4A1-Group-4-Strategic-Business-Plan-1-signed

UNIVERSITY OF SANTO TOMAS
UST - Alfredo M. Velayo College of Accountancy

España, Manila
Strategic Business Plan for
DEL MONTE PACIFIC LIMITED (DMPL)
Presented to the
University of Santo Tomas
Alfredo M. Velayo College of Accountancy
In partial fulfillment of the requirements for

Bachelor of Science in Accountancy
Submitted by:
Tricia Mae J. Dimaranan
Sophia M. Dineros
Sheila Janelle S. Lamsen
Charmie Faith Mascardo
Raven Naomi T. Pavon
Submitted to:
Inst. Gerardo M. Castro, MBA
CERTIFICATE OF ORIGINALITY
We hereby declare that this submission is our own work and that, to the best of our knowledge
and belief, it contains no material previously published or written by another person nor material which
to a substantial extent has been accepted for the award of any other degree or diploma of a university or
other institute of higher learning, except where due acknowledgement is made in the text.
We also declare that the intellectual content of this thesis is the product of our work, even though we
may have received the assistance from others on style, presentation, and language expression.
________________________ __________________________
Tricia Mae J. Dimaranan Sophia M. Dineros
________________________ __________________________
Sheila Janelle S. Lamsen Charmie Faith Mascardo
________________________
Raven Naomi T. Pavon
Noted by:
_________________________

APPROVAL SHEET
This Strategic Business Plan for
DEL MONTE PACIFIC LIMITED (DMPL)
prepared and submitted by Tricia Mae J. Dimaranan, Sophia M. Dineros, Sheila Janelle S. Lamsen, Charmie Faith
Mascardo, and Raven Naomi T. Pavon, has been ENDORSED for proposal defense as partial fulfillment of the
requirements for the degree of Bachelor of Science in Accountancy.
________________________________

Course Facilitator
PANEL OF EXAMINERS
Approved by the College of Accountancy Strategic Business Plan Committee on Oral Examination with a grade
of _____ in December _____, 2023.
Mr. Gerber Mendoza Mr. Francis R. Ribleza
______________________________________________
PROF. PATRICIA M. EMPLEO, Ph.D.
Dean, UST – Alfredo M. Velayo College of Accountancy
TABLE OF CONTENTS
EXECUTIVE SUMMARY........................................................................................................................1
CHAPTER I: INTRODUCTION............................................................................................................. 2
Industry Profile...................................................................................................................................... 2
Firm Profile............................................................................................................................................2
Key Financial Highlights (5-Year Back Data)....................................................................................... 3
Financial Data.................................................................................................................................. 4
Core Products.......................................................................................................................................19
Beverages.......................................................................................................................................19
Culinary..........................................................................................................................................19
Fruits.............................................................................................................................................. 21
Snacks............................................................................................................................................ 21
Dairy.............................................................................................................................................. 21
Major Target Market............................................................................................................................ 22
Firm’s Vision, Mission, and Core Values.............................................................................................22
Vision............................................................................................................................................. 22
Mission...........................................................................................................................................22
Core Values.................................................................................................................................... 22
Evaluation of the Firm’s Vision and Mission Statement............................................................... 23
David’s Framework........................................................................................................................24
Suggestions and Recommendations...............................................................................................27
Revised Firm’s Vision and Mission Statement............................................................................................ 29
CHAPTER II: EXTERNAL ENVIRONMENTAL ANALYSIS......................................................... 31
The General Environment....................................................................................................................31
Dimensions of General Environment.............................................................................................31
Political / Legal........................................................................................................................ 32
Economic................................................................................................................................. 32
Sociocultural............................................................................................................................ 33
Technological........................................................................................................................... 34
Demographic............................................................................................................................35
Global.......................................................................................................................................35
Opportunities and Threats....................................................................................................................36
Opportunities..................................................................................................................................37
Threats............................................................................................................................................40
Summary of Key Findings in the Macro Environment Analysis...................................................41
Industry and Competitor Analysis....................................................................................................... 44
Porter’s Five Forces Framework....................................................................................................44
Threat of New Entrants (Low).................................................................................................45
Bargaining Power of Buyers (High)........................................................................................ 45
Bargaining Power of Suppliers (Low)..................................................................................... 46
Threat of Substitution (Low)................................................................................................... 47
Competitive Rivalry (Moderate)..............................................................................................47
Summary of Key Findings in the Industry and Competitor Analysis..................................................48
Key Issues, Problems, and Challenges................................................................................................ 52
CHAPTER III: INTERNAL ENVIRONMENT ANALYSIS.............................................................. 56
Resource, Capability, and Core Competencies.................................................................................... 56
Resources....................................................................................................................................... 56
Tangible Resources.................................................................................................................. 56
Financial Resources........................................................................................................... 56
Organizational Resources.................................................................................................. 57
Physical Resources.............................................................................................................58
Technological Resources................................................................................................... 59
Financial Ratio Analysis.......................................................................................................... 61
Intangible Resources................................................................................................................62
Human Resources.............................................................................................................. 62
Innovation Resources.........................................................................................................64
Reputational Resources......................................................................................................65
Capability and Core Competencies................................................................................................67
Structure.............................................................................................................................69
Strategy.............................................................................................................................. 70
Systems.............................................................................................................................. 71
Shared Values.....................................................................................................................72
Style................................................................................................................................... 73
Staff....................................................................................................................................74
Skills.................................................................................................................................. 74
Competitive Advantages (Criteria of Sustainable Competitive Advantage)................................. 74
Value Chain (Industry-Specific) - Porter’s Generic.......................................................................77
Primary Activities.......................................................................................................................... 79
Inbound Logistics.....................................................................................................................79
Operations................................................................................................................................ 80
Outbound Logistics..................................................................................................................80
Marketing and Sales.................................................................................................................81
Service......................................................................................................................................82
Support Activities.......................................................................................................................... 83
Procurement and Purchasing....................................................................................................83
Human Resource Management................................................................................................ 83
Technological Development.................................................................................................... 84
Firm’s Strengths................................................................................................................................... 86
Firm’s Weaknesses...............................................................................................................................89
Internal Factor Evaluation....................................................................................................................91
Key Internal Factor........................................................................................................................ 91
Risk Assessment.................................................................................................................................. 94
CHAPTER IV: STRATEGIC OBJECTIVES, STRATEGIC FORMULATION, &
ALTERNATIVE COURSES OF ACTION........................................................................................... 98
Long-Term Objectives (Strategic Objectives)..................................................................................... 98
Financial Objectives.......................................................................................................................98
Nonfinancial Objectives.................................................................................................................98
Strategic Position and Action Evaluation (SPACE) Matrix.................................................................98
Threats, Opportunities, Weakness, and Threats (TOWS) Matrix................................................ 100
TOWS Matrix................................................................................................................................... 101
Quantitative Strategic Planning Matrix (QSPM)...............................................................................103
Recommendation............................................................................................................................... 105
Resources Requirements....................................................................................................................107
CHAPTER V: FIVE-YEAR FINANCIAL PROJECTION............................................................... 113
Key Financial Assumptions............................................................................................................... 113
Projections..........................................................................................................................................115
Statement of Comprehensive Income.......................................................................................... 115
Statement of Financial Position................................................................................................... 119
Statement of Cash Flows............................................................................................................. 124
Financial Ratios................................................................................................................................. 131
REFERENCES.......................................................................................................................................134
LIST OF FIGURES
Figure 2.1 External Environment - PESTEL-DG 31
Figure 2.2 Porter’s Five Forces Framework 45
Figure 3.1 Composition of Board Committees 57
Figure 3.2 McKinsey’s 7S Framework Strategy 67
Figure 3.3 Del Monte Pacific Limited Strategy 67
Figure 3.4 Value Chain (Industry-Specific) - Porter’s Generic 78
Figure 3.5 Del Monte Pacific Limited’s Value Chain 78
Figure 3.6 Risk Assessment Matrix 97
Figure 4.1 SPACE Matrix Plot for DMPL 99
LIST OF TABLES
Table 1.1. Horizontal Analysis of the Statement of Financial Position 4

Table 1.2. Vertical Analysis of the Statement of Financial Position 7
Table 1.3 Horizontal Analysis of the Statement of Comprehensive Income 10
Table 1.4 Vertical Analysis of the Statement of Comprehensive Income 14
Table 1.5 Five-Year Financial Summary 17
Table 1.6 Beverages 19
Table 1.7 Culinary 20
Table 1.8 Fruits 21
Table 1.9 Snacks 21
Table 1.10 Dairy 22
Table 1.11 Evaluation of Mission Statement using David’s Framework 25
Table 2.1 External Factor Evaluation (EFE) Matrix 42
Table 2.2 Competitive Profile Matrix (CPM) 50
Table 3.1 Five Year Financial Ratios Summary 61
Table 3.2 Visible, Rare, Imitable, Organized (VRIO) Framework 75
Table 3.3 Internal factor Evaluation (IFE) Matrix 91
Table 3.4 Risk Assessment Form 94
Table 4.1 SPACE Matrix Factors 100
Table 4.2 TOWS Matrix 101
Table 4.3 Quantitative Strategic Planning Matrix (QSPM) 103
Table 4.4 Resources Required for Market Expansion 109
Table 5.1 Projected SCI without Implementation 117
Table 5.2 Projected SCI with Implementation 119
Table 5.3 Projected SFP without Implementation 121
Table 5.4 Projected SFP with Implementation 123
Table 5.5 Projected SCF without Implementation 126
Table 5.6 Projected SCF with Implementation 129
Table 5.7 Projected Financial Ratios without Implementation 133
Table 5.8 Projected Financial Ratios with Implementation 134
EXECUTIVE SUMMARY
Del Monte Pacific Limited (DMPL) is a global food and beverage company involved in
manufacturing, processing, marketing, and distribution across the Americas, Asia Pacific, and Europe.
Dual-listed on prominent stock exchanges, DMPL operates under segments like Packaged Fruit and
Vegetable, Beverage, Culinary, and Fresh Fruit, presenting a legacy of quality since 1886. Notably,
DMPL's subsidiaries, under distinct ownership, cater to consumer demands for premium and healthy
products worldwide, holding a significant market presence across various continents, striving for
innovation and distribution excellence.
The paper encompasses an in-depth external and internal analysis utilizing frameworks like 7S,
VRIO, SWOT, and PESTLE-DG to discern critical factors contributing to Del Monte Pacific Limited's
success. Central to its achievements are its adeptness in developing food-related businesses, constant
innovation, and robust multinational manufacturing and supply chain capabilities. While these pillars
remain strong, the paper acknowledges the necessity for comprehensive review. To facilitate this, a
range of frameworks and matrices are employed to further evaluate the company's current standing,
paving the way for the strategic business plan aimed at enhancing existing operations in alignment with
enduring financial and non-financial objectives.
With this, thorough analysis of DMPL using the QSPM underscores the imperative of a robust
Product Development Strategy, crucial for sustained growth and competitiveness in the ever-evolving
food and beverage industry. This strategic imperative isn't merely a reaction to market shifts but
anticipates and adapts to evolving consumer preferences. Focusing on leveraging DMPL's dominant
market position and extensive distribution network to tap into the growing trend of plant-based
consumption in the Philippines, the proposed strategy suggests diversifying the product range to align
with health-conscious consumer preferences. Key components involve prioritizing Research and
Development (R&D) efforts, establishing collaborative innovation hubs, fostering sustainable sourcing
protocols, strengthening ties with local farming communities, and enhancing digital marketing
strategies, including gamification elements, to engage consumers actively. By prioritizing innovation,
sustainability, and consumer engagement, DMPL is poised to secure a leading position in the industry
while meeting the burgeoning demand for plant-based alternatives across regions.
As part of this strategic strategy, DMPL's financial performance was predicted through financial
predictions for the next five years of its operations. The estimations have been carefully developed,
taking into account several elements such as inflation rates, industry growth projections, and average
conversion rates. This enables a thorough comparison between expected outcomes with and without the
implementation of the proposed strategy. The comprehensive assessment of these financial projections
depicts a promising picture, suggesting a steady and favorable pattern of increasing growth across
multiple key financial indicators. The suggested strategic strategy has the potential to significantly
enhance DMPL's financial performance, as seen by the expected gains in net income, earnings per share,
and cash flows. This analysis provides evidence for the important role of the recommended strategy in
contributing to DMPL's long-term financial success as predicted.
CHAPTER I: INTRODUCTION
This chapter of the paper presents a comprehensive analysis of Del Monte Pacific Limited
(DMPL), highlighting its firm profile, 5-year key financial data and performance, core product offerings,
primary target market, vision, core principles and values, and a thorough evaluation of its mission
statement through the lens of David’s Framework. This sheds light on the current alignment of the
company’s overarching objectives and purpose to its directional and strategic actions, setting the
foundation for this paper’s strategic business plan.
Industry Profile
The food and beverage business is a vast market encompassing the manufacture and distribution
of consumable commodities and plays a vital role since they are basic human necessities. As a result, it
may come as no surprise that this sector is one of the world's top industries, with several renowned firms
as significant players. Globalization and the continuous advancement of technology have brought
significant changes and growth in the market. According to Business Research Company (2022), the
global food and beverage industry is predicted to experience an increase of 9.7% from $5.8 trillion in
2021 to $6.4 trillion in 2022. The food and beverage industry is expected to reach $8.9 trillion in 2026,
growing at an 8.7% compound annual growth rate. The Asia Pacific is considered to have the largest
share in the market, followed by Europe, and in the Philippines alone, the gross value added generated
from the food and beverage service activities industry amounted to roughly 240 billion Philippine pesos
in 2022 from around 190 billion pesos in 2021 (Statista Research Department, 2023).
Firm Profile
Dual-listed on the mainboards of the Singapore Exchange Securities Trading Limited and the
Philippine Stock Exchange, Inc., Del Monte Pacific Limited (DMPL) is an investment holding company
principally engaged in the manufacturing, processing, marketing, and distribution of food, beverage, and
other related products in the Americas, the Asia Pacific, and Europe. It operates through the following
business segments: Packaged Fruit and Vegetable, Beverage, Culinary, and Fresh Fruit and Others
mainly under its heritage brands Del Monte, S&W, Today's, Contadina, and College Inn, among others
(“Del Monte Pacific Ltd.”, n.d.). With a tagline of “Nourishing Families. Enriching Lives. Every Day.
For over 100 years”, the Del Monte brand has been synonymous with premium quality foods since its
inception in 1886 (DMPL Sustainability Report, n.d.).
Del Monte Pacific Limited (DMPL) was incorporated on May 27, 1999, as an international
business company under the statutes of the British Virgin Islands. On August 2, 1999, the Company was
admitted to the official list of the Singapore Exchange Securities Trading Limited and subsequently
debuted in the Philippine market on June 10, 2013 (PSE Edge, n.d.). Daniel Provost and Francis Cutting,
two pioneers of West Coast canning in the 19th century, are credited with starting Del Monte (Dorman,
2008). The company’s Philippine subsidiary is headed by Rolando C. Gapud, its Executive Chairman,
and Joselito Dee Campos, its Chief Executive Officer, Executive Director, and Managing Director (WSJ
Markets, n.d).
2
The other Del Monte businesses worldwide, such as Fresh Del Monte Produce Inc., Del Monte
Canada, and Del Monte Asia Pte, Ltd., are not connected to Del Monte Pacific Limited and the affiliates
of these businesses. NutriAsia Pacific Ltd. and Bluebell Group Holdings Limited, wholly controlled by
the Campos family of the Philippines, hold 71% of DMPL. In the Philippines, a subsidiary of the
NutriAsia Group dominates the markets for cooking oils, specialty sauces, and liquid condiments.
Del Monte Pacific Limited is a global branded food and beverage company catering to today’s
consumer demands for premium quality and healthy products. It innovates, produces, markets, and
distributes its products worldwide, including the United States, South America, the Philippines, the
Indian subcontinent, and Myanmar.
By examining further, the food and beverages market growth is dominated by major companies
such as Nestle, JBS, PepsiCo, Anheuser-Busch InBev, Tyson Foods, Wilmar International, ADM,
Coca-Cola, Imperial brands, and Mars Incorporated (Jha, 2023). To put things in perspective, Del Monte
Pacific Limited (DMPL) generated higher sales of $84.9 million (roughly 4.8 billion pesos), increasing
by 13 percent, driven by the strong performance of fresh pineapple exports. DMPL's growth is still
relatively in line with the market’s performance, having a market share of around 2% of the Philippine
market. This might be considered a good market share, given that the whole industry is still recovering
from the effects of the COVID-19 pandemic.
Key Financial Highlights (5-Year Back Data)
In strategically crafting a business plan for Del Monte Pacific Limited (DMPL), fundamentally
understanding its financial condition is paramount. After all, the financial health of an entity is a
prominent measure of its internal performance, helping users discern points of improvement and
allowing management to amplify existing positive practices. In assessing Del Monte’s financial status,
the financial statements are deemed the best indicators of the company’s overall position, and so
studying its key financial highlights over the course of five years will provide the stakeholders with an
in-depth grasp on the results of its operation, its financial position, and cash flow. Moreover, scrutinizing
five years' worth of financial data will allow users to identify trends in performance and evaluate the
long-term repercussions of business decisions.
3
Financial Data
Presented in the subsequent four figures is the financial data of Del Monte Pacific Limited (DMPL) from the year 2018 to 2022.
Primarily, these data were extracted from Osiris. This global database houses publicly listed entities' financial reports and is substantiated by the
results and reports disclosed on the company website to boost the reliability of the said documents.
Horizontal and vertical analyses were employed to facilitate the identification of trends and the assessment of the various line items
making up the financial statements. Notably, Table 1.1 and Table 1.2 exhibit the horizontal and vertical analysis, respectively, of Del Monte’s
Statement of Financial Position from the years 2018 to 2021. In addition, Table 1.3 and Table 1.4 detail the horizontal and vertical analysis,
respectively, of Del Monte’s Statement of Comprehensive Income for the same timeframe.
Table 1.1
Horizontal Analysis of the Statement of Financial Position as of April 30, 2019 to April 30, 2023
DEL MONTE PACIFIC LIMITED
STATEMENT OF FINANCIAL POSITION
YEARS ENDED APRIL 30, 2019 - APRIL 30, 2023
(IN PHP '000)
2023 2022 2021 2020 2019 % Δ in 2023 % Δ in 2022 % Δ in 2021 % Δ in 2020
Current Assets
Cash and cash equivalents 1,100,898.00 1,142,911.90 1,418,767.00 1,686,636.00 1,127,235.60 -3.68% -19.44% -15.88% 49.63%
Prepaid expenses and other current assets 3,311,518.50 2,565,419.60 1,797,185.20 3,412,684.80 1,912,903.60 29.08% 42.75% -47.34% 78.40%
Trade and other receivables 12,822,498.00 11,221,121.90 8,919,361.80 16,282,476.00 7,765,713.40 14.27% 25.81% -45.22% 109.67%
Inventories 59,760,846.00 35,875,603.40 26,876,416.40 24,316,135.20 34,642,436.20 66.58% 33.48% 10.53% -29.81%
Biological assets 2,489,286.00 2,476,195.80 2,164,806.60 3,082,464.00 2,725,872.00 0.53% 14.38% -29.77% 13.08%
Non Current assets held for sale 0.00 0.00 0.00 0.00 232,626.50 - - - -
Total Current Assets 79,485,046.50 53,281,252.60 41,176,537.00 48,780,396.00 48,406,787.30 49.18% 29.40% -15.59% 0.77%
4
Noncurrent Assets
Property, plant and equipment - net 36,574,000.50 30,210,938.10 26,258,203.20 25,577,848.80 30,323,919.30 21.06% 15.05% 2.66% -15.65%
Right-of-use assets 5,581,413.00 6,461,089.70 6,517,025.60 8,370,684.00 0.00 -13.61% -0.86% -22.14% -
Investments in subsidiaries 0.00 0.00 0.00 0.00 0.00 - - - -
Investments in joint ventures 1,118,935.50 898,095.60 1,085,946.00 1,151,892.00 1,261,445.20 24.59% -17.30% -5.73% -8.68%
Intangible assets and goodwill 41,838,175.50 35,984,858.10 33,484,395.40 35,347,888.80 36,886,643.70 16.27% 7.47% -5.27% -4.17%
Deferred tax assets - net 6,552,330.00 6,105,763.50 6,291,931.60 7,306,689.60 5,539,324.10 7.31% -2.96% -13.89% 31.91%
Biological assets 166,888.50 143,040.50 127,971.00 106,747.20 87,632.20 16.67% 11.78% 19.88% 21.81%
Pension assets - net 589,965.00 512,487.70 380,249.80 336,420.00 429,304.00 15.12% 34.78% 13.03% -21.64%
Other noncurrent assets 2,344,875.00 1,590,495.30 1,220,665.00 1,760,824.80 2,036,901.60 47.43% 30.30% -30.68% -13.55%
Due from a subsidiary 0.00 0.00 0.00 0.00 0.00 - - - -
Total Noncurrent Assets 94,766,583.00 81,906,768.50 75,366,387.60 79,958,995.20 76,565,170.10 15.70% 8.68% -5.74% 4.43%
TOTAL ASSETS 174,251,629.50 135,188,021.10 116,542,924.60 128,739,391.20 124,971,957.40 28.90% 16.00% -9.47% 3.01%
LIABILITIES AND EQUITY

Current Liabilities
Current tax liabilities 82,806.00 88,177.80 157,421.20 315,000.00 88,153.20 -6.09% -43.99% -50.03% 257.33%
Trade payables and other current liabilities 16,924,170.00 15,838,165.90 12,277,937.80 13,955,407.20 9,829,654.90 6.86% 29.00% -12.02% 41.97%
Employee benefits 1,347,540.00 1,932,903.40 1,844,855.00 1,156,528.80 1,440,044.00 -30.28% 4.77% 59.52% -19.69%
Lease liabilities 1,548,006.00 1,545,412.70 1,210,446.60 1,553,781.60 0.00 0.17% 27.67% -22.10% -
Loans and borrowings 70,977,618.00 25,070,214.20 16,024,234.60 65,433,916.80 25,671,754.00 183.12% 56.45% -75.51% 154.89%
Total Current Liabilities 90,880,140.00 44,474,874.00 31,514,895.20 82,414,634.40 37,029,606.10 104.34% 41.12% -61.76% 122.56%
Noncurrent Liabilities
5
Loans and borrowings 55,193,473.50 56,903,027.60 45,948,578.00 4,925,944.80 51,366,171.50 -3.00% 23.84% 832.79% -90.41%
Employee benefits 1,181,817.00 1,273,086.60 1,535,941.20 4,152,859.20 3,322,990.10 -7.17% -17.11% -63.01% 24.97%
Environmental remediation liabilities 0.00 10,616.90 358,077.80 483,184.80 36,313.70 -100.00% -97.04% -25.89% 1230.59%
Lease liabilities 4,007,322.00 4,799,623.30 4,997,858.00 6,435,878.40 0.00 -16.51% -3.97% -22.34% -
Deferred tax liabilities - net 645,465.00 649,618.30 318,071.80 627,328.80 333,648.40 -0.64% 104.24% -49.30% 88.02%
Other noncurrent liabilities 933,843.00 1,204,102.90 901,195.40 1,178,352.00 1,563,781.50 -22.44% 33.61% -23.52% -24.65%
Total Noncurrent Liabilities 61,961,920.50 64,840,075.60 54,059,722.20 17,803,548.00 56,622,905.20 -4.44% 19.94% 203.65% -68.56%
TOTAL LIABILITIES 152,842,060.50 109,314,949.60 85,574,617.40 100,218,182.40 93,652,511.30 39.82% 27.74% -14.61% 7.01%
Equity
Share capital 1,079,419.50 1,540,182.70 2,383,441.80 2,492,229.60 2,576,292.90 -29.92% -35.38% -4.37% -3.26%
Share premium 11,562,814.50 15,603,129.70 23,055,939.80 24,108,285.60 24,921,461.90 -25.89% -32.32% -4.37% -3.26%
Retained earnings 6,634,470.00 7,338,736.00 4,017,421.80 3,062,455.20 5,005,455.40 -9.60% 82.67% 31.18% -38.82%
Reserves (1,582,360.50) (2,224,894.30) (1,443,734.60) (3,904,689.60) (3,429,586.70) -28.88% 54.11% -63.03% 13.85%
Equity attributable to owners of the

Company 17,694,343.50 22,257,154.10 28,013,068.80 25,758,280.80 29,073,623.50 -20.50% -20.55% 8.75% -11.40%
Non-controlling interests 3,715,225.50 3,615,917.40 2,955,238.40 2,762,928.00 2,245,822.60 2.75% 22.36% 6.96% 23.03%
TOTAL EQUITY 21,409,569.00 25,873,071.50 30,968,307.20 28,521,208.80 31,319,446.10 -17.25% -16.45% 8.58% -8.93%
TOTAL LIABILITIES AND EQUITY 174,251,629.50 135,188,021.10 116,542,924.60 128,739,391.20 124,971,957.40 28.90% 16.00% -9.47% 3.01%
6
Table 1.2
Vertical Analysis of the Statement of Financial Position as of April 30, 2019 to April 30, 2023
STATEMENT OF FINANCIAL POSITION
(IN PHP '000)
2023 % 2022 % 2021 % 2020 % 2019 %
Current Assets
Cash and cash equivalents 1,100,898.00 0.63% 1,142,911.90 0.85% 1,418,767.00 1.22% 1,686,636.00 1.31% 1,127,235.60 0.90%
Prepaid expenses and other current

assets 3,311,518.50 1.90% 2,565,419.60 1.90% 1,797,185.20 1.54% 3,412,684.80 2.65% 1,912,903.60 1.53%
Trade and other receivables 12,822,498.00 7.36% 11,221,121.90 8.30% 8,919,361.80 7.65% 16,282,476.00 12.65% 7,765,713.40 6.21%
Inventories 59,760,846.00 34.30% 35,875,603.40 26.54% 26,876,416.40 23.06% 24,316,135.20 18.89% 34,642,436.20 27.72%
Biological assets 2,489,286.00 1.43% 2,476,195.80 1.83% 2,164,806.60 1.86% 3,082,464.00 2.39% 2,725,872.00 2.18%
Noncurrent assets held for sale 0.00 0.00% 0.00 0.00% 0.00 0.00% 0.00 0.00% 232,626.50 0.19%
Total Current Assets 79,485,046.50 45.62% 53,281,252.60 39.41% 41,176,537.00 35.33% 48,780,396.00 37.89% 48,406,787.30 38.73%
Noncurrent Assets
Property, plant and equipment - net 36,574,000.50 20.99% 30,210,938.10 22.35% 26,258,203.20 22.53% 25,577,848.80 19.87% 30,323,919.30 24.26%
Right-of-use assets 5,581,413.00 3.20% 6,461,089.70 4.78% 6,517,025.60 5.59% 8,370,684.00 6.50% 0.00 0.00%
Investments in subsidiaries 0.00 0.00% 0.00 0.00% 0.00 0.00% 0.00 0.00% 0.00 0.00%
Investments in joint ventures 1,118,935.50 0.64% 898,095.60 0.66% 1,085,946.00 0.93% 1,151,892.00 0.89% 1,261,445.20 1.01%
Intangible assets and goodwill 41,838,175.50 24.01% 35,984,858.10 26.62% 33,484,395.40 28.73% 35,347,888.80 27.46% 36,886,643.70 29.52%
Deferred tax assets - net 6,552,330.00 3.76% 6,105,763.50 4.52% 6,291,931.60 5.40% 7,306,689.60 5.68% 5,539,324.10 4.43%
Biological assets 166,888.50 0.10% 143,040.50 0.11% 127,971.00 0.11% 106,747.20 0.08% 87,632.20 0.07%
7
Pension assets - net 589,965.00 0.34% 512,487.70 0.38% 380,249.80 0.33% 336,420.00 0.26% 429,304.00 0.34%
Other noncurrent assets 2,344,875.00 1.35% 1,590,495.30 1.18% 1,220,665.00 1.05% 1,760,824.80 1.37% 2,036,901.60 1.63%
Due from a subsidiary 0.00 0.00% 0.00 0.00% 0.00 0.00% 0.00 0.00% 0.00 0.00%
Total Noncurrent Assets 94,766,583.00 54.38% 81,906,768.50 60.59% 75,366,387.60 64.67% 79,958,995.20 62.11% 76,565,170.10 61.27%
TOTAL ASSETS 174,251,629.50 100.00% 135,188,021.10 100.00% 116,542,924.60 100.00% 128,739,391.20 100.00% 124,971,957.40 100.00%

Current Liabilities
Current tax liabilities 82,806.00 0.05% 88,177.80 0.07% 157,421.20 0.14% 315,000.00 0.24% 88,153.20 0.07%
Trade payables and other current

liabilities 16,924,170.00 9.71% 15,838,165.90 11.72% 12,277,937.80 10.54% 13,955,407.20 10.84% 9,829,654.90 7.87%
Employee benefits 1,347,540.00 0.77% 1,932,903.40 1.43% 1,844,855.00 1.58% 1,156,528.80 0.90% 1,440,044.00 1.15%
Lease liabilities 1,548,006.00 0.89% 1,545,412.70 1.14% 1,210,446.60 1.04% 1,553,781.60 1.21% 0.00 0.00%
Loans and borrowings 70,977,618.00 40.73% 25,070,214.20 18.54% 16,024,234.60 13.75% 65,433,916.80 50.83% 25,671,754.00 20.54%
Total Current Liabilities 90,880,140.00 52.15% 44,474,874.00 32.90% 31,514,895.20 27.04% 82,414,634.40 64.02% 37,029,606.10 29.63%
Noncurrent Liabilities
Environmental remediation liabilities 0.00 0.00% 10,616.90 0.01% 358,077.80 0.31% 483,184.80 0.38% 36,313.70 0.03%
Lease liabilities 4,007,322.00 2.30% 4,799,623.30 3.55% 4,997,858.00 4.29% 6,435,878.40 5.00% 0.00 0.00%
Deferred tax liabilities - net 645,465.00 0.37% 649,618.30 0.48% 318,071.80 0.27% 627,328.80 0.49% 333,648.40 0.27%
Other noncurrent liabilities 933,843.00 0.54% 1,204,102.90 0.89% 901,195.40 0.77% 1,178,352.00 0.92% 1,563,781.50 1.25%
Total Noncurrent Liabilities 61,961,920.50 35.56% 64,840,075.60 47.96% 54,059,722.20 46.39% 17,803,548.00 13.83% 56,622,905.20 45.31%
8
TOTAL LIABILITIES 152,842,060.50 87.71% 109,314,949.60 80.86% 85,574,617.40 73.43% 100,218,182.40 77.85% 93,652,511.30 74.94%
Equity
Share capital 1,079,419.50 0.62% 1,540,182.70 1.14% 2,383,441.80 2.05% 2,492,229.60 1.94% 2,576,292.90 2.06%
Share premium 11,562,814.50 6.64% 15,603,129.70 11.54% 23,055,939.80 19.78% 24,108,285.60 18.73% 24,921,461.90 19.94%
Retained earnings 6,634,470.00 3.81% 7,338,736.00 5.43% 4,017,421.80 3.45% 3,062,455.20 2.38% 5,005,455.40 4.01%
Reserves (1,582,360.50) -0.91% (2,224,894.30) -1.65% (1,443,734.60) -1.24% (3,904,689.60) -3.03% (3,429,586.70) -2.74%
Equity attributable to owners of the

Company 17,694,343.50 10.15% 22,257,154.10 16.46% 28,013,068.80 24.04% 25,758,280.80 20.01% 29,073,623.50 23.26%
Non-controlling interests 3,715,225.50 2.13% 3,615,917.40 2.67% 2,955,238.40 2.54% 2,762,928.00 2.15% 2,245,822.60 1.80%
TOTAL EQUITY 21,409,569.00 12.29% 25,873,071.50 19.14% 30,968,307.20 26.57% 28,521,208.80 22.15% 31,319,446.10 25.06%
TOTAL LIABILITIES AND

EQUITY 174,251,629.50 100.00% 135,188,021.10 100.00% 116,542,924.60 100.00% 128,739,391.20 100.00% 124,971,957.40 100.00%
9
Table 1.3
Horizontal Analysis of the Statement of Comprehensive Income for the Years Ended April 30, 2019 to April 30, 2023
INCOME STATEMENT
(IN PHP '000)
2023 2022 2021 2020 2019 % Δ in 2023 % Δ in 2022 % Δ in 2021 % Δ in 2020

Revenue 134,382,871.50 122,491,097.80 104,242,573.80 107,268,487.20 101,847,268.20 9.71% 17.51% -2.82% 5.32%
Cost of sales (100,694,760.00) (89,926,136.70) (77,445,157.20) (84,479,774.40) (81,268,549.70) 11.97% 16.12% -8.33% 3.95%
Gross profit 33,688,111.50 32,564,961.10 26,797,416.60 22,788,712.80 20,578,718.50 3.45% 21.52% 17.59% 10.74%
Distribution and selling expenses (12,724,596.00) (11,600,035.40) (9,660,099.40) (10,756,065.60) (10,567,911.90) 9.69% 20.08% -10.19% 1.78%
General and administrative expenses (6,678,537.00) (6,762,965.30) (6,943,354.60) (6,048,504.00) (6,019,634.00) -1.25% -2.60% 14.79% 0.48%
Other (expenses) income - net (654,289.50) (222,693.40) 17,207.40 (3,414,348.00) 183,183.60 193.81% -1394.17% -100.50% -1963.89%
Results from operating activities 13,630,689.00 13,979,267.00 10,211,170.00 2,569,795.20 4,174,356.20 -2.49% 36.90% 297.35% -38.44%
Finance income 793,261.50 272,012.30 363,138.80 389,995.20 1,145,418.50 191.63% -25.09% -6.89% -65.95%
Finance expense (11,980,285.50) (5,894,576.10) (5,500,102.00) (6,072,847.20) (5,232,090.40) 103.24% 7.17% -9.43% 16.07%
Net finance expense (11,187,024.00) (5,622,563.80) (5,136,963.20) (5,682,852.00) (4,086,671.90) 98.97% 9.45% -9.61% 39.06%
Share in net (loss) income of joint

ventures and subsidiaries (82,473.00) (259,094.20) (73,794.20) (145,504.80) (51,214.30) -68.17% 251.10% -49.28% 184.11%
Profit before taxation 2,361,192.00 8,097,609.00 5,000,412.60 (3,258,561.60) 36,470.00 -70.84% 61.94% -253.45% -9034.91%
Tax expense - net (952,768.50) (2,055,390.00) (1,314,558.60) (1,470,470.40) 704,600.40 -53.65% 56.36% -10.60% -308.70%
Profit for the year 1,408,423.50 6,042,219.00 3,685,854.00 (4,729,032.00) 741,070.40 -76.69% 63.93% -177.94% -738.14%
10
INCOME STATEMENT
(IN PHP '000)
2023 2022 2021 2020 2019 % Δ in 2023 % Δ in 2022 % Δ in 2021 % Δ in 2020

Revenue 134,382,871.50 122,491,097.80 104,242,573.80 107,268,487.20 101,847,268.20 9.71% 17.51% -2.82% 5.32%
Cost of sales (100,694,760.00) (89,926,136.70) (77,445,157.20) (84,479,774.40) (81,268,549.70) 11.97% 16.12% -8.33% 3.95%
Gross profit 33,688,111.50 32,564,961.10 26,797,416.60 22,788,712.80 20,578,718.50 3.45% 21.52% 17.59% 10.74%
Finance income 793,261.50 272,012.30 363,138.80 389,995.20 1,145,418.50 191.63% -25.09% -6.89% -65.95%
Finance expense (11,980,285.50) (5,894,576.10) (5,500,102.00) (6,072,847.20) (5,232,090.40) 103.24% 7.17% -9.43% 16.07%

STATEMENT OF COMPREHENSIVE INCOME
(IN PHP '000)
2023 2022 2021 2020 2019 % Δ in 2023 % Δ in 2022 % Δ in 2021 % Δ in 2020
Profit for the year 1,408,423.50 6,042,219.00 3,685,854.00 (4,729,032.00) 741,070.40 -76.69% 63.93% -177.94% -738.14%
Other comprehensive income (loss)
11
INCOME STATEMENT
(IN PHP '000)
2023 2022 2021 2020 2019 % Δ in 2023 % Δ in 2022 % Δ in 2021 % Δ in 2020

Revenue 134,382,871.50 122,491,097.80 104,242,573.80 107,268,487.20 101,847,268.20 9.71% 17.51% -2.82% 5.32%
Cost of sales (100,694,760.00) (89,926,136.70) (77,445,157.20) (84,479,774.40) (81,268,549.70) 11.97% 16.12% -8.33% 3.95%
Gross profit 33,688,111.50 32,564,961.10 26,797,416.60 22,788,712.80 20,578,718.50 3.45% 21.52% 17.59% 10.74%
Finance income 793,261.50 272,012.30 363,138.80 389,995.20 1,145,418.50 191.63% -25.09% -6.89% -65.95%
Finance expense (11,980,285.50) (5,894,576.10) (5,500,102.00) (6,072,847.20) (5,232,090.40) 103.24% 7.17% -9.43% 16.07%
Items that will or may be reclassified

subsequently to profit or loss:
Currency translation difference (618,603.00) (800,294.60) 332,580.00 272,210.40 (95,759.80) -22.70% -340.63% 22.18% -384.26%
Effective portion of changes in fair value

of cash flow hedges 504,772.50 (460,501.50) 206,440.60 48,484.80 24,070.20 -209.61% -323.07% 325.78% 101.43%
Tax impact on share in cash flow hedges (126,207.00) 114,693.90 (50,561.80) (11,894.40) (5,887.30) -210.04% -326.84% 325.09% 102.03%
(240,037.50) (1,146,102.20) 488,458.80 308,800.80 (77,576.90) -79.06% -334.64% 58.18% -498.06%
Items that will not be reclassified to

profit or loss:
Remeasurement of retirement plans 189,588.00 667,348.00 2,630,756.00 (1,461,247.20) (130,927.30) -71.59% -74.63% -280.03% 1016.08%
12
INCOME STATEMENT
(IN PHP '000)
2023 2022 2021 2020 2019 % Δ in 2023 % Δ in 2022 % Δ in 2021 % Δ in 2020

