Taipans in China, professionals in America

By: Artemio V. Panganiban

Philippine Daily Inquirer

Amid the rising tension in the West Philippine Sea (also known as the South China Sea) over the reputedly oil-rich Spratlys, my wife Leni and I visited China last week (together with Sen. Frank and Mila Drilon, PCGG Chair Andy and Tisha Bautista, bankers Nonoy and Cory Alindogan, and William and Barbara Go). Freely mixing with the locals, we did not encounter anyone inclined to discuss the Spratlys conflicts. People were keener on promoting harmony and prosperity.

Entrepreneurs in China. In between listening to Dr. Fu Lang, foreign affairs director of Guangdong, explain how his province attained its superhigh GDP of over 14 percent for several years, and being enthralled at the magical mountains of Zhangjiajie where the movie “Avatar” was filmed, I was equally amazed to know how some Filipino taipans have succeeded in China.

Perhaps, the most admired Filipino tycoon in the People’s Republic is Carlos Chan. His “Oishi” food products are processed in 13 factories all over the Middle Kingdom and employ over 7,000 Chinese workers, supervised by 80 Filipino managers. His China footprint easily dwarfs his Philippine operation, which has four factories and 4,000 workers.

Though he has opened subsidiaries in Vietnam, Indonesia, Thailand and other countries and though he sells his products worldwide, his Chinese operation is, by far, the most successful, eclipsing many foreign multinationals there like Frito-Lay, maker of “Lay’s” and “Doritos.”

Other Filipino taipans who have penetrated China’s markets include George S. K. Ty who recently opened Metrobank China, the first non-Chinese bank to be headquartered in Nanjing while maintaining its presence in Shanghai. Henry Sy’s SM operates the largest shopping mall in Xiamen and several stores in other locations. Lucio Tan has banking, real estate and beer interests in various Chinese cities, while John Gokongwei Jr. has set up thriving real estate and food businesses. Recently, Tony Tan Caktiong started 300 food outlets under a Chinese brand, not under his giant “Jollibee” that is popular here.

US professionals. In contrast, Filipinos in the United States veer not so much to business as to the professions—medicine, nursing, banking, education, etc. Some of those who have excelled in these fields are Joanne de Asis (investment banking), Loida Nicolas (advocacies), Josie Natori (high-end fashion), Sam Bernal (stem cell therapy), Felipe Tolentino (ophthalmology), Libertito Pelayo (journalism), Arthur Lopez (hotel management), Marilou Mabilangan (government), Jana Benitez (arts), and modesty aside, our son Jose Artemio III (quantitative risk management).

Diosdado “Dado” Banatao, a poor boy from Cagayan, has become a hi-tech legend in the Silicon Valley of California. Now a billionaire, he visits the Philippines regularly. A month ago, I had the pleasure of a private dinner with him, and of listening to his passion to set up, with the help of the Ayala and Lopez conglomerates, a P5-billion endowment to help brilliant Filipino science and technology students conquer the hi-tech industry.

Banatao is happy that the Philippines is becoming the world’s BPO capital. But beyond that, he thinks that with grit, proper education, tutoring and extensive training, Filipino scientists and engineers can, like him, rise to the top of the American totem pole.

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Reckless accusations. Reacting to last Sunday’s column, a reader berated me for allegedly writing a Supreme Court decision that allowed Hong Kong-based First Pacific Company to purchase a huge block of PLDT shares that enabled it to control the phone company. As a result, First Pacific and PLDT boss Manuel V. Pangilinan allegedly rewarded me with an independent directorship in PLDT and Meralco. This is misleading and false.

The truth: Justice Conchita Carpio Morales penned that landmark decision (Yuchengco vs. Sandiganbayan, Jan. 20, 2006) which declared as ill-gotten a large block of PLDT shares and forfeited it in favor of the government. Later that year, the government auctioned the shares. A unit of First Pacific matched the highest bid, exercised its right of first refusal and paid government over P25 billion in a transparent public bidding. I had no participation whatsoever in that sale.

I met Mr. Pangilinan for the first time in 2007—after I had retired from the Court in 2006—when Inquirer Chair Marixi Prieto introduced him to me. He invited me to be an independent adviser (not director) of PLDT only in mid-2009. As an “independent” adviser, I do not represent management or any shareholder. I cannot propose or second motions in the board of directors. Neither can I vote. My advice may or may not be heeded by the company, but anyway I render it objectively in good faith and to the best of my modest knowledge of law and business.

I was elected an independent director of Meralco in mid 2008 at the invitation of Meralco Chair Manuel Lopez, not of Mr. Pangilinan who was not even connected with Meralco at the time. That said, I hope readers will verify facts before spitting venom on me.

Another reader asked why, despite my friendship with Justice Antonio T. Carpio, I still critiqued his ponencia on due process grounds. True, we have voted together in many cases, but—equally true—we have also disagreed. For instance, he strongly dissented from my decision in 2004 upholding the constitutionality of the Mining Law. Magistrates, incumbent and retired, can differ without being difficult.

