Hormel and SMC open largest hotdog factory in Asia

Related tags Meat

San Miguel Corporation and Hormel Foods have confirmed plans to
open Asia's largest hotdog factory in Cavite, Philippines.
Operating under Purefoods Hormel name, the plant will initially
focus on supplying the domestic market, with a view to
concentrating on regional expansion in the future. Simon Pitman

Built with a PHP 2 billion investment ($27.6m), the newly inaugurated facility is part of a 60/40 joint venture between the Philippines-based SMC and the US-based Hormel Foods. The facility aims to tap in to a growing demand for processed meats in the region, a growth that Purefoods Hormel has had much success tapping into in recent years.

Sitting on an 11-hectare site on the Northern island of Luzon, the facility is expected to produce around 160 metric tons of hotdog meat a day. Further to this the company said that the plant has the capacity to increase production to between 240 and 320 metric tons a days, should the demand arise.

Purefoods-Hormel has been manufacturing a range of processed meats in the Philippines since the late 60s. As well as hotdogs, the company also produces other processed meats, including ham, bacon, spam and pizza toppings, all of which the new facility is also equipped to manufacture.

"The growth of Purefoods and Tender Juicy Hotdog has outstripped our capacity,"​ said Joel Johnson CEO for Hormel Foods, who added that he expected sustained growth for the foreseeable future meant that the company will continue to look for further opportunities to expand the business.

Interestingly the company says that future expansion at the facility is likely to target the growing communities of expatriate communities outside of the Philippines. In particular it will push its products in countries such as Hong Kong, Singapore, Malaysia and Indonesia, where there are large numbers of Filipinos working in the service sectors and as domestic helpers.

Currently the joint venture company accounts for 65 per cent of the processed meat market in the Philippines and 35 per cent of its annual sales are derived from hotdogs. Probably due to its cultural and political ties with the US, the Philippines is currently by far the largest consumer of hotdogs in the region.

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