PINNACLE FOODS PTE LTD is established in August 99 to manufacture ?intermediate food ingredients? for export. The target markets are those that have tariff barriers restricting the import of primary base ingredients. In Japan for example, sugar is a restricted import. However, when blended with other materials, the nature of the product is changed to an ?ingredient specific product?, and hence attracts a reduced tariff. Again, South Korea restricts the importation of milk powders by quota. Blending with other materials, as in the case of Japan, reduces the tariff applied, and also avoids the quota constraints.

PINNACLE?s major customers are Japanese, Korean, Philippines and Taiwanese confectionery manufacturers, but potentially customers include bakeries, ice cream and snack food processors throughout in Asia and the Middle East.