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Comments are welcome at chiefjusticepanganiban@hotmail.com

Discovering the Ericulture in Palawan

By ROWENA BAUTISTA-ALCARAZ

A dried lump of cocoon is being fed into the pedal-operated spinning wheel. Cocoon samples from Helen's weaving center, which are turned into silk knitting yarn

MANILA, Philippines -- After 11 years of being a radio technician in Libya, Helen Martinez Quijana finally decided that it's time to go home. The plan was to put up a business of her own.  What kind?  That was for her to find out. But rearing silkworms in the districts of Puerto Princesa, Palawan to produce hand-loomed, handwoven, and hand- knitted scarves was certainly far from her mind.
"I came home in 2008 with a single plan in mind- put up a business so I won't have to go back to being an overseas Filipino worker. My two kids have grown and they both have their own families, so it's just me.  But I honestly didn't know what kind of business to venture into," says Helen during this writer's visit to their weaving center at Liberty Road, Puerto Princesa City, Palawan.
It was only until after she met up with the women in her native town, who were organized by the NPO2050–an organization concerned with global issues such as population, poverty, women's status, and the environment– that the idea came to her.

What started it all

NPO2050 first came to the Philippines in 2000. The group, led by Japanese national Katsuhide Kitatani, flew in and out of the country, particularly in Palawan, to help the women of the region by educating them about Eri silkworms and its produce.  They brought with them the Eri silkworm eggs for cultivation and most of the equipment found in the weaving center today such as spinning wheels for thread making, weaving looms, and warpers.
Women's empowerment is one of the concerns of the organization. According to their website www.NPO2050.org, "Women comprise half of the world's population.  NPO2050 believes therefore that safe and peaceful world cannot be built unless women’s potential is fully mobilized."
It further states, "A half of the people in this world suffer from poverty and 70 percent of them are women. It is essential to eradicate poverty if we are serious about building a peaceful world. It implies that women all over the world should be entitled to fundamental human rights. They should have ready access to education and basic health services."
Helen adds, "It was a 10-year project.  By the time I joined in, they were nearing the end of it.  Their last visit was February which was before the Tsunami hit Japan.  They took with them the last batch of scarves because they're no longer coming back.  We're on our own now."

New beginnings

Today, Helen is helped by her daughter-in-law Mia in running the Palawan Eri Silk Community Development Services, Incorporated, the manufacturing organization of Princesa Eri Silk products. Both women know they have much work ahead of them.
"We try to pass on to as many women as we can what we have learned. The center is open to everyone who would want to learn how to knit and weave. We also give willing parties eggs to rear and in return, we buy the cocoon they produce," says Helen.
Interestingly, the Eri silkworm, whose scientific name is Philosamia Recini, is a domesticated species of the wild silkworm Philosama Cynthia.  It was first cultivated in Assam, India in the 18th centruy.  The name Eri is derived from the Indian word "Eranda," which means castor oil, one of the silkworm's main food.
"The Philippine climate is ideal for rearing Eri silkworms.  It's hot and humid with no winter or cold nights.  Ideal temperatures should be 20 to 32 degree Celsius and 75 to 95 percent humidity.  The silkworms will die if temperature exceeds 36 degree Celsius or falls below 10 degree Celsius for any substantial period," says Helen.
She adds, "The crucial point is that when temperatures and the humidity are high, the larval period is shortened to as little as 17 days and this should be achievable in the Philippines."
Eri silkworms have a 45-day life cycle with no regard to seasons. And unlike Mulberry silkworm rearing, it requires minimum investment and attention as they are a hardy race and highly resistant to diseases. They can be easily reared without equipment and sophisticated sheds.
However, Helen admits that not too many people from within the community would want to take on the task. Most of them are either lazy or just lack the interest.

Playing the local industry

Another point of struggle for Helen is penetrating a niche market.  Philippines, being a tropical country, seems to have a lesser need to use scarves except when inside an air-conditioned facility or during colder months. A reasoning that Helen is quick to debunk: "Due to its thermal property, Eri silk is warm in winters but is cool in summer."
She also shares, albeit proudly, "Eri silk has certain excellent textile properties and is unique in many respects such as fineness, density, cross-sectional shape, surface properties and many others, which may play an important role in determining the end use of a fiber... Eri silk is finer than Muga and Tasar silks and even softer than Mulberry silk."
Apart from these qualities, Helen points out that Eri silk is eco-friendly and natural. It is also favorable to those who practice absolute non-violence and do not use any product obtained by killing any living creature.
"In Eri, the pupa can be taken out from the cocoon in live condition without affecting the quality of the silk.  The litter of the worms can also be used as organic manure for other crops," she says.
Meanwhile, Helen has high hopes for Eri silk in the country. In India, it is widely used for the preparation of bedsheets. Eri silk is also a suitable fabric for shawls, jackets, and blankets. Dress materials and baby dresses can also be made from Eri silk fabric because of its soft texture and moisture absorbent quality.  The local government of Palawan seems to agree as well.
"We've recently had guests from the Department of Science and Technology and they seem to be interested in what we are doing and what we are trying to accomplish. We know it's going to take some time because they also need to study the current process, not only of rearing Eri silkworms but all the way to the finished products.  Hopefully, they will be able to help us because they will not only help the organization but the people here in Palawan as well," Helen ends.