Revenue 134,382,871.50 122,491,097.80 104,242,573.80 107,268,487.20 101,847,268.20 9.71% 17.51% -2.82% 5.32%
Cost of sales (100,694,760.00) (89,926,136.70) (77,445,157.20) (84,479,774.40) (81,268,549.70) 11.97% 16.12% -8.33% 3.95%
Gross profit 33,688,111.50 32,564,961.10 26,797,416.60 22,788,712.80 20,578,718.50 3.45% 21.52% 17.59% 10.74%
Finance income 793,261.50 272,012.30 363,138.80 389,995.20 1,145,418.50 191.63% -25.09% -6.89% -65.95%
Finance expense (11,980,285.50) (5,894,576.10) (5,500,102.00) (6,072,847.20) (5,232,090.40) 103.24% 7.17% -9.43% 16.07%
Tax impact on remeasurement of

retirement plans (45,565.50) (170,236.50) (669,016.00) 308,095.20 110,816.70 -73.23% -74.55% -317.15% 178.02%
Gain on property revaluation 1,227,715.50 0.00 0.00 204,926.40 0.00 - - -100.00% -
Derecognition (impact) of tax on

revaluation reserve (323,454.00) 0.00 30,317.80 (61,488.00) 0.00 - -100.00% -149.31% -
1,048,284.00 497,111.50 1,992,057.80 (1,009,713.60) (20,110.60) 110.88% -75.05% -297.29% 4920.80%
Other comprehensive income (loss) for

the year, net of tax 808,246.50 (648,990.70) 2,480,516.60 (700,912.80) (97,687.50) -224.54% -126.16% -453.90% 617.51%
Total comprehensive income for the

year 2,216,670.00 5,393,228.30 6,166,370.60 (5,429,944.80) 643,382.90 -58.90% -12.54% -213.56% -943.97%
13
Table 1.4
Vertical Analysis of the Statement of Comprehensive Income for the Years Ended April 30, 2019 to April 30, 2023
INCOME STATEMENT
(IN PHP '000)
2023 % 2022 % 2021 % 2020 % 2019 %
Revenue 134,382,871.50 100.00% 122,491,097.80 100.00% 104,242,573.80 100.00% 107,268,487.20 100.00% 101,847,268.20 100.00%
Cost of sales (100,694,760.00) -74.93% (89,926,136.70) -73.41% (77,445,157.20) -74.29% (84,479,774.40) -78.76% (81,268,549.70) -79.79%
Gross profit 33,688,111.50 25.07% 32,564,961.10 26.59% 26,797,416.60 25.71% 22,788,712.80 21.24% 20,578,718.50 20.21%
Distribution and selling expenses (12,724,596.00) -9.47% (11,600,035.40) -9.47% (9,660,099.40) -9.27% (10,756,065.60) -10.03% (10,567,911.90) -10.38%
General and administrative

expenses (6,678,537.00) -4.97% (6,762,965.30) -5.52% (6,943,354.60) -6.66% (6,048,504.00) -5.64% (6,019,634.00) -5.91%
Other (expenses) income - net (654,289.50) -0.49% (222,693.40) -0.18% 17,207.40 0.02% (3,414,348.00) -3.18% 183,183.60 0.18%
Results from operating activities 13,630,689.00 10.14% 13,979,267.00 11.41% 10,211,170.00 9.80% 2,569,795.20 2.40% 4,174,356.20 4.10%
Finance income 793,261.50 0.59% 272,012.30 0.22% 363,138.80 0.35% 389,995.20 0.36% 1,145,418.50 1.12%
Finance expense (11,980,285.50) -8.92% (5,894,576.10) -4.81% (5,500,102.00) -5.28% (6,072,847.20) -5.66% (5,232,090.40) -5.14%
Net finance expense (11,187,024.00) -8.32% (5,622,563.80) -4.59% (5,136,963.20) -4.93% (5,682,852.00) -5.30% (4,086,671.90) -4.01%

ventures and subsidiaries (82,473.00) -0.06% (259,094.20) -0.21% (73,794.20) -0.07% (145,504.80) -0.14% (51,214.30) -0.05%
Profit before taxation 2,361,192.00 1.76% 8,097,609.00 6.61% 5,000,412.60 4.80% (3,258,561.60) -3.04% 36,470.00 0.04%
Tax expense - net (952,768.50) -0.71% (2,055,390.00) -1.68% (1,314,558.60) -1.26% (1,470,470.40) -1.37% 704,600.40 0.69%
Profit for the year 1,408,423.50 1.05% 6,042,219.00 4.93% 3,685,854.00 3.54% (4,729,032.00) -4.41% 741,070.40 0.73%
14
STATEMENT OF COMPREHENSIVE INCOME
(IN PHP '000)
2023 % 2022 % 2021 % 2020 % 2019 %
Profit for the year 1,408,423.50 1.05% 6,042,219.00 4.93% 3,685,854.00 3.54% (4,729,032.00) -4.41% 741,070.40 0.73%
Other comprehensive income

(loss)
Items that will or may be
reclassified subsequently to
profit or loss:
Currency translation difference (618,603.00) -0.46% (800,294.60) -0.65% 332,580.00 0.32% 272,210.40 0.25% (95,759.80) -0.09%
Effective portion of changes in fair

value of cash flow hedges 504,772.50 0.38% (460,501.50) -0.38% 206,440.60 0.20% 48,484.80 0.05% 24,070.20 0.02%
Tax impact on share in cash flow

hedges (126,207.00) -0.09% 114,693.90 0.09% (50,561.80) -0.05% (11,894.40) -0.01% (5,887.30) -0.01%
(240,037.50) -0.18% (1,146,102.20) -0.94% 488,458.80 0.47% 308,800.80 0.29% (77,576.90) -0.08%
Items that will not be

reclassified to profit or loss:
Remeasurement of retirement
plans 189,588.00 0.14% 667,348.00 0.54% 2,630,756.00 2.52% (1,461,247.20) -1.36% (130,927.30) -0.13%

retirement plans (45,565.50) -0.03% (170,236.50) -0.14% (669,016.00) -0.64% 308,095.20 0.29% 110,816.70 0.11%
Gain on property revaluation 1,227,715.50 0.91% 0.00 0.00% 0.00 0.00% 204,926.40 0.19% 0.00 0.00%
15
revaluation reserve (323,454.00) -0.24% 0.00 0.00% 30,317.80 0.03% (61,488.00) -0.06% 0.00 0.00%
1,048,284.00 0.78% 497,111.50 0.41% 1,992,057.80 1.91% (1,009,713.60) -0.94% (20,110.60) -0.02%

(loss) for the year, net of tax 808,246.50 0.60% (648,990.70) -0.53% 2,480,516.60 2.38% (700,912.80) -0.65% (97,687.50) -0.10%
Total comprehensive income for

the year 2,216,670.00 1.65% 5,393,228.30 4.40% 6,166,370.60 5.92% (5,429,944.80) -5.06% 643,382.90 0.63%
Financial Performance
To fully utilize the available financial information about Del Monte Pacific Limited (DMPL), financial ratios and other
relevant financial computations are also presented. All in all, ratio analysis eases users’ evaluation of Del Monte’s periodic
performance and facilitates comparison within the industry. Depicted in Table 1.5 is the Five Year Financial Summary of Del Monte.
16
Table 1.5
Five Year Financial Summary
Financial Year ending April 30, 2019 to April 30, 2023
(Amounts in PHP ‘000 000 unless
otherwise stated) FY2023 FY2022 FY2021 FY2020 FY2019
Profitability
Turnover 134,382.2 122,491.8 104,242.1 107,266.3 101,845.1
Gross Profit 33,688.5 32,567.2 26,799.2 22,790.9 20,579.5
EBITDA 18,298.4 18,383.5 14,893.8 7,166.9 7,486.8
EBITDA - without Non-Recurring

items 18,714.6 18,383.5 14,893.8 11,375.3 8,132.8
Profit/(loss) from Operations 13,630.8 13,979.8 10,213.6 2,580.5 4,173.2
Net Profit Attributable to Owners 938.0 5,230.0 3,051.1 (4,102.6) 1,057.6
EPS (PHP cents) 36.6 218.1 108.0 (262.1) 1.6
Net Profit - without Non-Recurring

items 4,007.1 5,230.0 3,051.1 1,622.9 823.2
EPS - without Non-Recurring items

(US cents) 194.3 218.1 108.0 32.3 (10.4)
Gross Margin (%) 25.1 26.6 25.7 21.2 20.2
EBITDA Margin (%) 13.6 15.0 14.3 6.7 7.4
Operating Margin (%) 10.1 11.4 9.8 2.4 4.1
Net Margin (%) 0.7 4.3 2.9 na 1.0
EPS Growth (%) (84.2) 86.2 143.1 nm 101.1
Return on Equity (%) 3.9 17.6 10.5 na 3.4
Return on Assets (%) 0.6 4.0 2.5 na 0.8
17
Balance Sheet
Cash 1,098.9 1,145.4 1,417.1 1,688.4 1,125.4
Debt 126,173.7 81,975.0 61,970.7 70,358.4 77,040.3
Net Debt 125,069.3 80,829.7 60,553.7 68,675.0 75,909.7
Fixed Assets 36,574.5 30,208.5 26,259.4 26,087.0 30,322.2
Total Assets 174,253.4 135,190.3 116,542.8 128,741.8 124,972.3
Shareholder's Equity 21,411.9 25,872.8 30,968.5 28,521.4 31,317.3
Net Tangible Asset Per Share (PHP

cents) (1,243.2) (972.8) (1,026.7) (1,270.1) (1,203.5)
Net Debt to Equity (%) 584.2 312.4 195.5 240.8 242.4
Net Debt to EBITDA (x) 6.8 4.4 4.1 9.6 10.1
Net Debt to Adjusted EBITDA (x) 6.7 4.4 4.1 6.0 9.3
Cash Flow
Cash Flow from Operations (155.4) 14,680.6 15,197.5 19,021.0 9,477.0
Capital Expenditure 13,203.5 10,601.2 7,904.8 6,678.0 6,434.4
Ultimately, the goal of the financial statements is to communicate useful information to their stakeholders to aid them in
decision-making. Hence, to aid stakeholders in making sound decisions and evaluating the financial status of the entity, various ratios are
presented. The horizontal and vertical analysis, coupled with the financial ratios of the entity, are just some of the tools that users could refer
to.
18
Core Products
Del Monte Pacific Limited (DMPL) is a multinational branded food and beverage company with
four heritage brands: Del Monte, S&W, Contadina, and College Inn. The company caters to the
consumer demand for premium quality and healthy food and beverage products. Del Monte has been in
business for over 100 years, making it one of the most well-known and trusted brands in the market. Del
Monte has gained the trust and loyalty of most Filipinos by staying true to their promise of health and
wellness by innovating products that offer benefits to various health issues such as weight management
and body fat reduction. Additionally, they consistently maintain a high standard of quality control and
product assurance to ensure a premium quality product that will meet the food standards set by their
customers. Del Monte’s continuous product innovation has earned them numerous awards over the
years, including the “Research & Development Team of the Year” by the Food Processing Magazine in
the large company category for innovative product development. Del Monte has long held the market
leadership position in the categories of packaged pineapple and mixed fruit, ready-to-drink juices
(excluding stand-up-pouches), tomato sauce, and spaghetti sauce.
Beverages
With the various juices Del Monte offers, their pineapple juice line is one of their best-selling
beverage drinks because these are fortified with essential nutrients that can make the body healthier,
hence, targeting the adult Filipino consumers. Del Monte has partnered with Tipco F&B Co., Ltd, the
leading juice brand in Thailand, to expand beyond the variant of their pineapple juice to a range of fruit
and vegetable juices. To widen their beverage products, they recently introduced a yogurt-flavored milk
drink to the market.
Table 1.6
Beverages
100% JUICE JUICE AND REFRESHERS FLAVORED MILK
● Del Monte 100% ● Fit ‘n Right ● Mr. Milk Yoghurt

Pineapple Juice ● Flavored Juice Drink Flavored Milk Drink
● Tipco 100% Juice ● Fruit Drinks
● Joyba Bubble Tea
Culinary
Filipinos are known to be good at cooking, and for most of them, a way to express love is
through serving meals. As such, Del Monte aimed at the heart of Filipinos by offering various rich and
flavorful culinary sauces and condiments. Contadina, one of Del Monte Pacific Limited’s (DMPL)
heritage brands, provides a variety of premium culinary products, and they are well-known for their
packaged tomato products.
19
Table 1.7
Culinary
CONDIMENTS PASTA QUICK ‘N EASY CONTADINA
● Extra Rich ● Elbow ● Gata Mix ● Pure Olive

Tomato Macaroni ● Curry Mix Oil
Ketchup ● Salad ● Caldereta Sauce ● Extra Virgin
● Extra Rich Macaroni ● Menudo Sauce Olive Oil
Banana ● Spaghetti ● Afritada Sauce ● Diced
Ketchup ● Mechado Sauce Tomatoes
● Original Blend ● Kare-Kare Mix ● Diced
Ketchup ● Gravy Mix Italian
● Sweet Blend ● Sweet & Sour Tomatoes
Ketchup Mix ● Stewed
● Hot ‘n Spicy ● BBQ Marinade Tomatoes
Ketchup ● Sweet Pizza Italian
● Sweet Chili Sauce Recipe
Sauce ● Italian Pizza ● Crushed
● Red Cane Sauce Tomatoes
Vinegar ● Formaggio
Pasta Sauce
TOMATO SAUCE & BROTH & FOOD BOX ● Napoletana
PASTE STOCK Pasta Sauce
● Aglio
● Tomato Ginisa ● Beef Stock ● Food Box A Arrostito
● Filipino Style ● Bone ● Food Box B Pasta Sauce
Tomato Sauce Broth ● Food Box C ● Arrabbiata
● Original Style ● Chicken Pasta Sauce
Tomato Sauce Broth ● Pesto Alla
● Tomato Paste ● Chicken Genovese
Stock Sauce
● Organic ● Spaghetti
Chicken ● Linguine
Broth ● Penne
● Vegetable
Stock
SPAGHETTI SAUCE
● Filipino Style Spaghetti Sauce

● Sweet Style Spaghetti Sauce
● Italian Style Spaghetti Sauce
● Creamy and Cheesy Spaghetti Sauce
● Carbonara
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Fruits
Del Monte Pacific is the world’s largest operator of pineapple plantations, with the Philippines
being the home to their operations. As the market leader in packaged pineapple and mixed fruit
categories, Del Monte ensures that their products are widely available nationwide.
Table 1.8
Fruits
MIXED FRUITS AND OTHERS PINEAPPLES
● Fiesta Fruit Cocktail ● Pineapple Chunks

● Fiesta Fruit Cocktail 836g ● Pineapple Tidbits
● Fiesta Fruit Cocktail 3Kg ● Crushed Pineapple
● Sliced Peaches ● Pineapple Slices
●
Snacks
To diversify Del Monte’s products, they recently introduced a new product in the snack food
industry. A potato crisp biscuit is now offered in the market with two flavors to choose from. On the
other hand, Del Monte continuously offers various healthy fruit snacks that consumers may enjoy.
Table 1.9
Snacks
SNACKS
● Bubble Fruit
● Fruit Crunch Parfait
● Fruit Cup Snacks
● Refrigerated Fruit Snacks
● Potato Crisp Biscuits
Dairy
Del Monte and Vinamilk entered a joint venture and officially launched their newest
ready-to-drink milk, yogurt, and milk tea products to the Philippine market. Del Monte-Vinamilk
products, targeting the young Filipino consumers, provide enjoyment and nutritional benefits that are
good for the brain, eyes, and energy production.
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Table 1.10
Dairy
FRESH MILK FLAVORED MILK DRINKABLE MILK TEA
YOGURT
● Vinamilk ● Vinamilk IQ ● Vinamilk ● Vinamilk

FRESH SMARTTM YoGurtTM Tea Bliss
Major Target Market
Principally, the Del Monte Pacific Limited (DMPL) products are targeted at middle-aged Filipino
consumers. As their campaigns are predominantly focused on showcasing their food products in home
cooked dishes and as household staples, it is evident that Del Monte wants to encourage the older
members of families, especially those endowed with purchasing power, to patronize their products.
Additionally, as underlined by its overall corporate identity, Del Monte prides itself in being an entity
that upholds the importance of family nourishment and an all-around healthy household; hence, it is no
surprise that it would like to appeal to heads of households, such as parents, and other primary providers.
Firm’s Vision, Mission, and Core Values
In this section, the prevailing action-oriented blueprint, the core focus, and the fundamental
principles and integral philosophy that Del Monte Pacific Limited (DMPL) strives to sustain and enrich
are presented.
Vision
We nourish families by providing delicious food and beverages that make eating healthfully
effortless – anytime and anywhere. We build brands with quality products that are perfectly wholesome
and thoughtfully prepared.
Mission
Del Monte is committed to enriching the lives of today’s families of all shapes and sizes by
providing nourishing, healthy, great tasting, and easy-to-use products that meet the needs of everyone in
the home. Our commitment is visible in every delicious food, every convenient package, and every
innovative new idea we create.
Core Values
In accordance with Del Monte’s vision of providing quality products for well-nourished families,
the company cultivates a culture in which business decisions are supported by coherent empowerment
and compassionate actions. What rests in the heart of Del Monte is a sense of responsibility to impart
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products that represent what the company values. To ensure the reflection of such an objective, the
following core values are established:
Championing Together. To champion together is our choice. Del Monte succeeds because we
see ourselves as one team. We each work to our unique strengths and play a part in the group’s collective
greatness. When we collaborate, we achieve more.
Healthy Families. We choose to grow healthy families. We strengthen family bonds of our
consumers and enable our employees to build better lives for their families. At the heart of who we are is
the well-being of the home.
Ownership with Integrity. We choose to embody ownership with integrity. Del Monte is under
our care - we hold ourselves accountable. We see how our work helps achieve Del Monte’s vision. A
genuine Malasakit - this is what we share in Del Monte.
Innovation. We choose to innovate. We constantly rethink, explore, and create to produce only
the fresh, groundbreaking and pioneering ideas for our products and processes. We will push - creating
breakthroughs, always challenging ourselves to be future-ready.
Commitment to Society & Environment. We choose to make a commitment to society and the
environment. We are responsible for the big role we play in safeguarding our world’s future. Thus, we
ensure that Del Monte not only refrains from harming the environment, but also contributes to enriching
it. We are committed to uplifting lives through honest and ethical business practices. We are a good
corporate citizen.
Excellence in Everything We Do. We choose to be excellent in everything we do. No matter

how large or small a task is, we understand the value of executing each one effectively and efficiently.
We drive Quality and uphold doing the right things the right way.
Evaluation of the Firm’s Vision and Mission Statement
Driven by the prominent goal of fostering families and communities by providing delectable and
nourishing selection of food and beverages, the primary focus of Del Monte’s vision and mission
statement rests on two interconnected and consequential components:
● Empowering effortless healthy eating habits; and
● Establishing brands that catalyze high quality products.
Being the original plant-based food company in the world, Del Monte has been curating and
innovating food and beverage products that promote accessible and healthy dietary regime for 137 years.
Established in 1886, the objective of Del Monte has always involved the significance of producing and
distributing fruits and vegetables into the day-to-day meals of various households. From premium coffee
blends, tomatoes, and peaches, Del Monte became one of the top food companies in California which
offered healthy products, against the progressively emerging companies that offered fast food items,
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within an arm’s reach to the customers. When it first came to the Philippines in 1926 and jump started
the pineapple operations in Diclum, Bukidnon, its vision of delivering healthy products was greatly
complemented by the healthy lifestyle of Filipinos. Currently, after debuting in 2013 and listing in 2014
in the country as Del Monte Pacific Limited (DMPL), it remains as one of the leading producers of
canned produce products not only in the Philippines, but also the world. For over a century and
extending to the present times, Del Monte has proven that their vision has not once dwindled even after
facing several challenges like wars, competitions, and downfalls by nourishing generations of families
by empowering them to embrace healthy eating habits through their products.
To a greater extent, Del Monte supplements their objective of promoting healthy eating habits by
establishing brands that provide premium and top notch products. Presently, brands that are under Del
Monte are Del Monte Quality, S&W Premium, Take Root Organics, and etc., which collectively deliver
cultivated and prime food products around the world. Undoubtedly, the weight of this vision requires
quality from the beginning; Del Monte Pacific Limited (DMPL) fulfills this by employing suppliers,
service providers, and consultants that they have deemed to be trustworthy and in congruence with the
company’s vision. On top of excellent quality control, the company creates strategic competitiveness
through applying this vision and providing value-adding customer products through influential brands,
strengthening their consistent goal of supporting the encouragement of healthy eating habits with the
production and distribution of high quality and healthy products.
In this analysis, the vision statement of Del Monte showcases the integral interconnectedness of
the primary goal and the focal action that the company strives to pursue since its establishment over a
century ago. It expresses the clear objective of the company to serve families and communities with the
highest quality of their products. The inspiring connotation of the company’s vision is substantiated by
the creation and development of inclusive brands with parallel and collaborative plans, decisions, and
activities. However, a significant attribute in which the vision statement of Del Monte falls short is the
specificity of the duration in which they intend to achieve their vision and the influences they aspire to
impart. On top of this, the statement lacks strategic tone which may be conveyed through the
expressions of their ambition, growth orientation, and brevitious endeavors. Regardless, the company’s
vision is successful in defining the path that Del Monte yearns to undertake.
Ultimately, the vision and mission statements of Del Monte emphasize three important words -
nourish, healthfully, and quality. The company pursues to nourish generations by healthfully innovating
products that serve quality and sustainable selection that ensure longevity of the brands and the
company. Beyond excellence, Del Monte aims to commit to building a symbiotic fiduciary relationship
with customers, highlighting homeliness in all business decisions, and vitalizing welfare through
honesty and standards as illustrated by their vision statement and supported by their core values.
David’s Framework
Del Monte is committed to enriching the lives5 of today’s families1 of all shapes and sizes by
providing nourishing, healthy, great tasting, and easy-to-use products2 & 6 that meet the needs
24
of everyone in the home. Our commitment is visible8 in every delicious food, every convenient
package, and every innovative new idea we create5 & 8.
Table 1.11
Evaluation of Mission Statement using David’s Framework
DAVID’S FRAMEWORK REMARKS: EXCERPTS FROM DMPL
COMPONENTS COMPLIED or MISSION STATEMENT
NOT COMPLIED
1. CUSTOMERS Complied “...today’s families…”
2. PRODUCTS Complied “...nourishing, healthy, great

tasting, and easy-to-use
products…”
3. MARKETS Not complied None applicable.
4. TECHNOLOGY Not complied None applicable.
5. CONCERN FOR Complied (Survival) “...enriching the lives…”

SURVIVAL,
GROWTH, AND Complied (Growth) “...every innovative new idea we
PROFITABILITY create.”
Not Complied (Profitability) None applicable.
6. PHILOSOPHY Implicitly Complied “...nourishing, healthy, great

tasting, and easy-to-use
products…
7. SELF-CONCEPTS Not complied None applicable.
8. CONCERN FOR Implicitly Complied “Our commitment is visible…”

PUBLIC IMAGE and “...every innovative new
idea we create.”
9. CONCERN FOR Not complied None applicable.

EMPLOYEES
By integrating David's Framework to DMPL's mission statement, one can obtain significant
insights into the statement's strengths, weaknesses and potential areas for improvement. The evaluation
illuminates the extent to which Del Monte's mission is in line with the essential elements of effective
mission statements and offers guidance for improving its strategic clarity and efficacy.
1. Customers
The mission statement clearly articulates that the company's target customer base include families of
many compositions and sizes, both presently and in the future.
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2. Products
DMPL’s mission statement, as outlined in its website, emphasizes its focus on nutritious, healthy,
great-tasting, and easy-to-use products, indicating what the company offers.
3. Markets
The mission statement of DMPL fails to explicitly specify the firm’s competitive landscape in which it
actively participates in business competition and endeavors to establish its unique position. This aspect
could be further elaborated.
4. Technology
Based on the company’s mission, it lacks details about the core technology utilized by the company,
which is essential for its operational procedures and strategic initiatives given the nature of the industry.
5. Concern for Survival, Growth, and Profitability
The assertion that "...enhancing the quality of life..." The phrase "every innovative new idea we create"
suggests that the organization is committed to fostering growth, ensuring survival, and promoting
sustainability. The company consistently strives to develop attractive and groundbreaking items that
effectively resonate with its customer base. Nevertheless, the statement does not directly address the
aspect of profitability, despite the fact that the company's efforts to enhance quality of life and introduce
novel concepts to its goods are evidently contributing to its sustained market success.
6. Philosophy
The fundamental principles, core principles, aspirations, and philosophical priorities of the organization
are impliedly reflected in its mission statement, as the corporation considers the whole well-being and
strives to enhance health and wellbeing through its initiatives - enriching lives through nourishing and
convenient food options. It reflects a customer-centric philosophy, aiming to enrich lives through
nutritious food. However, it could provide more insight into the company's core beliefs.
7. Self-Concepts
The mission statement of Del Monte lacks an explicit articulation of the company's self-perception or its
unique attributes within the market. Nevertheless, the aforementioned statement has the potential to
elucidate the prominent characteristics and competitive advantages of the organization, effectively
differentiating itself from other elements within David's framework and enhancing strategic clarity.
8. Concern for Public Image
The mission statement of DMPL does not adequately articulate the organization's public perception.
Nevertheless, the inclusion of the phrases "our commitment is visible" and "every innovative new idea
we create" suggests an awareness of public perception. However, the clarity of the component's
existence may be enhanced by incorporating further words.
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9. Concern for Employees
The company's mission statement does not place significant emphasis on or explicitly address the
company's stance regarding employee teamwork and communication.
Overall, Del Monte's mission statement effectively conveys its dedication to families and emphasis on
providing nutritious and convenient products. However, it could be improved by including more
specifications regarding what makes Del Monte unique and by imparting a greater sense of inspiration.
Suggestions and Recommendations
Del Monte Pacific Limited (DMPL) has been one of the market leaders in the food and beverage
industry across the world. For more than 130 years, the company has been committed to enriching the
lives of families through nourishment. However, upon drawing insights from the current vision and
mission statement, some lines need more clarity, and the company overlooked significant attributes.
Accordingly, this part of the paper aims to equip suggestions that will help provide strategic guidance
for DMPL to achieve its business goals through the vision and mission statement:
Vision Statement
1. Future-focused: Being one of the market leaders and a trusted company worldwide, Del Monte
Pacific Limited (DMPL) should place more clarity on its vision statement. They must specify what
state their vision aims to achieve and what public image they want to project. Furthermore, to
achieve DMPL’s current vision statement, only a vague timeline was mentioned: “anytime and
anywhere.” Hence, a specific date must be obtained to give the company, its employees, and its
stakeholders a precise duration in achieving their vision. A suggestion would be adding a specific
year,“By 2030”, which would specify the specific target date when DMPL would want to fully
achieve its aspirations.
2. Ambitious: A strong vision statement provides what the original vision lacks—an ideal condition
that the company wishes to realize. It is unclear how DMPL envisions itself as a company and what
goals it has for the future. It is advised that the DMPL add the line "envisions itself to pioneer the
ultimate synergy of taste and nutrition in the food and beverage realm," stating the company's hope
to be the market leader and to drive transformational change within the industry, ultimately enabling
them to fulfill their mission of empowering lives and families through their nourishing products.
3. Adaptability and Innovation: Every industry operates in a dynamic environment that is constantly
changing due to technological advancements, shifting trends and preferences, and unforeseen
disturbances. In order to thrive in a competitive market, organizations must be able to innovate and
adapt. A recommendation for the vision statement is to include the phrase: “innovating and adapting
to changing trends and preferences.” By doing so, the company signifies its notion of continuous
improvement, openness to new ideas, and dedication to developing innovative products and services
for the benefit of their customers.
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4. Memorable: One of the things that differentiates a company from its competitors is its culture,
which can be shown through a memorable phrase in the vision statement. Incorporation of this line,
“Empowering lives, enriching families in all shapes and sizes, and sparking joy with every single,
nourishing bite,” as a memorable phrase enhances better communication and creates a long-lasting
impression on the company’s stakeholders and customers. This will serve as a tool to forge a more
meaningful and profound connection with customers and a guiding action for the employees to
ensure that decisions align with the company’s overarching vision.
Mission Statement
5. Profitability: DMPL commits to the phrases “enriching the lives of today’s families” and “every
innovative new idea we create” in its mission statement through innovation. However, the
company’s commitment to further growth and survival would be inconsistent without profitability.
Hence, it is suggested that DMPL should include a clear cut about profitability in their mission
statement through the line “prioritizing the sustainable growth of our business and ensuring
profitability to support our mission.” The company will only be able to achieve its goal of enhancing
the quality of life through nourishment and innovation if they can ensure that the business will be
sustained and maintained through profitability. Otherwise, their aspirations to provide healthy food
and beverage products to the public will fall through.
6. Technology: The industry in which DMPL operates continues to become progressively reliant on
technology over the years, which continues to play a critical role in production and processes. As
such, DMPL needs to be able to thoroughly articulate and identify its core technologies and
demonstrate its impact on the business operations and the achievement of the company's objectives.
One of the key core values of DMPL is innovation, which champions their aspiration of pioneering
novel ideas and challenging the norm to produce even better products and more efficient production
processes. With this, a suggestion to improve the company’s mission to provide added clarity is to
include “utilizing modern technology and revolutionary approaches” to signify its goal of integrating
technology within the company’s production processes and desire to constantly innovate and create
breakthroughs within the industry.
7. Markets: Prior versions of DMPL's mission and vision statements failed to adequately describe the
market environment and identify its distinctive consumer base, which resulted in its goals being
ambivalent and broad. In order to leverage its position in the market and set itself apart from the
competition, Del Monte, which is a part of the highly saturated food and beverage sector, must be
able to differentiate itself and demonstrate a competitive advantage that is explicitly stated in the
mission statement. Likewise, Del Monte must also be clear as to which consumer base their goals are
directed to so that the consumers can have a relational understanding with the company, allowing
them to resonate their goals and aspirations to the market in which they belong. A recommendation
for the mission statement is to specify its target market, such as having the line “families of all
shapes and sizes within the local market”, signifying Del Monte’s aim to provide superior quality
products to every family, knowing that food and beverage are essential necessities for every human.
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This highlights their unwavering commitment to provide nourishment and enrichment to the lives of
many.
8. Philosophy: The core philosophies and values of the firm, even if shown on the company’s official
website, are only impliedly reflected in the current mission statement. This can be further improved
by clearly expressing the company’s philosophy of “fostering holistic well-being”, which is the
company’s ultimate goal after being able to fulfill its objective of providing good nourishment to its
consumers through its food and beverage products. This will set the direction for the company’s
strategies and also allow external stakeholders to perceive that the company ought to perform its
business functions for the betterment of its consumers and the society.
9. Self-Concepts: The mission statement of the organization exemplified its notable prowess and
competitive advantage in fostering the well-being and welfare of the people it serves. Thus, it is
suggested to include “driven by our inherent belief in the transformative power of wholesome
nourishment” in their mission statement since it posits that Del Monte Philippines has a strong
dedication to offering items that support the well-being and vitality of individuals, while
concurrently taking proactive measures to actualize these advantages for customers.
10. Concern for Public Image: The phrase “our commitment is visible”, depicts the company’s
awareness of how the public perceives their objectives. However, it can still be developed by clearly
underlining the company’s aim of “fostering a positive and enduring public image” implying Del
Monte’s assurance that what they do and release out to the public is good and would bring positive
change. Having this statement on the revised mission will also give an impression that DMPL
commits itself to meet the demands of the public, while aligning them to the company’s aspirations
and vision. Protecting a company’s image has been an integral part of enduring businesses, which is
why Del Monte must commit itself to ensure that they do not expose themselves to risks of negative
publicity, and continue to prosper as a business to continue fulfilling their objectives.
11. Concern for Employees: The current mission statement of DMPL focuses solely on its customers.
They overlook the driving force behind the success of each business: the employees. Employees
serve as one of the key players in fulfilling the company’s mission on a daily basis. Their actions
will be directed and guided by what the company aims to achieve, and hence, the company’s mission
and the employees’ values must be aligned since they will motivate employees to perform well and
contribute to the attainment of the mission’s success. As such, its mission statement may be further
improved through the lines “professional growth and fulfillment of our employees.” Incorporating
employees into the company’s mission statement and emphasizing shared goals and values fosters a
sense of belongingness and connection to the organization, leading to a higher level of commitment
to achieving the goals and objectives.
Revised Firm’s Vision and Mission Statement
As industries undergo transformations, markets undergo shifts, and organizational priorities alter,
it is evident that there is a need to evaluate and refine these fundamental claims (vision and mission
29
statements). Hence, the successful execution of a strategic initiative necessitates meticulous deliberation
and synchronization with current circumstances. Through an exploration of concrete instances and an
analysis of the fundamental drivers, obstacles, and consequences, the researchers endeavor to elucidate
the multifaceted nature of the process and the impact that it has on the strategic course of the company
and its involvement with stakeholders.
Vision
By 20301, Del Monte Pacific Limited envisions itself to pioneer the ultimate synergy of taste and
nutrition in the food and beverage realm2 while innovating and adapting to changing trends and
preferences3, empowering lives, enriching families in all shapes and sizes, and sparking joy with every
single, nourishing bite.4
Mission
Del Monte Pacific Limited, driven by our inherent belief in the transformative power of
wholesome nourishment9, is committed to enhancing the lives of today’s families of all shapes and sizes
within the local market7. By utilizing modern technology and revolutionary approaches6, we provide
nourishing, healthy, great tasting, and easy-to-use products that meet the needs of everyone in the home.
Rooted in our deep-seated philosophy of fostering holistic well-being8, our commitment is visible in
every delicious food, every convenient package, and every innovative new idea created. We prioritize the
sustainable growth of our business, ensuring profitability5 to support our mission, as well as the
professional growth and fulfillment of our employees11, and fostering a positive and enduring public
image10 within the communities we proudly serve.
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CHAPTER II: EXTERNAL ENVIRONMENTAL ANALYSIS
This chapter of the paper presents an analysis of Del Monte Pacific Limited’s (DMPL) external
environment, significantly impacting the company’s success, sustainability, and strategic decisions to
capitalize on opportunities and minimize potential threats. The external environment analysis includes
(1) the general environment analysis, (2) the identification of opportunities and threats, including its key
findings and summary, (3) the industry and competitor analysis through the use of Porter’s Five Forces
Framework, including its key findings and summary, and (4) the key issues, problems, challenges, and
actions taken.
The General Environment
It is crucial for a company to assess the general environment as it provides valuable insights into
the external elements and conditions that can substantially impact its operations, performance, and
long-term viability. Analysis of the general environment allows the company to discern new
opportunities and emerging trends that they may capitalize on. Simultaneously, they can discover
potential risks and uncertainties that may impact their operations.
Figure 2.1
External Environment - PESTEL-DG
Dimensions of General Environment
The general environment encompasses various dimensions that collectively impact the
company’s operations, strategy, and overall performance. These dimensions are categorized into seven
environmental segments, specifically demographic, economic, political/legal, economic, sociocultural,
31
technological, global, and sustainable physical environment. The segments mentioned exhibit
interconnectivity and dynamism, wherein changes in one dimension can have a cascading effect on the
others, hence presenting businesses with both opportunities and challenges.
Political / Legal
Operating in the food processing and distribution industry, Del Monte is generally liable to
stricter regulations and requirements to ensure the safety of the products being manufactured by the
company. The influence of the political environment is independent of any other environments where
the company operates as the law is the governing standard in the legal area.
Illustratively, in accordance with R.A. No. 10611, known as the Food Safety Act of 2013, DMPL
is obliged to adhere to food safety regulations, labeling requirements, and other trade policies
concerning the growing, handling, and distributing of food and beverage products. To prevent legal
issues and maintain its fiduciary relationship based on trust with its consumers, DMPL is compelled to
submit to health regulations imposed by concerned governmental departments that develop food safety
standards, health guidelines, and dietary recommendations.
Holistically, DMPL is expected to abide by the political factors present in the environment it
operates in. Especially that there was a recent change in the political leadership, the operations and the
strategies of DMPL was greatly affected in terms of the various economic, taxation, and legal factors
brought about by the new administration. To ensure the consistency of operations, strategies, and
performance of the company despite the impact of these political factors, DMPL is encouraged to be
cautious and attentive to potential risks and threats.
Economic
As one of the leading producers, distributors, and marketers of canned produce in the retail
industry, Del Monte is exposed to various economic factors that ultimately influence its operations and
strategic decisions, including market trends, the global trade, the competitive environment, and inflation
and cost of producing goods. Similarly, in the Philippines, Del Monte Pacific Limited is levied with an
economic environment in which consumer preferences and income levels, inflation, economic growth
rate, and supply chains are significantly recognized, especially in the context of the COVID-19
pandemic.
When the pandemic began, DMPL experienced a surge of higher sales and income as consumers
consciously stockpiled their food storage with the selection of products offered by the company due to
the lockdown and quarantine imposed worldwide. At the time, the company generated loftier sales from
its different brands as it continually provided what the consumers regarded as essentials, taking
advantage of the circumstance in which consumer preferences, income levels, and demands are mainly
focused on essential goods. However, in present times, concurrent with the recovery of the Philippine
economy from the detrimental effects of the pandemic, DMPL is likewise experiencing the gradual
change in the economic environment where it operates, especially with the newly imposed inflation rates
and customer demands rapidly shifting.
32
In particular, despite the moderate disruptions in the functional food sector caused by the
pandemic, the market is currently recouping its momentum as companies adopt resilient and positive
strategies to produce, promote, and distribute functional food. As an optimistic result, there is a
trajectory of demand for nutritional and fortifying food additives that is anticipated to fuel market
expansion. This is most notable in the projected growth of the global functional food market size by a
compound annual growth rate (CAGR) of 8.5% from 2022 to 2030, which was recently estimated to be
USD 280.7 billion as of 2021. Due to these compounded effects, Del Monte stands at a favorable
position with a surge of opportunities to expand its market share significantly. Key strategies may
include innovation, product diversification, and brand enhancement to leverage this advantage and
capitalize on the projected growth of the functional food market size.
On top of this, the key economic indicators of the Philippines provide the current overall health
of the country which presents how DMPL is operating despite the movements of such key indicators.
For instance, the gross domestic product (GDP) of the country increased by 4.3%, with the wholesale
and retail trade being one of the primary contributors, and the unemployment rate decreased by 0.4%
during the second quarter of 2023. DMPL reported USD 109.8 million sales, which was 6% higher than
the previous period in terms of peso. However, this was offset by the 6% decrease from the previous
periods in terms of dollars since exchange rates were in place. Regardless, especially with the matching
internal and external assessment of the economic environment where DMPL operates, it is significant
that the company remains consistent with its strategies and approaches to keep its performance afloat,
particularly with the present status of the Philippine economic environment
Sociocultural
Ferrer (2021) stated that dietary preferences emerge as a prominent societal factor. According to
Peneva (2020), the culinary culture of the Philippines is renowned for its remarkable diversity,
exemplified by a wide array of flavors and culinary customs. It is also crucial to acknowledge that
changing dietary preferences have the potential to alter the competitive dynamics within the food and
beverage sector. Simultaneously, the shift will likely impact supply chains and sourcing procedures.
Businesses may encounter requirements to acquire particular ingredients or establish partnerships with
suppliers offering organic, locally sourced, or sustainable products. The current trend toward ethical and
responsible sourcing is driven by customer demands and the need to cultivate a favorable brand image.
Fortunately, Del Monte has acknowledged the significance of comprehending and harmonizing with
regional taste preferences to thrive in this market. It is also noteworthy that Filipinos nowadays possess
an inherent inclination towards healthy consumption (Banzuelo, 2021), a characteristic that conveniently
corresponds with the primary product assortment of Del Monte.
Fruits in the Philippines are not merely considered occasional indulgences; instead, they have an
integral role in the everyday routines of individuals. They function as invigorating appetizers, exquisite
confections, or indispensable components in a multitude of culinary preparations (Sison, 2023). Thus,
examining the patterns and timing of fruit consumption among Filipinos is vital since Filipinos
frequently prefer fresh fruits sourced from local producers, so businesses need to synchronize the
availability of their products with the seasonal availability of fruits.
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The increase in the middle-class demographic has resulted in a significant change in consumer
behavior and preferences . As the number of individuals and families in the middle class increases, their
spending power also moves up, enabling them to set aside a greater portion of their resources towards a
wide range of goods and services, including their preferences for food and beverages (Ali & Ali, 2020).
Consumers belonging to this cohort frequently exhibit an expanded purchasing capacity, leading them to
go after products of superior quality and display an increased willingness to explore premium and
value-added alternatives available in the market. The emergence of the middle class is linked with an
increased focus on matters pertaining to health and wellness. As individuals acquire higher levels of
disposable income, they frequently exhibit an enhanced consciousness regarding their personal health
and overall well-being. The current emphasis on individual well-being can be observed in the realm of
dietary preferences, as individuals are increasingly inclined to emphasize food choices that promote
health and wellness.
Technological
In recent years, there has been a remarkable and substantial acceleration in technological
advancements. This has led to profound transformations that have considerably impacted the
technological factor of businesses in various ways. Del Monte Pacific Limited (DMPL), a market leader
in the food and beverage industry, demonstrates a steadfast dedication to leveraging technology-driven
approaches. Del Monte can enhance its ability to sustain competitiveness, foster innovation, and fulfill
customer demands and expectations through the continuous adoption and integration of technological
innovations. This, in turn, may result in attaining a notable competitive advantage over its competitors.
In 2022, a company official from DMPL conveyed the company's dedication to enhance and
expand its range of high-quality products, with the objective of ensuring their accessibility to consumers
through traditional and digital means. This entails using e-commerce platforms and offering more
convenient formats. E-commerce has been a core component of digital transformation. It effectively
eradicates geographical limitations, enabling businesses to expand their customer reach beyond local
markets and access a global customer base, thereby diversifying their customer base and enhancing their
market presence. Social media integration with e-commerce also offers companies the opportunity to
expand their audience reach. Moreover, there has been a notable transition among customers towards
online shopping, which has increasingly emerged as a favored way to shop. This shift can be attributed
to the growing preference for the convenience it offers, as well as the wider range of options and
alternatives available to consumers. As such, the e-commerce market in the Philippines experienced a
significant growth rate of approximately 31% in 2022, according to a report released by GlobalData.
The advent of technology has shortened the product life cycle, enabling suppliers to develop new
products quickly. The supply chain can be optimized through the utilization of technology as it offers
real-time transparency across the entire supply chain, encompassing the procurement of raw materials to
the distribution of finalized goods. The utilization of technology-driven systems in generating precise
demand projections allows suppliers to enhance production planning efficiency and mitigate the
occurrence of overproduction or stockouts. Recently, Del Monte has made a strategic investment in
34
blockchain startup technology with the aim of enhancing tracking, ensuring food safety, and improving
traceability throughout their products and services (Guhl, 2023).
Demographic
Age is one of the most prominent factors that influences consumers’ food preferences and their
resulting purchasing habits. Ogundijo et al. (2022) concluded that although personal experiences based
on taste and satisfaction remained the most decisive factor in terms of food purchasing behavior across
age groups, the familiarity that comes with age, especially with more senior crowds, was still a
significant influence. Likewise, Shoup (2019) claimed that members of Generation Z have profoundly
impacted the food industry as their personal preferences are changing with the times. In the same way
that baby boomers and Generation X tend to rely on familiarity when food shopping, Generation Z and
younger generations value quality and portability (Shoup, 2019). Historically, Del Monte has positioned
itself as a food and beverage entity that concurrently upholds the importance of healthy food without
compromising its convenience factor. One such product evidencing this is the availability of the Del
Monte beverages in both cans and cartons. To target older consumers, especially those who utilize their
packaged fruits and various sauces in cooking, Del Monte markets their household items as essential
ingredients of Filipino dishes. On the flip side, for their younger consumers who uphold availability and
ease of consumption above all, ready-to-eat packaging and on-the-go products are appealing.
Household and family composition are another crucial demographic factor in business. The
family is regarded as the most important social unit and our consumer decisions are often anchored on
the influence of our family and the buying roles within a household. Some of the key buying roles in a
family include the buyer who acquires the merchandise, the influencer who relays information about an
item, and users who actually consume the product. Mirroring the majority of the predominant family
structures in Asia, in the Philippines, a nuclear family is most commonly encountered (Yeung, 2022). In
their mission alone, Del Monte has already established that they are targeting families of all shapes and
sizes. Substantiating this claim are numerous commercials and advertisements showcasing Del Monte
products as essential ingredients in family meals while highlighting Filipinos’ culture of salo-salo.
Global
Del Monte is largely affected by the fluctuating and dynamic global business environment.
Although globalization has, for the most part, brought about positive impacts on businesses by
stimulating cross-border trade and promoting interdependence, various determinants of the global
external environment could still prove to be double-edged swords for entities. For Del Monte Pacific
Limited, operating worldwide is not new, and yet, it is undeniable that a multitude of global factors
continue to affect its performance in different countries. On an international scale, some of the factors
that could impact the course of Del Monte’s business, strategically and financially, include global
political systems, emerging markets, and global cultural attributes.
On the flip side, harmonious relations brought about by sound and stable political systems could
further Del Monte’s global expansion. In the case of Del Monte, its overseas opportunities could be
35
enhanced through increased trade with fellow ASEAN members. Favorably for Del Monte, agriculture
contributes very significantly to the ASEAN community as it is responsible for over 25% of GDP
(InvestAsean, n.d.). Moreover, fellow ASEAN country Myanmar boasts that its agricultural landscape
has provided 40% of the country’s total employment, highlighting the sheer size of its agricultural
activities (InvestAsean, n.d.). In terms of export, Southeast Asian markets are among the leading drivers
of growth as reportedly, a 4.3% increase in exports in Southeast Asian countries have boosted the
ASEAN Economic Community’s overall growth. These are just among the attractive figures that are
indicative of the opportunities for growth for Del Monte, especially in countries with proper political
systems in place to ensure the stability of business.
In the same sense that Del Monte maximizes the Philippine culture, traditions, holidays, and the
like to leverage their products locally, it could apply the same practice globally. The diverse cultural
attributes in the world could warrant different needs and preferences in the food and beverage market
(Jeong, 2021). Consumers’ cultural background dictates their perception and preference for food (Jeong,
2021). Although Del Monte upholds its image in producing sustainable and healthy packaged goods, its
range is undeniably limited and skewed towards its already established major markets such as the United
States and the Philippines. For instance, its pineapple products are very much patronized in tropical
countries such as the Philippines and Malaysia. It is therefore unsurprising that Del Monte is a
household name in the former country as the Philippines is deemed the country with the highest
plant-based food openness within the Southeast Asian region at 62%. However, such products may not
appeal as much to the European market although the demand is said to be growing (Mordor Intelligence,
n.d.).
Externally, another factor that is likely to influence the manner in which Del Monte chooses
which markets to target is the dietary habits of the population. For countries such as the Philippines,
which has notably recorded better fruit and vegetable-eating habits since the pandemic, Del Monte’s
goods are without a doubt more marketable and are becoming increasingly so. In fact, fruit consumption
in the country is projected to increase by 8.6% per year, starting 2023 (Philstar, 2022). As such, Del
Monte’s canned fruits and on-the-go snacks are likely to be more appealing and have a chance to capture
an even larger market than its already well-established one. Contrastingly, there are certain countries that
are notorious for their low fruit and vegetable consumption, namely Lithuania, Bulgaria, and Latvia
(Arato, 2019). The aforementioned European countries display very poor numbers in terms of daily fruit
consumption (Arato, 2019). Such issues likely stem from the general dietary practices in the region,
influenced by culture and driven by the status quo. For Del Monte, such markets will be harder to
penetrate since their products are not highly sought after and it is difficult to overcome cultural barriers
that manifest themselves in food and dietary choices.
Opportunities and Threats
This component focuses on conducting thorough study of Del Monte’s Opportunities and Threats
using the well-known Strength, Weaknesses, Opportunities, and Threats (SWOT) Analysis. Del Monte
Pacific Limited (DMPL), a prominent multinational corporation operating in the food and beverage
36
sector, encounters an evolving and complex business environment characterized by shifting customer
tastes, intense market competition, and regulatory modifications.
Opportunities
1. The Philippines recorded the highest plant-based food openness in Southeast Asia at 62%.
The changing dietary tastes and increasing awareness of health among consumers in the
Philippines create a promising opportunity for Del Monte to enhance its market presence and
diversify its range of products. A recent study conducted by Vero (2023), wherein it examined the
prevailing patterns of healthy eating in Southeast Asia has revealed significant findings. Initially, it is
noteworthy that a substantial proportion of participants, specifically 53%, reported a considerable
rise in their intake of fruits and vegetables. Additionally, 43% of respondents actively adopted a diet
that primarily consists of plant-based foods. Significantly, within the sample of 11 markets that were
examined, the Philippines demonstrated a noteworthy outcome, as 62% of the participants showed a
favorable inclination towards the consumption of plant-based foods. The current inclination towards
adopting healthier eating preferences is not a temporary reaction to the pandemic, but rather, it has
demonstrated notable longevity. A notable proportion of the individuals surveyed, up to 88%,
indicated that they had observed favorable alterations in their health as a result of adopting healthier
dietary practices within the pandemic. Moreover, a considerable 83% of participants demonstrated a
strong commitment to sustaining these recently adopted eating practices for an extended duration.
The aforementioned data highlight an enduring and escalating need for food items that prioritize
health in the Philippines. Del Monte, a well-known company recognized for its dedication to
producing high-quality and health-conscious products, is in a favorable position to meet the growing
demand in the industry and consequently enhance its market reputation. It is worth mentioning that
only 1% of customers expressed no inclination towards improving their dietary habits, while a
significant 56% affirmed their dedication to upholding a nutritious diet. Simultaneously, a significant
portion of consumers, specifically 40%, admitted to occasionally selecting food and beverages that
are less conducive to maintaining a healthy lifestyle. Given the wide range of preferences observed,
Del Monte possesses a strategic opportunity to customize its product portfolio in order to cater to a
more extensive range of consumer preferences. This approach would serve to strengthen its
competitive advantage and establish a firm foothold in the dynamic food market of the Philippines.
2. The E-commerce market increased 31% in 2022.
In accordance with the analytics revealed by GlobalData Commerce in 2023, The e-commerce
market in the Philippines is experiencing a notable expansion, projected to rise at a rate of 31.3
percent in 2022, resulting in a total value of PHP 500.9 billion (USD 9.8 billion). This growth is
indicative of a substantial transformation in consumer patterns. The shift from traditional in-person
transactions to online purchasing has been influenced by various significant causes, resulting in a
favorable environment for companies such as Del Monte to strategically position themselves and
capitalize on this growing trend.
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Definitely, the COVID-19 pandemic significantly accelerated the introduction of e-commerce in
the Philippines. The implementation of lockdowns, adherence to social distancing measures, and
heightened health concerns have compelled consumers to rely on online platforms as an essential
means of fulfilling their needs. The initial essential nature of this shopping strategy gradually
evolved into a favored and convenient approach for a significant number of individuals.
The e-commerce industry in the Philippines exhibits a wide range of platforms, encompassing
both international e-commerce powerhouses and domestic entities. The presence of diverse options
and competitive pricing in the online shopping market contributes significantly to its expansion.
Subsequently, The expansion of e-commerce has been significantly supported by advancements in
logistics and payment systems. The reliability and efficiency of delivery services have witnessed
significant improvements, accompanied by enhanced accessibility of online purchases through a
diverse range of payment options such as mobile wallets and cash-on-delivery.
Furthermore, the substantial increase in the middle-class demographic in the Philippines has
played a vital role in fostering the expansion of e-commerce (Hani, 2021). This particular cohort,
characterized by their adeptness in technology and their emphasis on cost-effectiveness, exhibits a
greater propensity towards engaging with various online shopping alternatives for a diverse array of
goods and services.
According to Gupta (2022), the upward trajectory of e-commerce is anticipated to persist,

