Monde Nissin is among the frontrunners in the food manufacturing industry in the Philippines

with a portfolio of various iconic and well-recognized brands. The Company operates with the
aspiration to improve the well-being of the people and the planet, and create sustainable
solutions for food security. The company is known for its diverse portfolio of products, which
include instant noodles, biscuits, beverages, and more. Monde Nissin ranks 25th among the top
companies in the Philippines while securing its 205 th spot in Southeast Asia with 1, 442.1 million
US Dollars current annual revenue. In addition, it accumulated 1,512 million US Dollars total
assets, employing 3,270 workers across different countries (Furtune Asia,2024). Monde Nissin,
together with its subsidiaries, operate manufacturing plants and/or sales offices in the
Philippines, Thailand, Singapore, New Zealand, UK, USA, the Netherlands, Germany, and
Sweden (Monde Nissin, 2022).

Business Model

Value Proposition:

Monde Nissin aims to build long-term and trusting relationships with its shareholders who
implement a growth strategy to create lasting value for our customers, society and
shareholders. They are committed to transparent communication to provide investors and other
stakeholders with the relevant information they need to make their investment decisions and
monitor our operational and financial performance. We will strictly comply with all legal and
regulatory requirements, including those set forth by the Philippine Stock Exchange and the
Stock Exchange.

Target Market:

The target market of our company is about 4-50 years old. From kids, teens and to elders,
which means in general public. The Group believes it is well positioned to further exploit the
growth opportunities it offers resilient Philippine market characterized by favorable demographic
and consumption patterns such as a young population, strong household domestic consumption
and urbanization.
Key Activities:

 Manufacturing
The APAC BFB Group has established an extensive network of production facilities in
the Philippines and Thailand to meet the growing demand for its products. According to
the company’s annual sustainability report as of December 31, 2022, the APAC BFB
Group has eight production facilities with seven co-located distribution centers that are
strategically located across the country anchored on predictive modelling on future
demand locations, and a grain terminal and storage in the Philippines. In Thailand,
company has two production facilities, including a seasoning plant which produces
seasoning and condiments for instant noodles. Monde Nissin manufactured more than
80% of its products sold in the Philippine market and the rest were either imported or
sourced from agency partners (Monde Nissin, 2022).

 Distribution
The APAC BFB Group has seven co-located distribution centers in the Philippines.
Monde Nissin has an extensive warehouse network strategically located in the
Philippines. Warehouse operations is via two models, in-house managed and
outsourced warehouse management. Monde Nissin’s logistics network is capable of
handling both dry and chilled products. Delivery to customers is enabled by more than
700 delivery trucks, engaged via third-party transport service providers. Given Monde
Nissin’s route-to-market where it services a lot of key accounts directly and its extensive
distributor coverage across the country, around 54,000 customer orders are processed
per month (Monde Nissin, 2022).

 According to Nielsen (2021), for the year ended December 31, 2022, Lucky Me!
Achieved an 87% numeric distribution and 99% weighted distribution of the store
universe in the Philippines for instant noodles. In the same period, Monde Nissin’s
biscuits product line achieved a numeric distribution rate of 80% and weighted
distribution rate of 99% in the Philippine market.
Source: Monde Nissin Corporation

In addition, the company’s main distribution channels includes supermarkets, grocery,

wet markets, sari-sari store, large retailers, national wholesalers, online platforms and
exports particularly to Asia, the Middle East and North America (Monde Nissin, 2022).

 Employee Training & Development

Monde Nissin is committed to providing training opportunities across different
demographics of the organization. This is to ensure that the workforce is able to develop
their careers and meet the constantly changing requirements of the business. The
Company also committed to sufficiently upskilling its own Learning and People
Development team through various external training and certifications, ensuring that they
are professionally prepared and qualified to manage the learning programs needed by
the business (Monde Nissin, 2022).

