

Figure 1: Asia-Pacific canned food market value: $ billion, 2009–13 ............................................................................. 8

Figure 2: Asia–Pacific canned food market volume: billion kg, 2009–13 ........................................................................ 9

Figure 3: Asia–Pacific canned food market category segmentation: % share, by value, 2013 .................................... 10

Figure 4: Asia–Pacific canned food market geography segmentation: % share, by value, 2013 ................................. 11

Figure 5: Asia-Pacific canned food market share: % share, by value, 2013 ................................................................ 12

Figure 6: Asia-Pacific canned food market distribution: % share, by value, 2013 ........................................................ 13

Figure 7: Asia-Pacific canned food market value forecast: $ billion, 2013–18 ............................................................. 14

Figure 8: Asia–Pacific canned food market volume forecast: billion kg, 2013–18 ........................................................ 15

Figure 9: Forces driving competition in the canned food market in Asia-Pacific, 2013 ................................................. 16

Figure 10: Drivers of buyer power in the canned food market in Asia-Pacific, 2013 .................................................... 17

Figure 11: Drivers of supplier power in the canned food market in Asia-Pacific, 2013 ................................................. 18

Figure 12: Factors influencing the likelihood of new entrants in the canned food market in Asia-Pacific, 2013 ........... 19

Figure 13: Factors influencing the threat of substitutes in the canned food market in Asia-Pacific, 2013 .................... 20

Figure 14: Drivers of degree of rivalry in the canned food market in Asia-Pacific, 2013 .............................................. 21

Figure 15: Berkshire Hathaway, Inc.: revenues & profitability ...................................................................................... 23

Figure 16: Berkshire Hathaway, Inc.: assets & liabilities .............................................................................................. 24



MARKET OVERVIEW

Market definition The canned foods market consists of the retail sales of canned desserts, canned fish/seafood & meat products, canned

fruit, canned pasta & noodles, canned ready meals and canned vegetables. The market is valued according to retail

selling price (RSP) and includes any applicable taxes. Any currency conversions used in the creation of this report have

been calculated using 2013 annual average exchange rates.

For the purposes of this report, Asia-Pacific comprises Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia,

New Zealand, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam.

Market analysis The Asia-Pacific canned food market has seen moderate growth between 2009 and 2013, although the pace has

tempered from 2012 onwards. He market is forecast to continue expanding at a similar rate until 2018.

The Asia-Pacific canned food market had total revenues of $13.0bn in 2013, representing a compound annual growth

rate (CAGR) of 3.4% between 2009 and 2013. In comparison, the Chinese and Japanese markets grew with CAGRs of

6.4% and 0.3% respectively, over the same period, to reach respective values of $2.4bn and $3.4bn in 2013.

Market consumption volume increased with a CAGR of 3% between 2009 and 2013, to reach a total of 2.5 billion kg in

2013. The market's volume is expected to rise to 2.9 billion kg by the end of 2018, representing a CAGR of 3% for the

2013-2018 period.

The canned fish/seafood segment was the market's most lucrative in 2013, with total revenues of $4.5bn, equivalent to

34.9% of the market's overall value. The canned meat products segment contributed revenues of $3.5bn in 2013,

equating to 27.3% of the market's aggregate value.

The performance of the market is forecast to follow a similar pattern with an anticipated CAGR of 3.5% for the five-year

period 2013 - 2018, which is expected to drive the market to a value of $15.4bn by the end of 2018. Comparatively, the

Chinese market will increase with a CAGR of 6.4%, and the Japanese market will decline with a compound annual rate

of change (CARC) of -0.9%, over the same period, to reach respective values of $3.2bn and $3.3bn in 2018.



MARKET DATA

Market value The Asia-Pacific canned food market grew by 2.9% in 2013 to reach a value of $12,985.3 billion.

The compound annual growth rate of the market in the period 2009–13 was 3.4%.