A big success that has gone unnoticed

By: Tina Arceo-Dumlao

Philippine Daily Inquirer

CELEBRITY endorser Lea Salonga

When it comes to producing quality poultry products, Bounty Agro-Ventures Inc. has few peers. It is acknowledged as one of the best in its industry, not just in the Philippines, but also in Asia, as evidenced by its 2009 Asian Livestock Award for outstanding contribution to the livestock industry.

But the stellar achievements of the 14-year-old homegrown company led by founder and president Tennyson Chen have gone largely unnoticed outside the small circle of dominant food companies who depend heavily on Bounty Fresh’s production to sustain their growing fast food operations.

That’s because its name does not really appear in the consumer arena, such that most Filipinos do not realize that there’s a great chance that the fried chicken they enjoy from quick service restaurants can be traced back to one of Bounty’s 555 broiler contract farms all over the country that last year produced 60 million broilers.

Institutional buyers

It’s the institutional buyers who know Bounty Agro-Ventures intimately, and that is consistent with the company’s initial strategy to target the bulk buyers of chicken, preferring to expand its business in step with their demand.

Bounty Agro-Ventures, however, is starting to make its formidable presence felt in the retail circles as it has realized in time that although it has a good slice of the poultry market in the Philippines, it faces growing competition not just from competitors in the country but also poultry producers in the region and even the world with the coming down of trade barriers.

At first, Bounty introduced to the market its line of dressed whole chicken and chicken parts under the Bounty Fresh brand. It differentiated itself in the market by being the first to vacuum pack its fresh chicken. The special packaging made its fresh chicken more expensive than that of its competitors, but discriminating buyers more than appreciated the quality and freshness that it promised.

According to BAVI Group Marketing Manager Dondi C. Alentajan, Bounty Fresh started with just a 10 percent share in the market in 2002 when it started producing vacuum packed whole chicken and chicken parts.

Market share

But today, it is fast gaining additional market share due in part to marketing campaigns to bring the brand closer to the buyers, such as the launch of the Chic Moms Club (www.chicmomsclub.com), a one-stop online club for busy moms that provides members with tips on how else to prepare chicken for that perfect home cooked meal, health and wellness lessons as well as discounts and chances to join members-only promotions.

“We understand how moms are generally busy and we know that a one-stop venue such as the www.chicmomsclub.com website helps in their time management, while providing entertainment and information as well,” shares Kathlene Gomez, Assistant Brand Manager of Bounty Fresh.

Gomez adds, “through the website, we communicate our latest promos such as our P10 discount on Bounty Fresh chicken bought at Chooks-to-Go outlets, E-recipes from well-known chefs and of course, exclusive invites to Bounty Fresh events.”

Alentajan says that the Chic Moms Club now has over 20,000 members and they have helped spread the word on what Bounty Fresh has to offer the growing market for not just dressed chicken but also other processed chicken products such as hotdogs, cold cuts, nuggets and sausages.

Its latest offering for chick moms is the support of the Rags2Riches line of eco-ethical high-fashion designer bags designed by Amina Aranaz-Alunan. The support to Rags2Riches is also expected to help build recall for Bounty Fresh’s Pollo Primero line of free range chicken.

Bounty Fresh commissioned Aranaz and Rags to Riches to create The Mercato bag and it shouldered part of the expenses to mount the Rags2Riches fashion shows, thus helping raise awareness of the advocacy to help mothers in Payatas earn a better living from recycling disposed cloth.

The bags area available at Aranaz stores for P2,500 each but are available for free for members of the club. They only need to register online, upload a photo and invite their friends to join.

The limited edition handbags were also created as a way for Bounty Fresh to honor mothers who usually head the household and count among Bounty Fresh’s loyal patrons.

According to Alentajan, the two companies came together for the limited edition bag project as they stand for the same thing: style with substance.

And perhaps the most successful branding campaign of Bounty Fresh is the rollout starting 2008 of its fast-growing Chooks to Go line of rotisseries, which churn out freshly roasted whole chicken.

The concept involves set up of stand-alone outlets selling oven roasted marinated chicken variants along with the company’s banner processed meats products, roasted pork belly, dressed chicken and other derivative products. What initially started as the Bounty Fresh Oven Roasted Chicken store evolved to the Chooks-to-Go brand.

Aggressive promotional efforts are poured into the rotisserie outlets starting with strict guidelines in site selections, pre-opening campaigns as well as standardized in-store merchandising. Promotions are conducted periodically on a national or local level depending on the needs of the outlets. New product introductions and above-the-line advertising activities are being developed to further strengthen its leadership position in the take-out food retail market.

There are now close to 1,200 Chooks to Go rotisseries all over the Philippines after just a little over two years of operations and hundreds more are expected to be put in place over the next few years as market acceptance and support of the brand grows further.