The “Training Matrix” initiative plans to create documentation of every department’s

training plans for all its talents. This will then be reviewed periodically so that no
employee gets left behind. The Company is scaling its organizational learning
capabilities by embracing digital. The “LMS365” rollout is a project that aims to make
end-to-end learning – from employee onboarding to competency development, up to
retirement preparation – digital and accessible. The “Coursera for Business” pilot rollout
also aims to expand learning opportunities by providing avenues for employee self-
directed learning (Monde, Nissin, 2022).

Source: Monde Nissin Corporation

 Research and Development

Monde Nissin’s APAC BFB Research and Development (R&D) team has a strong and
long-standing track record of market firsts in product development and launches. Lucky
Me! Pioneered the dry pouch instant noodles segment with Lucky Me! Pancit Canton in
1991 and was the first in the Philippines to launch instant noodles in no-cook bowls in
local flavors such as La Paz Batchoy and Bulalo in 1995. In 2008, the APAC BFB
Group started offering instant noodles with no artificial preservatives added in Lucky Me!
Wet pouch and cups (Monde Nissin,2022)

According to Monde Nissin sustainability report (2022), Lucky Me! Continues to develop
new products utilizing its extensive local knowledge of Philippine consumers. The APAC
BFB Group believes it was the first consumer food manufacturer in the Philippines and
Thailand to adopt cutting-edge artificial intelligence technology in its NPD process. This
artificial intelligence compares the taste profile of new products being developed by the
APAC BFB Group to preferred taste profiles of certain consumer groups in the market.
The adoption of artificial intelligence technology has resulted in a more accurate and
efficient assessment of taste profiles of consumer groups.

The Group constantly develops new flavors such as the Asian line, exemplifying its deep
understanding of consumers’ love for flavors. In the baked goods category, the Group
launched the first packaged sponge cake in the Philippine market and the first premium
wafer product filled with chocolate and rice crispies. Furthermore, to augment its in-
house R&D capabilities, the APAC BFB Group also partners with various innovation
companies and organizations.

The Group has a rich history of process innovations to better cater to customer needs
including the following:

► A vertically integrated Flour Mill in its Santa Rosa Facility.

► An automated and streamlined seasoning plant in Thailand. This move provided the
Group access to a greater variety of spices, improved the quality of its production, and
reduced costs.

► A flow-through Santa Rosa Noodles operation from the lines to the palletizers,
towards railguided vehicles, and into Automated Storage Systems.

► Process Reliability gained 8 Points since its Run-to-Target++ roll-out, improving

system-wide capacity by the same amount.

► Completed Product Supply Organizational Redesign that enables responsiveness

through a rigorous system-based training and qualification process (Monde Nissin,
2022).
Business Segments

Monde Nissin’s two core businesses are (i) the APAC BFB Business, and (ii) the Meat
Alternative Business which includes the production, marketing, and sales of the Quorn and
Cauldron meat alternatives brands.

Asia Pacific Branded Food and Beverage (APAC BFB) BUSINESS

The Group operates the APAC BFB Business through Monde Nissin and its wholly-owned or
majority-owned subsidiaries, as well as joint ventures and established collaborations with other
fast-moving consumer goods (FMCG) players (collectively referred to as the APAC BFB Group).

The APAC BFB Business comprises three product groups with the following key brands:

Instant Noodles

Lucky Me! Pancit Canton was launched in 1991 —the first dry stir-fried pouched noodles in the
Philippine market. Lucky Me! Has grown into an iconic brand consumed by 98.9% of Filipino
households in 2022, based on Kantar’s panel data. Additionally, it continues to be the most
chosen consumer brand in terms of consumer reach points as of the latest Brand Footprint
Study by Kantar (2021). It is the 8th year that Lucky Me! Has secured the top position, making it
Brand of the Decade.

Biscuits

Monde Nissin’s biscuits category is home to popular crackers, sandwiches, cookies, and wafers
through the SkyFlakes, Fita, M.Y. San Grahams, Bingo, and Nissin brands. Throughout the
decades, these brands have built a legacy. Monde Nissin has a track record of introducing
innovative, new uses for its existing products. For example, M.Y. San Grahams, an ingredient in
homemade desserts, is being used by small businesses as a key ingredient because of its
versatility, resulting in new cakes and other dessert products.