Table 1: Asia-Pacific canned food market value: $ billion, 2009–13

Year $ billion € billion % Growth

2009 11,343.3 8,541.0

2010 11,803.4 8,887.4 4.1%

2011 12,292.5 9,255.7 4.1%

2012 12,617.3 9,500.2 2.6%

2013 12,985.3 9,777.3 2.9%

CAGR: 2009–13 3.4%

SOURCE: MARKETLINE M A R K E T L I N E

Figure 1: Asia-Pacific canned food market value: $ billion, 2009–13




Market volume The Asia-Pacific canned food market grew by 2.7% in 2013 to reach a volume of 2,478.1 billion kg.

The compound annual growth rate of the market in the period 2009–13 was 3%.

Table 2: Asia–Pacific canned food market volume: billion kg, 2009–13

Year billion kg % Growth

2009 2,203.1

2010 2,283.9 3.7%

2011 2,354.8 3.1%

2012 2,413.3 2.5%

2013 2,478.1 2.7%

CAGR: 2009–13 3.0%


Figure 2: Asia–Pacific canned food market volume: billion kg, 2009–13




MARKET SEGMENTATION

Category segmentation Canned fish/seafood is the largest segment of the canned food market in Asia-Pacific, accounting for 34.9% of the

market's total value.

The Canned meat products segment accounts for a further 27.3% of the market.

Table 3: Asia–Pacific canned food market category segmentation: $ billion, 2013

Category 2013 %

Canned fish/seafood 4,529.1 34.9%

Canned meat products 3,541.0 27.3%

Canned vegetables 2,378.4 18.3%

Canned fruit 1,583.9 12.2%

Canned ready meals 558.5 4.3%

Canned pasta & noodles and desserts

394.3 3.0%

Total 12,985.2 100%


Figure 3: Asia–Pacific canned food market category segmentation: % share, by value, 2013




Geography segmentation Japan accounts for 26.3% of the Asia-Pacific canned food market value.

China accounts for a further 18.1% of the Asia-Pacific market.

Table 4: Asia–Pacific canned food market geography segmentation: $ billion, 2013

Geography 2013 %

Japan 3,409.6 26.3

China 2,351.4 18.1

South Korea 1,300.8 10.0

India 411.1 3.2

Rest of Asia-Pacific 5,512.3 42.5

Total 12,985.2 100%


Figure 4: Asia–Pacific canned food market geography segmentation: % share, by value, 2013




Market share Hagoromo Foods Corp. is the leading player in the Asia-Pacific canned food market, generating a 5.9% share of the

market's value.

Century Pacific Group accounts for a further 4.3% of the market.

Table 5: Asia-Pacific canned food market share: % share, by value, 2013

Company % Share

Hagoromo Foods Corp. 5.9%

Century Pacific Group 4.3%

Berkshire Hathaway & 3G Capital 3.2%

J. R. Simplot Company 2.7%

Other 83.9%

Total 100%


Figure 5: Asia-Pacific canned food market share: % share, by value, 2013




Market distribution Supermarkets / hypermarkets form the leading distribution channel in the Asia-Pacific canned food market, accounting

for a 60.8% share of the total market's value.

Independent Retailers accounts for a further 19.6% of the market.

Table 6: Asia-Pacific canned food market distribution: % share, by value, 2013

Channel % Share

Supermarkets / hypermarkets 60.8%

Independent Retailers 19.6%

Convenience Stores 12.8%

Specialist Retailers 4.9%

Other 1.9%

Total 100%


Figure 6: Asia-Pacific canned food market distribution: % share, by value, 2013




MARKET OUTLOOK

Market value forecast In 2018, the Asia-Pacific canned food market is forecast to have a value of $15,448.3 billion, an increase of 19% since

2013.

The compound annual growth rate of the market in the period 2013–18 is predicted to be 3.5%.

Table 7: Asia-Pacific canned food market value forecast: $ billion, 2013–18

Year $ billion € billion % Growth

2013 12,985.3 9,777.3 2.9%

2014 13,398.6 10,088.6 3.2%

2015 13,864.9 10,439.7 3.5%

2016 14,363.0 10,814.7 3.6%

2017 14,887.7 11,209.8 3.7%

2018 15,448.3 11,631.9 3.8%

CAGR: 2013–18 3.5%


Figure 7: Asia-Pacific canned food market value forecast: $ billion, 2013–18




Market volume forecast In 2018, the Asia-Pacific canned food market is forecast to have a volume of 2,870.2 billion kg, an increase of 15.8%

since 2013.

