MANILA, PHILIPPINES — Liberty Flour Mills has decided not to renew its licensing agreement with Minneapolis-based General Mills, Inc. for the manufacture and distribution of Gold Medal brand flour, according to the Philippine Daily Inquirer.
Liberty Flour Mills began making Gold Medal All-Purpose Flour in 1961 for General Mills.
“After 49 years of manufacturing Gold Medal flour for domestic consumption, our board of directors has voted not to renew the contract with General Mills,” said Felix Maramba Jr., president of Liberty Flour.
While Mr. Maramba did not specify the reasons for the ending of the agreement, the Inquirer cited unverified reports of a disagreement between both companies over the price that Liberty Flour Mills would have to pay General Mills for the right to continue producing Gold Medal Flour in the Philippines.
William Carlos Uy, chairman of Liberty Flour, said the company was “proud to have manufactured flour of the highest quality in the Philippines” and that it has “maintained market leadership from the very beginning, and will continue doing so.” He pointed out Gold Medal accounts for less than 1% of Liberty Flour Mills’ total revenue.
Liberty Flour Mills is the flagship of the Liberty group of companies, which is involved in a range of businesses, including food processing, marketing of flour and grocery products, animal feed production, agricultural chemicals, culinary education, food service and real estate.
The company produces different types of flour for bread, cakes, biscuits and pastries under its own brands LFM Bakers, LFM Soft, El Superior, Pine tree and LFM Brown.
Sister company Liberty Commodities Corp. owns the Maya brand, a household name and pioneer in wheat-based products.