exhibiting a substantial growth rate with a projected compounded annual growth rate (CAGR) of
17.9% from 2022 to 2026. According to GlobalData's projections, the Philippine e-commerce market
is anticipated to witness a growth of 22.9 percent, reaching P615.7 billion in 2023. This follows a
previous year's expected increase of 31.3 percent, amounting to P500.9 billion in 2022. The upward
trend can be attributed to a growing consumer base that is transitioning from traditional conventional
shopping to online platforms.
3. A 4.3% increase in exports to Southeast Asian markets, leveraging the ASEAN Economic
Community’s Growth.
Asian Development Bank (2023) revealed that the potential for food and beverage industries to
capitalize on the growth of the ASEAN Economic Community is seen in the 4.3% rise in exports to
Southeast Asian countries; this presented figure offers a concrete prospect for organizations seeking
to broaden their international presence and enhance their customer portfolio. The ASEAN area,
which includes countries such as Indonesia, Thailand, Malaysia, Vietnam, and others, is
experiencing rapid economic growth (Fox, 2023). The findings suggest that the region provides
conducive conditions for the expansion of commercial activities. A rise in the percentage of exports
indicates the ability of enterprises to enter and exploit new market sectors and demographics.
As the process of economic integration in the ASEAN area progresses, there is a simultaneous
reduction in trade barriers, leading to increased accessibility to market opportunities. The observed
expansion is consistent with the prevailing pattern of heightened regional collaboration and trade
38
pacts, underscoring enterprises' need to broaden their presence in these burgeoning economies. By
effectively leveraging the 4.3% rise in exports, organizations have the potential to enhance their
competitiveness and access the burgeoning consumer market in Southeast Asia, hence making a
significant contribution to their total business prosperity.
To suffice, DMPL has experienced significant growth and has emerged as a prominent pineapple
exporter in Asia. The company holds a substantial market position in China and ranks among the top
three suppliers in Japan and Korea. According to a survey by GlobalData, DMPI emerged as the
dominant fresh pineapple exporter to China in 2022, capturing a significant market share of 53
percent. DMPI is recognized as one of the leading fresh pineapple providers in Japan, which is its
second-largest market, as well as in South Korea, where it holds market shares of 33 percent and 21
percent, respectively.
4. Rising middle-class population in the Philippines has led to increased purchasing power.
The World Bank (2022), in its recently published research entitled “Overcoming Poverty and
Inequality in the Philippines: Historical Analysis, Current Status, and Future Outlook” highlights the
significant advancements made by the Philippines in the realm of poverty alleviation. The reduction
in poverty levels from 49.2% in 1985 to 16.7% in 2018 can be attributed to the rapid economic
growth and the diversification of employment opportunities beyond the agricultural sector. As of
2018, there was a notable increase in the middle-class population, reaching approximately 12 million
people.
The burgeoning middle-class demographic in the Philippines, coupled with a notable surge in
purchasing power, offers a substantial prospect for the food and beverage industry inside the nation.
Individuals belonging to this particular demographic exhibit a greater inclination to allocate a higher
proportion of their available funds towards dining out, acquiring high-quality food items, and
engaging in a variety of culinary experiences. The demographic transition has a variety of impacts
on the sector, influencing consumer preferences, patterns of demand, and market dynamics.
Furthermore, the expansion of the middle-class transcends urban localities and encompasses
suburban and rural. The extension of geographical boundaries presents favorable prospects for
enterprises to establish their presence in developing markets characterized by a growing middle-class
demographic.
5. Functional foods market is projected to grow at a CAGR of 8.5% from 2021 to 2028.
Based on the Grand View Research (2020), it is estimated that the value of the global functional
foods market in 2021 was USD 280.7 billion, with a projected compound annual growth rate
(CAGR) of 8.5% from 2022 to 2030. The increasing need for nutritious and fortifying food additives
will drive market expansion throughout the projected time frame. Primarily, the expansion of the
functional foods industry reflects a more comprehensive global inclination toward prioritizing health
and wellness. As global consumers increasingly recognize the influence of their dietary choices on
their overall health, this heightened knowledge extends to the Philippines. It cultivates a societal
39
environment characterized by individuals who actively pursue food choices for their nutritional
value and the possible advantages they may provide in terms of personal well-being.
The phenomenon above is concomitant with an increasing desire for more health-conscious
choices. The Philippines, renowned for its rich culinary traditions, experiences a noteworthy
emphasis on functional foods. This phenomenon can potentially induce a significant alteration in the
regional food system, as consumers are inclined toward items that provide added value beyond mere
sustenance. Therefore, there exists a potential for enterprises to meet this demand by creating and
promoting merchandise that is fortified with vitamins, minerals, probiotics, and other functional
components.
Moreover, this phenomenon promotes the cultivation of new ideas and the advancement of
product creation. Philippine enterprises can allocate resources towards research and development
endeavors to produce novel functional food items tailored to address distinct health requirements and
consumer preferences. The potential options encompass a variety of products, including fortified
essential foods as well as beverages that have been supplemented with functional ingredients. The
food and beverage sector has the potential to stimulate economic growth and enhance
competitiveness through the use of innovative practices.
Nevertheless, it is imperative to recognize the potential obstacles associated with the

accessibility and affordability of functional meals. Notwithstanding the potential advantages, these
goods may not be readily accessible or financially viable for all demographic groups, mainly persons
with lower incomes. The prioritization of accessibility and affordability for a diverse consumer base
is a crucial factor that politicians and businesses must consider.
Threats
1. Highly competitive industry due to the proliferation of options and alternatives.
Market competition is an inevitable threat to companies operating within the food and beverage
industry. Despite DMPL being a market leader, the sector it belongs to is highly competitive. The
advent of technological advancements, such as online shopping and e-commerce, has significantly
intensified market competitiveness by offering consumers an extensive range of product options.
This phenomenon gives rise to price competition among companies as they endeavor to acquire or
retain market dominance, while consumers tend to choose products with lower prices. It also poses a
significant challenge for brands to maintain a unique identity and consumer loyalty due to the
proliferation of options and alternatives. Furthermore, numerous food and beverage companies
encounter competition not only from domestic rivals but also from global entities, hence intensifying
competitive pressures.
2. Changing lifestyles, trends, values, and tastes as factors of shifting consumer preferences.
Consumer preferences exhibit dynamic and ever-evolving characteristics across time. The
frequent shift in consumer preferences for food purchases can be attributed to various causes,
40
including changing lifestyles, emerging trends, shifting values, and evolving tastes. At the present
time, consumers tend to be more health-conscious, leading them to opt for products that are organic,
contain reduced levels of sugar and unhealthy fats, or cater to their specific meal preferences.
Meanwhile, the demand for convenient foods has been driven by busier lifestyles and changing work
habits. The popularity of ready-to-eat meals, pre-packaged snacks, and meal kit subscriptions has
surged, significantly increasing demand for these products. In addition, it is worth noting that
consumers have started to prioritize sustainability and ethical factors when deciding what food to
consume. Furthermore, digital media, such as social media, food blogs, and online reviews,
influences consumer behavior, preferences, and opinions. Through various online platforms,
consumers are exposed to a plethora of new food trends and products. This exposure serves as a
catalyst, motivating them to explore different options and venture into new and unique food products
and ingredients.
Summary of Key Findings in the Macro Environment Analysis
In summary, Del Monte Pacific Limited (DMPL) is a prominent company in the retail industry,
known for its production, distribution, and marketing of canned produce. The company caters to a large
demographic of consumers, with household and family composition as one of their focuses. With the
onset of the COVID-19 pandemic, there has been an increase in DMPL’s sales and income as consumers
stock up on food, with the company’s products as one of their selections, in response to global
lockdowns and quarantines. However, DMPL is not spared from facing changes due to economic factors
like inflation rates and shifting customer demands, affecting their operations. Furthermore, the company
is required to adhere to political factors and stricter regulations to ensure product safety within its
operating environment. Compliance with regulations is essential for avoiding legal complications and
fostering consumer trust for Del Monte.
Sociocultural dimensions also influence the company’s strategies and operational activities. They
can be an avenue for the company to exhibit its products, foster direct engagement with consumers, and
nurture brand loyalty and recognition. Given the current emphasis on technology, the company took a
step to allocate resources towards investing in blockchain startup technology to enhance their production
process. The incorporation of technology provides DMPL an opportunity to maintain a competitive
edge, stimulate innovation, and fulfill customer demands and expectations. Being a multinational
corporation, DMPL has experienced significant impacts from the fluctuating and dynamic global
economic landscape. Furthermore, the company's central emphasis on agricultural and food production
is heavily contingent upon the prevailing conditions of the physical environment in which it carries out
its operations. Considering these factors, Del Monte has proven to be one of the well-established and
trusted brands in the industry. As such, the company is consistently presented with opportunities, albeit
accompanied by threats that may substantially impact the business. The subsequent section will examine
how the organization strategically leverages opportunities and effectively mitigates threats, as outlined
in the External Factor Evaluation (EFE) Matrix.
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Table 2.1
External Factor Evaluation (EFE) Matrix
External Factor Evaluation (EFE) Matrix
Key External Factors Weight Rating Weighted

Score
Opportunities
1. The Philippines recorded the highest plant-based 0.15 3 0.45

food openness in Southeast Asia at 62%.
2. The E-commerce market increased 31% in 2022. 0.10 3 0.30
3. A 4.3% increase in exports to Southeast Asian 0.15 4 0.60

markets, leveraging the ASEAN Economic
Community’s Growth.
4. Rising middle-class population in the Philippines 0.20 4 0.80

has led to increased purchasing power.
5. Functional foods market is projected to grow at a 0.11 2 0.22

CAGR of 8.5% from 2021 to 2028.
Sub-total 0.71 2.37
Threats
1. Highly competitive industry due to the 0.15 3 0.45

proliferation of options and alternatives.
2. Changing lifestyles, trends, values, and tastes as 0.14 4 0.56

factors of shifting consumer preferences.
Sub-total 0.29 1.01
Total 1.00 3.38
1 - poor response; 2 - average response; 3 - above average response; 4 - superior response
The External Factor Evaluation (EFE) Matrix is utilized to evaluate the external factors affecting
the business. The macro environment section has been analyzed to identify and assess various
opportunities and threats, which were then listed and assigned weights based on their relative
significance. In order to evaluate the alignment of Del Monte's strategies with respect to the key external
factors, each factor is assigned a rating based on its implications. The ratings range from the following:
1 = poor response, 2 = average response. 3 = above average response, and 4 = superior response.
42
To scrutinize, the summation of weighted score in opportunity is 2.37. Further, weights allocated
to each opportunity were calculated through the consideration of many elements that represent their
potential impact on DMPL's operations. Firstly, the weight attributed to the opportunity rising from the
Philippines' highest plant-based food openness was 15%, indicating a notable change in consumer
preferences. Del Monte, being a food and beverage corporation, has the potential to capitalize on this
prevailing trend in order to broaden its range of products. However, the significance of this endeavor is
somewhat diminished in order to accommodate other significant opportunities. As a result, Del Monte
received a rating of 3, indicating an above-average response. This is attributed to Del Monte's
acknowledgement of the potential of the plant-based food movement and its efforts to incorporate
plant-based solutions into its product portfolio. Nevertheless, it is possible that additional innovation
when it comes to other types of products and strategic marketing endeavors may be undertaken in order
to maximize the opportunity. Secondly, the rapid growth of the e-commerce industry offers a significant
opportunity, albeit being assigned a weight of 10%, the lowest among other factors, due to its potential
implications for distribution methods. Therefore, a rating of 3 (indicating an above-average reaction)
was assigned due to Del Monte's recognition of the significance of the e-commerce business and its
endeavors to enhance its online presence and distribution channels. Nevertheless, although the use of
online distribution channels can offer advantages, it may not entirely correspond to the inherent
characteristics of Del Monte's products, which are conventionally more inclined to be acquired through
brick-and-mortar grocery stores rather than online platforms. Thirdly, the assignment of a weight of
15% to this opportunity is justified due to its ability to capitalize on Del Monte's established presence in
the Southeast Asian market, hence presenting a substantial possibility for both growth and market
development. Hence, a superior response, rated at 4, was provided, highlighting DMPL's robust market
position in Southeast Asian markets and its capacity to capitalize on the growth opportunities presented
by the ASEAN Economic Community. This opportunity is in line with Del Monte's current areas of
strength. Fourthly, the significant factor with the greatest weight of 20% is the expanding middle-class
population in the Philippines, which has resulted in an increase in purchasing power. This recognition is
based on the direct influence of the middle-class population on consumer behavior. The
acknowledgment by DMPL of the impact of the rising middle-class population on purchasing power and
their ability to customize products and marketing strategies for this demographic demonstrates a
superior response (4). Del Monte demonstrates a proactive approach in customizing their product
offerings to specifically address the tastes and requirements of the middle-class consumer category. This
is achieved through the introduction of value-added choices that effectively align with the preferences
and demands of this particular demography. Further, DMPL also prioritizes accessibility through
modifying distribution channels to fit diverse consumer buying preferences, encompassing both
conventional brick-and-mortar retail outlets and online e-commerce platforms. Lastly, the projected
growth in the functional foods market indicative of shifting consumer inclinations towards more
health-conscious dietary selections. A weight of 11% was allocated to reflect the potential of the subject
matter and to allow for the inclusion of additional significant opportunities. Therefore, an average
response rating of 2 was provided to highlight the indication that Del Monte is currently studying the
possibility to offer functional foods which indicated that DMPL acknowledged the potential for growth
43
in the functional foods industry and may have undertaken initiatives to introduce or promote functional
food items. The potential for enhanced outcomes exists through additional expansion and innovation.
Meanwhile, Del Monte garnered a score of 1.01 concerning threats. The weight of 15% was
assigned to a highly competitive industry, reflecting the proliferation of options and alternatives. This
indicates that despite DMPL holding a prominent position in the industry, it does not eradicate the effect
of market competition on their operations. With a diverse range of products for consumers to choose
from, DMPL addresses this threat by continuously innovating products, focusing on quality, and
maintaining competitive pricing. As such, a rating of 3 or an above-average response was given to Del
Monte. The final threat identified is the shifting consumer preferences, which can be attributed to
changing lifestyles, trends, values, and tastes. A weight of 14% was allocated to this treat as this is
inevitable in the food and beverage industry. Forecasting consumer preferences poses a challenge due to
their dynamic nature, which can change at any time. Furthermore, it is important to note that consumer
preferences vary among individuals, making it even more complex to predict accurately. Regardless, Del
Monte’s response to this threat was rated at 4, indicating a superior response, as they lean to data and
ways to effectively engage and connect with customers to address this threat.
Overall, the EFE Matrix reveals that Del Monte effectively adapts to its external environment.
The management capitalizes on opportunities presented to them and mitigates threats through its
strategic initiatives. By maintaining a proactive approach, the company can enhance its performance,
specifically with the key external factors influencing its operations.
Industry and Competitor Analysis
In today's highly competitive business landscape, it is crucial to have a thorough understanding

of the broader industry dynamics and to possess awareness of the strengths and weaknesses of
competitors. The aforementioned not only provides a strategic advantage but also serves as the
fundamental foundation for developing successful business plans. Within this particular area, the
researchers will undertake a comprehensive examination of the industry and its rivals through the
application of Porter's Five Forces Framework and Competitive Profile Matrix (CPM). Moreover, this
study aims to identify and analyze the key issues, problems, and challenges faced by the firm, as well as
the activities undertaken in response.
Porter’s Five Forces Framework
This section provides a comprehensive analysis of the various forces, presenting unbiased
observations that will inform strategic decision-making. By utilizing this analytical tool, organizations
have the ability to identify potential opportunities, predict potential obstacles, and develop strategies that
promote resilience and sustainable expansion within a highly competitive business landscape.
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Figure 2.2
Porter’s Five Forces Framework
Threat of New Entrants (Low)
Upon evaluation, the threat of new entrants for Del Monte can be assessed as low since it is
already a well-established multinational food production and distribution company, leading to being a
market leader in the food and beverage industry over the years. Del Monte has been a recognized brand
as it established a strong reputation in the industry, leading to the development of customers’ loyalty and
trust due to its commitment to quality and consistency. Moreover, the food manufacturing and
distribution sector frequently necessitates significant capital investment in infrastructure, machinery, and
promotional activities. Hence, new entrants may encounter difficulties in obtaining sufficient financial
resources. In addition, Del Monte has accumulated industry skills and years of experience, which is
valuable in dealing with the intricacies of this sector. With this, Del Monte has cultivated strong
partnerships with suppliers to procure raw materials, ensuring a stable and competitive edge in the
market.
Bargaining Power of Buyers (High)
As one of the factors in Porter’s Five Forces Framework, the bargaining power of buyers could
provide insightful analysis into the behavior of those who patronize Del Monte’s products and how they
exercise their bargaining power or lack thereof. Although contestable, the assessed level of the buyers’
bargaining power over Del Monte is high due to the rampant presence of alternatives, insignificant costs
of switching, and price-sensitive consumers.
The bargaining power of Del Monte’s buyers is considered high primarily because the food and
beverage industry is rather extensive and as such, plenty of other companies extend the same product
offerings as Del Monte. Resultantly, switching costs are low and consumers are able to change their
brand of preference with ease since the price differences are insignificant. Additionally, the products of
45
Del Monte are not differentiated and can easily be substituted. Further intensifying the high bargaining
power of buyers is the price sensitivity of consumers. Especially during the holiday season, consumers
are becoming increasingly stringent and are willing to cut costs wherever possible. In fact, as early as
September of every year, the Department of Trade and Industry already links up with local
manufacturers and suppliers of Noche Buena items in order to regulate price changes and formulate a
price guide for the price-sensitive public. As prices of goods are also closely monitored by regulating
bodies and subsequently relayed to consumers, Del Monte is unable to deviate from the mean prices
without risking being replaced by a more affordable counterpart.
Bargaining Power of Suppliers (Low)
The assessed level of bargaining power of suppliers for Del Monte Pacific Limited falls under
the latter category as it is low due to its efficient supplier and supply chain management. Del Monte
achieves this level of supplier power through the employment of strategic diversification of its supplier
base, the utilization of SQMP, and synergetic collaborations.
Being a worldwide distributor of canned produce comes with the advantage of gaining a vast
supplier pool as various suppliers, service providers, consultants, and agencies from different countries
are available depending on the situs of the particular Del Monte company. However, to ensure that this
supply chain dynamics would remain to be an advantage of the company, Del Monte sets out policies
regarding supplier relations and supplier selection which appears to be functioning productively as
identified by their high supplier regard. Illustratively, the policies involved in supplier relations focus on
expanding their supplier base by having alternatives to prevent over-dependency on one supplier,
especially when such suppliers provide identical inputs. More so, Del Monte strenuously selects
suppliers based on their oneness with the vision, mission, objectives, and values of the company to
consistently and sustainably operate.
On the other hand, the policies of supplier selection primarily encompasses the utilization of the
Supplier Quality Management Programme (SQMP), especially in the Philippines. The SQMP is a
procedure employed to evaluate suppliers based on the quality, feedback, and consistency of their
delivery to assure that they comply with mutually agreed criteria. As it assists companies in achieving
their optimal input products quality, SQMP likewise minimizes costs and enhances current and future
deliveries. Del Monte has been actively pursuing this programme since 2008 along with its established
Code of Conduct with Business Partners. To supplement the diversification activities and the
employment of SQMP, Del Monte emphasizes its synergistic collaboration accordingly. This strategy
involves ensuring that suppliers, service providers, consultants, and agencies, collectively referred to as
business partners by Del Monte, are supported and nurtured as well. Concurrent with the growth of the
company, Del Monte ensures that suppliers grow with them profitably and sustainably.
As an ultimate consequence of these strategies and policies, the bargaining power of suppliers
over Del Monte is determined to be low. With the strong relationships that the company fostered with its
vast business partners, low supplier concentration but with higher supplier reputation, low price
46
volatility but with high product quality, and low supplier dependence but high relation sustainability are
all apparent in the company.
Threat of Substitution (Low)
The threat of substitution is low given that there are very limited options as substitute products
and fresh produce as substitute products costs generally higher than what is currently offered by the
company. The industry in which Del Monte operates has very few substitutes available produced by low
profit earning industries (Murphy, 2018). This entails that there is no ceiling price in the industry,
allowing for greater profitability, yet DMPL still has to consider its rivals and compete with other
brands within the sector in terms of pricing their products. Similarly, while substitute products for Del
Monte may be healthier options, they also have drawbacks such as higher costs and shorter shelf life,
leading customers to prefer canned products because they retain the majority of the nutritional value
provided by their fresh produce counterparts. There are also other possibilities in the business that may
offer cheaper alternatives with comparable quality to what Del Monte offers, but this ultimately
indicates a weaker force for substitute items within the sector.
Competitive Rivalry (Moderate)
In essence, competitive rivalry as one of the five forces considers the quantity and quality of
competitors within the industry which the company operates, which considers how many rivals one has,
who they are, and how the quality of their products compares with the entity, as well as switching costs
between brands and customer loyalty (Murphy, 2018). These factors evaluate the existing competitive
landscape and view the entity in the perspective of the market, taking into account the options available.
In consideration of the determinants of competitive rivalry, there is a mix of good and bad factors
leading to stronger or weaker competition within the industry, which is why the assessment for this
specific factor of Porter’s Five Forces is moderate.
First, there are just a few competitors who engage in the same niche market as Del Monte. Still,
they are also rather massive in size, which means that companies in the sector will not make initiatives
that go overlooked, and so they might be suggestive of a robust competitive rivalry. Furthermore, the
industry's fixed costs are substantial causing businesses to operate at full capacity and decrease their
prices when demand falls, increasing the competitiveness of each firm. Similarly, the industry's exit
barriers are extremely high because of the considerable capital and asset investment necessary to
operate, as well as government rules and regulations. This makes companies within the sector hesitant to
cease operations, and these firms continue to produce even at low profitability, boosting their
competitiveness. Despite this, the food and beverage business is growing, making corporations less
inclined to participate in methods targeted at acquiring market share from competitors, resulting in a
weaker force in adversarial rivalry. Taking all of these considerations into account, there is still a
relatively limited number of competitors, making competitive rivalry less than intense, resulting in a
moderate assessment.
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Summary of Key Findings in the Industry and Competitor Analysis
While Porter’s Five Forces Framework was able to provide a bird’s eye view of the competitive
pressure that a firm may face in a given industry, the findings are more qualitative in nature and would
be better supported by tangible figures, especially when juxtaposing a firm against its competitors. To
complement the Five Forces Model and scrutinize the factors of Competitive Rivalry and Threat of
Substitution more thoroughly, a Competitive Profile Matrix (CPM) is likewise utilized to substantiate
claims and findings about the industry in general and the competing firms. The CPM is another
analytical tool utilized in the field of business planning and organizational strategy. Regarded as one of
the most common frameworks to gauge a firm’s competitiveness by comparing and contrasting strengths
and weaknesses within a particular sector, the CPM essentially presents selected industry-specific and
general business attributes that are deemed vital to achieving success. These characteristics are termed
Critical Success Factors and each competing firm is scored based on their performance in these key
areas. Specifically, the scoring in the matrix ranges from 1 to 4, with 1 representing a major weakness, 2
a minor weakness, 3 a minor strength, and finally, 4 a major strength.
In the case of Del Monte, which is rightfully classified in the food and beverage industry, its
strengths and weaknesses will first be contrasted with its rival companies. In the process, the Critical
Success Factors within the industry will be extracted. Subsequently, each firm is rated between 1 to 4 for
each given attribute to facilitate comparison, pinpoint the forte of each firm, and probe into their
deficient areas.
Moreover, since the food and industry sector is rather broad and the majority of known firms
within the said industry offer a wide array of products that shy away from the main offerings of Del
Monte, it is fairer to select direct competitors with the same or similar product range. As such, DOLE
Philippines Inc. and Fly Ace Corporation were identified to be the most straightforward rival entities of
Del Monte in the Philippine market, primarily due to their overlapping product offerings. Historically,
Del Monte and DOLE have gone head-to-head in the Philippine pineapple industry. Aside from
exporting and processing similar products, the two food giants are also very much comparable in terms
of the sheer size of their operations, especially since both operate in multinational setups. On the other
hand, Fly Ace Corporation is undeniably a lesser-known competitor, and with fewer years of experience
to boast, it is not as big of a household name as Del Monte is. Nonetheless, Fly Ace’s product range is
akin to that of Del Monte, unquestionably making them direct competitors.
Prior to quantitatively analyzing the performance of each of these three competitors using the
CPM, their individual strengths and weaknesses as a business entity are first examined and presented
qualitatively to get a gist of each firm’s current state. Thereafter, these strengths and weaknesses will be
taken into account when crafting the CPM and juxtaposing each firm with another.
Firstly, as an entity that has withstood the test of time and has cemented itself as a household
name in the Philippines, Del Monte is undoubtedly a market leader and will continue to reap from its
favorable brand positioning. Its strengths lie in incredible financial strength, often attributed to the fact
that it belongs to a greater network of Del Monte subsidiaries worldwide and its successful advertising
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strategies that have managed to resonate with the everyday Filipino as they often involve family and
sharing meals. On the flip side, one of Del Monte’s limitations is its pricing. Despite being marketed as a
brand that is accessible to the public in terms of price, otherwise known as pang-masa, recent years
depicted that its counterparts could offer even more affordable prices. Clearly, price competitiveness is
of utmost importance to the average Filipino consumer, especially as prices of necessities soar and
inflation hits the country hard. Consequently, Del Monte’s inability to provide its products at a lower
price without compromising its quality could be perceived as a weakness.
Secondly, Del Monte’s most prominent competitor, DOLE Philippines, Inc. also has its fair share
of strengths and weaknesses. Paralleling Del Monte’s ownership, DOLE Philippines is also a part of a
multinational corporation. In fact, its American counterpart is said to be the largest producer of food and
vegetables. As such, it is unsurprising that its brand reach is also extremely broad, spanning over 90
countries and offering over 300 different products. Evidently, the strong suits of DOLE Philippines
include its wide product range and immense size and scope of operations. In addition, DOLE is also
known for its consistent effort in nutritional research and is regarded as an industry leader when it comes
to nutrition education and research undertakings. An identified weakness of DOLE Philippines,
however, is its deteriorating brand image. Aside from the lawsuits faced by the company worldwide,
especially in the United States, DOLE has also been a subject of cyberattacks, much to the dismay of its
customers. Although these circumstances are not specific to the local equivalent of DOLE, brand
reputation is ultimately affected and could negatively impact customers’ perception of the brand.
Lastly, another rival of Del Monte is Fly Ace Corporation. Its primary strength lies in being able
to offer the same goods as Del Monte and DOLE at a fraction of the price without compromising the
quality. Furthermore, while it boasts its own brands such as JOLLY, Fly Ace has also established itself as
a rising player in the food and beverage industry by forging partnerships with international suppliers to
bring known brands to the Philippines. Conversely, some of its weaknesses include inadequate
marketing and advertisements which then result in weak brand awareness, and smaller network of
operations and fewer opportunities for expansion, relative to its competitors.
Bearing in mind both the strong suits and the deficient areas of each entity, a CPM may then be
performed in order to numerically present the presence or lack thereof of vital success attributes. The
proponents employed a total of ten Critical Success Factors, namely Product Quality, Product Range,
Price Competitiveness, Customer Loyalty, Advertising and Market, Brand Awareness, Global
Expansion, Financial Performance, Management, and Distribution Network. Independently, the firms’
corresponding scores on each attribute will be used to assess, confirm, and discover specific strengths
and weaknesses relative to their direct competitors. In unison, the total score that a company obtains
from the evaluation of all its Critical Success Factors will be indicative of its current standing in the
market. A competitive profile matrix of Del Monte Pacific, Ltd., as well as its direct competitors, DOLE
Philippines, Inc., and Fly Ace Corporation is presented in Table 2.2 Competitive Profile Matrix below:
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Table 2.2
Competitive Profile Matrix (CPM)
Del Monte DOLE Fly Ace