The compound annual growth rate of the market in the period 2013–18 is predicted to be 3%.

Table 8: Asia–Pacific canned food market volume forecast: billion kg, 2013–18

Year billion kg % Growth

2013 2,478.1 2.7%

2014 2,549.0 2.9%

2015 2,621.9 2.9%

2016 2,700.2 3.0%

2017 2,784.1 3.1%

2018 2,870.2 3.1%

CAGR: 2013–18 3.0%


Figure 8: Asia–Pacific canned food market volume forecast: billion kg, 2013–18




FIVE FORCES ANALYSIS

The canned food market will be analyzed taking food processing companies as players. The key buyers will be taken as

retailers, and producers of container tins and raw materials such as grains, fruit and vegetables, and meat and fish as

the key suppliers.

Summary

Figure 9: Forces driving competition in the canned food market in Asia-Pacific, 2013


The canned food market is highly fragmented which contributes to a strong degree of rivalry among market players.

Supermarkets and hypermarkets represent the central buyers in the canned food market with the retail industry highly

concentrated. Larger retailers, such as supermarkets, can make large purchases and negotiate on price with

manufacturers, boosting buyer power. Retailers are unlikely to be swayed by brand loyalty, but they will have to stock

brands preferred by consumers. Since backwards integration is often implausible, buyer power remains moderate.

Suppliers of ingredients to canned food manufacturers have several factors in their favor. The need for ingredients of a

consistent quality, switching costs, and the lack of viable substitutes for core ingredients, undermines the position of

manufacturers. However, the fragmentation of the supplier market eases the supplier power. The threat of new entrants

is moderate due to high capital investments and the presence of well established brands.

Substitutes to canned food include fresh products as well as frozen food and dried goods. Canned food does not perish

easily as they can be stored and kept for longer periods, both by retailers or consumers. Whilst frozen food requires

costly cold storage and dried food is limited in its range of application, the two constitute a strong threat due to low

switching costs. Although consumer reviews on canned foods are often critical, sales of such products continue to grow

mitigating slightly the rivalry level in the market although it is intensified by high fixed costs and exit barriers.



Buyer power

Figure 10: Drivers of buyer power in the canned food market in Asia-Pacific, 2013


The main distribution channel in the Asia-Pacific canned food market is supermarkets and hypermarkets with 60.8% of

the market value. Retail companies with strong incumbent distribution networks present players with a strong foothold to

launch their products. Large retailers, such as supermarkets, can make large purchases and negotiate on price with

manufacturers, boosting buyer power.

Canned food products are only one of many diverse sources of revenue for major supermarkets; however it is one that is

considered important. Retailers will stock branded goods with which their customers identify, meaning there is some

significance to brand identity. Backwards integration is implausible due to the plethora of consumer goods stocked by

retailers, and as such players remain dependent on a steady supply of popular products. Overall, buyer power is

assessed as moderate.



Supplier power

Figure 11: Drivers of supplier power in the canned food market in Asia-Pacific, 2013


Players obtain the inputs necessary for the canned food market through two methods. They may purchase them in the

open market, where there is little control over price levels. This can be mitigated via techniques such as hedging.

Alternatively, they may negotiate supply contracts with growers and farmers, wherein fixed-term contracts with

periodically negotiated prices are common.

Leading players must maintain product quality if they are to maintain their brand equity in the long term. Further, the

need to source raw materials of appropriate quality will augment the position of suppliers who can accommodate players'

demands. However, competition is further accentuated by an extremely low level of product differentiation when

supplying basic ingredients. This undermines the power of these suppliers.

Overall, supplier power is moderate.



New entrants

Figure 12: Factors influencing the likelihood of new entrants in the canned food market in Asia-Pacific, 2013


The setting up of a canned food manufacturing facility and the marketing of canned food involve large capital outlay. The

fragmentation of the market means small scale entry is feasible, but capital costs may make such ventures unviable.

Canned food cannot be examined by consumers before purchase unlike goods without packaging such as fresh fruit or

products in transparent packaging. Some products differ only in their packaging and other consumers. This encourages

the consumer to operate according to branding.