Other Products

The products of the APAC BFB Group under Others are packaged baked goods, beverages,
culinary aids, and fresh bread. Flagship brands contributing to the APAC BFB Business’ Market-
leading position include Mama Sita’s for culinary aids and Dutch Mill for yogurt drinks. Monde
Nissin markets the various brands under its Others product group domestically. The company
manufactures, distributes, and markets Monde packaged bakery products. Monde represents
the APAC BFB Group’s product initiative to venture into the mass premium bakery segment.
Monde was the first brand in the Philippines to offer bakeshop-quality cakes and pastries made
with real eggs and fresh ingredients. Sarimonde Foods Corporation (SMFC) is the manufacturer
of Monde Bread, and Walter Bread, a healthy product line offering bread that contains fiber and
wheat and has low or no sugar (Monde Nissin, 2022).

In 2006 and 2016, Monde Nissin entered into distribution agreements with Dairy Plus Co., Ltd.
and Dutch Mill Co. Ltd., respectively, where Monde Nissin became the exclusive distributor of
Dutch Mill yogurt products and cultured milk in the Philippines. In 2010, Monde Nissin expanded
its relationship with Dutch Mill to include marketing by Monde Nissin of Dutch Mill products. In
2014, Monde Nissin also entered a 20-year Distribution, Marketing and Sales Development
Agreement to establish an agency relationship with Sandpiper Spices and Condiments Corp.,
the manufacturer of Mama Sita’s branded products, to exclusively market and distribute Mama
Sita’s products in the Philippines. These products include oyster sauce and meal mixes and
sauces. Mama Sita’s is a legacy brand with rich culinary heritage well-established in the
Philippines (Monde Nissin, 2022).

Meat Alternative Business

In 2015, Monde Nissin acquired MFL, a company that produces, distributes and markets Qourn
and Cauldron. All Quorn-branded products contain mycoprotein which has high fiber, high
protein, low saturated fat, and zero cholesterol. Mycoprotein is a sustainable source of protein.
Cauldron products are sold in the UK and the Republic of Ireland. All Cauldron products are
suitable for vegetarians and Cauldron tofu and falafel are suitable for vegans. Cauldron
products offer alternative sources of protein that complement Quorn products (Monde Nissin,
2022).

Source: Monde Nissin

History

Monde Nissin, which was formerly named as Monde Denmark Nissin, a company that was
established in 1979, have made its way to be one of the most successful businesses in the
Philippines’ food and beverage industry (Bance et. Al., 2016). According to Business Chief Asia
(2021), the company was founded by Betty Ang, who is also its current president. Monde Nissin
started with two products: Nissin Wafer and Nissin Butter Coconut. With its success, they then
ventured into making other products such as the Lucky Me noodles, which is the country’s most
popular noodle brand. With its goal of expanding its market, Monde Nissin acquired a rival
company, M. Y. San, which was the manufacturer of Skyflakes, Fita Crackers, etc. (Bance, et.
Al., 2016). Now, the company focuses on its international operations, opening up factories and
facilities in Thailand, New Zealand, Singapore, and United Kingdom (Pitchbook, n.d.).

Source: Monde Nissin

Management and Organizational Structure

Source: Monde Nissin Corporation

Strategical Entry to the Domestic and Global Market

Dominating world markets has been the target of many companies.

Monde Nissin Company began with snacks that became well-known to the home country of the
business — Philippines, dominating 68% of the instant noodles market and 73% in the yoghurt
drink market. Founded in 1980, MNC introduced various snacks alongside acquiring other
international brands that made its way to the global market. In 2005, the group launched the
instant noodle ‘Lucky Me!’ which became the biggest noodle brand in the home market.

In 2015, with the revenue from the huge hit instant noodle, MNC managed to purchase a British
faux meat producer Quorn. Quorn, founded by Marlow Foods was acquired by the Filipino group
for eight hundred and thirty million dollars ($830M). The group later then introduced the
alternative meat brand to Asia including the Philippines. Quorn remains to be most popular
alternative meat in its home country that also sells in Europe, Australia, and the United States of
America.

