Magnolia Ice Cream

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Magnolia
Industry Dairy industry
Founded 1925
Founder(s) San Miguel Corporation
Headquarters Philippines
Products Ice cream, frozen desserts, UHT milk, butter, margarine, processed cheese, all-purpose cream
Parent San Miguel Corporation
Website http://www.magnoliaicecream.com.ph
http://www.magnolia.com.ph

Magnolia is a brand of ice cream and dairy products owned by San Miguel Corporation. The brand was commercially established by San Miguel in 1925. From its core products of ice cream and milk, the brand expanded into frozen desserts, butter, margarine and processed cheese and operated as the Magnolia Division of San Miguel Corporation until 1996. After a brief spin-off of the ice cream and milk business from 1996 to 1998 and its hibernation from 1998 to 2003, these products were combined once again under one business unit in 2004 - Magnolia, Inc., a wholly owned subsidiary of San Miguel Pure Foods Company, Inc. Both are companies of the San Miguel group. The brand is also used by other San Miguel companies for various food and beverage products.

History[edit]

The history of the Magnolia brand can be traced back to 1899 when an American by the name of William J. Schober arrived in the Philippines as a cook in the volunteer army and introduced the “magnolia pie”, “magnolia ice cream” and “magnolia ice-drop”.[1] In 1925, Schober sold his interests to San Miguel Corporation (then known as San Miguel Brewery). The dairy plant at 526 Calle Aviles in the San Miguel district of Manila stood on the same street as the original San Miguel brewery (6 Calle Aviles). A year later, the dairy was relocated to Calle Echague (now C. Palanca Sr., Street) in Quiapo, Manila.[2] In 1970, production was transferred to a new modern facility in Aurora Boulevard, Quezon City, known as the Magnolia Dairy Products Plant. The facility also housed the main branch of its Magnolia ice cream parlor.[3]

In 1981, San Miguel spun-off its butter and margarine production to a new subsidiary named Philippine Dairy Products Corporation (PDPC – now known as, Magnolia, Inc.), a joint-venture with New Zealand Dairy Board, with its production facility based in the Aurora Boulevard plant.

In 1996, San Miguel transferred its ice cream and milk businesses to a new company, Magnolia-Nestlé Corporation, a joint-venture with Nestlé. San Miguel retained ownership of the Magnolia brand since it was also being used by other San Miguel food products. San Miguel also retained ownership of the Aurora Boulevard property. In 1998, San Miguel withdrew from the Magnolia-Nestlé venture and a non-compete clause barred it from the ice cream and milk businesses for five years.

Upon the expiration of the non-compete clause in 2004, San Miguel revived its ice cream and milk businesses through its subsidiary, Magnolia, Inc.[4] On May 19, 2010, Magnolia, Inc. inaugurated its main ice cream production facility in Santa Rosa, Laguna.[5][6]

Magnolia, Inc.[edit]

Magnolia, Inc. was established in 1981 under the name Philippine Dairy Products Corporation (PDPC), a joint-venture between San Miguel and New Zealand Dairy Board (NZDB). The company was a business unit of San Miguel’s Magnolia Division and engaged in the manufacture of butter, margarine and processed cheese. Its production facility was originally located in the Magnolia Dairy Products plant in Aurora Boulevard, Quezon City. In 1994, PDPC acquired the margarine brands, Star and Dari Creme, from Procter & Gamble Philippines, Inc. In 2000, the company transferred its production from the Aurora Boulevard facility to a new facility in General Trias, Cavite. In July 2002, San Miguel gained full ownership of the company after NZDB divested its stake. With this, the company name was changed to Magnolia, Inc. and became a subsidiary of San Miguel Pure Foods Company, the new corporate parent for San Miguel's entire food portfolio.[7]

Magnolia, Inc. has since diversified from the manufacture of butter, margarine and processed cheese, to include jelly snacks, cooking oil, salad aids and the revived Magnolia ice cream and milk products.