The retail outlets incur minimal switching costs given their often asymmetrical relationship with suppliers and so any

consumer movement will be reflected in their stocking choices. This fluidity in the market may tempt potential entrants.

Additionally, canning is an industrial process that is very difficult to perform without the knowledge of technical aspects.

Economy of scale benefits current players who, having established production facilities can quickly mass manufacture

and produce additional volume with relatively little further expense. The profitability of this factor permits manufacturers

to accommodate demands from a price-sensitive market. Without competitive pricing, however, new entrants can

struggle to survive.

Securing access to distribution channels is a key challenge for potential entrants. Shelf space is a vital but finite

resource, and it may be difficult to persuade retailers to allocate it to a new player's canned foods, especially in highly

competitive food retail markets. Overall, there is a moderate likelihood of new entrants.



Threat of substitutes

Figure 13: Factors influencing the threat of substitutes in the canned food market in Asia-Pacific, 2013


The main substitutes for canned foods are frozen food and dried food, which also have extended storage lifetimes. Dried

foods are however limited in scope and so frozen foods constitute the most credible alternative. Widespread and

popular, this mode of preservation does have one disadvantage however; it requires cold storage facilities can incur high

energy costs. Furthermore, home consumers are generally restrained by space considerations.

There has been a consistent expansion in the range of food available frozen. Low switching costs and the high volume of

turnover offset cold storage costs. Accordingly, frozen foods qualify as potential substitute and not simply an additional

option for consumers. Overall, the threat of substitutes is assessed as strong.



Degree of rivalry

Figure 14: Drivers of degree of rivalry in the canned food market in Asia-Pacific, 2013


The Asia-Pacific canned food market is highly fragmented with the top three players holding 16.1% of the market value.

The fragmentation of the market suggets a competitive environment, where even large multinationals cannot consolidate

their position. Exit barriers are high, since leaving the canned food market would require divestment of substantial and

often quite specialized assets. Fixed costs are also likely to be high, and automated processes mean that production can

be ramped up when necessary. Rivalry is intensified by the fact that products are largely undifferentiated, making it hard

to retain buyers. Although many manufacturers have diversified into other areas, some remain dependent on the core

income from sales of canned food products. Overall, there is a strong degree of rivalry in this market.



LEADING COMPANIES

Berkshire Hathaway, Inc.

Table 9: Berkshire Hathaway, Inc.: key facts

Head office: 3555 Farnam Street, Omaha, Nebraska 68131, USA

Telephone: 1 402 346 1400

Website: www.berkshirehathaway.com

Financial year-end: December

Ticker: BRK

Stock exchange: New York

SOURCE: COMPANY WEBSITE M A R K E T L I N E

Berkshire Hathaway Inc. (Berkshire) is a holding group that engages in a number of diverse business activities through

its subsidiaries. The group's business activities primarily comprise its insurance and reinsurance operations. Berkshire's

operating businesses are managed on an unusually decentralized basis. The group's corporate office management

participates in and is responsible for significant capital allocation decisions, investment activities and the selection of the

chief executive to head each of the operating businesses.

The group operates through seven business divisions: McLane Company, insurance group, Burlington Northern Santa

Fe Corporation (BNSF), MidAmerican, Marmon, finance and financial products, and other businesses.

Through McLane Company, Berkshire operates a wholesale distribution business that provides grocery and non-food

products to retailers, convenience stores and restaurants. McLane Company also operates as a wholesale distributor of

distilled spirits, wine and beer. The company's significant customers include Wal-Mart, 7-Eleven and Yum! Brands.

The other businesses division includes manufacturing, service and retailing businesses. This division comprise TTI, an

electronic components distributor; Business Wire, a distributor of corporate news, multimedia and regulatory filings; Dairy

Queen, which licenses and services a system of over 6,300 stores that offer prepared dairy treats and food; the Buffalo

News; the BH Media Group (BH Media), which includes the Omaha World-Herald, as well as 29 other daily newspapers

and numerous other publications; and businesses that provide management and other services to insurance companies.

