Mega Sardines is expanding into the mainstream United States grocery market, with the Philippine brand set to go on sale in 2,750 stores operated by American retail firm The Kroger Co. by mid-September.
Mega Prime Foods Inc. (MPFI) Chief Executive Officer Michelle Tiu Lim-Chan said the products are already being shipped to the US, covering Kroger and its banners Mariano’s, Fry’s, Dillons and Pick ‘n Save.
Mega is currently the first and only Filipino brand listed with Kroger, according to the company.
The rollout has been in development for about nine months, including Mega’s participation in major US food trade shows to gauge consumer interest, the company official said during a press briefing at the company’s main headquarters last Tuesday.
She said the company decided to proceed with the expansion amid trade and geopolitical uncertainties as demand for sardines remains strong in the US.
‘Actually, it’s about timing, because the sardines right now is moving. There’s a lot of demand,’ she told reporters on the sidelines of the event, noting that some US stores have experienced sardine shortages.
‘We’re not really concerned with geopolitical (tensions), because it’s about food security. So, sardines, it’s a food product.’
Mega may also adjust its products for US consumers based on sales performance, including developing variants with lower sodium content or using olive oil.
The company has not set a specific sales or revenue target for the US market this year, saying it first wants to assess how its products perform in mainstream retail.
‘Initial orders, however, have already increased as retailers seek additional stocks. We have already shipped five containers to the US. And there is also shipping every week because we feel that there is a lot of demand.’
The US is being considered as one of Mega’s potentially larger international markets, alongside its existing markets in Malaysia, Canada and Dubai.
In Dubai, it’s second largest market after the Philippines, the brand is sold through Carrefour, giving it an established presence in mainstream retail.
Long-term plans
Despite the international push, exports currently have only a small account of Mega’s business, leaving the domestic market as its main source of sales.
‘As of now, it’s not a big percentage. Within 5 to 10 percent of exports. So, that’s it. That’s why we still have a lot of domestic markets. We really need to take care of our domestic markets,’ Lim-Chan said.
Mega has also recently entered Azerbaijan, Kenya and Jordan and has at least 10 other countries in its pipeline, the company said.
For Lim-Chan, the company’s longer-term international strategy could eventually extend beyond exporting its existing products.
This could include acquiring or developing brands in other markets, as well as gaining access to additional fishing grounds and sources of raw materials.