URC starts recovery planning
URC CEO Irwin Lee in a videoconference with the Management Association of the Philippines (MAP)
Gokongwei-led Universal Robina Corp. (URC) vowed it would “not mortgage the future” despite the challenges arising from the new coronavirus disease (COVID-19) pandemic.
“We have not laid off anyone … We continue our innovation plan for our food and beverage company. I think recovery will be in our hands, and it will be the kind of innovation that we’ll bring to market hopefully in the second half,” URC president and CEO Irwin Lee said in a videoconference with the Management Association of the Philippines (MAP) last week.
Even before the March 17 enhanced community quarantine (ECQ) imposition in Luzon, URC had already been dealing with the COVID-19 pandemic in China, the virus epicenter. URC makes Jack n’ Jill potato chips and certain packaged cereal out of China.
The pandemic has likewise gnawed on URC’s business in Thailand and Vietnam, Lee said.
“I think most of us, businesses, are in the throes of phase one. In the first four weeks, people will have their hands full taking care of their people, getting operational contingencies in place, protecting the balance sheet, shoring up cash, and so on and so forth,” Lee said.
URC is now right in the middle of moving from phase one to phase two, the point when planning for recovery is underway.
“What we’re doing now is stress-testing our plans for a range of scenarios,” Lee said.
Lee said this pandemic would bring forth a “new normal.” Heightened awareness on health and wellness trends will drive “more brands with purpose.” He said shopping habits would change toward less frequency but bigger basket sizes.
Part of the recovery plan is to make sure that the supply base will remain resilient.
“They (SME suppliers) are equally disrupted by lockdowns, checkpoints, lack of people, but we want them to continue because it is a chain. We buy cartons from some of them. We sell to retailers and wholesalers, and we need them to be healthy so that our credit receivables, we can collect. We need to make sure that our recovery includes all of that,” Lee said.
Last but not the least, Lee said the new normal would call for more automation and digitization. For him, one silver lining in this pandemic is that decisions have become faster.
Before joining URC in 2018, Lee had spent 26 years outside the Philippines, mostly working for Procter & Gamble (P&G) in various jurisdictions.
“I came back signing piles of checks and tons of manual processes and the last few weeks has accelerated this move towards more automation and digitization so I think all of that should be part of the new normal planning,” he said. —DORIS DUMLAO-ABADILLA INQ