Pacific, Limited Philippines, Inc. Corporation
Critical Success Factor Weight Rating Score Rating Score Rating Score
Product Quality 0.15 4 0.60 4 0.60 3 0.45
Product Range 0.12 4 0.48 3 0.36 4 0.48
Price Competitiveness 0.15 2 0.30 3 0.45 4 0.60
Customer Loyalty 0.08 4 0.32 4 0.32 3 0.24
Advertising and 0.10 3 0.30 2 0.20 3 0.30

Marketing
Brand Awareness 0.12 4 0.48 3 0.36 2 0.24
Global Expansion 0.08 4 0.32 4 0.32 2 0.24
Financial Performance 0.10 3 0.30 3 0.30 3 0.30
Management 0.05 3 0.15 3 0.15 3 0.15
Distribution Network 0.05 4 0.20 4 0.20 4 0.20
Total 1.00 3.45 3.26 3.20
1 - major weakness; 2 - minor weakness; 3 - minor strength; 4 - major strength
As mentioned, the identified direct competitors of Del Monte Pacific, Ltd. in its operations in the
Philippines are DOLE Philippines, Inc. and Fly Ace Corporation, which are chosen because they
generally have the same product lineage and they all are operating within the same niche market. Other
household companies in the food and beverage industry such as Nestle, Universal Robina Corporation,
and San Miguel Foods, Inc., were not identified as direct competitors due to their diverse product
offerings making it difficult to assess their comparability with Del Monte Pacific, Ltd. Likewise, other
well-known brands such as S&W, Contadina, and College Inn are also main competitors of the Del
Monte brand, however, all of these brands are under DMPL, making the company’s branding
ever-so-present in the market. A short description of the identified competitors are presented below:
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DOLE Philippines, Inc., is mainly known for its championed fresh and canned fruits and
beverage products. The company's operations are centered around a sprawling 15,000-hectare plantation
located in Mindanao. This plantation serves as the hub for their comprehensive approach to pineapple
production, encompassing both cultivation and industrial processing with a goal to supply fresh and
processed pineapple products to the global export market. It boasts a strategy of product differentiation
by labeling its products as “fresh from the farm”, appealing to consumers who aim to get the nutritional
benefits from fresh produce with the benefits of packaged products.
Fly Ace Corporation was incorporated in 1993 and houses various brand names under its
supervision, such as Jolly, Jolly Fresh, Dona Elena, and the Good Life brand. Since its inception, the
company has focused on fast-moving consumer goods, particularly juices and teas, milk and wine for
beverages, condiments and sauces, bottled and canned goods such as fruits, vegetables, and meat,
noodles and pasta, and snacks and cereals. The firm is well-known for its cost leadership strategy, in
which its brands, such as Jolly, are noted for their lower price points, making them more appealing to
budget-conscious consumers.
In the competitive profile matrix presented in Table 2.2, 10 critical success factors were
identified for the purpose of evaluating the performance of three distinct companies who are direct
competitors within the food and beverage industry, specifically within their respective niche markets.
These factors have been assigned weights in accordance with their perceived significance in influencing
the companies' overall performance. Notably, greater weightings have been accorded to those factors
that are readily discernible by consumers, including Product Quality (0.15), Price Competitiveness
(0.15), Product Range (0.12), Brand Awareness (0.12), Advertising and Marketing (0.10), and Financial
Performance (0.10), exemplifying a consumer-centric strategy. Other critical success factors which are
considered to be supplementary to the performance of the three companies such as Customer Loyalty,
Global Expansion, Management, and Distribution Network are given weights of 0.8, 0.8, 0.5, and 0.5,
respectively.
Several noteworthy observations can be drawn from the matrix, particularly concerning price
competitiveness. Fly Ace Corporation stands out with the highest rating, primarily attributed to its
ability to provide products at the lowest price points, thus representing a significant competitive
advantage for the company and given a rating of 4. In close proximity in terms of price competitiveness
is DOLE Philippines, Inc., (3) while DMPL lags behind (2), offering products at the highest price range.
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This pricing disparity can largely be attributed to DMPL's premium branding strategy. Furthermore, it is
worth noting that both Fly Ace and DMPL boast a more diverse product portfolio compared to DOLE
Philippines, Inc., which primarily focuses on canned and bottled pineapple products, thus, this is
considered their major strength and given a rating of 4 while DOLE received a 3.
Regarding the companies' advertising and marketing, both DMPL and Fly Ace have achieved
relatively competitive scores in this category given a rating of 3 representing a minor strength as they
are yet to fully maximize all available platforms for advertising and marketing, although they have more
exposure in emerging digital platforms such as TikTok. In contrast, DOLE has a lower score as it has
less marketing activities compared to the previously mentioned companies, hence a rating of 2. In terms
of brand awareness, Fly Ace appears to have a weakness in this area, as both the company and the
brands under its umbrella have limited visibility in the market. However, it is worth noting that the
brands under Fly Ace are gradually gaining attention, particularly among the mass market segment,
despite the company being unexposed. All three companies are intensifying their marketing efforts to
enhance their presence on social media platforms, recognizing the growing trend of consumers
embracing e-commerce.
In summary, Del Monte (DMPL) attained a total score of 3.45, closely trailed by its competitors
DOLE with a score of 3.26 and Fly Ace with a score of 3.20. Given this, DMPL must continue to invest
in its efforts to solidify its position as the industry leader. It is important to acknowledge that its direct
competitors are also evolving, and it may not be long before they catch up with Del Monte, potentially
posing a threat to the company's current standing.
Key Issues, Problems, and Challenges
While the current status of Del Monte as an established household name in the food and
beverage retail industry is remarkable and branded with longevity, the company remains susceptible to
various scope of issues, problems, and challenges arising from its operational external environment, the
strengths and advantages of its direct competitors, or the combination of both factors. In a dynamic
marketplace, it is ordinarily expected that even the industry leaders must progress and adapt to evolving
conditions, and this is especially applicable to Del Monte as it has been consistently progressing and
adapting to the evolution of the marketplace since its establishment 137 years ago.
Essentially, the sole key issue of Del Monte originates from the assessed level of the bargaining
power of its buyers, which is high as detailed in the previous sections. As such, most of the external
factors affecting the company's operations are caused by the intensity of its customers. The significance
of the bargaining power of the customers over Del Monte exhibits inherent risks and unprecedented
threats to the company as this may lead to limited flexibility and lower profitability. For instance, the
availability of viable alternatives that grant customers the ability to readily and easily switch brand
preferences poses a fixed challenge to the company. In a marketplace where selection is present,
consumers are commonly more inclined to explore alternatives or substitutes at times when better deals
are offered to them. On top of this, when price sensitivity is involved, buyers tend to prioritize particular
products over others or opt to choose substitutes to be thrifty, especially during cost-cutting periods such
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as economic downturns. As a result, this situation highlights the importance of customer loyalty to a
brand; when a customer is loyal to a brand, such a brand can harness all advantages that come with the
support of the customer in the like of repeat business, free advertising through referrals or word of
mouth, voluntary refusal of competitor products, and long-term commitment to the brand.
To summarize the external critical factors identified based on Porter’s Five Forces Framework
and the Competitive Profile Matrix (CPM), the following key issues, problems, and challenges are
presented below:
The presence of alternatives, price sensitivity, and customer loyalty. Generally, in navigating
the setting in which the presence of alternatives, price sensitivity, and customer loyalty are significantly
weighted, balancing such weights may lead to issues and challenges much like how they do in the
context of Del Monte’s business. In this respect, a key issue identified in the industry and competitor
analysis of Del Monte is the neutrality of the company when it comes to the price sensitivity of
customers. As it prioritizes the quality of its products and the welfare of its business partners, Del Monte
typically faces difficulties in reducing its retail prices to its customers as this would either compromise
the quality of its products or the welfare of its business partners, though it would be ideal and essential
for the company to address this risk proactively. In turn, Del Monte may be offering quality and
accessible products, but its pricing may also be counterbalancing this movement. As a result, Del Monte
tends to rely on its customer loyalty and brand awareness to keep its business afloat. However, this may
not always be successful since the presence of alternatives and substitutes provides disruptions and
increased competition. Ultimately, to maintain or improve its competitive profile and mitigate these
risks, Del Monte may employ strategies involving supply chain optimization, stronger customer
engagement and service, and enhanced marketing and branding.
Contracted price competitiveness. While quality and supplier connections are significant in a
retail company, pricing competitiveness remains a pressing concern, especially in countries like the
Philippines where consumer purchasing decisions are closely tied to the levels of their income.
Generally, if only customers were indifferent to price changes, price competition would have been offset
by the quality of the products. Due to this premise, price competitiveness is highlighted as a prominent
barrier in the highly competitive marketplace as it depicts the ability of competitors to manufacture
identical products at more cost-effective prices. Aside from cost-efficient production, competitors may
also impose discounts, promotions, and bundle deals that entice consumers who are conscious of price
elasticity. On top of this, the volatility of commodity prices of raw materials also affects production
costs which may lead to challenges in maintaining competitive prices alongside increased input costs.
Hence, as an ultimate result, another key issue identified in the operations of Del Monte is the intricate
and crucial need to balance profitability and affordability in producing and marketing its products. Del
Monte may consider what its competitors can offer as a relative benchmark when deciding costs to be
incurred during production. Illustratively, Fly Ace, though a lesser-known brand than Del Monte,
endorses identical products within the same quality spectrum that it produces for a much lower input
cost. Del Monte may appear to have the advantage of brand recognition and reputation, but Fly Ace
thrives on competitive pricing and customer preference-aligned products. The challenge stems from
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selecting strategies that would provide optimal product quality while maintaining a competitive pricing
scheme to meet the expectations of consumers who are sensitive to price changes. Essentially, to reduce
the effects of this challenge, Del Monte may resort to increasing its pricing competitiveness through the
establishment of economies of scale, process innovation, supplier negotiations, and strategic
partnerships to balance affordability and profitability. As a rule, such strategic movements must be
aligned with Del Monte’s value proposition.
Global reach, innovation strategies, and marketplace trends. Although Del Monte has a
commendable global reach, it is not relatively exempted from challenges that emerge in the continually
evolving global marketplace. Since it is a vast avenue, risks and uncertainties involved typically
encompass those that arise from the strengths of competitors and marketplace pressures. Hence, another
key issue identified in the business of Del Monte is the advancing efforts of its competitors in the
international market; instead of stemming from a deficiency or weakness of the company, this challenge
results from the efficiency and strength of competitors. For instance, DOLE Philippines, a direct
competitor of Del Monte, adopted global expansion efforts that enabled the company to span over 90
countries, extending its market reach and supplier base. More so, DOLE’s innovation strategies have
provided the company with an extensive range of over 300 various products which presents diversity in
its product offerings. On top of this, DOLE is internationally recognized for its outstanding and ongoing
nutritional research and development, which allows it to stand side-by-side with Del Monte in terms of
being an industry leader in promoting healthy eating. The cumulative effect of these efficiencies on the
part of DOLE poses strains and pressures on the operations of Del Monte. To sustain its competitiveness
against its direct competitor, Del Monte must reassess its ability to capture opportunities for expanding
its global footprint, fostering innovative and inclusive practices, and adapting to marketplace trends and
dynamics concerning variable customer preferences and tastes, cultural factors, and environmental
conditions. Failure on the part of Del Monte to harness such opportunities may cost the company its
local and global reputation, leading to a diminished competitive position.
Actions Taken
Illustratively, the actions taken and the measures being followed by Del Monte concentrate on
three significant functions: (1) supply chain optimization, (2) marketplace excellence, and (3) effective
operations. In addressing the key issues of alternatives, price sensitivity, and customer loyalty, Del
Monte has amended and adapted its nourishing customers strategy, as identified and detailed in the
sustainability report of the company, by ensuring that the commitment to high customer satisfaction is
observed and practiced throughout the organization, starting with the executives down to the vast
subordinates of Del Monte. The company affirms customer loyalty by communicating the company’s
dedication to upholding and complying with food safety standards through thorough and stringent
quality and safety assurance. On top of this, the company extended this practice to their manufacturers,
suppliers, and other business partners to guarantee consistent adherence. Del Monte regularly conducts
risk assessments and hazard analysis, certification and customer audits, and quality management
programs to promote transparency as to the integrity of its work as a company. Factually, during the
fiscal year 2022, Del Monte successfully completed 23 audits, consisting of 11 certification audits, 11
54
customer audits, and one regulatory audit. In the same year, all of Del Monte’s facilities were certified to
have an A or AA rating by the Global Food Safety Initiative. Likewise, Del Monte has garnered US
$176.0 million in sales, which was approximately a 20% increase from 2021, in 2022 solely from its
Philippine subsidiary. Conclusively, Del Monte attends to its challenges concerning alternatives, price
sensitivity, and customer loyalty by being transparent and accountable to strengthen its customer
relationships and extending its strategies to its business partners to optimize supply chains. This
ultimately leads to favorable circumstances for the company in terms of input prices and customer
feedback.
On the other hand, Del Monte addresses the key issues posed by its challenged price
competitiveness by optimizing its supply process. For instance, for seasonal produce, Del Monte
increases its inventory cover by packing and purchasing early-season products routinely to ensure prior
and future years' inventory. Aside from bettering its production facilities in accordance with its
nourishing customers strategy, Del Monte also developed alternate ways to source raw materials and
implemented a global scale sourcing strategy. This was further supplemented by routine management of
plant nutrients by means of special fertilizers and sustaining good root health through pest and plant
disease control. With respect to their suppliers, Del Monte sought strategic partnerships to maximize
production and transportation and conducted regular third-party reviews to seek cost savings. These
collaborative efforts ultimately resulted in the company realizing higher sales and profitability despite
the inflationary costs surrounding its operating environment. Concretely, the company realized P9
million in core profits in the third quarter of the 2023 fiscal year, and such a profit stream is expected to
be carried over to the first quarter of the 2024 fiscal year.
Furthermore, the actions taken by Del Monte in addressing the issues raised by global reach,
innovation strategies, and marketplace trends focused on implementing brand rationalization, improving
product forecast accuracy as adjusted by new knowledge of customers and their dynamics, and
monitoring market trends consistently. Recently, the company has transitioned toward producing
branded, value-added, and packaged products while minimizing its engagement with private-label
businesses. More so, it emphasized efficient execution and project management as opposed to mare
planning to enhance margins, profitability, and cash flows. In its latest quarterly report, Del Monte has
disclosed that though its core products remained to be leading in the market share of the industry, the
company garnered strong positive consumer response for its expanded portfolio of new product
innovations.
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CHAPTER III: INTERNAL ENVIRONMENT ANALYSIS
In this chapter, the comprehensive analysis of Del Monte’s internal environment, in which the
company’s resources, capabilities, core competencies, competitive advantages, value chain through the
lens of Porter’s Generic Value Chain framework, strengths and weaknesses, and internal factor
evaluation are scrutinized and explored to perceive the intricacy of the company’s internal harmony.
Resource, Capability, and Core Competencies
In this section, the tangible and intangible resources, capabilities, and core competencies that
make up Del Monte’s internal environment are detailed and explored to present how the company’s
persistent and timeless success may be attributed to its internal process.
Resources
In providing product value to consumers, companies require a wide range of resources, whether
that be a source, supply, or support, that they can use to generate profits or other benefits in order to
operate effectively (Safeopedia, n.d.). Depending on the nature, size, goals, and strategies used by the
company, varying degrees of importance are attached to these resources. Understanding the company's
status and overall environment can, therefore, aid in the effective allocation and management of
resources that are essential to its growth and competitiveness as well as its success in the dynamic
business landscape.
Tangible Resources
These assets possess a defined value and likewise play a vital role in helping to leverage the
financial standing of a company. Tangible resources can be primarily categorized as financial,
organizational, physical, or technological resources.
Financial Resources
In recent years, DMPL has relied heavily on bank borrowings and leasing arrangements to
finance its continued operations. Financing is obtained from bank credit facilities, for both short and
long-term requirements and/or sale of assets, particularly receivables from its customers. It raises capital
to repay its existing debt and works with an agent bank to increase the amount available to borrow
under the Asset-Based Line of credit since it has leveraged its balance sheet through loans. In May 2022,
it secured a loan of Php 32 billion through a 7-year Term Loan B facility maturing in 2029 and has also
made use of its redemption of preference shares amounting to Php 10 billion of its Series A-1
Preference Shares which had a dividend rate of 6.625% per annum. The redemption was refinanced by a
combination of fixed rate Senior Notes. Likewise, the company’s cash balances are placed with
reputable global and major Philippine banks and financial institutions. It also manages its interest
income by placing the cash balances with varying maturities and interest rate terms which includes
investing the Company’s temporary excess liquidity in short-term, low-risk securities from time-to-time.
Due to DMPL's strong financial standing, it is evident that creditors and investors are confident that
56
DMPL will be able to repay its financial obligations and distribute dividends to investors, increasing its
ability to generate funds and providing the business with sufficient financial resources.
More than half of Del Monte’s sales are in the Philippines, with the balance in the international
market. DMPL’s 2nd largest and most profitable subsidiary, Del Monte Philippines, achieved sales of
Php 39 billion for the fiscal year 2022, up 3%. EBITDA of Php 84 billion increased by 1%, and net
profit of Php 5 billion was up by 3%. Cost increases in raw materials, packaging and other inputs, as
well as macroeconomic factors such as geo-political conflict, inflation, and supply chain challenges puts
pressure on the company’s margins and working capital. Likewise, the profitability of the company is
also affected by the additional Php 784 million of interest expense for the new loans taken to redeem the
Preference Shares. Despite this, DMPL’s gross profit rose 12% to Php 33 billion. This was driven by
sales of higher volume, better sales mix from improved sales of higher-margin retail branded
products, savings generated by plant closures two years ago with the company’s asset-light strategy,
cost reduction initiatives coupled with select price increases to help offset higher pack costs and
transportation headwinds driven by port congestions particularly in the second half. Thus, it is evident
that the company has enough financial resources to support its operations and is able to generate funds
through various means as the need arises. DMPL is also able to employ the right strategies in order to
combat the risks associated with their funding and capital generation.
Organizational Resources
In recognition of upholding the values of openness, integrity, and accountability and adhering to
the highest standards of corporate governance, Del Monte has received recognition on a local and
international level. As seen in Figure 3.1, the majority of the board's members are independent.
Independent directors make up all of the members and chairs of the board committees (Audit and Risk,
Nominating and Governance, and Remuneration and Share Option). They are all held accountable to the
shareholders, along with the management.
Figure 3.1
Composition of Board Committees
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Aside from the board composition, the company also has a whistleblower policy in place to
prevent and expose any corrupt or unethical behavior detrimental to its interests that may be committed
by officers and employees, as well as third parties or any other persons such as suppliers and contractors.
Since 2004, there has been a whistleblower policy in place to encourage the highest levels of
professional and personal ethics in the management of the Company's affairs. The policy handles reports
from whistleblowers in a way that will safeguard the whistleblower's identity and allow for the
appropriate use of the supplied information. To oversee the Company's whistleblower program, the
Board and the Chairman of the Audit and Risk Committee each appointed a Protection Officer and an
Investigations Officer.
The company also employs an Employee Code of Conduct, Supplier Code of Conduct, which
sets out the requirements for their suppliers that outlines expectations and encourages suppliers to
continually improve their own operations and supply chains, and an Interested Person Transactions
policy, which prescribes the monitoring procedures and approval requirements for any transaction of the
Company with any interested person such as a director, the Chief Executive Officer, any controlling
shareholder, or associates of these persons. They continually assess the risk posed by third parties and
evaluate the Company's high-risk third-party policies. In addition to this, the business conducts internal
audits to evaluate corporate, facility, and subsidiary processes to make sure that the aforementioned
policies are being followed and to reduce the risk of violations, fraud, and harm to the company's
finances and reputation.
Physical Resources
DMPL is known for its top-notch quality products. Advanced plant machinery, strategically
located plantations, facilities, warehouses, and a vast distribution network are the driving forces behind
these goods. Del Monte operates a fully-integrated pineapple operation with its 28,000-hectare
pineapple plantation in Bukidnon, Philippines, and a factory that is about an hour away from the
plantation. As part of its commitment to #ExcellenceInEverythingWeDo, DMPL commits to planting
and harvesting sweet pineapples all year-round on a 26,000-hectare plantation in Camp Philips, Manolo
Fortich. Del Monte also boasts a 700,000-ton annual processing capacity of high-quality pineapples
done at their cannery located in Bugo, Cagayan de Oro. They ensure freshness of their products by
processing them in no less than 24 hours from harvest at the plantation to being packed. For an
environmentally friendly approach to sustainability, the cannery has its own waste-to-energy plant and
importing dock right behind the building.
Their dedication to upholding high standards extends to their beverage bottling facility as well.
The beverage bottling plant is Del Monte's first production facility outside of Mindanao, and it is
situated in Cabuyao, Laguna. This plant, which was opened for business operations in 2015, features
state-of-the-art facilities that boost their competitiveness in the beverage industry and support ongoing
cost and quality improvement strategies. The plant also houses the technical infrastructure for the
departments of research and development and quality assurance. In order to construct a dehydro-freezing
facility in the Philippines and process, market, and sell frozen fruits worldwide, DMPL constituted a
joint venture in 2014 with leading Spanish fruit processor Nice Fruit SL and another partner.
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Through this partnership, the business was able to use the patented technology of Nice Frozen Dry,
which enables fruits to be frozen for up to three years while maintaining their nutrients, structure,
original properties, and organoleptic qualities. This technology gained recognition on an international
level and predicts profound changes in food consumption patterns as well as benefits for export and
better stock management.
More than their competitive production capabilities, Del Monte also champions its extensive
distribution network, having long-standing relationships with leading retailers and distributors
throughout the country. By marketing their products under a co-branded label, DMPL is able to leverage
the trust and affinity that Filipino consumers have developed for the Del Monte brand in relation to the
previously established joint venture. When Del Monte's volume tumbled, new marketing initiatives
promoting the company's new Chunks 200-gram value pouch in regular meal recipes helped their
packaged pineapple grow to record-high market shares. They also expanded their distribution to include
more than 200 additional supermarkets and 2,000 mom-and-pop shops. Finally, considering that
e-commerce is a crucial component of the Philippine economy and a key emerging channel, Del Monte
also entered this market. Del Monte Philippines has increased its online sales 13 times over the past
two years by concentrating on online marketplaces. In FY2022, Del Monte ranked among the
best-performing grocery brands on Shopee and Lazada. Del Monte received three awards from the Asia
eCommerce Awards, which also acknowledged its work in e-commerce.
Technological Resources
Although they are frequently undervalued, technological resources are essential in ensuring that
processes and trade secrets continue to give the company a competitive edge. On August 16, 2021, Del
Monte and Vietnam Dairy Products JSC (Vinamilk), a preeminent regional dairy business, entered into a
strategic partnership. By combining the strengths of Vinamilk in dairy manufacturing and
technology with Del Monte's in marketing and distribution in the Philippines, this joint venture
seeks to further advance the dairy industry in the Philippines.
Additionally, using the ground-breaking technology developed by Nice Fruit, the business
also entered a new category: frozen fruit. This technology offered a competitive advantage by allowing
the frozen or newly thawed pineapple to have the same physical properties as fresh cut pineapple.
Through this joint venture, Del Monte was able to launch frozen pineapple spears in leading
convenience stores. As discussed in Physical Resources, this patented technology utilized by DMPL
ensures optimal ripeness and longer shelf life while being able to preserve the nutritional value and
original properties of pineapples.
Apart from these joint ventures, Del Monte likewise introduced technological innovations in
packaging, adhering to the growing sustainability preferences of consumers and their responsibility to
the society as one of the leading producers of fresh goods in the world. First, Del Monte juice drinks
were expanded from single-serve cans to multi-use and more affordable 1-Liter carton packaging.
Next, its tomato ketchup product line is offered in a resealable pouch in a convenient stand-up-pouch
format with a resealable spout to ensure reusability and keep the freshness of this product. In a similar
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vein, Del Monte Pineapple Tidbits were also introduced in a stand-up pouch (SUP) format, the first
product on the market to do so and the first to provide a cost-effective format that promotes increased
consumption for both enjoyment and improved immunity. Lastly, S&W Pineapple Slices and Chunks
were packaged in clear-can breakthrough packaging that won the International Innovation Award
from Enterprise Asia. These clear can packaging is a see-through plastic container with metal lids,
allowing consumers to easily see the product and be assured of its premium quality.
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Financial Ratio Analysis
Table 3.1
Five Year Financial Ratios Summary
Financial (Fiscal) Year ending April 30, 2019 to April 30, 2023
FINANCIAL RATIOS FY2023 FY2022 FY2021 FY2020 FY2019
LIQUIDITY RATIOS
Current (Working Capital) Ratio 0.9 1.2 1.3 0.59 1.30
Quick Ratio 0.2 0.3 0.3 0.22 0.37
Cash Ratio 0.01 0.03 0.05 0.02 0.03
SOLVENCY RATIOS
Debt Ratio 0.9 0.8 0.7 0.8 0.75
Debt-to-Equity Ratio 7.1 4.2 2.8 3.5 2.99
Interest Coverage Ratio 5.4 3.0 1.9 0.5 1.02
Asset to Equity Ratio 8.1 5.2 3.8 4.5 3.99
PROFITABILITY RATIOS
Gross Profit Margin 0.25 0.27 0.26 0.21 0.20
Net Profit Margin 0.01 0.05 0.04 (0.04) 0.01
Return on Assets 0.01 0.04 0.03 (0.04) 0.01
Return on Equity 0.07 0.23 0.12 (0.17) 0.02
This analysis leverages a company's account balances, comparing them to industry standards, and delivers valuable information on
the company's liquidity, operational efficiency, and profitability. The primary categories of ratio analysis encompass Profitability ratios,
Liquidity ratios, and Solvency ratios, each providing distinct and insightful data to comprehend the performance of a business entity.
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For the past five years, DMPL has shown strong operational performance despite the risks
presented by the COVID-19 pandemic and inflationary conditions in recent years. Del Monte is fairly
consistent in terms of its performance as shown in Table 3.1, summarizing the relevant financial ratios
under the subcategories of liquidity, solvency, and profitability. A significant decline is evident in the
FY2020 as compared to 2019, especially in profitability where figures are mostly negative. This is due
to the fact that Del Monte suffered a loss in that particular year after deducting all operational and
finance costs in their gross profit. That fiscal year saw an increase in debt as well, but relevant assets
needed to pay off their maturing debts decreased, as shown by declining liquidity ratios.
While Del Monte's financial performance may have suffered in the FY2020, the company proved
its adaptability and resilience by rising to the occasion and enhancing its performance in the years that
followed. Better solvency ratios were observed, profitability ratios significantly improved, and current
ratios for the following two years were at parity with the industry benchmark of 1.2. Although it appears
that the fiscal year 2023 is experiencing poor financial performance, the company provides a brief
explanation as to why specific performance ratios do not meet the standards set by the Philippines'
Securities and Exchange Commission. First, because of the reclassification of the current portion of
long-term loans maturing next year, its current ratio does not meet the benchmark of at least 1.2,
leading to higher current liabilities. Its debt-to-equity ratio, which should not exceed 2.5, is now 7.1 due
to higher gearing brought on by the redemption of A-2 preference shares financed by recently acquired
loans. Other ratios like net profit margin, return on assets, and return on equity also fall short of industry
benchmarks due to one-time expenses incurred to redeem the high-yielding senior notes of DMFI.
Intangible Resources
Previously, the generation of economic value was perceived to be stemming purely from a firm’s
concrete resources such as its financial wealth and its physical tools (Francés, 2021). After all, these
tangible assets can be measured reliably, and their presence in the firm’s financial statements is referred
to by the stakeholders to determine the status of the business. In recent years, however, more companies
are acknowledging how vital it is to manage not just one’s tangible resources, but also one’s intangible
resources, to enhance competitive advantage and improve customer value. In layman’s terms, an
intangible resource is an asset of the business organization that cannot be physically touched or moved
and yet provides substantial benefits for the entity. In essence, intangibles serve as a company’s
undisclosed advantages since they are not presented in the financial reports but are nonetheless pivotal
in the firm’s success within a tightly-knit industry. In fact, intangible resources are said to be responsible
for 70% of enterprise values globally (Knowles, 2020). Primarily, there exist three sub-groups under
Intangible Resources, namely Human Resources, Innovation Resources, and Reputational Resources.
Human Resources
Del Monte deems itself as a “people-driven organization” (Del Monte Pacific Limited, n.d.), and
as such, it offers a multitude of programs for the firm’s employees addressing talent management,
employee engagement, and work-life integration.
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Generally, talent management refers to the strategic process of hiring employees with potential
or skill sets complementary to the needs of the entity and subsequently designing programs to boost their
capabilities so that the entity may reap the benefits (Ghosh, 2021). In the fiscal year 2020, Del Monte
boasted an average of 20.8 hours of training time per employee (Del Monte Pacific Limited, n.d.).
Comparatively, this figure may not be as significant relative to previous years but remains remarkable
considering that social distancing and health protocols were in place that year due to the spread of the
Coronavirus disease. As an organization that values lifelong learning, Del Monte has made consistent
efforts to assist their employees in enhancing their capabilities, evidenced by their specialized
workshops and a program titled Del Monte Employee Education Assistance Programme. Del Monte
Employee Education Assistance Programme aims to provide financial aid to eligible employees so that
they may pursue further studies to elevate their careers.
In addition, employee engagement is another means put to use by Del Monte to manage its
intangible human resources. The entity recognizes the need to keep the morale of its employees high and
maintain their motivation because, after all, a business is only as successful as its employees (Peek,
2023). A well-motivated employee is likely to be more productive and dedicated to performing their
tasks efficiently and effectively so ultimately, their improved performance proves advantageous to the
firm (Ben-Hur & Kinley, 2016). Through their employee engagement programs, Del Monte fosters
internal commitment and strengthens its employees’ loyalty. Recently, the Employee Council in Del
Monte’s Cabuyao Bottling Plant was established with the goal of having a venue for healthy discourse
and a means to propagate a productive work environment (Del Monte Pacific Limited, n.d.). Through
the Employee Council, the entity hopes to amplify the voices of the workers, heighten their stake within
the organization, and increase their involvement in decision-making processes. Moreover, employee
engagement is also illustrated in Del Monte’s continuous effort to allow employees to purchase products
at discounted prices in cooperative stores.
Furthermore, Del Monte makes a conscious effort to guide its employees in maintaining a
work-life balance by introducing programs such as the Lunch and Learn, Pre-Retirement Seminars, and
other initiatives that integrate work and play (Del Monte Pacific Limited, n.d.). The goal of internally
initiated programs such as Lunch and Learn and company wellness activities like Zumba and yoga
sessions is to improve the physical, mental, and emotional well-being of employees (Badgujar, n.d.).
Specifically, the Lunch and Learn program spearheaded by Del Monte intends to spread awareness
about the realities and tips on health, fitness, and welfare through seminars. Complementing the Lunch
and Learn initiative are tangible efforts made by Del Monte to engage their employees physically by
organizing Zumba and yoga sessions. Hand in hand, these programs aim to alleviate the health issues
stemming from long working hours, immense stress, and workplace pressure On top of that, by
organizing Pre-Retirement Seminars for its workers nearing retirement, Del Monte aids them in
strategically planning their finances and easing the transition process to ensure their financial stability.
and a fulfilling retirement life. Offering such a program is crucial in managing the human resources of
the entity because it sends a clear message to its staff: Del Monte cares not just about the talent and skill
set that they can contribute, but also, their future even post-Del Monte. Such programs, alongside decent
employee benefit packages, are a proven means to entice and retain talent.
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Innovation Resources
As a key player in the Philippine market, Del Monte has undoubtedly kept up with the changing
times and continuously innovate their products to meet the needs of the everyday Filipino consumer.
Over the years, Del Monte has exhibited innovation in three major areas, namely quality, packaging, and
convenience cooking (Del Monte Pacific Limited, n.d.). Collectively, these developments continue to
propel Del Monte forward, allowing them not just to maintain their market share but also exceed it.
Notably, in 2020 and at the international level, Del Monte was recognized as the Research and
Development Team of the Year by the Food Processing Company (PR News Wire, n.d.). The research
and development of Del Monte is arguably the most crucial innovation-related intangible resource of
the firm.
Contextualizing it in businesses, research and development is the process of elevating and

