MANILA, Philippines - Oleo-Fats Inc., a subsidiary of D&L Industries, has entered into a supply agreement with US food manufacturer Ventura Foods to produce specialty ingredients for the Asia-Pacific region.
Under the deal, Ventura Foods will work with OFI to manufacture specialty oils and specialty food ingredients for the Philippines and for export to Asia-Pacific region.
Development and production will be done at OFI's Mercury Plant in Quezon City.
The US-based Ventura Foods manufactures branded and custom-made dressings, mayonnaise, sauces, shortenings, oils, margarine, culinary bases and pan coatings for the food service, retail and ingredient manufacturing industries.
Ventura Foods president of international Yann Kervoern said the company recognizes the importance of local production outside of the US.
"We have identified the Asia-Pacific region as a key expansion market, and we are excited to engage Oleo-Fats as our partner in the Philippines. Oleo-Fats shares Ventura Foods’ same passion for quality food, great customer service and the spirit of customization. Oleo-Fats helps us delight our customers. By entering into a supplier relationship with Oleo-Fats, Ventura Foods has increased its capability to offer all of our products to the expanding Asia-Pacific region and beyond," Kervoern said.
Being a strategic supplier, OFI gives Ventura Foods with a more simplified supply chain through improved scale, better logistics, and cost efficiency for its global customers.
OFI Managing Director Vincent D. Lao said the company will be able to leverage on Ventura Foods' extensive culinary and commercial expertise, and to entrench itself with customers, especially in quick service restaurants.
"OFI has been traditionally strong in fats and oils and working with Ventura Foods will give us that traction in the specialty food ingredients market. Further, it will solidify our position in the food service industry, in particular QSRs, where most of the high-growth, value-added opportunities are. Eventually we want our ingredients to be found in almost every food category across the region. This brings us forward to that goal," Lao said.
D&L Industries earlier reported a 31 percent increase in export sales in the first six months of 2014, driven by sales of specialty plastics and food ingredients segments. Exports represent 18 percent of D&L's total revenues.
OFI also increased exports by 149 percent, year-on-year. OFI has over 650 food ingredient formulations serving more than 1,200 customers in the food and beverage industry. It is in four primary businesses – specialty fats and oils, refined vegetable oils, specialty ingredients, and food safety products.