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Branded Consumer Foods

Branded consumer foods (BCF), including our packaging division, is the Company’s largest segment contributing about 75.5% of revenues for the fiscal year ended September 30, 2004. Established in the 1960s, the Company’s branded consumer foods division manufactures and distributes a diverse mix of snack, chocolate, candy, biscuit, beverage, noodles and pasta and tomato-based products. The manufacturing, distribution, sales and marketing activities are carried out mainly through the Company’s branded consumer foods group consisting of snackfoods and grocery divisions, although the Company conducts some of its branded consumer foods operation through its wholly-owned or majority-owned subsidiaries and joint venture companies (e.g. Hunt-URC and Nissin-URC). The Company established URC-Packaging Division to engage in the manufacture of polypropylene films for packaging companies. The bi-axially oriented polypropylene plant (BOPP), located in Batangas, began commercial operation in June 1998. URC also formed Food Service and Industrial Division that supply BCF products in bulk to certain institutions like hotels, restaurants, and schools.

In 2000, the Company began to expand its BCF business more aggressively into other Asian markets, primarily through its subsidiary, URC International and its subsidiaries in China: Tianjin Pacific Foods Co. Ltd., Shanghai Peggy Foods Co. Ltd., Xiamen-Tongan Pacific Foods Co. Ltd., Panyu Peggy Foods Co. Ltd. and URC Hongkong Co. Ltd. (formerly Hongkong Peggy Snack Foods Co. Ltd.); in Malaysia: URC Snack Foods (Malaysia) Sdn. Bhd. (formerly Pacific World Sdn. Bhd.) and Ricellent Sdn. Bhd.; in Thailand: URC (Thailand) Co. Ltd. (formerly Thai Peggy Foods Co. Ltd.); in Singapore: URC Foods (Singapore) Pte. Ltd. (formerly Pan Pacific Snacks Pte. Ltd.) and in 2002, in Indonesia: PT URC Indonesia. The Asian operations contributed about 22% of the Company's revenues for the fiscal year ended September 30, 2004.

The Company has a strong brand portfolio created and supported through continuous product innovation, extensive marketing and experienced management. Its brand is considered a household name in the Philippines and a growing number of consumers across Asia is purchasing the Company’s branded consumer food products.