Del Monte

Del Monte: CIMB features the stock in its small-cap weekly report. Note that 2013 is expected to be a better year as Del Monte believes earnings will be driven by its branded business with higher revenue from better volume and sales mix in the Philippines and S&W markets. The grp is also actively addressing the weak export markets by cutting back on tonnage, shifting vol to stronger markets and growing sales of more value-added products. At the same time, costs are being managed to offset the weak export situation. In the commodity industrial pineapple juice concentrate market, the strategy is to channel shift more of the pineapple output into branded ready-to-drink beverages. Given its strong brand name, market dominance in the Philippines and growth potential in the S&W brand, Del Monte will be of interest to funds with long-term horizons. Del Monte Pacific Limited has launched an exclusive range of international Del Monte products, including packaged fruits, tomato ketchup, pasta and spaghetti sauces, in the Myanmar market. The Del Monte product range will include: 1) Packaged fruits: Pineapple Slices, Pineapple Chunks, Pineapple Tidbits, Pineapple Crushed and Fiesta Fruit Cocktail 2) Culinary: Tomato Ketchup, Spaghetti Sauces and Pasta 3) Beverage: 100% Pineapple Juice, Pineapple Crush fruit drink, Four Seasons fruit drink (a medley of Pineapple, Mango, Orange and Guava) and Mango Nectar Del Monte will partner Global Sky Co, based in Yangon, to distribute its products in Myanmar. By the end of CY13, the Del Monte range of products will be available in markets across Myanmar in Yangon, Mandalay and other key cities.