SMFB Processed Foods - Business Model Canvas (Color-Coded)

Key Partnerships

Hormel Foods (60:40 JV)Processed meat tech, SPAM/Skippy distribution rights

SM / Puregold / RobinsonsModern trade shelf access & promo partnerships

Regional dealer networkDistributor/wholesaler layer reaching sari-sari stores

Advertising agenciesMass media campaigns (TV, digital, billboard)

Foodservice distributorsBulk supply to institutional channels

Key Activities

Industrial meat processing & canning

Product formulation & R&D12-18 month dev cycles

Shelf placement negotiationModern trade planogram battles

Mass brand marketingTV + trade promo campaigns

Quality assurance & food safety

Value Propositions

Affordable tingi (single-serve) packsPurefoods, Star corned beef, SPAM lite at P15-30 price points for daily-wage households

Familiar Filipino comfort flavorsTender Juicy hotdog, corned beef, luncheon meat — pantry staples across generations

Convenient meal solutions for busy familiesReady-to-cook/eat: Purefoods Kaldereta, Bistek Tagalog, Beef Pares, frozen meals

Trusted heritage brand portfolioPurefoods, Star, Magnolia — household names since the 1950s, implied safety & quality

Reliable bulk supply at consistent specsInstitutional packs, uniform portion sizes, predictable costs for foodservice ops

Customer Relationships

Indirect via sari-sari store ownersBrand is chosen by store owner, not consumer. Loyalty = availability

Broadcast advertising + in-store promosNo direct consumer data. Relationship is with retailer, not the shopper

Brand nostalgia & habit loopsDecades of TV conditioning. No active loyalty program or feedback loop

Account management / sales repsDirect relationship with institutional buyers, repeat order cycles

Customer Segments

Budget-conscious familiesD/E income class. Buy tingi packs daily at sari-sari stores. Price is primary driver

Modern trade grocery shoppersABC class working parents. Weekly supermarket shop. Seeking convenience + trusted brands

Institutional buyersCarinderias, school canteens, small food businesses. Consistency + cost predictability

Key Resources

Nationwide processing plantsCapital-intensive cold chain infra

Brand portfolio equityPurefoods, Star, Magnolia, Monterey

Hormel recipes & technology

SMC parent group backingCapital, logistics network, political access

Channels

Sari-sari stores (63.5% of PH retail)1M+ stores via dealer/wholesaler network. No data feedback

Modern trade supermarkets (26.5%)SM, Puregold, Robinsons. Promo-driven shelf placement

E-commerce (~5%, no DTC)Minimal presence on Shopee/Lazada. Zero TikTok Shop. No owned channel

Direct sales / institutionalSales reps to foodservice accounts

Cost Structure

Raw materialsCommodity meat & dairy inputs — price-volatile

ManufacturingPlants, energy, packaging, labor

Trade promo + shelf feesRent paid to retailers for shelf access. Rising annually

Mass media advertisingTV/digital. Cost-per-reach rising as attention fragments

Dealer/distributor marginsMulti-tier wholesaler layer to reach sari-sari stores

Revenue Streams

Tingi pack sales via traditional tradeHigh volume, low margin per unit

Modern trade product salesPromo-dependent, retailer-negotiated pricing

Institutional / bulk salesContract pricing, repeat orders

Export to ~70 marketsSmaller contribution, OFW-driven demand

Business Model Canvas: Processed Foods via Grocery Shelf San Miguel Food & Beverage — Prepared & Packaged Food Division