Innovation and adaptation

While family businesses rarely make it through three generations, Destileria Limtuaco is solidly in the hands of Olivia “Olive” Limpe-Aw, 54, the fifth-generation head, and is training the sixth generation.

Years before, when one of Olive’s sons was training in the factory, he broke two bottles of whisky. The cost was deducted from his paycheck.

“He immediately wanted to transfer to another job, but I explained that we cannot favor him. We have to do what’s fair,” she says.

Such discipline, coupled with concern for family and non-family alike, has likely ensured the continuation of the family business.

“When employees call my son ‘Sir,’ I’d say, ‘Call him Clifford. You’re on an equal level.’”

“I am not saying that we cannot give children gifts. We can do so on their birthday, on special occasions, or when they do something good. But make sure they know what is business, what is family.”

How can they distinguish between Olive the boss and Olive the mom?

“I’m also the boss at home!” Olive laughs. “Seriously, if it’s my project, I have the final say. I will listen, but I make the final decision. If it’s their project, they make the decisions, and live with the consequences.

“They can make mistakes, because how else can they learn? As long as mistakes are not too costly!”

The younger generation have come up with innovative ideas that appeal to the youth market, such as Gaz, strawberry margarita and green appletini mixtures of fruits and tequila; and El Hombre tequila and margarita mix for young adults. Gaz is the only light alcohol mix in a ready-to-drink tetra pack, a first in the local market.

Adapting to the times

“We adapt to the times, but we live by our values,” says Olive. “My forebears were very principled, and so am I, and so I hope, will my sons.”

“Most CEOs of family businesses, even multinational companies, are in finance, marketing, sales. These are important. But we also have to know the technical side. My grandfather and my father took courses in distillery, so did I. So do my sons.”

Her sons are relatively young, so Olive has not yet chosen her main successor.

“We are a family business; I would like a Lim to succeed. But if no one has proven himself, then if necessary, we are open to having a non-family professional [at the helm].”

Partner with government

Destileria Limtuaco uses Filipino raw materials in its products. With the help of the Department of Agriculture (DA), the company has partnered with Mindoro farmers who harvest the crop, ensuring high-quality craft liquors for discerning local and international markets.

“We deal directly with farmers, not middlemen. In that way, the farmers earn more, and get what is directly due them,” she says.

Business at times tends to be frustrated with government, but a Centennial Business Partner Award stands in the Destileria offices, with former Trade Secretary Jose Trinidad Pardo citing the company for “helping grow Philippine trade and industry to what it is today, and what it can be tomorrow.”

“When businesses compare our government to those of other countries, they are disappointed because their expectations are high. But we are realistic with what we need. We ask the government to link us with suppliers and farmers, and they are more than willing to help. We show our appreciation by giving them the credit,” she says.

“For example, former DA Secretary Arthur Yap encouraged us to think about local fruits. When he saw our success with using mangoes in our drinks, he urged us to try calamansi, dalandan. Arthur is in government, but he is also a businessman,” she says.

To conclude, Olive says that according to her father, “the best thing he can leave us is a good name.”

In Olive’s hands, the family name and the family business are alive and well.

Queena N. Lee-Chua is on the Board of Directors of the Ateneo Family Business Center.

Get her book “Successful Family Businesses” at the University Press (e-mail [email protected]).

E-mail the author at [email protected].