Quezon City—(PHStocks)—Australian food ingredients companies Manildra Group and MSM Milling have announced the appointment of D&L Industries Inc.’s (PSE: DNL) wholly-owned subsidiary Oleofats Inc. (OFI) as the exclusive agent for Manildra and MSM’s canola derivatives and wheat products in the Philippines.
Under the agreement, OFI will handle sales, marketing, and distribution of the products locally. With extensive applications in the snacks, dairy, and food service industries, the products covered are canola and its derivatives like high oleic canola and canola meal, as well as wheat and its derivatives such as wheat flour.
“Manildra is noticing and embracing the increased demand for Australian wheat-based products, such as flour for noodles and glucose for use in confectionery production. We’re thrilled to secure this agreement with OleoFats,” says Peter Simpson, General Manager of the Manildra Group.
This deal with allow OFI to leverage its vast distribution network and deep customer relationships to extend Manildra and MSM’s reach into the Philippine canola and wheat market. At the same time, Manildra and MSM will enjoy the operating efficiencies of having a local agent for sales and marketing.
“The partnership is also part of our strategy to focus on products that will give us better margins, while moving away from low-margin commodities. This vote of confidence from a global player like Manildra shows how we have transformed ourselves from being a vegetable oil refiner into a leading developer and manufacturer of customized and specialized food ingredients in the Philippines,” says OFI Managing Director Vincent D. Lao.
As an increasingly popular ingredient due to its nutritional qualities and low saturated fat, canola and its derivatives can be found in a variety of food applications in retail, household, and industrial markets. Wheat meanwhile, is a staple in the bakery, biscuits, and snacks industries.
“Canola oil is the number one soft oil in the Filipino oil market. MSM can see the rapid growth in canola oil usage in the Philippines as disposable income among the middle class increases, allowing these consumers to make healthier discretionary purchasing decisions,” says MSM Milling Directors, Bob and Pete Mac Smith. “We’re proud that our genetically modified-free, expeller pressed oil from the Central West of New South Wales is playing such a significant role in the growing marketplace.”
OFI uses canola and wheat products, combined with an extensive portfolio of customized food ingredients, to service food and beverage manufacturers. The company currently has over 500 food ingredient formulations. It is in four primary businesses – specialty fats and oils, refined vegetable oils, speciality ingredients, and food safety products.