refining goods, services, or processes. Most risky business undertakings transpire during the research
and development phase, but it is also usually a turning point for entities as one remarkable innovation
could lead to insurmountable profits. In the field of accounting, research and development expenditures
of a firm are typically expensed until such time that the future economic benefits stemming from them
can be proven and their measurement reliable, and they will then be considered intangible assets
(International Financial Reporting Standards, 2023). Evidently, despite having no physical substance,
research and development serve as valuable firm assets that could propel entities such as Del Monte to
greater heights.
Under research and development, an intangible innovation asset of Del Monte is its
management’s openness to adapt. Its senior management and directors are heavily involved in the
process, even going as far as personally visiting laboratories to oversee the innovation activities (Del
Monte Pacific Limited, n.d.). Globally, Del Monte has been actively innovating and taking pride in the
products they developed as a result of pandemic trends. Their Vice President of Innovation and Insights
regarded these new undertakings as “taking big bets”, but nonetheless emphasized that they were
adapting to their consumers’ needs (Schouten, 2021). Supportive leadership is a crucial aspect of Del
Monte’s success in innovation. Substantiating this, the attitudes and behavior of leaders of an entity are
pivotal in influencing their workers’ innovation level (Wang et al., 2022). Management’s openness to
creative and innovative ideas boost employee morale and ensures that sufficient resources are available
for the employees to actualize their plans (Wang et al., 2022).
Another factor representing the firm’s research and development and therefore, serving as an
innovative resource is its data-driven and customer-centered approach to product development. Del
Monte Foods asserted that they had been observing consumer behavior throughout the pandemic and
projected that health and wellness trends that surfaced during the peak of Coronavirus are likely to
persist even after the pandemic (Schouten, 2021) and as such, their counterparts from all over the world
have followed suit. Locally, Del Monte’s initiatives are rooted in health and wellness (Del Monte Pacific
Limited, 2020), and rightfully so since Filipinos are reportedly getting more health conscious, with 81%
of the population agreeing that healthy and balanced diets are needed and that this feat is only attainable
with the support of the food industry (Food and Beverage Asia, 2022). Del Monte has since capitalized
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on the increase in health consciousness by developing products such as the Pineapple Juice with ACE
Vitamins, 100% Pineapple Juice Fiber-Enriched, 100% Pineapple Juice Heart Smart with Reducol, and
the like (Del Monte Pacific Limited, 2020). In this case, innovation was made possible because of Del
Monte’s immense research effort on the benefits that Filipinos look out for in the products that they want
to buy. By focusing on the appropriate data and prioritizing their customers, Del Monte deciphered that
the Philippine market needs new items that will address health concerns such as weight management,
high cholesterol, and bone health. Subsequently, they were able to innovate such that their product
quality heightens and their ingredients more suitable for the needs of the market. Clearly, the research
and development served as a crucial intangible resource in gathering the needed data, customer opinions,
and consumer needs.
Reputational Resources
Brand names play a decisive role in making or breaking a firm’s reputation since they give the
first impression and are frequently reflective of the product and service offerings. The earliest use of the
Del Monte name dates back to 1886 when a Californian hotel called Hotel Del Monte offered a premium
packaged coffee (Del Monte Pacific Limited, n.d.). Since then, Del Monte has evolved into a household
brand name across the globe. In order to dissect the pivotal role brand name has played in shaping Del
Monte Pacific Limited’s standing over the years, it is crucial to acknowledge the existence of related
firms such as Fresh Del Monte Produce which also clearly contributes to the influence exerted by the
brand. Collectively, these companies which share the shortened name “Del Monte” exude a trusted and
seasoned nature, given their experience in the food and beverage industry has spanned over a century to
date. As such, brand names are prime examples of Del Monte’s intangible reputational resource as the
company name already speaks for itself. In its target market, it needs no further introduction. Moreover,
with its long history in worldwide markets, Del Monte has gained a loyal following that continues to
heavily contribute to its revenues due to word-of-mouth advertising and helping to further solidify the
brand name through true-to-life sharing. Conclusively, the Del Monte brand name was not a purposeful
decision implemented by its management to ensure success since its inception, but rather one that was
fostered by immense experience, nurtured by customer loyalty, and maintained by constantly delivering
high-quality products.
In relation to the brand name as a vital component of Del Monte’s reputation, it is equally
important to acknowledge that the impression attached to the company name is a double-edged sword.
For the most part, the familiarity that accompanies such a dominant brand name is advantageous for
easy recognition and resulting positive repercussions on advertising, customer loyalty, and company
pride (Duberg, n.d.). On the flip side, the very well-established brand name could lead to complacency
on the management’s side as they are likely to feel little to no pressure to enhance the existing brand
image in general. Consequently, it would be challenging for Del Monte to position themselves in
unexplored markets and widen their reach, given that they are not accustomed to heavy advertising as
their brand name is already prominent in regions such as Southeast Asia and Northern America.
Additionally, the mutually beneficial partnerships established by Del Monte with fellow
businesses have cemented its standing as a superior food and beverage entity. Distinctly, in India, Del
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Monte utilized a business-to-business approach to penetrate the massive market. Shying away from the
typical promotional route of overpriced commercials and aggressive online advertising, Del Monte has
instead reached out to enterprises to be their suppliers. Moreover, to expand its market and expose more
potential customers to the brand, Del Monte has resulted in giving out premium samples of their new
product offerings in exclusive lounges and clubs by forging partnerships with these businesses (Bisaria,
2017). The establishment of such linkages is both strategic and sustainable. In the case of Del Monte,
not only is its reputation reinforced in terms of market expansion, but its support towards small local
businesses also refines the entity’s corporate social responsibility image.
Illustrating further the reciprocal benefits gained from collaborations is Del Monte’s partnership
with Kyndryl. In the information technology landscape, Kyndryl is a leading service provider and so it
was unsurprising that Del Monte’s partnership with the said firm was well-received (CIO Southeast
Asia, 2022). In particular, Del Monte hopes to accelerate the firm’s growth by streamlining its
operations and improving its technologies. This linkage with Kyndryl, however, is not new. This
business-to-business relationship has been fostered since 2009, depicting that the partnership between
the two giants are not merely profit-oriented, but more importantly, rooted in trust and accountability.
These sentiments were echoed by Tsikee Esguerra, the Information Technology Operations Director of
Del Monte in the Philippines (CIO Southeast Asia, 2022). As an intangible reputational resource, the
public perception of Del Monte is improved by such long-term business connections because evidently,
the firm regards its own service providers highly. All in all, when a company is able to sustain
relationships with other entities, it is likely to gain respect within the industry. Subsequently, it is likely
perceived as an agreeable business to deal with, intensifying its good reputation.
Across all industries, Corporate Social Responsibility (CSR) is regarded as a tool to detail how
an organization contributes to the welfare and development of communities that they operate in
(Reckmann, 2023). Frequently regarded as a way in which business entities weigh the repercussions
brought about by economic, social, and environmental factors, a well-crafted CSR program may bring
about a multitude of benefits to the firm such operating efficiency, increased capital and markets, and
amplified brand reputation (United Nations Industrial Development Organization, n.d.). Without a
doubt, Del Monte has been diligently implementing various CSR activities globally. In fact, it has
established Del Monte Foundation, Inc. in the Philippines to facilitate its community development plans
(Del Monte, n.d.). Just among the many CSR initiatives of Del Monte is the establishment of a
Community Education Centre to spearhead its livelihood programs in hopes of honing the skills of
out-of-school youth and the unemployed. Certainly, the programs implemented under Del Monte’s CSR
manifest themselves tangibly through improved infrastructure, donated materials, and the like. Still,
CSR, as a whole, remains an integral part of Del Monte’s intangibles since the concept is immeasurable
and its price effects on the brand standing may not be direct.
Inside and outside Del Monte, the CSR initiatives have resounding effects. Externally, the CSR
activities allow Del Monte to enhance their influence within the community due to shared values and
alignment of interest and overall, CSR betters the corporate image. Meanwhile, on a firm level, Del
Monte’s stakeholder relations, especially with employees and investors, are strengthened by CSR, again,
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due to common values and overlapping interests. Advantageous as CSR is to Del Monte, one must
consider that the positive reputational value stemming from this intangible resource is an incidental
effect. Ultimately, Del Monte’s CSR is still executed with the goal of giving back to the community.
Capability and Core Competencies
The McKinsey 7S Framework is a widely recognized strategic management framework that can
be utilized by Del Monte Pacific Limited, a prominent food and beverage corporation, to attain
organizational performance and alignment. The framework, which was established by McKinsey &
Company, consists of seven interconnected elements: Strategy, Structure, Systems, Shared Values,
Skills, Style, and Staff. Through a meticulous evaluation and alignment of these elements, Del Monte
can effectively optimize its internal operations, bolster its competitive edge, and ensure the seamless
integration of its strategic goals across all aspects of the organization.
Figure 3.2
McKinsey’s 7S Framework Strategy
Figure 3.3
Del Monte Pacific Limited Strategy
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The 2023 Sustainability Report by Del Monte Pacific Limited highlights the company's strategic
focus on the food and beverage sector, encompassing several aspects such as consumer engagement,
employee welfare, community involvement, corporate growth, adherence to governmental rules, and
environmental stewardship. From the figure, it is evident that the long-term goal of DMPL resonated
within its offices and boardrooms, serving as a comprehensive declaration of the company's ambitions
and principles. The organization's overarching mission is to advance sustainability in order to fulfill their
corporate goals, uphold environmental stewardship, and demonstrate social responsibility. This guiding
principle resonates across their headquarters, shaping their conduct and choices.
Within the expansive office environments, committed staff were engaged in the development and
implementation of initiatives that were in accordance with the overriding dedication to sustainability.
Each department was assigned the responsibility of incorporating sustainability concepts into their
operations, ranging from product creation to supply chain management. Furthermore, the product
development team exerted much effort in order to devise inventive packaging alternatives that are
environmentally sustainable, thereby mitigating the company's ecological impact. The researchers
investigated the utilization of biodegradable materials and the reduction of single-use plastics, aiming to
achieve a harmonious equilibrium between practicality and environmental responsibility.
Nevertheless, the supply chain analysts conducted a thorough reassessment of transportation

routes and methodologies, with the aim of identifying strategies to mitigate emissions and minimize
energy usage. The company established collaborative relationships with nearby farmers and
communities in order to advance sustainable agricultural methods, thereby guaranteeing the excellence
of their goods and concurrently enhancing the well-being of the individuals engaged in these activities.
The tangible demonstration of DMPL's dedication to societal responsibility was evident in their
relationships with the communities in which they conducted their operations. The corporation actively
participates in philanthropic activities, providing support to educational programs and nutritional
initiatives with the aim of enhancing the well-being of underprivileged individuals. The individuals held
the belief that the prosperity of their business was contingent upon the prosperity of the society in which
it operated.
Additionally, the focal point of their endeavors revolved around environmental stewardship. The
corporation had established bold goals to decrease water utilization, energy consumption, and waste
production throughout all of their sites. The organization made investments in renewable energy sources
and implemented circular economy ideas in order to mitigate waste and optimize the utilization of
resources.
In unison, adoption of a comprehensive approach to sustainability was not merely a superficial

declaration for DMPL; rather, it served as a fundamental motivator informing their strategic business
choices. The motivation behind their actions extended beyond mere profit margins, encompassing a
commitment to environmental sustainability for the benefit of future generations and a desire to make
constructive contributions to the communities they operated within. DMPL comprehended that with the
promotion of sustainability, they could not just attain their corporate aims, but also generate a lasting
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influence on the environment and society. The individuals enthusiastically undertook the objective, well
aware that their dedication to sustainability was crucial to achieving a more favorable future.
Structure
Functional divisions play a crucial role in influencing the operational framework of DMPL. In
the context of the organizational framework, distinct functional divisions, including marketing,
operations, finance, and human resources, assume distinct responsibilities pertaining to specific facets of
the firm. Typically, individual divisions possess distinct hierarchical frameworks and reporting channels,
facilitating the cultivation of specialized knowledge and effective distribution of resources. The practice
of compartmentalization employed by DMPL aids in the efficient management of its operations and
facilitates the enhancement of performance within each distinct functional domain.
Considering the extensive international presence of DMPL, the organization has implemented a
geographic organizational structure. This concept entails the establishment of distinct regions or
countries, each with its own management teams tasked with overseeing operations inside their own
territories. The organization maintained an international presence through its operations and offices
located beyond the Philippines. It is worth mentioning that the corporation conducted its operations
within the United States, specifically in California's Central Valley region, where it established corporate
offices, production facilities, and distribution locations. DMPL maintained a substantial European
foothold, encompassing operational activities in nations such as Spain and Italy. The corporation
maintained a geographical presence in multiple nations within the Asia-Pacific area, including India, the
Philippines, and Thailand. Its operations encompassed the manufacturing and marketing of a diverse
range of products. Latin America had a significant role in the activities of DMPL, with a specific
emphasis on the production and exportation of fruits and vegetables, namely bananas sourced from
nations such as Costa Rica and Ecuador. Furthermore, DMPL expanded its operations to specific nations
in the Middle East and Africa, providing canned and fresh agricultural products to both domestic and
global markets. It is important to acknowledge that the precise locations and operational sites mentioned
may have undergone changes over time as a result of shifting market dynamics and business objectives.
To obtain the most up-to-date information, it is advisable to consult the official sources or corporate
communications of the organization. The geographical structure facilitates the implementation of
localized decision-making processes and the ability to respond to regional market changes, hence
fostering agility and responsiveness.
Del Monte has a hybrid decision-making (a combination of centralized and decentralized)

technique that integrates both centralized and decentralized procedures in order to proficiently oversee
its worldwide operations. Typically, corporations centralize major strategic decisions, financial control,
brand and marketing strategy, and the creation of global projects at the corporate level in order to ensure
coherence with the company's overarching goal and values. In the meantime, the organization
implements a strategy of decentralization for specific decisions pertaining to local market adaptations,
operational efficiency, and product development. This approach involves granting regional or local units
the authority to make these decisions, enabling the corporation to swiftly adjust to market-specific
conditions and consumer preferences. The integration of centralized oversight with localized
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responsiveness allows DMPL to achieve worldwide uniformity while accommodating the distinct
requirements of regional markets, exemplifying its dedication to being a prominent player in the food
and beverage sector on a global scale.
Strategy
Market segmentation and product diversity is a major component of Del Monte Pacific
Limited's strategic approach. The corporation uses this strategy in order to customize its products in
order to cater to the distinct requirements of various consumer segments. DMPL provides a diverse
range of items throughout Asia that are specifically designed to cater to the unique interests of
consumers in the region. Typical options available consist of fruit cups containing diced fruits immersed
in natural juices or fruit-flavored gel, canned fruits such as peaches, pears, and mixed fruit, a variety of
fruit juices including apple and orange juice, canned vegetables like corn and green beans intended for
culinary purposes, an assortment of sauces and condiments such as ketchup and tomato-based products
commonly used in Asian cuisine, vibrant and enjoyable fruit snacks produced from authentic fruit puree
or juice, and frozen fruit bars crafted from genuine fruit puree that serve as invigorating treats,
particularly in tropical climates. This comprehensive range allows Del Monte to efficiently cater to a
vast spectrum of consumer preferences, hence enabling the company to grab a significant market share.
Furthermore, quality assurance is an essential component of DMPL's strategic approach. In a

contemporary context characterized by heightened emphasis on food safety and purity, DMPL
distinguishes itself via its steadfast commitment to maintaining stringent standards pertaining to flavor,
freshness, and safety. In addition to maintaining consumer trust, this practice is also in line with the
organization's larger objective of constantly producing high-quality products. Furthermore, the technique
employed by DMPL exhibits a strong focus on the needs and preferences of consumers. Supported by
ongoing market research, the organization has the ability to predict and respond to evolving consumer
trends in a flexible manner. The aforementioned versatility significantly increases its attractiveness
among a wide range of demographic cohorts. Moreover, the extensive presence of the company in
several international marketplaces enhances its position as a prominent player in the worldwide sector.
The strategic excellence of DMPL is demonstrated by its ability to tailor products to meet regional
preferences and mitigate the impact of market changes.
In addition, sustainability integration - the packaging of canned items and plastic sachets
manufactured and distributed by DMPL poses noteworthy problems and potential vulnerabilities. The
key focus pertains to their environmental ramifications, as the disposal of these products after use
exacerbates the problem of plastic waste contamination and landfill challenges. DMPL is exposed to the
potential hazard of adverse public opinion and critique in the event that its packaging materials do not
align with ecologically sustainable practices, or if the corporation fails to implement efficient recycling
and waste management initiatives. The absence of a focus on sustainability in packaging is incongruent
with the increasing consumer inclination towards environmentally friendly packaging, perhaps leading
to a decline in market share as competitors that prioritize sustainability. Furthermore, the dynamic nature
of regulatory regulations and increasing customer tastes need a transition towards packaging that is more
recyclable or biodegradable. The packaging decisions made by DMPL have the potential to exert an
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influence on the entirety of its supply chain, potentially leading to heightened operational expenses and
consequential effects on profitability. Moreover, the reputation of the brand could be negatively
impacted if consumers believe the packaging to be environmentally unfriendly. The adoption of
sustainable packaging strategies provide DMPL with the chance to not only conform to customer and
regulatory demands but also bolster its brand reputation and exhibit a dedication to environmental
stewardship.
Also, the distinguishing factor of DMPL in this particular strategy is in its ability to not only
sustain a prominent position but also facilitate substantial growth within the general commerce segment.
The expansion serves as evidence of DMPL's strategic aptitude in efficiently engaging with consumers,
accommodating their interests, and fostering a strong brand image. In addition to prominent supermarket
chains, DMPL endeavors to make its premium food products accessible to individuals through local
neighborhood stores, exemplifying its dedication to catering to a varied customer base. Furthermore, the
13% significant rise in the overall trading volume highlights the strategic flexibility and ability of
DMPL to effectively respond to changing market circumstances. The flexibility to adapt is a
distinguishing characteristic of DMPL's dynamic and consumer-centric approach to its market strategy.
The ability of DMPL to adapt to evolving consumer tastes and effectively manage the intricacies of local
marketplaces demonstrates its strategic agility.
Systems
The operational processes serve as the fundamental framework for Del Monte Pacific Limited's
daily operations. These activities involve a wide range of processes, including the acquisition of raw
materials, manufacture, quality control, packaging, and distribution. The optimization of these processes
plays a crucial role in meeting consumer demand and upholding the renowned standards of freshness
and superior quality associated with DMPL. Additionally, supply chain management constitutes a
crucial component of DMPL's operational framework. The company's supply chain management
systems are strategically developed to guarantee the uninterrupted flow of commodities, considering the
company's need for timely access to fresh food and ingredients. This encompasses the management of
logistics, transportation, and inventory control in order to ensure the optimal condition of items during
their delivery to consumers. To suffice, the entity utilizes an application called Anaplan. Anaplan is a
cloud-based planning and performance management platform, across multiple aspects of its corporate
operations. It possesses a wide range of adaptable functionalities that include several areas such as
financial planning and budgeting, sales and demand forecasting, supply chain optimization, sales and
operations planning (S&OP), trade promotion management, scenario planning, and performance
analytics. By implementing a unified and adaptable planning platform, DMPL successfully integrated its
finance and supply chain planning processes, enabling its finance teams to effectively assess product
costs and conduct comprehensive profitability analyses. The integration of many systems has provided
DMPL with the ability to foresee, predict, and adapt to market changes in real time. Due to the
occurrence of El Nino, DMPL encountered difficulties in determining the appropriate allocation of its
products. However, with the implementation of Anaplan, organizations have the capability to conduct
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real-time simulations, enabling them to identify unprofitable regions and subsequently communicate
these findings to their sales, channel sales, and logistics teams in order to make strategic adjustments.
Research and Development (R&D) systems play a crucial role as primary catalysts within the
realm of innovation. The central component of this system is an Innovation Hub, which is most likely
specialized in research and development facilities where interdisciplinary teams consisting of scientists,
food technologists, and researchers engage in significant collaboration. This hub functions as a dynamic
environment that fosters creativity and facilitates the formation of ideas, which in turn drive the
advancement of novel culinary items. Moreover, continuous improvement is the fundamental tenet that
underpins DMPL’s R&D approach. The process involves ongoing monitoring of products, exploration of
potential avenues for improvement, and adaptation to dynamic environments of consumer preferences
and market dynamics.
In the domain of information technology, IT systems play a crucial role in the contemporary
digital environment. The collaboration between Accenture and DMPL represents a significant milestone
in Accenture's process of IT transformation. Amidst a highly competitive market, DMPL acknowledged
the necessity of updating its technological infrastructure in order to enhance innovation and expedite its
ability to seize market possibilities. The partnership between the parties involved has resulted in
significant advantages, particularly in terms of improving the visibility and obtaining immediate insights
into the IT operations of DMPL. With enhanced data accessibility, the utilization of DMPL enables
prompt and well-informed decision-making, which confers a significant advantage in a dynamic market
characterized by quick evolution of customer preferences and trends. One notable accomplishment of
this collaboration is the significant decrease in expenditures related to information technology, resulting
in a cost reduction of up to 35 percent. The enhancement of cost efficiency not only strengthens the
company's profitability but also allocates resources for strategic expenditures in innovation and
expansion endeavors. The implementation of streamlined operating processes has resulted in a notable
decrease in the time required for DMPL personnel to access IT capabilities, service, and support. This
reduction has been substantial, with the timeframe being reduced from a matter of weeks to less than one
hour. The increased level of efficiency enables DMPL to rapidly address IT requirements, while
reducing interruptions and optimizing productivity. The expeditious transfer of crucial applications to
Amazon Web Services (AWS) and the deliberate utilization of cloud services have positioned DMPL to
achieve enhanced flexibility, scalability, and operational preparedness in the dynamic consumer goods
industry. This collaboration highlights the significance of integrating IT with wider corporate goals,
guaranteeing that technology facilitates the advancement and creativity.
Shared Values
Del Monte Pacific Limited (DMPL) has CHOICE as their core values: championing together,
healthy families, ownership with integrity, innovation, commitment to society and environment, and
excellence in everything we do. The company puts emphasis on its guiding principles to foster a
collaborative and innovative culture that will be fundamental to their continued success, growth, and
positive change. DMPL prioritizes the incorporation of their CHOICE values into their governance
framework, especially ownership with integrity, to maintain positive relationships and establish a
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reputation of trustworthiness with their stakeholders, including the consumers and employees. The
company is driven by and committed to their vision of “Nourishing Families. Enriching Lives. Every
Day.” Over the years, the company has consistently adhered to their commitment of providing
consumers with high-quality, nutritious, and safe products while concurrently advocating for
sustainability.
Del Monte Pacific Limited is a people-driven company. The “Nourishing Families” aspect of
the company’s vision underscores their dedication to prioritizing consumers in their operational and
decision-making processes. Their primary objective is to bring health and wellness to consumers by
innovating products that align with consumer preferences for healthier, more sustainable, and convenient
options. Furthermore, Del Monte exhibits a proactive approach in engaging with consumers through
social media platforms, which serves as a means to continue providing nourishment to families.
Meanwhile, the company’s core mission is to leverage and improve people’s lives, as reflected in their
statement, “Enriching Lives. Every Day.” Del Monte seeks to cultivate a healthier and more optimistic
future for their team members, consumers, and communities. They offer competitive wages and benefits,
along with initiatives aimed to promote employee well-being and work-life integration. The company is
involved in community outreach programs and actively engages in social responsibility initiatives within
local communities. These actions aim to nurture social progress and contribute to the betterment of
society. Additionally, the company undertakes environmental initiatives to further promote sustainability
and contribute to environmental enrichment.
Style
Del Monte Pacific Limited places a strong emphasis on its human capital. The company nurtures
the professional development of their employees through appropriate training on their capabilities,
guided by their core value—Championing Together. Del Monte Philippines, Inc. (DMPI), a subsidiary
of DMPL, has developed a competency framework to provide guidance to senior executives and their
teams in order to effectively work towards the achievement of the company's strategic roadmap. Del
Monte has implemented a self-paced learning management system, known as ONE DMU, which is
accessible to employees throughout the Philippines. Through ONE DMU, their employees are offered
various training and awareness courses, including soil management, manufacturing, environmental
awareness, and other relevant programs. These resources are made accessible to employees, enabling
them to engage in self-paced learning.
As presented in DMPL’s 2022 Sustainability Report, the GR8 (Great) Del Monte Leadership
Competency Model developed by DMPI serves as a guiding framework for leaders to effectively
educate and foster collaborative leadership within their teams, ultimately driving the attainment of the
company's operational and business objectives. The Competency Framework outlines comprehensive
human resource programs, including recruitment, learning, career development, succession planning,
and performance management. The in-house Basic Management Program, fully supported by an
OPCOM Corporate Faculty, provides comprehensive support for managers in effectively navigating
dynamic business environments and successfully adapting to changes in people, processes, culture, and
attitude. The Company's Moving Up to Supervision Series is a valuable addition to the formal technical
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training, coaching, and intensive on-the-job experience offered through the structured Cannery
Operations and Plantation Operations Supervisory Training Programs. In 2022, the company’s average
training hours per employee was 10 hours, lower than before the onset of the pandemic.
Staff
A multinational company in the food and beverage industry operates in a complex business
environment. Hence, employees undergo intensive training to acquire the necessary skills, knowledge,
and attitude to effectively work in such a company. Following Del Monte’s vision statement
emphasizing “Enriching Lives,” the company actively encourages and empowers its employees to strive
for excellence. Employees are provided with adequate resources to effectively carry out their job
responsibilities. Additionally, they are allotted ample space to work and engage in critical thinking.
Employees also receive adequate support to foster professional growth and development in their
respective fields. The employees are offered company-sponsored programs aimed at enhancing their
ability to deliver value, ensure personal growth and drive success for both themselves and the company.
Aside from this, Del Monte prioritizes the work-life balance of its employees, recognizing the
importance of allowing individuals to excel in their professional roles while also enjoying their personal
lives.
Skills
Del Monte Pacific Limited (DMPL) is a renowned and dominant player in the food and
beverage industry. The company invests in new technology and equipment as it integrates highly
automated production and distribution systems to prevent delays and maintain a consistent production
and distribution cycle. With the advancement of technology leading to increased company productivity,
it creates a need for employees to acquire technological skills to use, program, maintain, and repair the
equipment if necessary.
Being a people-driven organization, Del Monte values the importance of social skills in their
employees. These skills play a crucial role in fostering effective communication, collaboration, and
relationship-building both within the company and with external stakeholders. Moreover, Del Monte
recruits industry experts and competent leaders to make valuable contributions to the company’s
growth and development. These diverse skills and competencies in its employees are crucial for the
successful growth and operation of the business. Therefore, the company implemented various training
programs to enhance and support the development of these skills among their employees. This, in turn,
has resulted in increased productivity and improved work performance.
Competitive Advantages (Criteria of Sustainable Competitive Advantage)
In the modern and highly competitive corporate environment, the capacity to evaluate and use
resources proficiently can significantly impact the outcome, distinguishing between achievement and
lack of progress. The VRIO Framework is a robust analytical tool that offers a systematic methodology
for assessing a company's tangible and intangible resources. In the course of examining this pivotal
component of our organizational strategy, the researchers shall thoroughly scrutinize the resources that
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have been previously identified. This paradigm facilitates the assessment of the Value, Rarity,
Imitability, and Organizational support associated with these resources, so empowering us to formulate
strategic decisions that have the potential to advance Del Monte Pacific Limited. The present detailed
study will function as a fundamental element in our strategic planning, providing guidance for making
well-informed decisions that will have a significant impact on the future trajectory of the organization.
Table 3.2
Visible, Rare, Imitable, Organized (VRIO) Framework
VRIO FRAMEWORK
Resources Valuable Rare Difficult to Supported by Competitive Performance

Imitate? Organization Implications
TANGIBLE
Financial Yes Yes Yes Yes Sustained Above

Competitive Normal
Advantage
Organizational Yes Yes Yes Yes Sustained Above

Competitive Normal
Advantage
Physical Yes Yes Yes Yes Sustained Above

Competitive Normal
Advantage
Technological Yes Yes Yes Yes Sustained Above

Competitive Normal
Advantage
INTANGIBLE
Human Yes Yes Partially Yes Sustained Above

Competitive Normal
Advantage
Innovation Yes Yes Partially Yes Competitive Parity Above

Normal
Reputational Yes Yes Partially Yes Sustained Above

Competitive Normal
Advantage
Tangible Resources
The financial resources of Del Monte Pacific Limited hold significant value within the dynamic
food and beverage industry. The organization effectively obtains funding through several methods,
enhancing its flexibility. The demonstrated capacity to secure a substantial loan and effectively manage
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cash reserves displays the organization's financial prowess. The scarcity of these resources confers a
competitive advantage upon the company. Although certain elements may be imitated, replicating their
financial strategy proves to be a formidable task, presenting a partial obstacle to copying. The
implementation of a well-structured method significantly improves their overall efficacy. DMPL's
financial resources result in a Sustained Competitive Advantage, resulting in above-normal
performance, adding to its excellent market position. In conclusion, these entities possess significant
value, have a relatively low occurrence rate, are primarily replicable, and perform above the norm.
The commitment of Del Monte Pacific Limited to corporate governance and ethical standards is
demonstrated by its significant incorporation of independent board members, implementation of a
whistleblower policy, and construction of a comprehensive ethical framework. These activities make a
substantial contribution to the total worth of the firm. The techniques above have received
acknowledgment both domestically and internationally, consequently solidifying their unique
characteristics within the field. Although the potential for replication exists, there are significant
obstacles to replicating the structured framework of governance and ethics. The effective execution of
these strategies results in achieving a Sustained Competitive Advantage, leading to performance levels
beyond the norm in terms of public trust and stakeholder confidence. Consequently, this enhances the
company's standing within the industry.
Del Monte Pacific Limited's (DMPL) technological resources are distinguished by their high
value, scarcity, limited imitability, and efficient organization. These characteristics contribute to the
company's ability to maintain a competitive advantage and accomplish performance above industry
standards. Utilizing cutting-edge technology in strategic joint ventures with partners like Vinamilk and
Nice Fruit improves the dairy and frozen fruit industries by preserving product quality and extending
retail life. DMPL's packaging innovations, which include environmentally responsible alternatives, align
with consumer preferences for sustainability and bolster the company's prominence in producing fresh
foods. Generally speaking, DMPL's technological resources comprise a significant advantage,
establishing a favorable market position for the company.
Intangible Resources
The Human Resources activities of Del Monte Pacific Limited undoubtedly provide significant
benefit by prioritizing Talent Management, Staff Engagement, and Work-Life Balance. These programs
serve to augment the competencies, morale, and overall well-being of staff members, hence resulting in
heightened production levels and diminished turnover rates. The company's uncommonness within the
business, in the middle of a dominant emphasis on reducing expenses, confers a competitive advantage,
rendering it attractive to individuals possessing advanced expertise. Competitors may encounter
difficulty in replicating the comprehensive strategy, which involves the active participation of the
Employee Council and the implementation of well-structured initiatives. The implementation of Del
Monte's well-organized strategy contributes to its heightened efficacy and competitive prowess, leading
to the establishment of a long-lasting competitive advantage. In summary, these activities provide
unquestionable value and uniqueness, bolstered by efficient organization, ultimately cultivating
long-lasting competitive advantage and contributing to the prosperity of the firm.
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Further, Innovation Resources of DMPL are of great significance, as they are supported by a
solid dedication to Research and Development (R&D) and an open management style that encourages
product improvements and cultivates a culture of innovation. The company's distinctiveness is derived
from its infrequent occurrence within the industry, which confers a competitive advantage. Although
some aspects of DMPL's strategy can be replicated, the presence of data-driven and customer-centered
approaches poses notable challenges, partially constraining its imitability. Implementing a structured
methodology strengthens an entity's competitive stance, leading to the attainment of Competitive Parity
and the possibility of surpassing average performance levels, resulting in enhanced market presence and
industry acknowledgment. Del Monte's Innovation Resources encompass elements of value, rarity, and
limited imitability, which are further bolstered by efficient organizational practices, positioning the
company as a trailblazer within the sector.
Lastly, Reputation-Related Resources of DMPL are of significant value, as they have a

substantial impact on consumer trust and loyalty. Establishing mutually advantageous partnerships and
implementing Corporate Social Responsibility (CSR) projects serve to broaden market penetration and
bolster the company's standing. The scarcity of these resources within the sector confers a competitive
advantage upon Del Monte. Although there is some degree of imitability, developing trust and
maintaining long-term ties poses significant obstacles for competitors. Enhancing organizational
effectiveness reinforces the competitive advantage, hence leading to maintaining a sustainable
competitive edge. Positive implications encompass heightened market trust, enhanced customer loyalty,
and a favorable reputation within the community. In brief, DMPL's Reputation-Related Resources
contain elements of value, rarity, and partial imitability, bolstered by effective organizational practices,
producing a Sustained Competitive Advantage characterized by performance that surpasses the industry
average, thereby solidifying the company's position in the market.
Value Chain (Industry-Specific) - Porter’s Generic
A comprehensive framework developed by a prominent economist, Porter’s Generic Value Chain

presents the ultimate blueprint for dissecting a company’s business operations into distinguished
activities that function collectively to deliver value to consumers. As such, it is contributory in
determining specific areas where a company is most advantageous to optimize its policies, processes,
and practices to ensure exceptional performance.
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Figure 3.4
Value Chain (Industry-Specific) - Porter’s Generic
In this section, the application of Porter’s Generic Value Chain to the operations and activities of
Del Monte are presented, highlighting the elaborate relationships among the activities of the companies
that ultimately influence its success in the food and beverage industry. Through the scrutiny of Del
Monte’s practices, valuable insights pertaining to the activities and strategies that Del Monte utilizes to
create and maintain its competitive edge shall be rendered.
Figure 3.5
Del Monte Pacific Limited’s Value Chain
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Primary Activities
Inbound Logistics
Supplier Relationships. Over the years of operations, Del Monte has successfully formed and
deepened relationships with a vast network of suppliers and farmers, traversing both domestically and
internationally. These committed business partners furnish the company with a wide selection of fruits
and vegetables, including Del Monte’s primary products of pineapples, tomatoes, peaches, and bananas.
Undoubtedly, the company’s ability to foster and maintain fiduciary and mutually beneficial
collaborations with its suppliers, farmers, and service providers is a chief determining factor of its
inbound logistics.
Supply Chain Management. Being an industry leader, Del Monte strives to optimize its supply
chain efficiency to ascertain that its raw materials and other input supplies are procured timely and
cost-effectively. This strategy encompasses the company’s meticulous process of planning, coordinating,
and arranging its supply chain to ensure the minimization of lead times and the perpetuation of
consistent supply levels, which addresses the risk of sourcing and production disruptions. As such, Del
Monte has been continually developing various activities to maintain an efficient supply chain
management.
Quality Assurance. As Del Monte operates in the food and beverage industry, in which quality
control and safety are of the utmost importance, the company has developed stringent quality control
measures and rigid procedures to evaluate the quality of raw materials and other input supplies. Such
measures incorporate rigorous inspection, precise testing protocols, and strict compliance with food
safety standards and mandates.
Global Sourcing. To diversify its supply base and guarantee adequate supply levels from a year
to another, Del Monte is utilizing global sourcing as a critical component of its inbound logistics. This
strategy endorses a global perspective to the company by acquiring quality raw materials from various
regions and countries all over the world. For instance, while Del Monte procures pineapples from
pineapple-rich regions such as Costa Rica, Kenya, and Ecuador, the Philippines serves as its leading
supplier of pineapples which is involved in the largest integrated and international pineapple operations.
Transportation and Storage. Having food and beverage as their primary products,
transportation and storage serve as an essential constituent of Del Monte’s inbound logistics strategy.
The company employs different modes of transportation, ranging from trucks, ships to containers, to
ease the transit of raw materials from farms and markets to production facilities. Likewise, ample
storage facilities are also sustained to hinder unwanted spoilage and to render a continuous supply
stream of raw materials and other inputs.
Environmental Considerations. As part of its commitment to environment and society core

value, Del Monte is accustomed to maintaining sustainable and environmentally responsible company
practices to be a crucial element of its inbound logistics. Such practices cover sustainability initiatives
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like sustainable sourcing, optimized and efficient transportation routes to prevent excessive carbon
emissions, environmental-friendly packaging, and others.
Operations
Processing and Manufacturing. Undoubtedly, the bread and butter of Del Monte’s operations
rests in the processing and manufacturing of its diversified product selection. As such, the capital
resources involved in these processes are the raw materials sourced from various origins and the human
resources that are employed for their physical labor. To be cost-efficient and to reduce potential lead
times concerning delivery of raw inputs, Del Monte strategically located such production facilities
where both raw materials and labor are readily available and accessible. Likewise, such locations allow
advanced technologies and machinery to operate. The collaborative consequences of such strategies
result in Del Monte producing adequate finished inventory with minimized cost and time while
maintaining quality and adhering to safety standards.
Quality Control. Respectively, while the quality control processes and measures of Del Monte
occur at various levels and stages of operations, it is most meticulously observed during the production
process. Del Monte stresses the importance of quality and safety of their products by means of
consistent testing of raw inputs, monitoring the processes of production and distribution, and evaluating
the excellence of such finished products. When implementing stringent quality control measures, Del
Monte is not merely aiming to comply with regulatory requirements that are placed over the company,
but it is also seeking to ensure that their products would exceed beyond consumer expectations.
Outbound Logistics
Structure of Distribution and Transportation. Parallel to its inbound logistics, the

transportation and distribution systems of Del Monte’s products from the production facilities to the
intended destinations are as significant as part of its outbound logistics. The company, having a
well-structured network of distribution, utilizes various modes of transportation to remedy distance and
location issues that may arise from its worldwide distribution. These modes include trucks, ships, and
containers. Likewise, timeliness is also a key factor in Del Monte’s distribution system. As such, the
company invests in meticulous planning to prevent delays and to ensure that the products are received
by distributors, retailers, and consumers as scheduled, which could compromise product quality.
Merchandising Activities. To safeguard the visibility and accessibility of the company’s