Products[edit]

Affiliated products[edit]

  • Magnolia Chicken (San Miguel Foods, Inc., a subsidiary of San Miguel Pure Foods Company, Inc.) began in 1953 when the first B-Meg feedmill of the San Miguel Brewery, located in Balintawak, converted by-products of San Miguel's beer production into animal feeds. In 1972, San Miguel’s integrated poultry operations began with its first breeder farm in Cavite. The first chicken processing plant was set up in Muntinlupa in 1973 and marketed under the Magnolia brand. The venture expanded its facilities with two more feedmills, three more breeder farms, hatcheries and another processing plant – thus, creating the Feeds and Livestock Division of San Miguel Corporation. In 1991, the division was spun-off, becoming a subsidiary known as San Miguel Foods, Inc. (SMFI). In 2001, San Miguel acquired Pure Foods Corporation (which had a similar division) bringing together the two industry leaders. Pure Foods Corporation was renamed San Miguel Pure Foods Company, Inc. in 2002, becoming the corporate parent of San Miguel's entire food business portfolio.
  • Magnolia All-Purpose Flour, Magnolia Pancake Plus, Magnolia Pancake and Waffle Mix and Magnolia Cake Mixes (San Miguel Mills, Inc., a subsidiary of San Miguel Pure Foods Company, Inc.)

Trademark dispute[edit]

In the United States, Ramar Foods International, a company founded in 1969 and based in Pittsburg, California, markets its own line of ice cream under the Magnolia trademark “since 1972”[8] using a brand identity similar to that created and used by San Miguel Corporation (SMC). The company has no connection with SMC. In 2012, Ramar Foods International won a trademark infringement case in the United States against SMC. However, SMC was allowed to continue exporting its Magnolia line of butter, margarine and cheese to the US. San Miguel sells its ice cream in the US and Canada under the San Miguel Gold Label brand. Both parties are in the appeals process.[9][10]

Relation to Magnolia (Singapore)[edit]

Although similar in name and product line, there is no relation between San Miguel’s Magnolia brand with that of Singapore-based Fraser and Neave Ltd. (F&N), whose Magnolia brand was established in Singapore in 1937 and now known as F&N Magnolia.[11]

Aurora Boulevard site[edit]

The plant facility located along Aurora Boulevard, Quezon City was inaugurated in 1970 by San Miguel as the Magnolia Dairy Products Plant, producing ice cream, milk, butter, margarine and processed cheese. The property where the plant stood was owned by San Miguel Corporation.

In 1981, San Miguel spun-off its butter, margarine and processed cheese assets into a joint-venture with New Zealand Dairy Board, forming Philippine Dairy Products Corporation (now, Magnolia, Inc.). The Aurora Boulevard plant remained as its production facility until 2000 when it transferred to a new facility in General Trias, Cavite.

In 1996, San Miguel spun-off its ice cream and milk business into a joint-venture with Nestlé in 1996, forming Magnolia-Nestlé Corporation. The Aurora Boulevard property remained as its main production facility and site of its ice cream parlor. After San Miguel withdrew from the venture in 1998, Nestlé Philippines continued with the business under the Nestlé brand name (the ice cream parlor became known as Nestlé Creamery). Nestlé’s production was gradually transferred to a new site and in 1999, Nestlé closed down operations in the Aurora Boulevard facility.[12]

In 2008, San Miguel sold the property to Robinsons Land Corporation (RLC), a subsidiary of JG Summit Holdings, Inc. News reports cited that the property is reportedly being sold for P1.6 billion. According to RLC, the property will be converted into a mixed-use development with a mall (named Robinsons Magnolia) and residential buildings (named The Magnolia Residences).[13] One of the mall’s establishments is a Magnolia-franchised ice cream parlor named Magnolia Flavor House, as a fitting homage to the property’s roots.[14]

References[edit]

External links[edit]