Aside from being one of the largest snacks distributors in the country, MNC supplies its brands
to over 45 countries globally.

Marketing Strategy

With the huge number of competitors in the market, Monde Nissin got out of its comfort zone
with its recent marketing strategies:

 Green Marketing
Monde Nissin have reduced their greenhouse gas emissions by 23% in 2022 compared
to 2021, reduced their water intensity of manufacturing by 23%, and disposed 5% of
their manufacturing operations waste on a secured landfill.

 Product Promotion
While their Television advertisements remains constant, the company launched ‘Happy
Snackin’ campaign in 2023, where freebies were given on every pack of Nissin Wafers.

Financial Performance (1st Quarter 2024)

Based on Monde Nissin’s latest 2024 Financial Report released on May 08,2024, the following
data are gathered:

Asia Pacific Branded Food and Beverage Business (APAC BFB) P&L Summary

PHP (million) Q1 2023 Q1 2024 Reported Change YoY

Revenue 16,525 16,883 +2.2%
 Cost of Goods Sold 11,376 10,371 -8.8%
Gross Profit 5,149 6,512 +26.5%
Core Operating Expenses 2,113 2,530 +19.7%
Core EBITDA 3,550 4,568 +28.7%
Core Net Income 2,198 3,096 +40.9%

APAC BFB’s capital expenditure is primarily to improve capacity/capability of bakery businesses

and investment in various machineries to improve operational efficiencies.

Meat Alternative P&L Summary

PHP (million) Q1 2023 Q1 2024 Reported Change YoY

Revenue 3,525 3,429 -2.7%
Cost of Goods Sold 2,575 2,744 +6.6%
Gross Profit 950 675 -27.9%
Core Operating Expenses 1,242 898 -27.7%
Core EBITDA (116) (60) N/M
Core Net Income (320) 216 N/M

Monde Nissin’s major capital expenditures in its Meat Alternative segment was to increase its
production fermentation capacity. Additional investment was made for increasing capacity to
produce deli products .

Consolidated P&L Summary

PHP (million) Q1 2023 Q1 2024 Reported Change YoY

Revenue 20,050 20,312 +1.3%
Cost of Goods Sold 13,951 13,115 -6.0%
Gross Profit 6,099 7,197 +18.0%
Core Operating Expenses 3,355 3,428 +2.2%
Core EBITDA 3,434 4,508 +31.3%
Core Net Income 1,878 2,880 +53.4%
Core Net Income at 1,876 2,877 +53.4%
Ownership
Reported Income after Tax 1,938 3,486 +79.9%

Market Share
Source: Nielsen Retail Audit (past 12 weeks as of March 2024)

Quorn Foods UK retail market share continues to grow alongside strong year-on-year
foodservice growth while Yogurt Drinks growth domestic and global market share accelerated
during the 1st Quarter of 2024.

Tax Contribution

The Department of finance(DOF) has cited the country’s top 500 taxpayers that have headed
the government calls for corporations and individuals to file their income taxes returns (ITRs) in
which Monde Nissin Corporation (Monde) is in the top 20 taxpayers (MENA report, 2020).

According to Mondenissin.com 2024, 53.4% percent of net income growth for the first quarter of
March 2024. income taxes paid by Monde Nissin Incorporation amounted 93,811 compared to
march 2023 amounted to 523,717 which shown on the Unaudited Interim Condensed
Consolidated Statements of Comprehensive Income resulting on its net income of 3,486,356.
Before 2024, Monde Nissin Incorporation released its Unaudited Financial Statements including
the Unaudited Consolidated Statement of Comprehensive Income were the company paid
taxes amounted 1,579,761 on 2021, 1,128,953 on 2022, and 1,220,552 on 2023.

