Mega Prime targets full coverage of 1.6 million corner stores

It is also boosting online sales via Lazada, Shopee, and TikTok Shop.

Mega Prime Foods Inc., maker of the Mega Sardines brand, is expanding its distribution network with the goal of reaching all 1.6 million mom-and-pop stores in the Philippines, whilst ramping up growth through e-commerce and exports.

The company serves about 235,000 of these stores directly every two weeks through regional distributors. “That’s still a far cry from 1.6 million,” Marvin Tiu Lim, chief growth and development officer, told Retail Asia.

To close the gap, Mega Prime is strengthening ties with wholesalers and retailers to ensure products remain available even in remote communities.

“We partner with local retailers and wholesalers and make sure that we are present there, and we make sure that our products are in the shelves of Filipinos, also in the sari-sari (mom-and-pop) stores,” he said via Zoom.

The company has more than 135,000 touchpoints nationwide, including markets, groceries, and corner stores. Its wider distribution network covers almost 720,000 outlets, giving it access to a large share of the country’s mom-and-pop store base.

These small stores remain a critical sales channel, accounting for roughly 70% of sardine sales nationwide. Since most consumers buy a single can at a time, frequent restocking is required. Mega Prime sees this pattern as both a logistical challenge and an opportunity to build consumer loyalty by treating mom-and-pop stores as “extensions of the household pantry.”

The company is also boosting online channels through Lazada, Shopee, and TikTok Shop. Since joining TikTok Shop in 2023, Mega Prime has logged a 150% increase in product views and a 95% rise in engagement.

The platform has enabled a 20% expansion in its product line, limited-edition bundles, and exclusive promotions that lifted sales by 30% during special campaigns.

“We are heavily invested in online channels,” Tiu Lim said. “For example, we are the No. 1 seafood brand on TikTok, and we have a significant presence on Lazada and Shopee.”

Mega Prime products are also available in major retailers and supermarkets, which account for about half of its annual sales.

To sustain growth, the company is expanding fishing capacity by building vessels in Zamboanga, adding production lines across its three plants, and investing in automation and artificial intelligence (AI). It is also implementing real-time data systems to improve decision-making across sales, marketing, and logistics.

“We want to make sure that everything is driven by real-time data, integrating the use of AI — not only in marketing, not only in sales, but all the analytics,” Tiu Lim said.

Exports make up about 5% of sales. Mega Prime aims to lift this to 10% to 20% in three to five years, targeting both diaspora and mainstream consumers in the Middle East, North America, and Southeast Asia. Partnerships with distributors such as Baqer Mohebi in the United Arab Emirates have expanded reach beyond Filipino communities, while in Canada, its products are sold in Costco.

Philippine sardines are priced at about half the level of comparable products from Thailand and Indonesia, giving the brand an advantage as demand for canned goods picks up with rising fresh fish and meat prices.

The Philippines remains amongst Southeast Asia’s top sardine producers, with output and exports expected to hit about 600,000 tonnes this year, according to market research and consulting firm 6WResearch.

“We are steadily expanding our distribution network and implementing system upgrades to reach more sari-sari stores across the Philippines,” Tiu Lim said. “Whilst we don’t have a specific timeline, these efforts are focused on improving accessibility and ensuring our products are available to more Filipino communities nationwide.”