Alaska Milk Corporation
Alaska Milk Corporation (PSE: AMC) is one of the leading manufacturers of milk products in the Philippines. Its milk products are sold under the Alaska brand and is also the parent company of the Philippine Basketball Association (PBA) team, Alaska Aces. Alaska Milk Corporation is also listed in the Philippine Stock Exchange. As of December 13, 2010, the company has a total market capitalization of P11.9 billion and share price of P13.50.
Alaska Milk Corporation was incorporated in 1994. However, long before that, operations have already started as early as 1972 through a Holland Milk Products, Incorporated. Holland Milk was a joint venture between Holland Canned Milk International B.V. and General Milling Corporation, another company founded by Wilfred Steven Uytengsu, Sr.. General Milling has interest in flour, feeds and soy bean milling.
Holland Milk initially just produced canned evaporated and condensed milk and UHT ready to drink milk. But in the 1980S, the company started producing powder-filled milk under the Alaska brand. Because of the rapid growth of the company’s milk business, management decided to spin-off milk production as a independent entity and incorporated it as Alaska Milk Corporation in 1994. A year later, its shares were listed in the Philippine Stock Exchange under the stock symbol AMC.
When AMC reorganized its distribution operations and networks, Nabisco International and Quaker Oats, Incorporated tapped the company to be its exclusive distributor of Nabisco and Quaker Oats products. The agreement was terminated in 2001 when Philip Morris and Pepsi Company acquired Nabisco International and Quaker Oats, Incorporated, respectively.
Other business developments
Following the termination of the distribution agreement, AMC introduced an evaporated creamer and a UHT All-Purpose Cream, Alaska Crema in 2003. The former was to complete the value line of liquid canned milk while the latter is to complete the line of cooking milk.
In 2007, AMC acquired international milk brands of Société Des Produits Nestlé S.A., which included Alpine, Liberty and Krem-Top brands. With these deals, AMC accounted nearly 80% of the liquid milk market. A year later, AMC introduced Alaska Yoghurt Drink and Cowbell Condensada. Cowbell Condensada is marketed towards lower-income consumers who have become price sensitive.
AMC also distributes other foreign brands. In 2005, it has signed an agreement with Kellogg’s Asia Marketing, Inc. to distribute Kellogg’s ready-to-eat cereals; and Hersheys Food Corporation for the Hershey UHT chocolate milk drink from 2003 to 2007.
Corporate Social Responsibility
Alaska Milk Corporation has supported the Gawad Kalinga as part of its Corporate Social Responsibility. AMC plans to construct 100 homes in six-hectare relocation site in Bayan-bayanan, San Vicente in Laguna. Aside from this, AMC has also supported the Children’s Hour and has encouraged its employees and players to donate a percentage of their salaries to the fund. AMC has been avid supporter of sports. The Alaska Power Camp is the company’s sports development program allows the youth to develop their skills in basketball, football, volleyball and baseball. It has been recognized by the Philippines Sportswriters’ Association as an invaluable contribution to youth sports and development in the country, particularly on the grass-roots level.
The Alaska Aces
AMC CEO Wilfred Uytengsu, Jr. was only 23 years old when his father asked him to do a feasibility study on putting up a basketball team. The Alaska team debuted in 1986 with some of the holdovers from the Magnolia Team. But it was only in 1991 did the Alaska team win its first championship. To date, Alaska is one of the winningest team in the league with a total of 13 titles (six Governor's Cup and Inivitational Championship, three All-Filipino Cup Championship, two Commissioner's Cup Championship and two Fiesta Cup Championship). In September 2010, the Alaska franchise celebrated its 25 years in league and paid tribute to its players.