Code of Conduct and Ethics

Monde Nissin Company emphasized that good ethics means good business. Thus, earning an
outstanding reputation which led to the company’s success. MNC showed ethical behaviors that
gave the group a remarkable impression in the business world — becoming one of the largest
food manufacturers in the Philippines. The group dominated the Philippine market with trust and
respect. With compliance with this code of conduct, alongside the policies of MNC, can improve
positive governance and sustainability to the group. With the firm’s practices of trust and respect
towards shareholders and stakeholders, MNC continues to uphold the earned reputation for
integrity to this day.

Sustainability at Monde Nissin

“Sustainability is core to Monde Nissin’s corporate aspiration.” This has been a key principle and
their main driving force towards sustainable development where they reach remarkable heights.
Through the company’s’ northstar project, a collaborative effort between the company and its
stakeholders they are able to create positive economic, environmental, and social impacts, and
reduce negative impacts while delivering business value. The Company also referred to the
United Nations’ Sustainable Development Goals (UN SDGs or SDGs) to ensure that its priority
goals are aligned with and contribute to achieving the relevant SDG targets.
Source: Monde Nissin Corporation

“Making Better Possible”

As the company’s core mantra it has indeed deeply rooted to its heart the well being of its
employees, the national economy, and wellness of the planet.

Based on the company’s 2022 sustainability report the following progress were undertaken:

 A better planet

Making Eco-efficiency Possible is based on the concept of doing more with less. It is
about operationalizing conservation strategies and adopting green solutions to enhance
efficiency in the use of resources while minimizing creation of waste and pollution.
► 23% reduction in Scope 1 and Scope 2 GHG intensity versus 2021 baseline
► 23% reduction in water intensity versus 2021 baseline
► 5% of waste generated from Monde Nissin’s manufacturing operations were disposed
to landfill
► 94% recycle-ready packaging material (in terms of volume)

In addtion, the company also successfully transitioned its Laguna, Pampanga,

Batangas, Cebu manufacturing plant to renewable energy last July 26, 2022 and
December 26, 2022. The company aims o fully transition all of its manufacturing plant to
renewable energy to attain a greener production (Monde Nissin, 2022).

 A Better Society

Making Better Food Accessibility is about innovating products and distribution systems to
create food and beverages that are better for consumer health, aligned with their
preferences, and within their reach. Making Inclusivity Possible is about embracing
 diversity at the workplace and giving equal opportunities, while also creating inclusive
growth in host communities.
Based on Monde Nissin’s 2022 Annual Sustainability Report the following progress were
made possible:
► 70% share of fortified better and healthier product portfolios to total revenue
► 59% share of sodium-reduced products to total instant noodles revenue
► More than 1,000 Independent Brand Experts are part of Monde Nissin’s CDN
► 100% of employees earning above minimum wage
► 100% of employees with medical benefits
► 36% female workers in the workforce and 49% female in management positions
► 13.2 average training hours per regular employee

Portfolio of Investment

Monde Nissin Corporation (“Monde Nissin”) is a global food and beverages company
headquartered in the Philippines, with a portfolio of iconic and market leading brands across
fast-growing categories, including instant noodles, biscuits, packaged baked goods, culinary
aids and alternative meat products.

The Company’s portfolio comprises its Asia-Pacific Branded Food and Beverage (“APAC BFB”)
Business and Meat Alternative Business. The APAC BFB Business consists of three product
groups – instant noodles, biscuits and other products (such as beverages, baked goods, and
culinary aids). Our Meat Alternative Business sells its products globally under Quorn Foods and
the Quorn brand.

Key Subsidiaries Country % Holdings

Monde MY San Corporation Philippines 60%
(MMYSC)
Monde Nissin Holdings Thailand 40%
Marlow Foods Limited United Kingdom

Figure 1: Nissin Monde’s Brands

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Sustainability-Report.pdf

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Release.pdf

Mondenissin . (2024, April 11). Monde Nissin reports FY 2023 all-time high core profit for APAC
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Studio, S. (2023, December 20). Monde Nissin launches “Happy Snackin” campaign. Jojo
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campaign/

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https://mondenissin.com/sustainability/#pillar-planet

https://businesschief.asia/corporate-finance/monde-nissin-story-philippines-largest-ever-ipo

https://mondenissin.com/code-of-conduct-and-ethics/