Praying for a toll hike
WITH Christmas done and as the new year starts, a good number of businessmen are raring to see their enterprises back into full swing.
We imagine few are anticipating the new year as much as the toll road arm of Manuel V. Pangilinan’s Metro Pacific Investments Corp. especially on the back of multiyear delays on rate increases for its toll roads.
You see, the group has existing toll hike petitions for its North Luzon Expressway (NLEx) and Manila-Cavite Expressway (Cavitex) and can, in fact, act on those by way of arbitration.
There was to be none of that for the Christmas holidays following a request by the Toll Regulatory Board. But that holiday grace period is over and Pangilinan’s group is left to decide on what it should do next.
Those foregone revenues, of course, are growing by the day. When the group filed notices of dispute last year, those figures have gone up to P2.44 billion for NLEx and P719 million for Cavitex over a period of three years.
We understand the Metro Pacific group is still willing to hear the TRB out even if the agency has been ignoring complaints raised by the private sector operator. We should know in a few weeks whether the situation will turn naughty or nice in this long-running saga. Miguel R. Camus
Mission accomplished
ONE OF THE longest serving Cabinet officials under the Aquino administration has left public office with an impressive resumé.
Within a five-year period, former Trade Secretary Gregory L. Domingo had his fair share of accomplishments, keeping true to his promise to “focus on job creation, establishing better business environment, fair trade and consumer protection.”
“I will try to wake up the sleeping dogs, hopefully they don’t bite. We have a big task ahead of us,” Domingo had said when he assumed office in July 2010.
And that he did. In terms of ease of doing business alone, the Department of Trade and Industry, under Domingo’s leadership, had simplified processes involved in starting a business, which now takes about six steps and eight days, from the previous set up requiring 16 steps and 34 days.
The DTI has also been active in promoting the trade and investment opportunities in existing and new strategic markets. It has also been active in enticing foreign investors to take a look at setting up shop in the Philippines.
The government has also taken an aggressive and active stance in participating in regional deals and in negotiating for free trade agreements. Ongoing negotiations include those with the European Free Trade Association and Regional Comprehensive Economic Partnership, while negotiations with the European Union are poised to start next year. The Philippines has also expressed keen interest to join the Trans-Pacific Partnership (TPP) agreement, deemed the country’s only chance to have a free trade deal with the United States.
Capping off Domingo’s impressive stint was the country’s hosting of the Asia-Pacific Economic Cooperation (Apec) meetings this year, where the DTI’s thrust of putting the agenda of the micro, small and medium sized enterprises (MSMEs) at the front and center of global policies has been largely endorsed by the leaders of Pacific rim nations. This agenda has been endorsed by Apec trade ministers through the Boracay Action Agenda, which was then adopted by Apec leaders in November 2015 through the Manila Declaration.
Domingo was also appointed as the vice chair to the 10th Session of the World Trade Organization Ministerial Conference held in Kenya last month. In the same forum, Domingo fought for the inclusion of the MSME agenda, which seeks to enable small enterprises to become a part of global value chains and international trade.
For now, Domingo seems to enjoy being back in the private sector, mulling a teaching stint in a university as he awaits the end of the one-year ban imposed on newly retired government officials. To say the least, it was good while it lasted. Amy R. Remo
Booming Bo’s
IT’S A special 2016 for one of our home-grown brands, Bo’s Coffee.
The cafe chain, which traces its roots to Cebu, is turning 20 years old this year.
That’s admirable given the difficulty surviving in this space with competition so stiff from local and foreign players. Starting a coffee shop isn’t exactly rocket science, though building and sustaining a whole chain might be.
To mark its 20th anniversary, Bo’s founder Steve Benitez told Biz Buzz the chain would finally breach the 100-store mark. It currently has over 70 branches across the country.
While an eventual initial public offering is always in the cards, its volume makes it also attractive to certain investors.
Bo’s has received its fair share of offers, apparently. But with expansion plans being drawn up, its owners don’t look like they’re exiting anytime soon. Miguel R. Camus
Grooming Griffin’s
THE ASEAN Economic Community, which became a legal entity on Dec. 31, is the bailiwick of Gokongwei-led Universal Robina Corp. (URC), but its takeover of New Zealand’s iconic snackfood-maker Griffin’s has expanded its playground.
Aside from gaining footholds in Australia and New Zealand, Griffin’s may be URC’s ticket to Europe.
“Some of the products we sell are to a chain called Aldi, which is very popular in Australia and is very strong in Europe. So, part of the consideration is perhaps to sell these product lines that we already have in Australia into their European operations as well,” URC president Lance Gokongwei said in a recent interview.
Aldi, which traces its roots to the German town of Essen in 1913, is now a leading discount grocery chain with a network of 7,000 stores across three continents.
Back in New Zealand, where Griffin has two factories, a new production line for wrapped bars had been added in October. The priority for Griffin’s is to protect this Kiwi home market, where it’s the number one player in biscuits and overall snackfood (including salty snacks and wrapped bars), Gokongwei said.
“In Australia, we’re investing to expand our presence in wrapped snacks and we do a lot of private label biscuits and snacks over there out of New Zealand,” he said, referring to the practice of manufacturing for other brands. “We’re also going to start supplying Australia with private-labeled products out of Malaysia.”
Griffin’s will add to the brands that URC brings to overseas markets on top of homegrown “Jack n’ Jill” snacks, ready-to-drink tea C2 and “Great Taste” coffee. Griffin’s, a 150-year-old brand, is famous for products such as Gingernuts, MallowPuffs, ToffeePops and ETA potato chips. With URC at the helm, Griffin’s has debuted in the region, first in Singapore and soon in Hong Kong.
And how soon will the local market get a taste of Griffin’s? Some of Griffin’s people have been in town to prepare for the launch of its products in the Philippines and other new markets in Southeast Asia, Gokongwei added. Griffin’s products will hit local stores by the second quarter of this new year. Doris Dumlao-Abadilla
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