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FISH PROCESSOR Alliance Select Foods International, Inc. has moved to hike its stake in its Indonesian canned tuna subsidiary to near 100% amid the company’s ongoing international expansion plans, a disclosure to the local course showed yesterday.

Alliance Select purchased 500,000 PT International Alliance Foods Indonesia (IAFI) shares from fishing firm PT Wailan Pratama for $500,000, increasing the listed firm’s stake in IAFI to 99.98% from 89.98%, the disclosure stated.

“Alliance Select feels that Indonesia will play a crucial role in the company’s future growth and profitability. The country is extremely rich in marine resources and full control of IAFI will enable it to better plan production schedules and sales strategy to tap additional export markets around the globe,” the firm said.

The share purchase is expected to be approved by the Indonesia Investment Coordinating Board and the Department of Law and Human Rights “in the next few days” in accordance to Indonesian law, the disclosure added.

This comes as the company is looking to expand its presence in the Asian region this year.

Last November, Alliance Select said it was looking to begin shipping salmon to South Korea this year via subsidiary Big Glory Bay Salmon and Seafood Co. to service demand from large supermarket chains.

Salmon product exports are also being eyed to markets like Hong Kong, Singapore, Japan, China, and Malaysia, as salmon and tuna sales are expected to contribute to a double-digit revenue growth for the company this year, an earlier report said.

Alliance Select, formerly Alliance Tuna International, Inc., was incorporated in 2003 and began commercial operations in General Santos City in 2004, engaging in tuna processing, canning, and the export of canned tuna products to Europe and North America.

It is registered with the Trade department’s Board of Investments as a new canned tuna exporter and operates a General Santos City plant with a rated production capacity of 140 metric tons per day.

The company booked a comprehensive loss for the January to September last year amounting to $959,455, reversing a net profit of $766,549 in 2010 levels on the back of acquisition expenses.

Revenues dipped by 3.03% to $32.02 million from P33.48 million, while manufacturing and sales costs fell by 6.90% to $27.55 million versus P29.85 million, year-on-year, according to its latest financial statement.

It expects to swing to profit for the second half last year on the back of a 5 to 6% sales boost due to healthy revenues from holiday sales, the company earlier said.

Shares of Alliance Select declined by 0.69% to P1.44 yesterday from P1.45 on Wednesday.

-Franz Jonathan G. de la Fuente Businessworld

Alliance Select pins hope on new revenue stream

FISH EXPORTER Alliance Select Foods International Inc. expects salmon to account for a larger bulk of its revenues this year, with subsidiary Big Glory Bay Salmon and Seafood Co. planning to increase shipments to markets in Asia.
“Salmon sales will create [sic] a significant push for [2012] because Big Glory Bay will have been in operation for 12 months,” Rajat Balain, Alliance Select’s assistant vice-president for corporate planning said in phone interview two weeks ago.

Mr. Balain had said that revenues from salmon were not a major driver for 2011 sales since Big Glory Bay started operations just last August.

“Salmon sales will contribute one-fourth to one-third of the company’s sales,” he said, noting however that tuna sales should fare well too.

Export ventures of the company will also focus on Asia since there is more market opportunity in the region, rather than markets in the West, where the firm has already established a network with suppliers and producers.

Earlier, Mr. Balain said that the company would be shipping its first smoked salmon order to South Korea this month, and is looking at opportunities in China, and Malaysia and Indonesia.

Salmon processed by its subsidiary comes from New Zealand.

Alliance Select, formerly Alliance Tuna International, Inc., recorded a net loss of $1.44 million in the third quarter of 2011, 227% bigger than 2010’s $380,208 loss, according to its latest financial report, as the firm bankrolled acquisitions. The nine-month net loss totaled $959 million, a reversal from 2010’s $766,549 profit. — C. H. C. Venzon

www.bworldonline.com

Below are links from Business news and blogs from around the web:

• Alliance Tuna buys cannery in Indonesia 05/20/2008
• Alliance Tuna increases stake in Indonesian subsidiary 03/14/09
• Alliance Tuna hikes profits by a third as prices go 04/14/09
• GenSan’s Alliance Tuna opening new P60million processing plant 06/16/09
• Alliance Tuna International expands product line, changes name 05/28/10
• Alliance Tuna Sees hefty profit growth in ’10 07/01/2010

This year we won the Agora for Outstanding Achievement in Export Marketing from the Philippine Marketing Association. We are honored. Below we quote from The Daily Philippine Inquirer’s website (Business Section:

Alliance Tuna International is one of the leading canned tuna manufacturers in the Philippines. Its high-quality tuna and salmon products are currently exported to over 40 countries. Even though it is not exactly a household name in the country, the global clamor for its products is too loud not to hear.

“We don’t have aggressive TV and radio campaigns. Our biggest marketing strategy, through the leadership of our president and CEO Jonathan Dee, is to ensure that we have first-rate quality products,” says Teresita Ladanga, SVP and COO of Alliance Tuna.

Despite the lack of larger-than-life ad campaigns, it remains one of the most profitable corporations and is the 2009 Agora awardee for Export Marketing.

To see the whole article, click here.

MANADO, North Sulawesi, Indonesia – President Gloria Macapagal-Arroyo inaugurated Friday (May 15) the PT International Alliance Food Indonesia, a Filipino-owned tuna canning plant in Bitung, North Sulawesi.