products to consumers, Del Monte actively and closely allies with retailers and merchandisers, often
utilizing strategies that are readily available to entice consumers. Especially in the retail industry,
maintaining brand awareness through various merchandising strategies like offering discounts and
loyalty coupons, interactive and strategic displays in retail stores, and setting mutually beneficial prices
are collaboratively significant aspects of Del Monte’s outbound logistics.
Retail Partners and Sales Channels. Similar to how Del Monte fosters and maintains
relationships with its suppliers and service providers, the company sustains and protects its relationships
with various merchandisers such as retail partners, supermarkets, grocery and convenience stores, and
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online retailers. These partners exchange information and negotiate with Del Monte with respect to
pricing schemes, promotions strategies, and product placement in retail stores, encompassing the
overarching objective of boosting the visibility and accessibility of Del Monte products to consumers.
International Distribution Process. The scope of Del Monte’s outbound logistics spreads out
up to the international market landscape in which its products are marketed through exportation.
Accordingly, the distribution process of Del Monte in the international span encompasses strategies that
are oriented to stringent abidance to international trade regulations, sound triangulation of customs
policies and procedures, and unified collaboration with foreign distributors and retailers.
Marketing and Sales
Advertisement and Promotion. As it serves as the driver of brand recognition and consumer
demand for the company’s product selection, Del Monte significantly and actively emphasizes its
marketing and promotion strategies through the devotion of considerable resources and time in
cultivating such processes. The company primarily stimulates consumer brand awareness and feedback
through the utilization of elaborate and diverse marketing channels, which includes but not limited to,
television advertisements, digital marketing, print media advertising, and social media platforms.
Especially when the advent of the technological age has started, Del Monte has sought creative ways in
utilizing dynamic social media campaigns to introduce their products to consumers. Accordingly,
through these strategies, the company achieves a status in the market in which their product arrays are
highlighted to be of quality, nutritious, and versatile, which often lead to brand loyalty.
Product Differentiation. In order to shine among alternatives and substitutes, a product must be
differentiated effectively. This strategy proves true in the operations of Del Monte as it seeks to set its
products apart from others by means of accentuating their quality, packaging, taste, and nutritional
value. In utilizing strategic marketing practices, the company successfully differentiates its products by
underlining peculiar and distinctive selling points. For instance, their canned products propose real fruit
content, natural ingredients and additives, and procurement from sustainable sources. Through these
strategies, Del Monte has distinguished itself from its competitors, standing out creatively in their
competitive markets.
Customer Engagement. To foster and maintain the senses of connection and trust with its
consumers, Del Monte providently interacts and engages with consumers by way of various avenues.
These include customer service hotlines, active social media engagement, and email marketing. As a
result of strong customer engagement activities, Del Monte proactively reaps repeat purchases and brand
loyalty from such consumers.
Segmentation. A simple yet efficient and powerful strategy that most brands often overlook is
customer segmentation. Fortunately, Del Monte continues to employ the customer segmentation strategy
by dissecting its consumer base, and devising marketing and sales strategies tailored specifically to a
particular type of customer. For instance, especially during the holiday seasons, consumers prepare for
family gatherings by purchasing essential items, which may include Del Monte products. As such, there
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are consumers who prefer to buy in bulk to cut costs; upon segmenting this type of consumers, Del
Monte will tailor strategies that would ensure sales from them, including bundles, discounts, and
premiums. As such, the company earns revenues concurrently with consumers purchasing their products
conveniently.
E-commerce. As particularly perceived in the previous years of the age of technology, the
marketplace has been extended to online and virtual platforms. Consequently, Del Monte is actively
investing in its online presence, especially with the progressive trend of online shopping since the early
2020s. In this strategy, the company operates in e-commerce platforms and works collaboratively with
online retailers and sellers to offer its products with convenience and availability to consumers who are
much more keen on online shopping. Due to the dynamic nature of the algorithm, Del Monte is not
solely selling their products online, but also promoting them through immediate social media platforms
and online retailers.
Service
Product Information and Education. As an integral part of the company’s ownership with
integrity core value, Del Monte places utmost significance on being transparent with its customers
concerning valuable product information and education. For instance, all products under Del Monte and
its respectable brands bear labeling with truthful nutritional information and clear usage instructions.
This is likewise supplemented by the company’s marketing and official website which features recipes
and helpful guidelines about the products to lead consumers into maximizing what they bought,
ultimately enhancing customer experience.
Accessibility. In relation to outbound logistics and marketing and sales strategies, Del Monte
extends their service strategies to consumers through a diverse distribution network by enhancing the
accessibility of their products. The company employs partnerships with retailers and merchandisers,
both physical and virtual/online, to guarantee consumer convenience and to enable them to access Del
Monte products from their preferred locations.
Post-sales Support. One of the best determinants of the ability of Del Monte to foster brand
loyalty from its consumers is the after-sales services it provides them. While the company is a
product-oriented business, Del Monte is not stagnant on providing only tangible products to its
customers as it also delivers intangible benefits by means of customer service channels. Being a readily
available platform, customers are entitled and encouraged to reach out for assistance regarding issues
and concerns encountered with the company’s products. Accordingly, the consumers are assured that the
company’s support team are actively providing solutions and addressing concerns to preserve good
consumer experience.
Online Presence. As an integral part of the company’s e-commerce operations, the digital
customer service platform that Del Monte has developed and deployed contributes to enhancing
consumer experience and brand loyalty. This strategy ensures the seamless integration of during and
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post-sales services as it enables consumers to pursue the company’s product offerings with the guarantee
that any concerns that may arise will be addressed on a timely basis.
Support Activities
Procurement and Purchasing
Supplier Quality Management Program. In selecting their suppliers, Del Monte utilizes the
Supplier Quality Management Program (SQMP). This program is also helpful in assessing the quality
and delivery performance, receiving feedback, and implementing a continuous improvement program
for all material suppliers and toll manufacturers. The SQMP was introduced in April 2008 to assist in
selecting the best suppliers for the company. Initially designed for direct materials suppliers, it was later
extended to include toll manufacturers as well.
Supplier Code of Conduct. When engaging with Del Monte, suppliers must comply with the
company’s Supplier Code of Conduct. The company is committed to fulfilling its vision of “Nourishing
Families. Enriching Lives. Every Day.” Hence, Del Monte’s top priority is to produce and distribute
high-quality, healthy, and nutritious food to consumers while also prioritizing environmental
sustainability, supporting local communities, and fostering company growth. Del Monte ensures that
their vision and values are reflected in their approach to procuring goods and services. This Supplier
Code of Conduct outlines the requirements for the company’s suppliers, who are encouraged to strive for
constant enhancement within their own operations and supply chains.
Supplier Diversity Program. The company’s Supplier Diversity Program ensures that small and
diverse businesses have an equal opportunity to be considered as subcontractors and suppliers. Del
Monte actively looks for suppliers who offer competitive pricing, high-quality products, and reliable
delivery of service. In fact, a significant portion of Del Monte’s suppliers, approximately 60%, fall into
the category of small and medium enterprises. These suppliers go through the company’s supplier
accreditation process and are assessed based on their performance quality, delivery, and competitiveness.
Moreover, the company sources raw materials from multiple regions instead of relying on just one
region. This allows for a back-up procurement strategy.
Human Resource Management
Having the right people in the appropriate roles is crucial for all aspects of the value chain,
spanning from procurement to production to marketing and customer service. As a people-driven
organization, Del Monte values their employees highly, seeing them as one of their greatest assets.
Therefore, they ensure that their people are adequately trained, motivated, and aligned with the
company’s goals and values. An effective human resource management (HRM) system helps Del Monte
to alleviate competitive pressure based on motivation and to minimize employee turnover, thus
safeguarding the company’s well-being. Del Monte’s approach to human resource management
encompasses the following:
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Recruitment and Talent Acquisition. Del Monte’s Human Resource (HR) team is responsible
for identifying, recruiting and nurturing exceptional individuals with great potential. This involves the
creation of job postings, conduct of interviews, and assessment of candidates’ qualifications through the
utilization of various recruitment channels, such as job boards, career fairs, and online platforms.
Employee Onboarding. Managing the onboarding process for newly hired employees falls
under the purview of HR. New hires are provided with paperwork, orientation, and training to ensure
that they can easily adapt to the company culture and grasp their roles.
Training and Development. The HR department is responsible for organizing various training
and development programs aimed at equipping employees with the necessary skills, knowledge, and
attitude required for the workplace. This includes training that is tailored to the employee’s position,
leadership development, and skill-building initiatives, which also contribute to employees’ professional
growth.
Performance Management. Del Monte’s HR team implements performance appraisal systems

to assess and evaluate employee performance. They may establish goals, carry out regular evaluations,
and provide feedback to assist and encourage employees in enhancing their performance and making
valuable contributions to the company’s success.
Compensation and Benefits. HR professionals identify compensation packages, benefits, and

incentive systems provided to employees. Motivated and engaged employees are more likely to perform
their tasks efficiently, contributing to the overall value chain.
Employee Relations. Del Monte’s HR department plays a crucial role in maintaining a

harmonious work environment by addressing workplace issues, conflicts, and concerns. They ensure
that the company adheres to labor laws and regulations, including issues related to employment
contracts, discrimination, and workplace harassment.
Diversity and Inclusion. The HR team promotes a diverse and inclusive workplace culture that
supports underrepresented groups within the company. Del Monte has a Standard Against
Discrimination, which commits to encouraging a culture of equality in the workplace. As such, equal
opportunities are given to Del Monte applicants, treating them fairly and with respect.
Corporate Culture. At Del Monte, HR professionals are dedicated to cultivating and upholding
a corporate culture that reflects the company’s values and mission. In addition, they also coordinate
engagement activities and surveys to assess employee satisfaction and take steps to improve workplace
morale.
Technological Development
Frozen Fruit with Nice Technology. In 2014, DMPL entered into a joint venture with Nice
Fruit SL, a prominent Spanish fruit processor, and another partner. This venture aimed to establish a
de-hydro freezing facility in the Philippines, which will be used to process, market, and distribute frozen
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fruits on a global scale. It utilizes Nice Fruit’s patented technology, known as Nice Frozen Dry (NFD).
NFD enables the operations to freeze fruits at their peak ripeness for up to three years without
compromising their nutrients, structure, original properties, and organoleptic characteristics. This
technology has gained widespread recognition, having won “Best Product of the Year” in the food
service category at the renowned Salon International de I’alimentation (SIAL) in 2014 and FABI prize
(Food and Beverage) for its groundbreaking product from over 2,000 companies at the National
Restaurant Association (NRA) Show in Chicago in 2015.
Sustainable Packaging. One of the results of technological innovation driven by environmental

and consumer demands is the emergence of sustainable packaging. This includes the development of
innovative and eco-friendly materials for packaging and improvements in the recycling process. DMPL
has made significant efforts to minimize its packaging footprint by investing in materials and
redesigning existing ones. Currently, the company is working on developing a compostable fruit cup,
along with beverage and fruit cups that incorporate post-consumer recycled content. In addition, DMPL
has initiated trials for two innovative plant-based plastic alternatives, mono-material recyclable plastic
components and down gauged plastic in their seven- and four-ounce fruit cups. The company is
committed to converting plastic packaging into 100% recyclable, reusable or compostable materials by
2030.
Infrastructure
The organizational, support, and administrative functions of a company are essential to enable
various value chain activities to operate effectively and efficiently. The firm’s infrastructure serves as the
backbone of the company's internal operations and helps create a strong foundation for delivering value
to customers and achieving the company's strategic goals. The following supports the efficient
functioning of value chain activities:
Corporate Governance Structure. Del Monte Pacific Limited (DMPL) is committed to the
highest standards of corporate governance and upholds the values of transparency, integrity, and
accountability. DMPL’s corporate governance structure emphasizes accountability to shareholders and
maintaining ethical standards, ensuring that the Board and management operate with integrity. The
Board of Directors oversees the long-term strategy of the company, assesses the performance of the
Board and management, reviews material issues, and provides guidance on governance-related issues.
Furthermore, DMPL has adopted a set of environmental, social and governance (ESG) key performance
indicators based on the recommendation provided by the Singapore Exchange. Lastly, DMPL has
established a robust sustainability governance structure composed of the Audit and Risk Committee,
Nominating and Governance Committee, Remuneration and Share Option Committee, Corporate
Sustainability (Chief Corporate Officer), and Business Units of Subsidiaries (Leadership and
Sustainability Teams).
Quality Policy. The top priority of DMPL is to achieve Total Customer Satisfaction by
providing food products that adhere to the highest and most stringent global standards in terms of
quality, food safety, hygiene, and service. The company is dedicated to achieving environmental and
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sustainability objectives, ensuring compliance with all relevant laws and regulations, and constantly
improving the quality system. DMPL is committed to delivering the best quality by carefully selecting
materials and implementing rigorous processes and specifications. The company upholds the utmost
ethical standards in all aspects of their operations and when engaging with their business partners. They
ensure that their employees receive thorough training to perform their duties well. In their day-to-day
operations, DMPL embraces the company vision and CHOICE values as an integral part of its culture.
Partnership with Kyndryl. In 2009, DMPL established a partnership with Kyndryl when the
company began incorporating its SAP system. Kyndryl was tasked to provide managed services for
Information Technology (IT) operations, as DMPL worked on upgrading its aging hardware. In 2022,
DMPL and Kyndryl renewed their partnership through a five-year technology services agreement. This
agreement will allow Kyndryl to handle DMPL’s infrastructure workloads as the company embarks on a
cloud transformation journey. With their renewed collaboration, Kyndryl will provide DMPL with
critical services to support its transformation journey. This includes application management for SAP
Solutions across various cloud platforms and technology infrastructure services support. Kyndryl has
provided the company with enhanced support for high availability and increased levels of control and
governance, aligning with DMPL’s commitment to work towards fulfilling our consumers’ growing
desire to eat healthier foods.
Firm’s Strengths
Upon conducting a more thorough analysis of the organization, it becomes apparent that there
exists a complex and intricate network of strengths that serve as the foundation for its exceptional
operational performance and strategic acumen which are illustrated in the McKinsey 7s Model as well as
Porter’s General Value Chain. DMPL’s strengths are evident in its several aspects, ranging from a strong
organizational structure that promotes effective decision-making to a dedicated emphasis on
sustainability and innovation.
1. Del Monte Pacific Limited as the market leader in the food and beverage industry, particularly
in the processed and packaged goods sector.
Undoubtedly, Del Monte Pacific Limited’s prominent market position as a leader in the food and
beverage industry, especially in the domain of processed and packaged goods, constitutes a fundamental
source of competitive advantage. The differentiation is supported by a comprehensive methodology that
distinguishes DMPL from others. Likewise, the company prides itself on possessing a diverse product
portfolio that includes a wide range of offerings, such as canned fruits and vegetables, fruit cups, fruit
juices, sauces, seasonings, and frozen fruit treats. The range of diversity observed within DMPL's
product offerings serves as evidence of the company's ability to meet the varied demands of consumers,
establishing it as a favored option for selective clientele. In addition to its wide range of products,
DMPL demonstrates a steadfast dedication to quality assurance, guaranteeing that every item adheres to
rigorous criteria of flavor, freshness, and safety. Dedication plays a pivotal role in the processed and
packaged foods industry, as consumers attach utmost significance to the purity of their food products.
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Furthermore, DMPL's strong emphasis on prioritizing the needs and preferences of consumers, along
with continuous market research, allows the company to proactively anticipate and respond to shifting
consumer trends. This enables DMPL to effectively modify its product offerings in order to align with
evolving tastes and requirements. The flexibility to adapt enhances its attractiveness among various
demographic groups. Furthermore, the extensive global reach of DMPL, encompassing several
international markets, enhances its position as a prominent player in the global industry. The company is
able to utilize its knowledge and skills in the production and distribution of processed and packaged
goods on an international level. This allows for the customization of products to cater to specific
regional tastes and preferences, while also offering a safeguard against swings in regional markets.
DMPL's dominance in the processed and packaged foods sector serves as a testament to its dedication to
providing high-quality products, a wide range of options, and ensuring customer contentment, so
establishing itself as a strong entity within the food business.
2. Expansive distribution network led to 13% increase in general trade volume.
The impressive accomplishment of Del Monte in attaining a notable 13% increase in overall
trade volume serves as a persuasive demonstration of the company's expertise and success within the
food and beverage sector. This achievement not only highlights Del Monte's strong position in the
market but also demonstrates its remarkable capacity to adapt in a dynamic industry environment. The
core of this accomplishment is centered around the general trade channel, which serves as a crucial
component within Del Monte's expansive distribution network. This channel encompasses various local
grocery stores, small markets, and independent retailers. Although certain individuals may view this
route as conventional, it is imperative not to overlook its importance. The conduit serves as a crucial
link, establishing a robust connection between Del Monte's wide array of products and consumers at the
local and neighborhood levels.
What distinguishes Del Monte is its ability to not only sustain a robust presence in the general
trade segment, but also to drive substantial growth within this market. The growth of Del Monte can be
ascribed to the company's adeptness in engaging with consumers, accommodating their tastes, and
cultivating a strong brand reputation. The product variety of Del Monte expands beyond the boundaries
of prominent supermarket chains, ensuring convenient accessibility for individuals at nearby
neighborhood stores. The company's commitment to providing accessible food goods to a wide range of
customers, regardless of their location or purchasing choices, reflects its unchanging focus to
maintaining high quality standards.
In conclusion, Del Monte has demonstrated a multifaceted ability to succeed and prosper in the
general commerce area. This statement underscores the brand's adeptness in effectively traversing the
intricate terrain of local establishments and autonomous vendors, as well as its deep comprehension of
the food sector and the heterogeneous clientele it caters to. The notable achievement of Del Monte
extends beyond quantitative measures, as it exemplifies the company's strong emphasis on meeting
consumer needs, its ability to adjust to evolving market dynamics, and its unwavering pursuit of high
standards. This strategic approach guarantees that Del Monte maintains its status as a preferred and
dependable option for consumers within a continuously shifting sector.
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3. Geographical presence for localized decision-making and responsiveness to regional market
changes.
The geographical organizational structure of DMPL serves as a strong advantage, showcasing the
company's capacity to adjust and succeed in many international markets. DMPL's extensive global
presence across many geographies, including the United States, Europe, Asia-Pacific, Latin America,
the Middle East, and Africa, highlights the company's dedication to addressing specific market dynamics
in each locality. Through the implementation of dedicated management teams in each region, DMPL
effectively improves its capacity to make well-informed decisions that are tailored to the individual
characteristics of each location. Additionally, this strategy guarantees a proactive response to the
dynamic nature of market trends and the changing tastes of consumers. The company's capacity to adapt
and respond to local conditions is a significant advantage that allows it to sustain its competitive
advantage and efficiently distribute its vast array of products on a global scale. The extensive
geographical reach of DMPL exemplifies its adaptability and steadfast dedication to fulfilling the
distinct requirements of every market it operates in, solidifying its status as a prominent worldwide
player in the food and beverage sector.
4. Market segmentation and product diversification in relation to the dynamic nature of consumer
preferences.
The strategic focus of Del Monte Pacific Limited (DMPL) on market segmentation and product
diversification serves as a strong foundation for the company's competitive advantage in the food
business. Through a careful and detailed approach, DMPL has strategically aligned its product offerings
to effectively meet the unique preferences and interests of many consumer categories across the Asian
market, thereby establishing a strong foundation for achieving favorable outcomes. The company's wide
range of offerings, such as fruit cups, canned fruits, juices, veggies, sauces, condiments, and creative
fruit snacks and frozen treats, exemplifies its dedication to satisfying the varied needs of its customers.
The variety demonstrated not only showcases a deep comprehension of regional culinary intricacies but
also exemplifies a heightened sensitivity to the ever-changing preferences of consumers. Del Monte's
ability to provide a wide array of products successfully enables it to secure a significant portion of the
market, showcasing its adeptness in responding to the dynamic nature of consumer preferences. This
strategic approach not only fosters expansion but also reinforces Del Monte's standing as a
customer-oriented and market-savvy leader in the industry.
5. Efficient operational processes with regards to the quality and freshness of its products.
Efficient operational processes serve as a fundamental pillar of Del Monte Pacific Limited's
organizational strength. The fundamental aspects of DMPL's everyday operations involve a wide range
of activities, including the acquisition of raw materials, the manufacturing process, rigorous quality
control measures, packaging, and efficient distribution. The careful optimization employed by DMPL
not only guarantees the satisfaction of consumer demand but also maintains the esteemed standards of
freshness and exceptional quality that are integral to DMPL's reputation. Supply chain management is a
crucial factor in achieving operational efficiency. DMPL has strategically implemented supply chain
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management systems that ensure the continuous and uninterrupted flow of commodities. This is
particularly important for the company, since it heavily relies on timely availability of fresh ingredients.
The effective administration of logistics, transportation, and inventory control guarantees the delivery of
items to consumers in an ideal state. Anaplan, a versatile cloud-based platform, plays a pivotal role in
the aforementioned process by being extensively employed in several facets of DMPL's operations. The
platform encompasses a range of areas including financial planning, sales forecasting, supply chain
optimization, sales and operations planning, trade promotion management, scenario planning, and
performance analytics. The use of these tools enables DMPL to proactively anticipate, adjust, and react
to market fluctuations in a timely manner, hence improving operational effectiveness and flexibility. The
utilization of technology in a strategic manner, as evidenced by the implementation of Anaplan,
showcases DMPL's dedication to upholding operational superiority, especially when confronted with
external obstacles like the influence of El Nino on product distribution. The emphasis placed on
efficiency and adaptability is unquestionably a notable advantage that serves as the foundation for Del
Monte's achievements within the food business.
6. Technology integration that lowers cost by 35% and improves operational efficiency.
The effective incorporation of technology serves as a significant advantage for Del Monte Pacific
Limited (DMPL). In the contemporary digital environment, information technology (IT) systems assume
a crucial function in the execution of corporate activities, and DMPL has adeptly used this potential. The
partnership with Accenture and the deliberate integration of information technology solutions, such as
cloud services, represent notable achievements in DMPL's ongoing process of technical advancement. In
response to the very competitive market environment, DMPL took aggressive measures to update its
technology infrastructure, aiming to foster innovation and effectively capitalize on emerging
opportunities. The collaboration with Accenture has resulted in significant benefits, including better
transparency into DMPL's information technology operations and improved availability of data. The
enhanced ability to make decisions quickly is especially advantageous in a market characterized by swift
changes in customer preferences and trends. Significantly, the collaboration resulted in a noteworthy
decrease of 35 percent in expenditures linked to information technology, which therefore contributed to
enhanced profitability and the allocation of resources towards innovation and expansion. The
implementation of streamlined processes has resulted in a significant reduction in the time required for
DMPL workers to access IT capabilities, decreasing it from a span of weeks to less than one hour. This
improvement has effectively enhanced the operational efficiency of the organization. By utilizing cloud
services, specifically Amazon Web Services (AWS), DMPL has gained the capacity to adapt, expand,
and be well-prepared in order to succeed in the ever-changing consumer products sector. The seamless
integration of technology and corporate goals showcased by DMPL serves as a testament to the
company's dedication to progress and innovation, hence establishing its status as a pioneering force in
the technical landscape of the industry.
Firm’s Weaknesses
In the case of Del Monte, though weaknesses generally do not overshadow the success of its
operations, such areas of improvement nevertheless warrant attention and proactive initiatives to
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safeguard the position of Del Monte in the competitive industry. Accordingly, this section provides the
specific areas of weaknesses and potential avenues for development within the organization.
1. DMPL generates packaging sustainability and environmental concerns with its continued use of
plastic packaging.
With today’s environmentally conscious consumer landscape, combined with regulatory

authorities in the worldwide scope developing and implementing more stringent requirements
concerning the consequences of packaging materials on the environment, failure to comply with such
standards may cost Del Monte a fragment of its century-long generated goodwill. As distributed
globally, the principal commodities that Del Monte manufactures and markets are fruits and vegetables,
packed within tin and metal cans and plastic pouches, either of which are essentially contributory to the
company’s environmental footprint. The weakness arises from the continual reliance of Del Monte on
these packaging materials as they situate environmental concerns and compliance risks from public
opinion and regulatory authorities. As such, the biodegradation and disposal of such materials can
generate the issues of plastic contamination, landfill waste, and challenged sustainability, especially
since cans are manufactured from nonrenewable resources that are recyclable only up to a certain extent
while plastic packaging are generally not recyclable at all. Should Del Monte bypass packaging
innovation to ensure that their packaging materials do not contribute to the progressive degradation of
the environment through the utilization of recyclable and sustainable packaging made from essentially
renewable resources, the brand reputation that the company has cultivated may be tainted in the long
run.
2. The company’s challenged pricing competitiveness leads to a trade-off between affordability and
quality.
In accordance with the core values that the company upholds, Del Monte ensures that the key
players in its inbound and outbound networks, namely its suppliers and service providers, and retailers
and consumers, share a balanced and equitable welfare in the operations of the company. For instance,
the championing together value of Del Monte encompasses the significance of supplier relations in the
operations of the company as this details the company’s treatment of their suppliers. In every transaction
that occurs, Del Monte ensures the welfare of their suppliers and service providers by providing them
fairness and equity concerning input prices and other matters, ultimately leading to healthy and
long-lasting relationships that contribute to the affordability of Del Monte’s output. On the other hand,
the excellence in everything we do value of Del Monte outlines consumer interest as this emphasizes the
welfare of buyers by providing them quality, safe, and nutritious products in all given circumstances. As
a result, the families that are ultimately being served and benefited by Del Monte evolve to be loyal
customers, furnishing the company with their unwaning profitability due to the infallible quality being
served by the company.
While these values are not necessarily counterproductive to each other, it is undoubtful that Del
Monte’s attempt to balance these relationships all at once gives rise to a trade-off between affordability
and quality as there will be a time in which the company would have to prioritize the interest of one at
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the expense of the other. In the event that high costs are present, retail prices will likewise increase,
making Del Monte less appealing to highly price sensitive consumers. Similarly, switching costs will not
be a viable option as this entails unfair layoffs for suppliers and inconsistent quality for the consumers.
In the end, Del Monte is left at a point in which its relationships with both market players are balanced,
but it is not necessarily the most optimal position for the company, hence, its price competitiveness are
easily challenged by competitors.
For instance, this scenario was recently experienced by the company as it reported a net income
of $16.9 million for the fiscal year ended 2023, which was significantly lower than that of fiscal year
2022’s $100 million earnings. The company attributed this decrease to one off costs and to the highly
inflationary global environment which prompted their suppliers to increase input prices, resulting in the
company to adjust their retail prices to accommodate increased costs. While the quality of their products
remained, the price adjustment was only moderately welcomed by consumers.
Internal Factor Evaluation
Key Internal Factor
The Internal Factor Evaluation (IFE) Matrix provides a structured framework to assess various
internal factors, assigning weights and ratings to them, and calculating a total score that represents the
overall strategic position of the organization.
Assigning a weight for all the factors ranges from 0 to 1, with 0 representing the least significant
and 1 representing the most important factor in its industry. Meanwhile, the ratings for strengths and
weaknesses range from 3 to 4 and 1 to 2, respectively. Strengths are evaluated on a scale of 3 to 4, with
3 indicating a minor strength and 4 indicating a major strength. On the other hand, weaknesses are
categorized as either major or minor, with a rating of 1 or 2, respectively.
Table 3.3
Internal Factor Evaluation (IFE) Matrix
Internal Factor Evaluation (IFE) Matrix
Key Internal Factors Weight Rating Weighted

Score
Strengths
1. Del Monte Pacific Limited as the market leader in the food 0.25 4 1.00
and beverage industry, particularly in the processed and
packaged goods sector
2. Expansive distribution network led to 13% increase in 0.09 3 0.27

general trade volume
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3. Geographical presence for localized decision-making and 0.13 4 0.52
responsiveness to regional market changes
4. Market segmentation and product diversification in 0.15 4 0.60

relation to the dynamic nature of consumer preferences.
5. Efficient operational processes with regards to the quality 0.11 3 0.33

and freshness of its products
6. Technology integration that lowers cost by 35% and 0.20 4 0.80

improve operational efficiency
Sub-total 0.73 3.52
Weaknesses
1. Del Monte generates packaging sustainability and 0.18 1 0.18

environmental concerns with its continued use of plastic
packaging.
2. The company’s challenged pricing competitiveness leads to 0.09 2 0.18

a trade-off between affordability and quality.
Sub-total 0.27 0.36
Total 1.00 3.88
1 - major weakness; 2 - minor weakness; 3 - minor strength; 4 - major strength
Based on the key internal strengths of Del Monte Pacific Limited (DMPL), a weight of 25% is
attributed to it being a pioneer and a market leader in the food and beverage industry, particularly in the
processed and packaged goods sector. This holds the highest weight among the strengths of DMPL as it
showcases the company's unwavering dedication to delivering top-notch products, a diverse selection,
and ensuring customer satisfaction, thus establishing itself as a strong entity within the food business.
Following this, only a weight of 9% was given to the company’s expansive distribution network, which
led to a 13% increase in general trade volume. It indicates that this strength is not particularly significant
to the company's operations, as it only amounts to a minor advantage. The company's geographical
presence is given a 13% weight, highlighting its ability to make localized decisions and quickly respond
to regional market changes. This is a result of the company's established and extensive global presence.
Meanwhile, one of the company’s major strengths is its market segmentation and product
diversification. This strength garnered a weight of 15%, showcasing DMPL's impressive range of
successful products and its ability to adapt to ever-changing consumer preferences. Next, the company's
efficient operational processes with regard to its products' quality and freshness are given a weight of
just 11%. This is due to the fact that DMPL places a strong emphasis on having access to fresh
ingredients in a timely manner. Therefore, the effective administration of logistics, transportation, and
inventory control guarantees the delivery of items to consumers, but only in an ideal state. Lastly,
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another major strength of the company is its technology integration which lowers cost by 35% and
improves operational efficiency. The weight given to this aspect is 20% as it greatly enhances DMPL's
ability to make prompt decisions, which is highly beneficial in a market known for rapid shifts in
customer preferences and trends.
On the other hand, the internal analysis conducted for DMPL only identified two weaknesses.
First is the generation of packaging sustainability and environmental concerns with its continued use of
plastic packaging. This is considered a major weakness of the company with an attributed weight of
18% because its continuous reliance on packaging materials has a notable impact on their environmental
footprint. Their continual reliance is due to the fact that they situate environmental concerns and
compliance risks from public opinion and regulatory authorities. Meanwhile, a minor weakness of the
company is its challenged pricing competitiveness, leading to a trade-off between affordability and
quality. A weight of only 9% is assigned to this weakness due to the inevitable need for the company to
prioritize the interest of one party over another, such as prioritizing the interests of its consumers over its
suppliers.
From the IFE Matrix, DMPL has achieved an average weighted score of 3.88, indicating that the
company has a strong internal position. This signifies that the company possesses several key strengths
and advantages within its internal environment. In addition, a strong internal position often indicates that
the company has successfully developed and implemented internal factors that are highly effective and
capable of providing a competitive advantage. Recognizing the importance of a strong internal position,
it becomes evident that it can significantly benefit a company by bolstering its competitive edge,
fostering growth, and ultimately leading to success within its industry. It offers a solid foundation for
developing and implementing strategic plans that can leverage internal strengths and tackle weaknesses.
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Risk Assessment
The company recognizes the importance of balancing risks and rewards to achieve the optimal level of risk that it can tolerate in its
pursuit of its strategic, business and sustainability objectives. With this, Del Monte Pacific Limited (DMPL) aims to remain within tolerable
boundaries while it maximizes opportunities in order to deliver value to their stakeholders through sustainable growth. A risk assessment form
and matrix highlighting the principal risks, likelihood, consequences and actions taken by the company are summarized below:
Table 3.4
Risk Assessment Form
RISK ASSESSMENT FORM
Risk
Risk Likelihood Consequences Action
Rating
Cost Increases and Inflationary 4 D 4D Cost reduction initiatives, productivity improvements

Pressures (Likely) (Critical) and price adjustment
Del Monte experienced cost increases
in raw materials, packaging and other Socialize inflationary cost increases with customers and
inputs, including tin plate, raw private labels to mitigate the risk on price actions to
produce, fuel and labor. address inflation
Geo-political conflict, inflation, and Renegotiate supplier contracts, vendor bidding and
supply chain challenges put pressure contracts by collaborating with a cross functional team
on the company’s margins and and prioritize strategic sourcing
working capital.
Cybersecurity and Optimization 1 C 1C Address and monitor malicious activities identified by

of Systems and Automation (Unlikely) (Moderate) tools and routines that have been deployed by a
Cyberattacks can disrupt operations dedicated Security Incident Monitoring and Operations
by exploiting weaknesses in network Group
devices and servers, corrupting
information and stealing confidential Conduct regular security patching for Windows, servers
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data which can lead to financial and computers
losses, among others.
Implement digitization and transformation Initiatives
Inability to realize return on and priorities (i.e., warehouse management system, sales
investment on these new systems and promotion planning, supply and demand planning)
may hamper the Company’s
digitization and transformation.
Product Supply 2 B 2B Improve long run demand and supply planning

Insufficient product inventory to (Seldom) (Marginal) capability
meet consumer demand may affect
the Company’s revenue and Develop alternate raw product sourcing and implement a
profitability. global sourcing strategy
Permanent loss of shelf space and

non-acceptance of new products are
possible consequences.
Workforce Management: 3 C 3C Implement seasonal labor wage increase and close the
Employee Turnover (Occasional) (Moderate) wage gap between certain facilities
In some plants, the high turnover rate
impacts the facility’s ability to fully Put in place a retention strategy to address employee
staff the operations especially during experience and create a Great Place to Work culture
peak seasons.
Environmental Risks 3 D 3D Develop initiatives to mitigate climate change, weather

Production output is subject to (Occasional) (Critical) disturbances and changing weather patterns
certain risk factors relating to weather
conditions, calamities, crop yields, Adopt regenerative, and sustainable farming and
crop diseases, contract growers and manufacturing practices
service providers’ performance,
leasehold arrangements and changes Implement phase-out program for hazardous materials
in regulations. through replacement with alternative sustainable
materials
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Occupational Health and Safety 2 E 2E Comply with the Department of Labor and Employment
The effects of medical outbreaks of (Seldom) (Catastrophic) regulation on Occupational Health and Safety of
infectious diseases, such as the employees by promoting health and safety programs to
coronavirus, could affect business prevent accidents in the workplace.
and results of operations.
Implement safeguards and protocols to minimize
Lost work days due to accidents in operational disruption, due to infectious diseases while
the workplace can have a huge adhering to government regulations on health and safety.
impact on the business. DMPL may
experience loss of productivity,
reduction of sales, low staff morale
and loss of reputation.
Innovation Challenges: Evolving 4 C 4C Enhance relevance of existing portfolio and brands

Consumer Preferences and Trends (Likely) (Moderate) through consumer communication and marketing
The results of operations of Del strategy
Monte highly depend on the
performance of the products in the Implement SKU rationalization through brand
categories they compete. As such, recognition and quality to improve profitability and
inability to meet the plan may result increase market share
to impairment of goodwill and the
firm’s ability to fund operations, Establish new capabilities to expand the Company’s
manage obligations, and maintain its presence in growing channels such as e-commerce
reputation. through online retail sites and convenience stores
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Figure 3.6
Risk Assessment Matrix
The risks connected to DMPL's operations were plotted on the risk assessment matrix using the
figure as a basis and their corresponding risk ratings. As a result, both Product Supply (2B) and
Cybersecurity and Optimization of Systems and Automation (1C) are low-risk factors that do not require
further concentration and might even be the least of importance in terms of risk mitigation. However,
Del Monte retains the option to choose to address these risks at their discretion through company-wide
initiatives. The same is true for Workforce Management: Employee Turnover (3C), which is a medium
risk factor that has been identified. In this case, proactively taking action is optional. The matrix shows
three risks for the high-risk factors, including Occupational Health and Safety (2E), Environmental
Risks (3D), and Evolving Consumer Preferences and Trends (4C), which call for supplementary
measures. Last but not least, Del Monte is currently exposed to extremely risky situations due to Cost
Increases and Inflationary Pressures (4D), the effects of which are already beginning to manifest. Due to
high inflationary pressures at present, financial ratios for the fiscal year 2023 are declining and affecting
the performance of the company. Therefore, in order to counteract the negative effects of such risks,
actions related to this risk factor must be carefully planned and implemented as soon as possible.
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CHAPTER IV: STRATEGIC OBJECTIVES, STRATEGIC FORMULATION, &
ALTERNATIVE COURSES OF ACTION
In this chapter, the present market landscape of Del Monte is evaluated through a comprehensive
assessment of its competitive positioning in the present and future periods within its industry.
Accordingly, Chapter 4 encompasses Del Monte’s financial and non-financial strategic objectives along
with an in-depth analysis of its strategic position and actions, SWOT, and TOWS. This chapter also
scrutinizes the company’s alternative courses of actions through its Quantitative Strategic Planning
Matrix (QSPM) which is the benchmark for the data-driven recommendations and the meticulous
evaluation of the necessary resources to execute such strategies.
Long-Term Objectives (Strategic Objectives)
Generally, the long-term objectives of an entity are designed to strategically achieve its mission
and vision in measurable, feasible, and timely conditions. It is essential for such strategic goals to be
SMART as they represent the roadmap that will guide the company in attaining prestige and prominence
in its industry by enriching business management. Accordingly, the following strategic objectives,
categorized into financial and nonfinancial clusters, are likewise the aspirations that Del Monte hopes to
achieve in the near future.
Financial Objectives
1. To achieve a significant increase in sales revenues starting from 10% in 2024, 15% in 2025, 20%
in 2026, 25% in 2027, and 30% in 2028 through enhanced manufacturing processes and
distribution of new and improved products.
2. To realize an increase in the net margin by 2% per year, from 2024 to 2028, through the
reduction of variable overhead costs.
Nonfinancial Objectives
1. To sustain the brand's reputation by growing in markets where DMPL holds a strong brand and
competitive edge.
2. To embark on research and development by developing innovative products that capitalize on
category trends, especially health and wellness, and generate sales.
Strategic Position and Action Evaluation (SPACE) Matrix
The SPACE Matrix will assist in pinpointing the most appropriate strategies for Del Monte,
assessing both internal and external management, and formulating tangible action plans.
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Figure 4.1
SPACE Matrix Plot for DMPL
Based on the plot's outcomes, the SPACE Matrix indicated that Del Monte Pacific Limited
(DMPL) is currently in a competitive position after assigning ratings to each of the identified factors.
The financial position has an average rating of 3.20, the stability position has an average rating of 3.67,
the competitive position has an average rating of 2.00, and the industry position has an average rating of
4.33. These ratings are based on both internal and external factors that affect the general environment in
which Del Monte operates.
Due to its less-than-ideal financial performance in recent years—especially with the pandemic's
lingering devastating effects—and its financial ratios, Del Monte's financial strength received an average
rating of 3.20, as shown in Table 4.1 below. The pandemic's ongoing effects affected Del Monte's
stability as well as the food and beverage sector, which led to fluctuations in demand, prices, and
inflationary pressures, earning the company a 3.67 rating. However, Del Monte's competitive position is
performing better because it is a well-known brand that leads in market share, product quality, and
technological prowess. Due in large part to supplier and buyer power, as well as its potential for growth
and profit, its industry position is likewise favorable, with a rating of 4.33.
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Table 4.1
SPACE Matrix Factors
SUB-FACTORS SCORE AVERAGE
Financial Strength (FS) - Internal
Return on Investment +2
Leverage +2
Working Capital +3 3.20
Cash Flow +4
Price Earnings Ratio +5
Stability Position (SP) - External
Technological Changes -3
Rate of inflation -5
Demand Variability -3
Price range of competing products -4 3.67
Competitive Pressure -3
Risk involved in business -4
Competitive Position (CP) - Internal
Market Share -2
Product Quality -1
Customer Loyalty -4
Capacity Utilization -2 2.00
Technological know-how -2
Control over suppliers and distributors -1
Industry Position (IP) - External
Growth Potential +4
Profit Potential +5
Ease of Entry into the market +3
Supplier and Buyer Power +6
4.33
Industry Rivalry +4
Availability of substitutes +4
Threats, Opportunities, Weakness, and Threats (TOWS) Matrix
It aims to perform a TOWS analysis of Del Monte Pacific Limited, which will provide strategic
insights by aligning external opportunities and threats with internal strengths and weaknesses.
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Table 4.2
TOWS Matrix
Strengths Weaknesses
1. Market leader in the food 1. Packaging sustainability and
and beverage industry environmental concerns
2. Expansive distribution 2. Trade-off between
network affordability and quality
3. Geographical presence
4. Market segmentation and
product diversification
5. Efficient operational
processes
6. Technology integration
Opportunities S-O Strategies: W-O Strategies:

1. Philippines as the highest
plant-based food openness S1,S2-O1: W1-O1:
in Southeast Asia. Leverage Del Monte Pacific Address packaging
2. Increase in e-commerce Limited's dominant position in sustainability concerns (W1) by
market the market (S1) and extensive shifting to eco-friendly
3. Increase in exports to distribution network (S2) to materials in alignment with the
Southeast Asian markets capitalize on the emerging trend growth potential in the
4. Rising middle-class of plant-based food plant-based food sector (O1),
population consumption in the Philippines enhancing the company's image
5. Projected increase of (O1). This may be achieved by and appealing to eco-conscious
functional foods market introducing a wide variety of consumers in the Philippines.
plant-based goods and utilizing
the company's established W2-O4:
market presence. Enhance pricing
competitiveness (W2) without
S3-O3: compromising quality by
Utilize the geographical leveraging efficient operational
distribution for localized processes (S5) and technology
decision-making (S3) in order to integration (S6), aligning with
customize products based on the opportunity presented by the
regional tastes and market rising middle-class population's
trends, so aligning with the increased purchasing power
potential for a 4.3% growth in (O4).
exports to Southeast Asian
markets (O3).
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S5,S6-O2
Harness efficient operational
processes (S5) and technology
integration (S6) to strengthen
the company's presence in the
growing E-commerce market
(O2) by enhancing online sales
and supply chain efficiency.
Threats S-T Strategies: W-T Strategies:

1. Highly competitive industry
2. Shifting consumer S1,S6-T1: W1-T1:
preferences Utilization of DMPL’s market Undertake a transition towards
leadership (S1) and integration the utilization of eco-friendly
of technology (S6) can be packaging materials, while
employed as strategies to foster concurrently enhancing pricing
innovation and maintain a competitiveness to address
competitive edge (T1) through concerns regarding the
the ongoing enhancement of sustainability of packaging
operational efficiency and (W1) and effectively manage
product quality. environmental difficulties
within a fiercely competitive
S2,S3-T2: industry (T1).
The company can leverage its
extensive distribution network W2-T1:
(S2) and geographical reach to To address pricing difficulties
facilitate localized (W2), it is crucial to achieve a
decision-making (S3) in order to harmonious equilibrium
promptly adapt to evolving between cost-effectiveness and
consumer tastes and market excellence, particularly in the
trends (T2), while also ensuring context of fierce rivalry within
effective product placement in the sector (T1).
target markets.
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Quantitative Strategic Planning Matrix (QSPM)
The QSPM is a valuable tool that helps evaluate and determine how well alternative strategies
allow the company to leverage external opportunities, mitigate external threats, capitalize on internal
strengths, and address internal weaknesses (David et al., 2016). The QSPM analysis will determine the
significance of DMPL’s external opportunities and threats and its internal strengths and weaknesses.
This analysis will then be used to determine the relative attractiveness of alternative courses of action.
Table 4.3
Quantitative Strategic Planning Matrix (QSPM)
Backward, Forward,
Horizontal Market Development Product Development
KEY FACTORS Weight Diversification
AS TAS AS TAS AS TAS
Opportunities
The Philippines recorded

the highest plant-based
0.10 2 0.20 3 0.30 4 0.40
food openness in
Southeast Asia at 62%.
The E-commerce market
0.05 1 0.05 4 0.20 3 0.15
increased 31% in 2022.
A 4.3% increase in
exports to Southeast
Asian markets,
0.08 2 0.16 4 0.32 3 0.24
leveraging the ASEAN
Economic Community’s
Growth.
Rising middle-class
population in the
Philippines has led to 0.07 1 0.07 3 0.21 4 0.28
increased purchasing
power.
Functional foods market
is projected to grow at a
CAGR of 8.5% from
0.06 2 0.12 3 0.18 4 0.24
2021 to 2028.
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Threats
Highly competitive
industry due to the
0.03 4 0.12 2 0.06 3 0.09
proliferation of options
and alternatives.
Changing lifestyles,
trends, values, and tastes
as factors of shifting 0.04 3 0.12 2 0.08 4 0.16
consumer preferences.
Strengths
Del Monte Pacific

Limited as the market
leader in the food and
beverage industry, 0.12 – 4 0.48 3 0.36
particularly in the
processed and packaged
goods sector.
Expansive distribution
network led to 13%
0.03 2 0.06 4 0.12 3 0.09
increase in general trade
volume.
Geographical presence
for localized
decision-making and 0.07 2 0.14 4 0.28 3 0.21
responsiveness to
regional market changes.
Market segmentation
and product
diversification in relation 0.08 2 0.16 3 0.24 4 0.32
to the dynamic nature of
consumer preferences.
Efficient operational
processes with regards to
0.06 4 0.24 – –
the quality and freshness
of its products.
Technology integration
0.10 4 0.40 – 3 0.30
that lowers cost by 35%
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and improves
operational efficiency.
Weaknesses
Del Monte generates

packaging sustainability
and environmental
0.08 4 0.32 – –
concerns with its
continued use of plastic
packaging.
The company’s
challenged pricing
competitiveness leads to 0.03 4 0.12 – –
a trade-off between
affordability and quality.
TOTAL 1.00 2.28 2.47 2.84
1 - not attractive; 2 - somewhat attractive; 3 - reasonably attractive; 4 - highly attractive
Recommendation
In accordance with the strategic vision and objective of Del Monte Pacific Limited (DMPL), a
thorough analysis has been conducted to evaluate the company’s current trajectory utilizing the QSPM.
The analysis highlights the importance of a strong Product Development Strategy in propelling DMPL
towards long-term growth and a competitive edge in the ever-changing food and beverage business.
Thus, adoption of this strategic imperative is not solely a reaction to market forces, but also a proactive
step to conform to changing customer tastes. This approach aims to guarantee the long-term significance
and dominance of DMPL within the industry.
Product Development
Given Del Monte Pacific Limited's (DMPL) competitive position in the food and beverage
industry, as evidenced by its placement in the positive quadrant of the SPACE Matrix, it is advisable to
prioritize a strategic Product Development approach to ensure continued growth and competitive
strength. The Product Development Strategy has strong support from the QSPM Matrix, as seen by its
high Total Attractiveness Score of 2.84.
To effectively implement the Product Development Strategy, DMPL should focus on one of the
alternative courses of action emphasized in the TOWS Matrix, which is leveraging its dominant
market position (S1) and expansive distribution network (S2) to seize the burgeoning trend of
plant-based food consumption in the Philippines (O1). This entails introducing a diversified range of
plant-based goods that align with the evolving preferences of health-conscious consumers.
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The allocation of strategic focus should prioritize Research and Development (R&D) endeavors
to establish a varied and inventive assortment of plant-based solutions that exhibit superior quality. The
promotion of innovation can be facilitated by implementing DMPL, which involves the creation of
collaborative innovation hubs that serve as a platform for the convergence of culinary schools, research
institutions, and technology centers. Adopting a cross-disciplinary strategy guarantees the advancement
of state-of-the-art plant-based goods that effectively respond to a wide range of consumer preferences
while maintaining a competitive edge in response to emerging market trends.
Del Monte Pacific Limited (DMPL) should further explore collaborations with local farmers and
agricultural communities to strengthen its dedication to sustainable practices and guarantee a robust
supply chain for plant-based products. The crux of this advice is centered on the strategic execution of
sustainable sourcing protocols, which go beyond the simple procurement of raw materials and/or other
inventory items. Through active participation in fair trade projects, DMPL has the potential to impact
local farmers' economic welfare positively. This may be achieved by developing mutually advantageous
connections and promoting the overall sustainability of its supply chain. Furthermore, placing a high
priority on ensuring the ethical treatment of workers within these communities reflects the company's
fundamental values and emphasizes its commitment to fulfilling its social responsibilities. This
comprehensive approach ensures the preservation of product quality and appeals to environmentally
aware consumers who place greater importance on goods sourced ethically and produced sustainably.
The concentrated efforts of DMPL in this domain strengthen its dedication to responsible business
operations, establishing the company as a conscientious leader in the industry with a focus on
exceptional product quality and ethical standards in its supply chain.
Recommended New Products
● Enhanced Cayena Lisa Pineapples
In line with the strategic undertaking of the company, the first phase of Del Monte’s
product development is completely immersed in collaborating with local farmers, botanists,
pathologists, soil scientists, bioinformaticians, and food and beverage regulatory experts to
research and develop the most optimal breed of pineapple for the company through the process
of plant breeding. Presently, the breeds that are registered and trademarked to Del Monte’s name
are Gold Extra Sweet, Honeyglow, and PINKGLOW pineapples, which are predominantly grown
in the Philippines, and other tropical countries. In the company’s case, plant breeding would
involve the guided manipulation of pineapple species by crossbreeding, genetic improvement,
and field trials to achieve desirable plant traits, nutritional content, enhanced taste, and optimal
harvest period to match Del Monte’s raw material inventory turnover. Particularly, this phase
aims to result in the enhancement, branding, and eventual commercialization of the best and
most suitable variety of pineapple in the Philippines, known as the Cayena Lisa, for both
production and trading purposes of Del Monte. Upon the completion of this phase, this breed
shall be gradually integrated into the production of canned and other processed pineapple
commodities of Del Monte, the following new products under this strategic recommendation, as
well as for marketing it in its raw state in supermarkets and other avenues of distribution.
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● Pineapple-Infused Sports Drink
The combination of pineapple and sports drink provides a novel merging that might
utilize Del Monte Pacific Limited's (DMPL) commitment to environmentally friendly practices
and cutting-edge product development techniques. This beverage combines freshly extracted
pineapple juice with electrolyte-rich coconut water, incorporating the hydrating features of a
sports drink and reflecting the growing trend of plant-based food consumption. DMPL's strategic
emphasis on Research and Development (R&D) in order to provide innovative plant-based
solutions is in complete harmony with this idea. The company's commitment to ethical standards
in its supply chain is demonstrated by its engagement with local farmers and agricultural
communities, where sustainable sourcing practices are promoted. DMPL's distinctive
combination of nutrients, including vitamins, enzymes, and antioxidants, not only supports
digestion and decreases inflammation but also appeals to ecologically conscious consumers,
highlighting the company's commitment to superior product quality and ethical sourcing. This
unique beverage not only provides a nutritious option for individuals who prioritize physical
fitness, but also embodies DMPL's commitment to ethical business practices and their
determination to cater to changing consumer tastes.
● Pineapple Ginger Infused Honey
The infused honey product under consideration is a unique blend of pineapple and ginger,
resulting in a pleasant amalgamation of sweetness and warmth. The innovative food product
presented offers consumers a versatile and flavorful experience. Combining the naturally sweet
flavor of pineapple and ginger's spicy and aromatic characteristics creates a distinctive and
enjoyable condiment. The Pineapple Ginger Infused Honey is a versatile product that can serve
as an excellent sweetener for tea, a delightful drizzle over desserts, and a flavorful glaze for
grilled meats. Moreover, it is worth noting that honey is recognized for its potential
immune-boosting properties, and ginger is often regarded as having beneficial effects on the
immune system. The combination of these ingredients may offer supplementary assistance to the
body's defense mechanisms. Developing innovative products like Pineapple Ginger Infused
Honey aligns with the company's commitment to utilizing locally sourced and sustainable
ingredients. This approach has the potential to generate positive economic benefits for local
farmers. The product’s flavor profile is notable for its dynamic qualities, introducing a tropical
twist to a conventional pantry staple. The distinctive characteristic of this attribute has proven to
be highly appealing to consumers actively seeking novel and exciting culinary experiences, as
well as to those desiring a delectable food that also offers medicinal benefits.
● Tropical Pineapple Breakfast Bars
Faithful to the minor goal of intensifying collaborative effort with local farmers, DMPL
wants to consider incorporating other known products and export products of the Philippines,
such as coconuts and mangoes, in a snack meant to satisfy the working Filipinos’ palate and
on-the-go lifestyle. At present, there exists a negligible selection of locally-made breakfast bars
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or granola bar snacks. Furthermore, the variants accessible in convenience stores and local
supermarkets are from international brands and as such, DMPL may consider introducing a
snack ideal for midday pick-me-ups or a quick bite for a busy working individual. Aside from
the fact that local flavors are highlighted in this breakfast bar, making it more relatable and apt
for the everyday Filipinos’ taste buds, DMPL also has the means to distribute such a snack, given
their extensive distribution networks which enable them to penetrate the markets of convenience
stores like 7/11 and Lawsons.
In marketing, it is recommended that DMPL adopt a comprehensive strategy including all facets,
with a particular focus on digital marketing initiatives. Collaborative marketing efforts involving
influencers, dietitians, and chefs can augment credibility and broaden the appeal to a broader range of
individuals. Social media platforms like Facebook and Instagram can effectively disseminate interesting
material, encompassing instructional campaigns, recipe suggestions, and exclusive insights into
developing plant-based products.
To enhance consumer involvement and cultivate a sense of community surrounding plant-based

lifestyles, it is recommended that Del Monte Pacific Limited (DMPL) strategically incorporate
gamification elements into their social media endeavors. In addition to conventional methods of sharing
information, integrating interactive components such as contests and challenges can enhance user
involvement, facilitating the transition towards embracing a plant-based lifestyle as a captivating and
dynamic experience. By implementing effective strategies that incentivize and reward consumers,
DMPL may effectively stimulate and promote user engagement. This can be achieved by creating
thoughtfully designed challenges that encourage users to actively participate by sharing their
experiences, recipes, and innovative plant-based meal ideas. Consequently, this approach fosters a sense
of camaraderie among users, thus enhancing the overall user experience. Concurrently, deliberately
implementing seasonal and limited-edition plant-based products contributes to a sense of exclusivity,
fostering increased consumer excitement and dedication. Utilizing these novel strategies not only sets
DMPL apart in the market but also establishes the brand as a proactive force that influences the
discourse surrounding plant-based lifestyles in the era of digitalization.
In summary, the strategic pursuit of the Product Development Strategy by DMPL, based on its
competitive positioning and supported by the QSPM Matrix, drives the company toward a promising
future within the food and beverage sector. By employing these particular techniques, DMPL has the
potential to maintain its competitive advantage and make a substantial contribution to the dynamic realm
of consumer preferences and sustainable business practices. Implementing this all-encompassing
strategy guarantees that DMPL maintains its position as a leader in innovation and fulfills the increasing
need for plant-based alternatives in the Philippines and other regions.
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Resources Requirements
Table 4.4
Resources Required for Market Expansion
RESOURCES 2024 2025 2026 2027 2028

(IN PHP ‘000)
Capital Expenditures
Construction-in-pr 1,712,952.79 3,527,799.14 6,563,143.88 - -
ogress
Buildings, land - - - 5,250,515.10 5,418,531.58

improvements and
leasehold
improvements
Machineries and - - - 1,312,628.78 -

equipment
Bearer plants 21,590 31,110 57,223 33,643 21,744
Research and 100,820 100,926 113,549 109,143 104,789

Development
Patents - - 630,508 - -
Human Capital
Wages and salaries 291,313.91 294,169.93 299,881.97 297,025.95 298,453.96
Professional Fees 1,628 1,644 1,676 1,660 1,668
Financing and Investment

Capitalized 90,013.57 98,599.65 164,992.67 - -
Borrowing Costs
Share in the net 783,650 1,107,780 1,740,750 2,431,201 3,350,900

income or net loss:
Investment in
Joint Ventures
In pursuit of both its financial and non-financial goals and grounded on the Product Development
Strategy as substantiated by the QSPM, Del Monte Pacific Limited (DMPL) will therefore require a
significant amount of resources to back their operations in the coming years. As prefaced in Chapter III,
DMPL’s resources play a pivotal role in aiding the entity to attain its objectives by allowing
management to plan strategically. As such, an estimate of the resources needed by DMPL in the
foreseeable future is presented. In estimating the resources requirements, the Annual Reports were
109
scrutinized and historical data from 2019 to 2023 were used as the basis for projecting the amounts
required for the resources. Subsequent adjustments were then effected with the use of the key financial
assumption that inflation rate is set at 3.20%, assuming it is stable from 2024 to 2028. Likewise, the
amounts presented on the table are not discounted to their present values as their natures, classifications,
and purposes vary, ultimately leading to difficulty in identifying an effective discount rate that reflects
all the risks associated with the circumstances ahead of such amounts.
Enumerated under Capital Expenditures are the primary resources that DMPL is expected to
generate as a result of its tactical Product Development strategy. For the most part, these capital
expenditures will be utilized in the construction of a research facility adjacent to the main pineapple
plantations of the entity in Mindanao, in hopes of fostering collaboration with farmers and extending
their involvement beyond just harvesting. Moreover, to support the production of the new products
developed by DMPL, a production facility is likewise built, also evidenced by capital expenditures such
as the Construction-in-Progress and and its eventual capitalization to the Building, Land Improvements,
and Leasehold account.
In illustration, the Construction-in-Progress (CIP) account consists of the accumulated
expenditures for the construction of buildings, a research and development facility and a production site,
and a class of specialized machineries for manufacturing new and improved Del Monte commodities.
Since the company is to develop product offerings to strengthen its competitive position in the market,
the resource requirements concerning CIP logically concentrates on immovable assets to diversify and
improve its manufacturing process. Likewise, the assumption that the construction of facilities and the
specialized machineries would be completed concurrently was utilized, justifying the significant
difference between the capitalized cost reclassified from the CIP to the Building, Land Improvements,
and Leasehold Improvements, and the Machinery and Equipment accounts, respectively. Ultimately, the
accumulated costs in the CIP are allocated based on the observed allocations of additions and
reclassifications from CIP components of the company’s lapsing schedule for the last five years but with
the adjustment to the assumption of concurrent completion of construction. Essentially, the construction
of facilities and machinery are projected to be finished as of year-end 2026, immediately being classified
to their respective asset account as of beginning 2027. As such, the CIP is projected to be accounted for
as four-fifths research and development and production facilities and one-fifths specialized machineries.
Based on the historical data backing five years, the CIP account of the company was mostly
composed of relatively small components of production such as warehouse, installation lines, labeling
lines, and other fixings of similar nature and purpose. In relation to the product development strategy of
Del Monte, the projected amount of the CIP for the next three years, which is deemed to be the
appropriate duration of construction of the large scale research and development and production
facilities and specialized class of machineries, is based on the total aggregate amount of CIP in 2023,
comprising of major items of constructed assets such as production capacity, advanced equipment,
distribution centers, large warehouses, and others. Due to the variety of assets composing the 2023 CIP
account, the projected CIP amounts for the next three years specific to the execution of the product
development strategy of Del Monte were derived by utilizing the aggregate 2023 amount as a
benchmark for the construction costs. Through this determination, a cost-to-cost schedule was prepared
110
to exhibit the dissection of the construction progress, which projects the percentage of completion at
60% in 2024, 75% in 2025, and 100% in 2026. Ultimately, once the assets being constructed reach an
acceptable level of completion, the accumulated capitalized costs under the CIP account are transferred
to the appropriate line items of their nature. As such, based on the previous financial reports of the
company, such transfers are properly accounted for and disclosed under the reclassification from CIP
component of Del Monte’s lapsing schedule.
Once the research and production facilities are substantially completed and available for its
intended use. Once ready to be put into service, a corresponding amount is capitalized to the Building,
Land Improvements, and Leasehold Improvements account from CIP. Only subsequent to the
capitalization of the facilities as Building, Land Improvements, and Leasehold Improvements will their
depreciation begin. Noticeably, in 2027, the costs previously incurred as part of the CIP will serve as the
initial cost of the immovable assets. Aside from referencing to the CIP balance to check for the
reasonableness of the amount capitalized, the projected amounts were also counter checked against the
2022 and 2023 additions to DMPL’s Building, Land Improvements, and Leasehold Improvements
account, which, amount to roughly P400,000,000 when adjusted for exchange rate and inflation.
Concurrent with the recognition of an amount charged to the Building, Land Improvement, and
Leasehold Improvements is the reclassification of costs from Construction-in-Progress to Machinery and
Equipment. Conforming with the Product Development Strategy that DMPL ought to implement, a
special class of machinery and equipment will be self-constructed to fulfill the surging needs of
production and intensified research effort. Moreover, the costs capitalized to Machinery and Equipment
are also expected to be used in Research and Development. As these movable assets are not expected to
be utilized for a sole project of DMPL, they are adequately capitalized as Building, Land Improvement,
and Leasehold Improvements and only the depreciation expense related to a specific research
undertaking will be charged as part of the Research and Development expenses. Specifically, the basis
for the amount capitalized to Machinery and Equipment was the balance of the CIP account in 2026.
Around one-fifth of the CIP balance was allocated to Machinery and Equipment, representing the
specialized instruments to be employed in the newly constructed research facility and production site.
This is under the assumption that a more significant portion of the CIP balance is apportioned to the
immovable assets, rightfully so since the Machinery and Equipment are only some of the assets to be
used in the facilities. Furthermore, these machines are built more swiftly as compared to the facilities
and can be acquired or constructed with ease in succeeding periods should the need arise. As such, the
remainder was then allocated to the Buildings, Land Improvements, and Leasehold Improvements, as
previously discussed. With reference to the annual additions to Machinery and Equipment, as presented
in DMPL’s Annual Reports, the allocation is regarded as reasonable.
Evidently, a significant portion of the Capital Expenditures is expected to be incurred on
Research and Development since after all, the chosen strategy for DMPL is product development. The
activities under Research and Development include, but are not limited to, laboratory research,
conceptual formulation, product design, and product formulation. As the basis for the projected
amounts, the annual Research and Development expenses of DMPL from 2019 to 2023 were averaged
and the said average was then used as the base amount. This base amount was then multiplied using
111
16.2%, another assumption related solely to the Research and Development expenses. As observed,
from the 2018 to 2019 Annual Reports of DMPL, the line item fluctuated by 14.8%, which could be
indicative of the percentage of the Research and Development expenses attributable to a new research
undertaking. In particular, the 2018 and 2019 figures were compared as basis for the percentage utilized
as these were the years immediately preceding 2020, the year when anomalies were likely present in the
financial statements due to the effect of COVID-19. Accordingly, the percentage calculated from the
Annual Reports was merely elevated to account for the more elaborate and ambitious expansion plans
than usual which would manifest itself in the Research and Development expenses and hence, 16.2%
was used in the resource projections. Thereafter, the base amount was multiplied by the previously
mentioned assumption pertaining to inflation and an additional fluctuating 2% to 5% boost in Research
and Development expenses which were patterned on the entity’s actual expenses in the past five years.
The latter is added as an adjustment to account for the heightened effort of the company to discover new
knowledge for their existing products and the application of these findings, even in the absence of the
research facility hypothesized to be built.
Moreover, in relation to the Research and Development expenses is the recognition of a patent in
2026. Assuming that the research effort exerted in 2024 and 2025 flourished into the creation of a patent
in 2026, an amount is accrued by using the difference between the 2023 and 2022 Intangible Asset
balances, which will serve as an addition to the Intangible Assets account during the year. Presumably,
the patent is representative of the new products and processes discovered by DMPL in their quest to
bring innovative offerings to the market or modify their existing products. Crucial it is to note that the
presented figure under Patents solely accounts for the actual patent acquisition in 2026 and will be
reflected under the line item Intangible assets and goodwill for the purpose of financial reporting.
Additionally, as part of Capital Expenditures, DMPL’s Bearer Plants are also deduced to play a
significant role in their process of product development. With reference to their Annual Report, DMPL
considers growing crops of pineapples and papayas and the actual costs incurred in caring for these
crocs comprise their Bearer Plants which forms part of the Property, Plant, and Equipment line item. In
formulating new products and ordering their production, these Bearer Plants are primarily the source of
the raw materials. It is therefore expected that with new product offerings in the works and the
forecasted increase in production, hectares planted with growing crops are also set to increase. The basis
for the significant increase in Bearer Plants is the average of the annual additions to the account from
2019 to 2023, as depicted in DMPL’s financial statement adjusted for the factor related to inflation.
However, since the balance, as is and without the reflection of any new business plants, already depicts
an annual surge, the base average amount was then multiplied using 16.2% in order to get the amount of
increase in Bearer Plants that could be traced solely to the implementation of the conjectured Product
Development strategy. Aside from aligning the percentage increase in Bearer Plants with that of
Research and Development, another justification for the computed percentage of 16.2% is the 19.78%
increase in the cost of Bearer Plants from 2018 to 2019. As detailed in the preceding paragraphs, the
2018 to 2019 Annual Reports were looked into as they were the years that do not reflect the effects of
the pandemic. On top of that and mirroring the fluctuations in the Research and Development expenses,
112
a 2% to 5% increase was also added sporadically in projecting the amounts corresponding to Bearer
Plants.
Aside from the Capital Expenditures, DMPL is also expected to incur a notable increase in
Human Capital. Guided by the immediate goal of diversifying its range of products and consistent with
the plan to build a research and development innovation hub in Mindanao, DMPL is likely to increase its
manpower by hiring more professionals such as laboratory technicians and research specialists to
support its heightened research effort. Furthermore, more general administrative staff and other
supporting staff will be hired to back the operations of the research center.
Comprising the Human Capital is the expenses expected to be incurred for Salaries and Wages.
In projecting the presented amounts, the annual expenses for Salaries and Wages from 2019 to 2023
were averaged, subsequently adjusted for the effects of inflation and again, an intermittent increase of
2% to 5% was added to project the Salaries and Wages. The addition to Salaries and Wages peaking in
2026 is explained by the recognition of the Patent as detailed in the Capital Expenditures discussion. As
DMPL’s research effort blossoms into new product offerings, it is anticipated that more workers,
whether it be farmers in DMPL’s plantations or production workers in its factories, will be hired to
support operations. Importantly, in spite of the fact that Salaries and Wages is presented as a separate
line item, these costs are expected to be properly allocated to the Cost of Goods Sold for the portion
related to the wages of newly-hired farmers, who will, in turn, be instrumental in the harvest of raw
materials to be utilized in the increased effort to support the Production Development strategy.
Meanwhile, the majority of the Salaries and Wages will be allocated to the General and Administrative
Expenses as they are expected to be incurred in the research facilities. Likewise, more Professional Fees
are expected to be incurred over the course of the next five years. These fees contain but are not limited
to incurrence of outsourced services since DMPL’s new facility could still be lacking minor support
services that it may want to avail from other entities while it is still finding its own footing. The basis for
the Professional Fees was the average of the increase in Professional Fees from 2019 to 2023. Parallel to
the projections performed for Salaries and Wages, the bases for the Professional Fees were also adjusted
to account for inflation.
On the other hand, the Financing and Investment cluster of the resource requirements
encompasses the sources of funding that the strategy of product development necessitates to initiate and
materialize the resources detailed in the Capital Expenditures and Human Capital clusters. In particular,
these sources are subdivided into two, namely, borrowing costs to fund construction projects and
investment in joint ventures for working capital requirements. Noticeably, financing is premeditated to
be more equity-oriented than debt-oriented to shift adequate leverage of outside creditors distantly from
the company’s cost of capital.
Consequently, to finance the construction monetary requirements of qualifying assets under the
Construction in Progress (CIP) account, it is suitable for Del Monte to employ borrowing costs as
previously practiced in past construction projects of deemed qualifying assets. Borrowing costs, in the
context of construction projects, are the interest and other pertinent expenses that a company occurs
directly in relation to borrowing cash capital for construction requirements. Hence, borrowing costs are,
113
in nature, liabilities a company accumulates as the construction of its projects progress. Given the most
recently reported annual report of the company, the debt-to-equity ratio of Del Monte soared to 7.1x
high, which indicates that the company is highly leveraged by outside creditors seven times more than
its owners. Since increasing debt financing corresponds to further increase in this financial statement
ratio which may lead to investors perceiving the company to be unattractive, it is more appropriate for
Del Monte to focus on investments than in debts when raising and pooling funds for this strategy. As a
result, the amount of borrowing costs are relatively small in comparison to the CIP accounts detailed in
the capital expenditures section.
As such, the amounts of borrowing costs presented in Table 4.3 are rendered through the
adjustment of the company’s historical data pertaining to capitalized borrowing costs as the amounts of
borrowing costs were embedded in the property, plant, and equipment, net line item. Illustratively, the
determination of the amounts of the borrowings were patterned in the previous financial reporting
practice of the company, in which the actual costs of construction were apportioned by 5%, which is
based on the proportion of borrowing costs to actual costs of construction from the historical data of the
company, to project the borrowings costs for the next three years of construction period. Similarly, once
the construction has been completed, the amount of borrowing costs were likewise emptied out as the
amounts were transferred to the corresponding qualifying non-current assets. From this premise, the type
of borrowing cost existing in the projection is a specific borrowing costs such that all costs and their
yields thereof are capitalized completely to the assets, assuming an annual duration of construction, in
accordance with the guidelines of IAS 23 Borrowing Costs.
Similarly, to curtail the costs of borrowing and to prevent the leverage of outside creditors over
the company from growing, investments are considered by the company. Investment in Joint Ventures is
compassed to a type of business arrangement in which parties come to an agreement to pool and utilize
capital resources for the purpose of achieving a similar task. Based on the horizontal analysis presented
in Chapter 1, the average balance of the investment in joint ventures of Del Monte shows an increasing
trend, at net, which is consistent with the improvement of share in earnings per year for the next five
years.
114
CHAPTER V: FIVE-YEAR FINANCIAL PROJECTION
In this chapter, the five-year financial statements projection of Del Monte based on key financial
assumptions are presented. Serving as a critical component of a business plan as a guiding roadmap for
stakeholders, financial projections set out to uncover anticipated financial position and performance in
accordance with pre-planned growth, strategies, and the holistic vision and mission of the company.
Key Financial Assumptions
In constructing financial projections for DMPL's financial statements, a comprehensive array of

elements and variables are methodically taken into account. These encompass a nuanced analysis of
historical financial performance, industry-specific growth rates, inflationary measures, macroeconomic
indicators, and potential regulatory shifts. This multifaceted approach to financial projection formulation
ensures a meticulous evaluation of various contributing factors that could significantly influence
DMPL's future financial standing and performance trajectory.
● An annual Food Industry Growth Rate of 8.80% was used for the financial projections, which
was projected by Del Monte Pacific Limited (DMPL) based on the company’s historical
performance. This growth rate provides a straightforward percentage increase and serves as a
benchmark to establish realistic goals and align company strategies with industry expectations.
The projected industry growth rate of 8.80% includes the assumption of a stable inflation rate of
3.20% from 2024 to 2028. The steady inflation rate projection is derived from the forecast
provided by Statista, a German online platform known for its expertise in data gathering and
visualization. Moreover, the base amount for 2024 was determined using a 5-year moving
average method because it provides a more accurate and consistent foundation for forecasting.
Moving averages help reduce short-term fluctuations and noise in historical data, reflecting a
clearer picture of long-term trends in the industry growth rate.
● Compound Annual Growth Rate (CAGR) stands strong in investment analysis but falls short in
projecting financial statements due to unreliable trends. While it might find some relevance in
the Statement of Comprehensive Income for certain metrics, its application in the Statement of
Cash Flows faces limitations. Based on the historical amounts of cash flow, the CAGR to be used
in the Statement of Cash Flows leads to a declining CAGR, rendering it unreliable for trend
analysis in this context. This volatility underscores the limitations of CAGR in forecasting cash
flow trends, contrasting with its potential for extended period assessments in the Comprehensive
Income Statement.
● Both linear regression and Annual Average Growth Rate (AAGR) prove inadequate for financial
projections in scenarios with or without a strategy due to fluctuating data over the past five years.
These statistical approaches struggle to encapsulate the intricacies of volatile data. Linear
regression assumes a linear association between variables, which might not hold true for
financial data exhibiting non-linear patterns like exponential growth or cyclical fluctuations.
Conversely, AAGR assumes a consistent growth rate across the period, deriving the average
annual growth rate from historical data. However, when data experiences fluctuations, this
115
method might fail to accurately represent the underlying trend or pattern, lacking the adaptability
to accommodate varying growth rates.
● Given that the original financial statements were issued using the US Dollar currency, the
financial statements had to be translated into Philippine currency in order to easily understand
the amounts and values presented in the Philippine context. Exchange rates for the fiscal years
2019 to 2023, USD:PHP 52.1, 50.4, 48.2, 52.3, and 55.5 respectively, were averaged to get the
average conversion rate of 51.7, the exchange rate used in the projected financial statements.
116
Projections
Statement of Comprehensive Income
The anticipated financial statement of comprehensive income for the period spanning from 2024 to 2028 considering both the scenario with the
implementation of the strategy and the scenario without its implementation. This analysis will provide a valuable perspective on the forecasted
financial performance of the company during the specified period.
Table 5.1
Projected SCI without Implementation
PROJECTED DATA WITHOUT IMPLEMENTATION
2028 2027 2026 2025 2024
Revenue 173,549,931.15 100.00% 159,512,804.36 100.00% 146,611,033.42 100.00% 134,752,788.07 100.00% 123,853,665.51 100.00%
Cost of Sales (132,047,316.13) 76.09% (121,367,018.50) 76.09% (111,550,568.48) 76.09% (102,528,096.03) 76.09% (94,235,382.38) 76.09%
Gross Profit 41,502,615.02 23.91% 38,145,785.86 23.91% 35,060,464.94 23.91% 32,224,692.05 23.91% 29,618,283.13 23.91%
Distribution and selling expenses (16,831,798.69) 9.70% (15,470,403.21) 9.70% (14,219,120.59) 9.70% (13,069,044.66) 9.70% (12,011,989.58) 9.70%
expenses (9,919,433.25) 5.72% (9,117,126.15) 5.72% (8,379,711.54) 5.72% (7,701,940.75) 5.72% (7,078,989.66) 5.72%
Other (expenses) income – net (1,256,717.76) 0.72% (1,155,071.47) 0.72% (1,061,646.57) 0.72% (975,778.10) 0.72% (896,854.87) 0.72%
Finance income 894,619.86 0.52% 822,260.90 0.52% 755,754.50 0.52% 694,627.30 0.52% 638,444.21 0.52%
Finance expense (10,460,877.60) 6.03% (9,614,777.21) 6.03% (8,837,111.40) 6.03% (8,122,345.04) 6.03% (7,465,390.66) 6.03%
Net finance expense (9,566,257.74) 5.51% (8,792,516.31) 5.51% (8,081,356.90) 5.51% (7,427,717.74) 5.51% (6,826,946.45) 5.51%
ventures and subsidiaries (189,782.18) 0.11% (174,432.15) 0.11% (160,323.67) 0.11% (147,356.31) 0.11% (135,437.79) 0.11%
Profit before taxation 3,738,625.39 2.15% 3,436,236.57 2.15% 3,158,305.67 2.15% 2,902,854.48 2.15% 2,668,064.78 2.15%
Tax expense – net (1,566,810.40) 0.90% (1,440,083.09) 0.90% (1,323,605.78) 0.90% (1,216,549.43) 0.90% (1,118,152.05) 0.90%
Profit for the year 2,171,814.99 1.25% 1,996,153.48 1.25% 1,834,699.89 1.25% 1,686,305.05 1.25% 1,549,912.73 1.25%
117

(loss)
profit or loss:
Currency translation difference (251,986.72) 0.15% (231,605.44) 0.15% (212,872.65) 0.15% (195,655.01) 0.15% (179,829.97) 0.15%
value of cash flow hedges 94,536.40 0.05% 86,890.07 0.05% 79,862.20 0.05% 73,402.76 0.05% 67,465.77 0.05%
hedges (23,314.88) 0.01% (21,429.12) 0.01% (19,695.88) 0.01% (18,102.83) 0.01% (16,638.63) 0.01%
(180,765.20) 0.10% (166,144.49) 0.10% (152,706.33) 0.10% (140,355.08) 0.10% (129,002.83) 0.10%
Items that will not be reclassified

to profit or loss:
Remeasurement of retirement plans 618,734.99 0.36% 568,690.25 0.36% 522,693.24 0.36% 480,416.58 0.36% 441,559.36 0.36%
retirement plans (153,162.53) 0.09% (140,774.38) 0.09% (129,388.22) 0.09% (118,922.99) 0.09% (109,304.22) 0.09%
Gain on property revaluation 412,810.53 0.24% 379,421.44 0.24% 348,732.94 0.24% 320,526.60 0.24% 294,601.66 0.24%
revaluation reserve (101,188.79) 0.06% (93,004.40) 0.06% (85,481.99) 0.06% (78,568.00) 0.06% (72,213.24) 0.06%
777,194.20 0.45% 714,332.91 0.45% 656,555.98 0.45% 603,452.19 0.45% 554,643.56 0.45%