In 2014, Berkshire and an investment fund affiliated with 3G Capital agreed to acquire HJ Heinz. Heinz manufactures

and markets a wide range of food products throughout the world. The company's principal products include ketchup,

condiments and sauces, frozen food, soups, beans and pasta meals, infant nutrition and other processed food products.

Heinz operates 63 owned and six leased manufacturing facilities across North America, Europe, Asia Pacific and rest of

the world. The company sells its products through its own sales force and independent brokers, agents and distributors

to wholesale, co-operative and independent grocery stores; convenience stores; bakeries; pharmacies; mass merchants;

club stores; and foodservice distributors and institutions such as hotels, restaurants, hospitals, healthcare facilities, and

certain government agencies.

Key Metrics

The company recorded revenues of $182,150m in the fiscal year ending December 2013, an increase of 12.1%

compared to fiscal 2012. Its net income was $19,476m in fiscal 2013, compared to a net income of $14,824m in the

preceding year.



Table 10: Berkshire Hathaway, Inc.: key financials ($)

$ million 2009 2010 2011 2012 2013

Revenues 112,493.0 136,185.0 143,688.0 162,463.0 182,150.0

Net income (loss) 8,055.0 12,967.0 10,254.0 14,824.0 19,476.0

Total assets 297,119.0 372,229.0 392,647.0 427,452.0 484,931.0

Total liabilities 161,334.0 209,295.0 223,686.0 239,805.0 263,041.0

Employees 257,113 260,000 271,000 288,462 330,745

SOURCE: COMPANY FILINGS M A R K E T L I N E

Table 11: Berkshire Hathaway, Inc.: key financial ratios

Ratio 2009 2010 2011 2012 2013

Profit margin 7.2% 9.5% 7.1% 9.1% 10.7%

Revenue growth 4.4% 21.1% 5.5% 13.1% 12.1%

Asset growth 11.1% 25.3% 5.5% 8.9% 13.4%

Liabilities growth 5.0% 29.7% 6.9% 7.2% 9.7%

Debt/asset ratio 54.3% 56.2% 57.0% 56.1% 54.2%

Return on assets 2.9% 3.9% 2.7% 3.6% 4.3%

Revenue per employee $437,524 $523,788 $530,214 $563,204 $550,726

Profit per employee $31,329 $49,873 $37,838 $51,390 $58,885


Figure 15: Berkshire Hathaway, Inc.: revenues & profitability




Figure 16: Berkshire Hathaway, Inc.: assets & liabilities




Century Pacific Food Inc

Table 12: Century Pacific Food Inc: key facts

Head office: Centerpoint Building, 7th, 8th, & 19th Floors, Ortigas Business Center, Julia Vargas corner Garnet Street, Pasig City, 1605, PHL

Telephone: 63 2 633 8555

Fax: 63 2 633 8555

Website: www.centurypacific.com.ph

Financial year-end: December

Ticker: CNPF

Stock exchange: Philippines


Century Pacific Food, Inc. develops, processes, markets, and distributes fish, meat, and dairy products in the

Philippines. It operates in four segments: Canned and Processed Fish, Canned Meat, Dairy and Mixes, and Tuna Export.

The Canned and Processed Fish segment offers canned tuna, canned sardines, canned mackerel, frozen milkfish,

gourmet milkfish, pouched tuna, corned tuna, and other packaged fish and seafood products. This segment sells its

products primarily under the Century Tuna, 555, Blue Bay, Fresca, and Lucky 7 brands.

The Canned Meat segment provides corned meat, meat loafs, beef loafs and sausages, Chinese style luncheon meat,

liver spread, vienna sausages and spaghetti sauces, and others. This segment offers its products primarily under the

Argentina, Swift, 555, Wow, Lucky 7, and Shanghai brands.

The Dairy and Mixes segment offers liquid milk products and powdered milk products comprising evaporated milk,

evaporated condensed milk, all-purpose creams, coffee creamers, and full cream milk powder. This segment sells its

products primarily under the Angel, Birch Tree, Kaffe de Oro, and Home Pride brands.

The Tuna Export segment manufactures and exports private label canned, pouched, and frozen tuna products, as well

as exports branded products to North America, Europe, Asia, Australia, and the Middle East.

