Selecta Takes Lead in Ice Cream Market

April 14, 1998 PSE CIRCULAR FOR BROKERS NO. 663-98 SELECTA TAKES LEAD IN ICE CREAM MARKET Selecta Dairy Products Inc., (SDPI), marks its. 50th anniversary by capturing the country's top spot in the bulk ice cream market. Selecta , the dairy subsidiary of the food and beverage conglomerate RFM Corporation, secured market leadership in the traditional trade with a 44.1% market share nationwide in the bulk ice cream market, according to the latest reading of the industry-acknowledged independent retail survey. Selecta took the lead in 1997, overtaking the 42% share of the market leader which held the top position for 80 years. In the National Capital Region, where 60% of total ice cream bulk is concentrated, Selecta enjoyed a 51% market share, as opposed to 33.4% of the market leader. In 1997, Selecta's ice cream sales volume saw a 14.1% increase boosted by the introduction of new and exciting flavors coupled with bullish selling and distribution efforts and better customer management. Selecta's investment in a modern logistics management system helped make availability of stocks more consistent, and improved their sales and distribution systems as well. These system innovations were put in place while keeping tight controls to maintain the Selecta "quality" which consumers have come to love and expect at all times. cdll Sales also improved significantly when Selecta introduced the refreshing yet competitively-priced "ice buko" line of frozen novelties. New ice cream flavor collections, as well as Selecta's own version of the "carito" or pushcart retail system of single-serve products, and Selecta's ad campaign featuring "megastar" Sharon Cuneta were all part of strong marketing strategies which radically boosted the company's earnings beyond market expectations. "A major strategy to drive sales in both our business and the whole ice cream industry is to increase per capita consumption. As it stands, Filipinos on the average consume less than one statistical gallon per annum compared with Malaysia at approximately 1.7 statistical gallons. So, as you can see there is definitely room for growth," commented John Concepcion, President and Chief Operating officer of Selecta Dairy Products Inc. Selecta's initiatives for 1998 call for continued efforts in innovation while keeping quality standards at their highest level. The company will pursue new flavor and product introductions as well as more aggressive sales and merchandising moves to improve distribution placement and overall competitiveness. Selecta will sustain its aggressive campaign to preserve market leadership and is currently exploring opportunities to export its brands and products to other Asian markets.