(loss) for the year, net of tax 596,429.00 0.34% 548,188.42 0.34% 503,849.65 0.34% 463,097.11 0.34% 425,640.72 0.34%
the year 2,768,243.99 1.60% 2,544,341.90 1.60% 2,338,549.54 1.60% 2,149,402.16 1.60% 1,975,553.45 1.60%
118
Table 5.2
Projected SCI with Implementation
PROJECTED DATA WITH IMPLEMENTATION
2028 2027 2026 2025 2024
Revenue 225,614,910.49 100.00% 199,391,005.45 100% 175,933,240.11 100% 154,965,706.28 100% 136,239,032.06 100%
Cost of Sales (154,577,434.71) 68.51% (138,440,083.23) 69.43% (123,903,598.55) 70.43% (110,811,240.44) 71.51% (99,027,262.82) 72.69%
Gross Profit 71,037,475.78 31.49% 60,950,922.23 30.57% 52,029,641.56 29.57% 44,154,465.84 28.49% 37,211,769.24 27.31%
Distribution and selling expenses (16,831,798.69) 7.46% (15,470,403.21) 7.76% (14,219,120.59) 8.08% (13,069,044.66) 8.43% (12,011,989.58) 8.82%
expenses (10,242,269.37) 4.54% (9,443,272.96) 4.74% (8,712,350.96) 4.95% (8,017,783.95) 5.17% (7,392,640.68) 5.43%
Other (expenses) income – net (1,256,717.76) 0.56% (1,155,071.47) 0.58% (1,061,646.57) 0.60% (975,778.10) 0.63% (896,854.87) 0.66%
Finance income 894,619.86 0.40% 822,260.90 0.41% 755,754.50 0.43% 694,627.30 0.45% 638,444.21 0.47%
Finance expense (10,460,877.60) 4.64% (9,614,777.21) 4.82% (8,837,111.40) 5.02% (8,122,345.04) 5.24% (7,465,390.66) 5.48%
Net finance expense (9,566,257.74) 4.24% (8,792,516.31) 4.41% (8,081,356.90) 4.59% (7,427,717.74) 4.79% (6,826,946.45) 5.01%
ventures and subsidiaries 3,161,117.82 1.40% 2,256,768.85 1.13% 1,580,426.33 0.90% 960,423.69 0.62% 648,212.21 0.48%
Profit before taxation 36,301,550.03 16.09% 28,346,427.12 14.22% 21,535,592.86 12.24% 15,624,565.08 10.08% 10,731,549.87 7.88%
Tax expense – net (1,704,689.71) 0.76% (1,566,810.40) 0.79% (1,440,083.09) 0.82% (1,323,605.78) 0.85% (1,216,549.43) 0.89%

(loss)
profit or loss:
Currency translation difference (251,986.72) 0.11% (231,605.44) 0.12% (212,872.65) 0.12% (195,655.01) 0.13% (179,829.97) 0.13%
119
value of cash flow hedges 94,536.40 0.04% 86,890.07 0.04% 79,862.20 0.05% 73,402.76 0.05% 67,465.77 0.05%
hedges (23,314.88) 0.01% (21,429.12) 0.01% (19,695.88) 0.01% (18,102.83) 0.01% (16,638.63) 0.01%
(180,765.20) 0.08% (166,144.49) 0.08% (152,706.33) 0.09% (140,355.08) 0.09% (129,002.83) 0.09%
Items that will not be reclassified

to profit or loss:
Remeasurement of retirement plans 618,734.99 0.27% 568,690.25 0.29% 522,693.24 0.30% 480,416.58 0.31% 441,559.36 0.32%
retirement plans (153,162.53) 0.07% (140,774.38) 0.07% (129,388.22) 0.07% (118,922.99) 0.08% (109,304.22) 0.08%
Gain on property revaluation 412,810.53 0.18% 379,421.44 0.19% 348,732.94 0.20% 320,526.60 0.21% 294,601.66 0.22%
revaluation reserve (101,188.79) 0.04% (93,004.40) 0.05% (85,481.99) 0.05% (78,568.00) 0.05% (72,213.24) 0.05%
777,194.20 0.34% 714,332.91 0.36% 656,555.98 0.37% 603,452.19 0.39% 554,643.56 0.41%

(loss) for the year, net of tax 596,429.00 0.26% 548,188.42 0.27% 503,849.65 0.29% 463,097.11 0.30% 425,640.72 0.31%
the year 35,193,289.32 15.60% 27,327,805.15 13.71% 20,599,359.42 11.71% 14,764,056.41 9.53% 9,940,641.16 7.30%
120
Statement of Financial Position
The anticipated statement of financial position for the period spanning from 2024 to 2028 considering both the scenario with the implementation
of the strategy and the scenario without its implementation. This analysis will provide a valuable perspective on the forecasted financial position
of the company during the specified period.
Table 5.3
Projected SFP without Implementation
2028 2027 2026 2025 2024
Current Assets
Prepaid expenses and other 3,947,812.99 1.91% 3,628,504.59 1.91% 3,335,022.60 1.91% 3,066,278.12 1.91% 2,817,351.22 1.91%
current assets
Inventories 54,664,913.23 26.48% 50,243,486.43 26.48% 46,179,675.02 26.48% 42,444,554.25 26.48% 39,011,538.83 26.48%
Non Current assets held for 70,386.03 0.03% 64,693.04 0.03% 59,460.52 0.03% 54,651.21 0.03% 50,230.89 0.03%
sale
Noncurrent Assets
Property, plant and equipment 45,257,414.22 21.92% 41,596,888.07 21.92% 38,232,433.88 21.92% 35,140,104.67 21.92% 32,297,890.32 21.92%
- net
Right-of-use assets 8,282,347.17 4.01% 7,612,451.44 4.01% 6,996,738.46 4.01% 6,430,825.79 4.01% 5,910,685.47 4.01%
Investments in subsidiaries - 0.00% - 0.00% - 0.00% - 0.00% - 0.00%
Investments in joint ventures 1,685,639.04 0.82% 1,549,300.59 0.82% 1,423,989.52 0.82% 1,308,813.89 0.82% 1,202,953.95 0.82%
121
Due from a subsidiary - 0.00% - 0.00% - 0.00% - 0.00% - 0.00%
Total Noncurrent Assets 124,429,387.87 60.27% 114,365,246.21 60.27% 105,115,116.00 60.27% 96,613,158.09 60.27% 88,798,858.54 60.27%
TOTAL ASSETS 206,436,413.14 100% 189,739,350.31 100% 174,392,785.21 100% 160,287,486.41 100% 147,323,057.36 100%
Current Liabilities
Trade payables and other 20,935,532.90 10.14% 19,242,217.73 10.14% 17,685,861.89 10.14% 16,255,387.77 10.14% 14,940,613.75 10.14%
current liabilities
Lease liabilities 1,787,363.81 0.87% 1,642,797.62 0.87% 1,509,924.28 0.87% 1,387,798.05 0.87% 1,275,549.68 0.87%
Non Current Liabilities
Environmental remediation 282,426.91 0.14% 259,583.55 0.14% 238,587.83 0.14% 219,290.28 0.14% 201,553.57 0.14%
liabilities
Other noncurrent liabilities 1,764,632.19 0.85% 1,621,904.59 0.85% 1,490,721.13 0.85% 1,370,148.10 0.85% 1,259,327.29 0.85%
122
Equity
Share Capital 3,109,360.08 1.51% 2,857,867.72 1.51% 2,626,716.66 1.51% 2,414,261.63 1.51% 2,218,990.47 1.51%
Share Premium 30,608,780.56 14.83% 28,133,070.37 14.83% 25,857,601.44 14.83% 23,766,177.79 14.83% 21,843,913.41 14.83%
Retained Earnings 7,882,699.54 3.82% 7,245,128.25 3.82% 6,659,125.23 3.82% 6,120,519.52 3.82% 5,625,477.50 3.82%
Reserves (3,851,227.27) -1.87% (3,539,730.95) -1.87% (3,253,429.18) -1.87% (2,990,284.18) -1.87% (2,748,422.96) -1.87%
Equity attributable to owners 37,749,612.91 18.29% 34,696,335.39 18.29% 31,890,014.15 18.29% 29,310,674.77 18.29% 26,939,958.43 18.29%
of the Company
Non-Controlling Interests 4,655,362.07 2.26% 4,278,825.43 2.26% 3,932,743.96 2.26% 3,614,654.38 2.26% 3,322,292.62 2.26%
Total Equity 42,404,974.97 20.54% 38,975,160.82 20.54% 35,822,758.11 20.54% 32,925,329.14 20.54% 30,262,251.05 20.54%
TOTAL LIABILITIES AND 206,436,413.14 100% 189,739,350.31 100% 174,392,785.21 100% 160,287,486.41 100% 147,323,057.36 100%
EQUITY
Table 5.4
Projected SFP with Implementation
2028 2027 2026 2025 2024
Current Assets
Prepaid expenses and other 3,947,812.99 1.62% 3,628,504.59 1.70% 3,335,022.60 1.76% 3,066,278.12 1.81% 2,817,351.22 1.83%
current assets
Inventories 74,034,134.01 30.39% 64,648,462.47 30.34% 54,714,685.20 28.90% 49,140,880.44 29.07% 43,665,476.63 28.30%
Non Current assets held for 70,386.03 0.03% 64,693.04 0.03% 59,460.52 0.03% 54,651.21 0.03% 50,230.89 0.03%
123
sale
Noncurrent Assets
Property, plant and equipment 51,133,901.72 20.99% 46,078,368.80 21.63% 42,968,312.76 22.70% 37,084,660.67 21.93% 34,122,446.68 22.11%
- net
Right-of-use assets 8,282,347.17 3.40% 7,612,451.44 3.57% 6,996,738.46 3.70% 6,430,825.79 3.80% 5,910,685.47 3.83%
Investments in subsidiaries - 0.00% - 0.00% - 0.00% - 0.00% - 0.00%
Investments in joint ventures 2,123,294.37 0.87% 1,901,157.60 0.89% 1,697,507.35 0.90% 1,522,990.57 0.90% 1.343,876.11 0.87%
Due from a subsidiary - 0.00% - 0.00% - 0.00% - 0.00% - 0.00%
Total Noncurrent Assets 129,612,293.97 53.20% 118,158,844.31 55.46% 109,876,672.66 58.04% 97,893,542.37 57.90 89,957,031.55 58.30%
TOTAL ASSETS 243,645,073.86 100% 213,054,859.29 100% 189,303,222.47 100% 169,066,272.03 100% 154,305,325.19 100%
Current Liabilities
Trade payables and other 24,389,293.26 10.01% 24,543,424.42 11.52% 23,384,373.08 12.35% 22,190,253.53 13.13% 16,262,971.54 10.54%
current liabilities
124
Non Current Liabilities
Environmental remediation 282,426.91 0.12% 259,583.55 0.12% 238,587.83 0.13% 219,290.28 0.13% 201,553.57 0.13%
liabilities
Other noncurrent liabilities 1,764,632.19 0.72% 1,621,904.59 0.76% 1,490,721.13 0.79% 1,370,148.10 0.81% 1,259,327.29 0.82%
Equity
Share Capital 3,109,360.08 1.28% 2,857,867.72 1.34% 2,626,716.66 1.39% 2,414,261.63 1.43% 2,218,990.47 1.44%
Share Premium 30,608,780.56 12.56% 28,133,070.37 13.20% 25,857,601.44 13.66% 23,766,177.79 14.06% 21,843,913.41 14.16%
Retained Earnings 40,102,297.38 16.46% 28,644,011.02 13.44% 19,841,603.20 10.48% 13,849,806.57 8.19% 12,046,151.37 7.81%
Reserves (2,135,924.77) -0.95% (6,924,311.43) -3.25% (7,223,981.09) -3.82% (7,875,651.37) -4.66% (3,509,186.79) -2.27%
Equity attributable to owners 71,504,513.25 29.35% 52,710,637.68 24.74% 41,101,940.21 21.71% 32,154,594.62 19.02% 32,599,868.47 21.13%
of the Company
Non-Controlling Interests 4,655,362.07 1.91% 4,278,825.43 2.01% 3,932,743.96 2.08% 3,614,654.38 2.14% 3,322,292.62 2.15%
Total Equity 76,159,875.32 31.26% 56,989,463.11 26.75% 45,034,684.17 23.79% 35,769,249.00 21.16% 35,922,161.09 23.38%
TOTAL LIABILITIES AND 243,645,073.86 100% 213,054,859.29 100% 189,303,222.47 100% 169,066,272.03 100% 154,305,325.19 100%
EQUITY
125
Statement of Cash Flows
The anticipated cash flow statements for 2024 to 2028, both with and without the strategy's implementation, aim to delineate cash sources from
operations, investments, and financing. Analyzing these statements before and after the implementation of business environment modifications or
initiatives allows the evaluation of the changes' effectiveness in enhancing cash flow.
Table 5.5
Projected SCF without Implementation
2028 2027 2026 2025 2024
CASH FLOWS FROM
OPERATING ACTIVITIES
Profit for the year
2,171,814.99 11.95% 1,996,153.48 11.95% 1,834,699.89 11.95% 1,686,305.05 11.95% 1,549,912.73 11.95%
Adjustments to reconcile profit
for the year to net cash flows:
Depreciation for property, plant, and
equipment 11,205,140.92 61.67% 10,298,842.75 61.67% 9,465,848.12 61.67% 8,700,228.05 61.67% 7,996,533.14 61.67%
Finance expense
10,349,268.84 56.96% 9,512,195.63 56.96% 8,742,826.87 56.96% 8,035,686.46 56.96% 7,385,741.23 56.96%
Amortization of right-of-use assets

2,280,223.67 12.55% 2,095,793.81 12.55% 1,926,281.08 12.55% 1,770,478.93 12.55% 1,627,278.43 12.55%
Tax expense – current

2,326,254.40 12.80% 2,138,101.47 12.80% 1,965,166.79 12.80% 1,806,219.48 12.80% 1,660,128.19 12.80%
Tax credit – deferred

(759,444.00) -4.18% (698,018.38) -4.18% (641,561.01) -4.18% (589,670.05) -4.18% (541,976.15) -4.18%
Amortization of intangible assets

529,211.53 2.91% 486,407.65 2.91% 447,065.86 2.91% 410,906.12 2.91% 377,671.06 2.91%
Share in losses (earnings) of joint
ventures and subsidiaries 189,782.18 1.04% 174,432.15 1.04% 160,323.67 1.04% 147,356.31 1.04% 135,437.79 1.04%
Allowance for inventory
obsolescence 478,735.36 2.63% 440,014.12 2.63% 404,424.74 2.63% 371,713.92 2.63% 341,648.82 2.63%
Finance income
(776,815.87) -4.28% (713,985.17) -4.28% (656,236.37) -4.28% (603,158.43) -4.28% (554,373.56) -4.28%
Impairment loss in joint ventures

64,569.13 0.36% 59,346.63 0.36% 54,546.54 0.36% 50,134.68 0.36% 46,079.67 0.36%
Equity-settled share-based payment
transactions (26,704.13) -0.15% (24,544.24) -0.15% (22,559.04) -0.15% (20,734.41) -0.15% (19,057.36) -0.15%
126
Unrealized foreign exchange (loss)
gain (6,195.23) -0.03% (5,694.15) -0.03% (5,233.59) -0.03% (4,810.29) -0.03% (4,421.22) -0.03%
Impairment (reversal) of trade and
nontrade receivables 11,523.45 0.06% 10,591.40 0.06% 9,734.75 0.06% 8,947.38 0.06% 8,223.69 0.06%
Loss (gain) on disposal of property,
plant, and equipment (54,243.75) -0.30% (49,856.39) -0.30% (45,823.88) -0.30% (42,117.54) -0.30% (38,710.97) -0.30%
(Reversal of impairment)
impairment loss of property plant
and equipment 662,211.96 3.64% 608,650.70 3.64% 559,421.60 3.64% 514,174.26 3.64% 472,586.64 3.64%
Ineffective portion of cash flow
hedges 18,995.56 0.10% 17,459.15 0.10% 16,047.02 0.10% 14,749.10 0.10% 13,556.15 0.10%
Impairment losses on noncurrent
assets held for sale 12,217.06 0.07% 11,228.92 0.07% 10,320.69 0.07% 9,485.93 0.07% 8,718.69 0.07%
28,676,546.06 157.83% 26,357,119.54 157.83% 24,225,293.70 157.83% 22,265,894.94 157.83% 20,464,976.97 157.83%
Changes in:
- - - -
Other assets
(550,287.92) -3.03% (505,779.34) -3.03% (464,870.72) -3.03% (427,270.88) -3.03% (392,712.21) -3.03%
Inventories
(5,252,342.81) -28.91% (4,827,520.96) -28.91% (4,437,059.71) -28.91% (4,078,179.88) -28.91% (3,748,327.10) -28.91%
Biological assets
(100,605.52) -0.55% (92,468.31) -0.55% (84,989.26) -0.55% (78,115.12) -0.55% (71,796.99) -0.55%
Trade and other receivables

(1,098,715.70) -6.05% (1,009,848.99) -6.05% (928,170.03) -6.05% (853,097.45) -6.05% (784,096.92) -6.05%
Prepaid expenses and other current
assets (581,027.62) -3.20% (534,032.74) -3.20% (490,838.92) -3.20% (451,138.71) -3.20% (414,649.55) -3.20%
Employee benefits
342,077.69 1.88% 314,409.64 1.88% 288,979.45 1.88% 265,606.11 1.88% 244,123.26 1.88%
liabilities (1,335,143.41) -7.35% (1,227,153.87) -7.35% (1,127,898.77) -7.35% (1,036,671.67) -7.35% (952,823.22) -7.35%
Operating cash flows

20,100,500.76 -47.20% 18,474,724.97 -47.20% 16,980,445.74 -47.20% 15,607,027.34 -47.20% 14,344,694.24 -47.20%
Taxes paid
(1,931,525.12) -10.63% (1,775,298.82) -10.63% (1,631,708.48) -10.63% (1,499,732.06) -10.63% (1,378,430.20) -10.63%
NET CASH FROM OPERATING
ACTIVITIES 18,168,975.65 100.00% 16,699,426.14 100.00% 15,348,737.27 100.00% 14,107,295.28 100.00% 12,966,264.04 100.00%
127
CASH FLOWS FROM INVESTING
ACTIVITIES
Acquisitions of property, plant, and
equipment (13,564,673.01) 113.08% (12,467,530.34) 113.08% (11,459,127.15) 113.08% (10,532,285.98) 113.08% (9,680,409.91) 113.08%
Interest received
119,616.84 -1.00% 109,941.95 -1.00% 101,049.59 -1.00% 92,876.46 -1.00% 85,364.39 -1.00%
Additions to investments in joint
ventures (104,373.10) 0.87% (95,931.16) 0.87% (88,172.02) 0.87% (81,040.46) 0.87% (74,485.72) 0.87%
Additional advances to joint
ventures (42,720.30) 0.36% (39,264.98) 0.36% (36,089.14) 0.36% (33,170.16) 0.36% (30,487.28) 0.36%
Proceeds from disposal of property,
plant, and equipment 907,845.81 -7.57% 834,417.11 -7.57% 766,927.49 -7.57% 704,896.59 -7.57% 647,882.89 -7.57%
Collection of receivable from prior
year sale of shares of subsidiary
and settlement of transaction costs 1,679,175.83 -14.00% 1,543,360.13 -14.00% 1,418,529.54 -14.00% 1,303,795.53 -14.00% 1,198,341.48 -14.00%
Proceeds from additional sale of
shares of subsidiary 141,150.40 -1.18% 129,733.82 -1.18% 119,240.64 -1.18% 109,596.18 -1.18% 100,731.78 -1.18%
Acquisition of intangible assets, net
of transaction costs (1,131,236.73) 9.43% (1,039,739.64) 9.43% (955,643.05) 9.43% (878,348.39) 9.43% (807,305.51) 9.43%
NET CASH FROM INVESTING
ACTIVITIES (11,995,214.27) 100.00% (11,025,013.11) 100.00% (10,133,284.11) 100.00% (9,313,680.25) 100.00% (8,560,367.88) 100.00%
CASH FLOWS FROM FINANCING

ACTIVITIES
Proceeds from borrowings
213,904,520.83 -3449.95% 196,603,419.88 -3449.95% 180,701,672.68 -3449.95% 166,086,096.21 -3449.95% 152,652,661.96 -3449.95%
Repayment of borrowings
(200,396,266.99) 3232.08% (184,187,745.40) 3232.08% (169,290,207.17) 3232.08% (155,597,616.88) 3232.08% (143,012,515.51) 3232.08%
Redemption of preference share
capital (4,728,932.42) 76.27% (4,346,445.24) 76.27% (3,994,894.52) 76.27% (3,671,778.05) 76.27% (3,374,796.00) 76.27%
Proceeds from issuance of share
capital - 0.00% - 0.00% - 0.00% - 0.00% - 0.00%
Interest paid
(7,650,638.45) 123.39% (7,031,836.81) 123.39% (6,463,085.30) 123.39% (5,940,335.76) 123.39% (5,459,867.42) 123.39%
128
Dividends paid to equity holders of
the parent (2,840,758.16) 45.82% (2,610,990.95) 45.82% (2,399,807.86) 45.82% (2,205,705.75) 45.82% (2,027,303.08) 45.82%
Payments of lease liability

(2,630,845.41) 42.43% (2,418,056.45) 42.43% (2,222,478.35) 42.43% (2,042,719.07) 42.43% (1,877,499.15) 42.43%
Dividends paid to non-controlling
interests (471,578.53) 7.61% (433,436.15) 7.61% (398,378.81) 7.61% (366,157.00) 7.61% (336,541.36) 7.61%
Payment of debt related costs

(683,761.28) 11.03% (628,457.06) 11.03% (577,625.97) 11.03% (530,906.22) 11.03% (487,965.28) 11.03%
Redemption cost on Senior Secured
Notes (701,968.64) 11.32% (645,191.76) 11.32% (593,007.14) 11.32% (545,043.32) 11.32% (500,958.94) 11.32%
NET CASH FROM FINANCING
ACTIVITIES (6,200,229.05) 100.00% (5,698,739.93) 100.00% (5,237,812.44) 100.00% (4,814,165.85) 100.00% (4,424,784.78) 100.00%
Net Increase or Decrease In Cash
and Cash Equivalents (26,467.67) -1.33% (24,326.90) -1.33% (22,359.29) -1.33% (20,550.81) -1.33% (18,888.62) -1.33%
Effect of exchange rate changes on
cash and cash equivalents held in
foreign currency (43,051.34) -2.16% (39,569.25) -2.16% (36,368.80) -2.16% (33,427.20) -2.16% (30,723.53) -2.16%
Cash and cash equivalents at
beginning of year 2,059,323.45 103.49% 1,892,760.52 103.49% 1,739,669.60 103.49% 1,598,961.03 103.49% 1,469,633.30 103.49%
CASH AND CASH EQUIVALENTS
AT END OF YEAR 1,989,804.44 100.00% 1,828,864.37 100.00% 1,680,941.52 100.00% 1,544,983.01 100.00% 1,420,021.15 100.00%
Table 5.6
Projected SCF with Implementation
2028 2027 2026 2025 2024
CASH FLOWS FROM
OPERATING ACTIVITIES
Profit for the year
34,596,860.32 111.17% 26,779,616.72 110.62% 20,095,509.77 95.16% 14,300,959.30 94.09% 9,515,000.44 60.46%
Adjustments to reconcile profit
for the year to net cash flows:
Depreciation for property, plant,
and equipment 11,205,140.92 36.00% 10,298,842.75 42.54% 9,465,848.12 44.83% 8,700,228.05 57.24% 7,996,533.14 50.81%
Finance expense
10,349,268.84 33.25% 9,512,195.63 39.29% 8,742,826.87 41.40% 8,035,686.46 52.87% 7,385,741.23 46.93%
Amortization of right-of-use assets

2,280,223.67 7.33% 2,095,793.81 8.66% 1,926,281.08 9.12% 1,770,478.93 11.65% 1,627,278.43 10.34%
129
Tax expense – current
2,326,254.40 7.47% 2,138,101.47 8.83% 1,965,166.79 9.31% 1,806,219.48 11.88% 1,660,128.19 10.55%
Tax credit – deferred

(759,444.00) -2.44% (698,018.38) -2.88% (641,561.01) -3.04% (589,670.05) -3.88% (541,976.15) -3.44%
Amortization of intangible assets

529,211.53 1.70% 486,407.65 2.01% 447,065.86 2.12% 410,906.12 2.70% 377,671.06 2.40%
Share in losses (earnings) of joint
ventures and subsidiaries 3,540,682.18 11.38% 2,605,633.15 10.76% 1,901,073.67 9.00% 1,255,136.31 8.26% 919,087.79 5.84%
Allowance for inventory
obsolescence 478,735.36 1.54% 440,014.12 1.82% 404,424.74 1.92% 371,713.92 2.45% 341,648.82 2.17%
Finance income
(776,815.87) -2.50% (713,985.17) -2.95% (656,236.37) -3.11% (603,158.43) -3.97% (554,373.56) -3.52%
Impairment loss in joint ventures

64,569.13 0.21% 59,346.63 0.25% 54,546.54 0.26% 50,134.68 0.33% 46,079.67 0.29%
Equity-settled share-based
payment transactions (26,704.13) -0.09% (24,544.24) -0.10% (22,559.04) -0.11% (20,734.41) -0.14% (19,057.36) -0.12%
Unrealized foreign exchange (loss)
gain (6,195.23) -0.02% (5,694.15) -0.02% (5,233.59) -0.02% (4,810.29) -0.03% (4,421.22) -0.03%
Impairment (reversal) of trade and
nontrade receivables 11,523.45 0.04% 10,591.40 0.04% 9,734.75 0.05% 8,947.38 0.06% 8,223.69 0.05%
Loss (gain) on disposal of property,
plant, and equipment (54,243.75) -0.17% (49,856.39) -0.21% (45,823.88) -0.22% (42,117.54) -0.28% (38,710.97) -0.25%
(Reversal of impairment)
impairment loss of property plant
and equipment 662,211.96 2.13% 608,650.70 2.51% 559,421.60 2.65% 514,174.26 3.38% 472,586.64 3.00%
Ineffective portion of cash flow
hedges 18,995.56 0.06% 17,459.15 0.07% 16,047.02 0.08% 14,749.10 0.10% 13,556.15 0.09%
Impairment losses on noncurrent
assets held for sale 12,217.06 0.04% 11,228.92 0.05% 10,320.69 0.05% 9,485.93 0.06% 8,718.69 0.06%
64,452,491.39 207.10% 53,571,783.79 221.30% 44,226,853.58 209.44% 35,988,329.19 236.79% 29,213,714.68 185.62%
Changes in:
Other assets
(550,287.92) -1.77% (505,779.34) -2.09% (464,870.72) -2.20% (427,270.88) -2.81% (392,712.21) -2.50%
Inventories
(24,621,563.58) -79.11% (19,232,497.01) -79.45% (12,972,069.88) -61.43% (10,774,506.07) -70.89% (8,402,264.89) -53.39%
Biological assets
(100,605.52) -0.32% (92,468.31) -0.38% (84,989.26) -0.40% (78,115.12) -0.51% (71,796.99) -0.46%
Trade and other receivables

(1,098,715.70) -3.53% (1,009,848.99) -4.17% (928,170.03) -4.40% (853,097.45) -5.61% (784,096.92) -4.98%
130
Prepaid expenses and other
current assets (581,027.62) -1.87% (534,032.74) -2.21% (490,838.92) -2.32% (451,138.71) -2.97% (414,649.55) -2.63%
Employee benefits
342,077.69 1.10% 314,409.64 1.30% 288,979.45 1.37% 265,606.11 1.75% 244,123.26 1.55%
liabilities (4,788,903.77) -15.39% (6,528,360.55) -26.97% (6,826,409.96) -32.33% (6,971,537.43) -45.87% (2,275,181.01) -14.46%
Operating cash flows

33,053,464.95 -100.89% 25,983,206.48 -113.97% 22,748,484.26 -101.71% 16,698,269.63 -126.92% 17,117,136.37 -76.86%
Taxes paid
(1,931,525.12) -6.21% (1,775,298.82) -7.33% (1,631,708.48) -7.73% (1,499,732.06) -9.87% (1,378,430.20) -8.76%
NET CASH FROM OPERATING
ACTIVITIES 31,121,939.83 100.00% 24,207,907.66 100.00% 21,116,775.78 100.00% 15,198,537.57 100.00% 15,738,706.17 100.00%
CASH FLOWS FROM INVESTING

ACTIVITIES
Acquisitions of property, plant, and
equipment (19,441,160.51) 113.17% (16,949,011.07) 114.38% (16,195,006.03) 108.73% (12,476,841.98) 117.77% (11,504,966.27) 118.38%
Interest received
119,616.84 -0.70% 109,941.95 -0.74% 101,049.59 -0.68% 92,876.46 -0.88% 85,364.39 -0.88%
Additions to investments in joint
ventures (542,028.43) 3.16% (447,788.17) 3.02% (361,689.85) 2.43% (295,217.14) 2.79% (215,407.88) 2.22%
Additional advances to joint
ventures (42,720.30) 0.25% (39,264.98) 0.26% (36,089.14) 0.24% (33,170.16) 0.31% (30,487.28) 0.31%
Proceeds from disposal of property,
plant, and equipment 907,845.81 -5.28% 834,417.11 -5.63% 766,927.49 -5.15% 704,896.59 -6.65% 647,882.89 -6.67%
Collection of receivable from prior
year sale of shares of subsidiary
and settlement of transaction costs 1,679,175.83 -9.78% 1,543,360.13 -10.42% 1,418,529.54 -9.52% 1,303,795.53 -12.31% 1,198,341.48 -12.33%
Proceeds from additional sale of
shares of subsidiary 141,150.40 -0.82% 129,733.82 -0.88% 119,240.64 -0.80% 109,596.18 -1.03% 100,731.78 -1.04%
Acquisition of intangible assets, net
of transaction costs - 0.00% - 0.00% (707,803.00) 4.75% - 0.00% - 0.00%
NET CASH FROM INVESTING
ACTIVITIES (17,178,120.36) 100.00% (14,818,611.21) 100.00% (14,894,840.77) 100.00% (10,594,064.53) 100.00% (9,718,540.89) 100.00%
131
CASH FLOWS FROM
FINANCING ACTIVITIES
Proceeds from borrowings
213,904,520.83 -3449.95% 196,603,419.88 -3449.95% 180,701,672.68 -3449.95% 166,086,096.21 -3449.95% 152,652,661.96 -3449.95%
Repayment of borrowings
(200,396,266.99) 3232.08% (184,187,745.40) 3232.08% (169,290,207.17) 3232.08% (155,597,616.88) 3232.08% (143,012,515.51) 3232.08%
Redemption of preference share
capital (4,728,932.42) 76.27% (4,346,445.24) 76.27% (3,994,894.52) 76.27% (3,671,778.05) 76.27% (3,374,796.00) 76.27%
Proceeds from issuance of share
capital - 0.00% - 0.00% - 0.00% - 0.00% - 0.00%
Interest paid
(7,650,638.45) 123.39% (7,031,836.81) 123.39% (6,463,085.30) 123.39% (5,940,335.76) 123.39% (5,459,867.42) 123.39%
Dividends paid to equity holders of
the parent (2,840,758.16) 45.82% (2,610,990.95) 45.82% (2,399,807.86) 45.82% (2,205,705.75) 45.82% (2,027,303.08) 45.82%
Payments of lease liability

(2,630,845.41) 42.43% (2,418,056.45) 42.43% (2,222,478.35) 42.43% (2,042,719.07) 42.43% (1,877,499.15) 42.43%
Dividends paid to non-controlling
interests (471,578.53) 7.61% (433,436.15) 7.61% (398,378.81) 7.61% (366,157.00) 7.61% (336,541.36) 7.61%
Payment of debt related costs

(683,761.28) 11.03% (628,457.06) 11.03% (577,625.97) 11.03% (530,906.22) 11.03% (487,965.28) 11.03%
Redemption cost on Senior
Secured Notes (701,968.64) 11.32% (645,191.76) 11.32% (593,007.14) 11.32% (545,043.32) 11.32% (500,958.94) 11.32%
NET CASH FROM FINANCING
ACTIVITIES (6,200,229.05) 100.00% (5,698,739.93) 100.00% (5,237,812.44) 100.00% (4,814,165.85) 100.00% (4,424,784.78) 100.00%
Net Increase or Decrease In Cash
and Cash Equivalents 7,743,590.42 52.87% 3,690,556.51 53.13% 984,122.58 29.87% (209,692.80) -8.93% 1,595,380.50 61.59%
Effect of exchange rate changes on
cash and cash equivalents held in
foreign currency (43,051.34) -0.29% (39,569.25) -0.57% (36,368.80) -1.10% (33,427.20) -1.42% (30,723.53) -1.19%
Cash and cash equivalents at
beginning of year 6,945,799.20 47.42% 3,294,811.94 47.44% 2,347,058.16 71.23% 2,590,178.16 110.36% 1,025,521.20 39.59%
CASH AND CASH EQUIVALENTS
AT END OF YEAR 14,646,338.28 100.00% 6,945,799.20 100.00% 3,294,811.94 100.00% 2,347,058.16 100.00% 2,590,178.16 100%
132
Table 5.7
Projected Financial Ratios without Implementation
Financial Ratios
WITHOUT IMPLEMENTATION
2028 2027 2026 2025 2024
LIQUIDITY RATIOS
CURRENT RATIO 0.95 0.95 0.95 0.95 0.95
WORKING 0.94 0.94 0.94 0.94 0.94

CAPITAL RATIO
SOLVENCY RATIO
DEBT RATIO 0.79 0.79 0.79 0.79 0.79
EQUITY RATIO 0.21 0.21 0.21 0.21 0.21
DEBT TO EQUITY 3.87 3.87 3.87 3.87 3.87

RATIO
PROFITABILITY RATIO
GROSS PROFIT 1.25% 1.25% 1.25% 1.25% 1.25%

MARGIN
NET PROFIT 1.25% 1.25% 1.25% 1.25% 1.25%

MARGIN
OPERATING 7.78% 7.78% 7.78% 7.78% 7.78%

PROFIT MARGIN
RETURN ON SALES 1.60% 1.60% 1.60% 1.60% 1.60%
133
RETURN ON 5.00% 5.00% 5.00% 5.00% 5.00%
EQUITY
Table 5.8
Projected Financial Ratios with Implementation
WITH IMPLEMENTATION
2028 2027 2026 2025 2024
LIQUIDITY RATIOS
CURRENT RATIO 1.27 1.12 1.01 0.97 1.02
WORKING 1.27 1.12 1.01 0.97 1.02

CAPITAL RATIO
SOLVENCY RATIO
DEBT RATIO 0.69 0.73 0.76 0.79 0.77
EQUITY RATIO 0.31 0.27 0.24 0.21 0.23
DEBT TO EQUITY 2.20 2.74 3.20 3.73 3.30

RATIO
PROFITABILITY RATIO
GROSS PROFIT 15.33% 13.43% 11.42% 9.23% 6.98%

MARGIN
NET PROFIT 15.33% 13.43% 11.42% 9.23% 6.98%

MARGIN
OPERATING 18.93% 17.49% 15.94% 14.26% 12.41%

PROFIT MARGIN
134
RETURN ON SALES 15.60% 13.71% 11.71% 9.53% 7.30%
RETURN ON 45.00% 47.00% 45.00% 40.00% 26.00%

EQUITY
135
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UNIVERSITY OF SANTO TOMAS

UST - Alfredo M. Velayo College of Accountancy

Strategic Business Plan for

DEL MONTE PACIFIC LIMITED (DMPL)

In partial fulfillment of the requirements for

Inst. Gerardo M. Castro, MBA

This Strategic Business Plan for

DEL MONTE PACIFIC LIMITED (DMPL)

Inst. Gerardo M. Castro, MBA

Mr. Gerber Mendoza Mr. Francis R. Ribleza

Table 1.1. Horizontal Analysis of the Statement of Financial Position 4

Key Financial Highlights (5-Year Back Data)

Investments in subsidiaries 0.00 0.00 0.00 0.00 0.00 - - - -

Due from a subsidiary 0.00 0.00 0.00 0.00 0.00 - - - -

LIABILITIES AND EQUITY

Equity attributable to owners of the

Prepaid expenses and other current

LIABILITIES AND EQUITY

Trade payables and other current

Equity attributable to owners of the

TOTAL LIABILITIES AND

2023 2022 2021 2020 2019 % Δ in 2023 % Δ in 2022 % Δ in 2021 % Δ in 2020

Share in net (loss) income of joint

2023 2022 2021 2020 2019 % Δ in 2023 % Δ in 2022 % Δ in 2021 % Δ in 2020

DEL MONTE PACIFIC LIMITED

Other comprehensive income (loss)

2023 2022 2021 2020 2019 % Δ in 2023 % Δ in 2022 % Δ in 2021 % Δ in 2020

Items that will or may be reclassified

Effective portion of changes in fair value

(240,037.50) (1,146,102.20) 488,458.80 308,800.80 (77,576.90) -79.06% -334.64% 58.18% -498.06%

Items that will not be reclassified to

2023 2022 2021 2020 2019 % Δ in 2023 % Δ in 2022 % Δ in 2021 % Δ in 2020

Tax impact on remeasurement of

Gain on property revaluation 1,227,715.50 0.00 0.00 204,926.40 0.00 - - -100.00% -

Derecognition (impact) of tax on

1,048,284.00 497,111.50 1,992,057.80 (1,009,713.60) (20,110.60) 110.88% -75.05% -297.29% 4920.80%

Other comprehensive income (loss) for

Total comprehensive income for the

General and administrative

Share in net (loss) income of joint

Other comprehensive income

Effective portion of changes in fair

Tax impact on share in cash flow

Items that will not be

Tax impact on remeasurement of

Other comprehensive income

Total comprehensive income for

Gross Profit 33,688.5 32,567.2 26,799.2 22,790.9 20,579.5

EBITDA 18,298.4 18,383.5 14,893.8 7,166.9 7,486.8

EBITDA - without Non-Recurring

Profit/(loss) from Operations 13,630.8 13,979.8 10,213.6 2,580.5 4,173.2

Net Profit Attributable to Owners 938.0 5,230.0 3,051.1 (4,102.6) 1,057.6

EPS (PHP cents) 36.6 218.1 108.0 (262.1) 1.6

Net Profit - without Non-Recurring

EPS - without Non-Recurring items

Gross Margin (%) 25.1 26.6 25.7 21.2 20.2

EBITDA Margin (%) 13.6 15.0 14.3 6.7 7.4

Operating Margin (%) 10.1 11.4 9.8 2.4 4.1

Net Margin (%) 0.7 4.3 2.9 na 1.0

EPS Growth (%) (84.2) 86.2 143.1 nm 101.1