The company markets its products to retail outlet customers, including hypermarkets, supermarkets, grocery stores, and

convenience stores, as well as wet markets and sari-sari stores through distributors; and to various food service

customers comprising quick service and full service restaurants, pizza chains, and industrial and institutional accounts,

as well as various national and local chain accounts in the food service segment directly and through distributors.

Century Pacific Food is the result of parent company Century Pacific reorganizing its canned food business towards the

end of 2013.

Key Metrics

Century Pacific only registered with the Philippine Stock Exchange Commission on October 25, 2013. As such, only one

year of financial information is available. Revenues were PHP8.5bn ($201.m), and a net loss of PHP -6.9m ($-0.2m).



J. R. Simplot Company

Table 13: J. R. Simplot Company: key facts

Head office: 999 Main Street, Suite 1300, Boise, Idaho 83702, USA

Telephone: 1 208 336 2110

Website: www.simplot.com


Simplot is engaged in frozen potato processing, production of beef-cattle, chemicals, fertilizers, and cattle feed. The

company has operations in the US, Canada, Mexico, Australia, New Zealand and China, and its products are marketed

in more than 40 countries worldwide.

The company's operations are divided into four business segments: AgriBusiness, Food Group, Land and Livestock, and

Simplot Australia. The company's business activities include phosphate mining, fertilizer manufacturing, farming,

ranching, cattle production, food processing and food brands.

Simplot is a global supplier to the turfgrass and horticultural industries, and participates in industrial and feed markets

across North America. The company extracts raw phosphate ore from mines in Utah and Southeastern Idaho to produce

crop nutrients and other products. The company also owns some of the largest feedlots in the US, where calves from 16

western ranches are kept. More than 90,000 acres of farms throughout the Northwest produce crops.

Approximately three billion pounds of frozen French fries and formed potato and vegetable products are produced every

year, and are marketed in the US and other parts of the world.

The company's mining, farming and ranching operations are located near production and storage facilities, which

distribute products through a pipeline, rail, shipping and trucking network.

Simplot Australia is one of the largest suppliers to the Australian foodservice market. Its customers include hospitals and

aged care facilities, airplanes, stadiums, casinos and quick service restaurants. There are more than 300 products in its

foodservice range, including finger foods, snack foods, main meal components, seafood, potato, frozen vegetables and

desserts.

Key Metrics

Simplot generated annual revenues of approximately $5.6bn in FY2013. It is a privately-held company and does not

publish its financial results.



APPENDIX

Methodology MarketLine Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-

checked and presented in a consistent and accessible style.

Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by

analysis from industry experts using highly complex modeling & forecasting tools, MarketLine’s in-house databases

provide the foundation for all related industry profiles

Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company

profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market

overview

Definitions – Market definitions are standardized to allow comparison from country to country. The parameters of each

definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the

market and our clients

Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and

trends

MarketLine aggregates and analyzes a number of secondary information sources, including:

- National/Governmental statistics

- International data (official international sources)

- National and International trade associations

- Broker and analyst reports

- Company Annual Reports

- Business information libraries and databases

Modeling & forecasting tools – MarketLine has developed powerful tools that allow quantitative and qualitative data to

be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can

then be refined according to specific competitive, regulatory and demand-related factors

Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date



Industry associations

Japan Canners Association (JCA)

2-5-3, Fukuura, Kanazawa-ku, Yokohama-shi, Kanagawa 236-0004, JPN

Tel.: 81 45 790 1221

Fax: 81 45 790 1222

www.jca-can.or.jp

Canned Food Industry Association Level 1, 123 Camberwell Rd, Hawthorn East VIC 3123, AUS

Tel.: 61 3 9811 6820

Fax: 61 3 9804 0206

www.cfia.com.au

Related MarketLine research

Industry Profile

Global Canned Food

Canned Food in Europe

Canned Food in the United States

Canned Food in France

Canned Food in Germany

MarketLine | John Carpenter House, John Carpenter Street | London, United Kingdom, EC4Y 0AN T: +44(0)203 377 3042, F: +44 (0) 870 134 4371 E: [email protected]

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market rivalry

market value forecast

market players

market volume forecast

executive summary market

market share hagoromo

markets value

licensed product