The inauguration of the plant which is the Philippines’ only publicly-listed tuna-canning enterprise was held at the VVIP Room of the Sam Ratulangi International Airport here before the President flew back to the Philippines.

The 1 p.m. event followed President Arroyo’s luncheon meeting with the Filipino community at the Grand Ballroom of the Ritzy Hotel in downtown Manado.

Sulawesi Utara Governor Sinyo Harry Sarundajang welcomed to the inauguration President Arroyo and her delegation which included Press Secretary Cerge Remonde, Environment Secretary Jose Atienza, Agriculture Secretary Arthur Yap, Foreign Affairs Secretary Alberto Romulo, and other government officials.

Governor Sarundajang’s welcome remarks were followed by the speech of Indonesia Minister of Marine Affairs and Fisheries Freddy Numberi who gave an overview of the fisheries situation in North Sulawesi as he hoped that the Filipino investment in Bitung “will benefit both countries, and especially North Sulawesi.”

The inauguration was capped by the signing by President Arroyo with gold ink the giant metal plaque that proclaims, “By the grace of our Lord, a new era of cooperation dawns with the inauguration of PT International Alliance Food Indonesia in Bitung, North Sulawesi on 15 May 2009.”

Jonathan Dee, Alliance Tuna president and chief executive officer, said the 60-ton-per-day Sulawesi plant augments the company’s cannery in General Santos City which packs 140 tons of tuna per day.

The President – who returned to the country after the ceremonial inauguration — was in Manado on Thursday (May 14) and Friday to attend the Coral Triangle Initiative (CTI) Summit 2009 at the Grand Kawanua Convention Center.

In her statement at the CTI Summit, President Arroyo revealed to the CTI member nations and development partners that the BIMP-EAGA – the East Asia growth area covering Brunei, Indonesia, Malaysia and the Philippines – is “pursuing the establishment of a joint fisheries consortium among our private sectors.”

“We are pursuing the adoption of policies that call on the tuna industry to share the costs of caring for tuna spawning grounds in the Coral Triangle.

“Funding and technical assistance is being provided by the Global Environment Facility or GEF, the Asian Development Bank, and the Australian and United States governments, among others,” the President revealed.

“International non-governmental organizations such as Conservation International, the Nature Conservancy and the Worldwide Fund for Nature are also joining forces to work with the Coral Triangle governments in pursuing the regional plan of action as well national action plans,” the President added.

Alliance Tuna plans to acquire Vietnam, Thai companies Canned Tuna exporter Alliance Tuna International Inc. is planning to expand its product portfolio through acquisitions as it aims to double its revenue next year. Alliance Tuna president and chief executive officer Jonathan Dee said the firm is in talks with two companies in Vietnam and Thailand for possible acquisition deals. “These companies have competitive advantage over certain products we are interested in. We want to make another acquisition because we want to double our size,” he said.

Dee said he is hopeful that a deal with one of the two companies will be closed within the year. While he declined to name the target companies, Dee said the planned acquisitions would be much “more substantial” than the Indonesian venture.

Dee said funding for the company’s expansion will come from debt and internally generated cash.

Alliance Tuna is setting up a subsidiary in Indonesia to be called PT International Alliance Foods Indonesia after buying the assets of PT Karabha Sakti, a tuna cannery in Bitung, Indonesia. Initially capitalized at million, the new unit will process canned tuna for export and is slated to be operational in October this year.

Alliance Tuna has earmarked about P35.7 million for the modernization of the Bitung plant and raise its capacity to 60 metric tons a day on top of a capacity to process 20 MT a day of frozen tuna loins and other marine products.

Dee said the company’s sales are expected to rise by 25 percent this year to P50 million.

In 2007 Alliance Tuna registered revenues of .2 million, up 36 percent from the previous year’s .1 million. The strong sales growth was attributed to the surge in orders from all the major markets, a wider client base and introduction of new products.

The company shipped 956 full container loads of canned tuna products last year, 107 containers more than 2006 shipments.

Alliance Tuna is looking at new markets such as Caspian and Kazakhstan to boost sales and expand its global market reach.

The company’s primary export markets are Europe and North America, which account for 84 percent of its total export sales.

By Zinnia B. Dela Pentilde
“Philippine Star”

March 15, 2007 – Alliance Tuna net income jumps 80% to P102M, Alliance Tuna International Inc., one of the country’s largest tuna exporters, said net earnings jumped by more than 80 percent last year to P102.8 million on new clients and orders. In a financial report filed with the Philippine Stock Exchange, Alliance Tuna said net sales grew nearly 43 percent to P1.6 billion, mainly due to the upsurge of orders from all the major markets, orders from new markets it establised last year and an expansion of the company’s product lines. Gross profit announced to P189.3 million while gross profit margins were posted at around 12 percent, reflecting strong margins in a commoditized globl industry. Improved cost controls and the entry into new markets that paid better prices helped in improving the core profitability of the company. Alliance Tuna said.

Alliance Tuna president Jonathan Dee said “2006 was a great year for us”. The company’s stellar performance was the result of our market expansion program and our continous program of improving operations at the factory floor. Dee said the company is now selling to more than 40 countries worldwide, double to number two years ago and is continously seeking new markets. We have taken part in exhibitions in Asia, the Middle East and Eastern Europe which have helped us expand our marketing reach. This larger client base has enabled us to beat the targets we set ourselves at the start of 2006 Dee said.

“The Philippine Star, BUSINESS”