BIZ BUZZ: VMC versus Vicmico
Leading sugar producer Victorias Milling Co., Inc. (VMC) is currently in a deadlock situation with one of its biggest partners, Vicmico Planters Association Inc.
The relationship between the two was strained by several issues that Vicmico said were rooted in VMC’s “lack of transparency, poor milling efficiency and burdensome business policies.”
Discussions between the two parties have already led to the termination of Vicmico as a planter partner, but the latter supposedly wants to stay on.
We tried to get comments from both sides of the party fence, and it seems that a lot was lost in translation.
According to a VMC official, Vicmico in a letter has alluded to leaving VMC because of issues that, for the organization, the sugar producer consistently failed to address.
Based on a Vicmico official’s account, however, VMC’s decision to allow Vicmico to leave came as a surprise given the history that both shared.
Some of the disagreements between the two included the requirements imposed by VMC in the quality of sugarcanes that for Vicmico, were too difficult to meet. Vicmico also questioned the changes in the computation of the payments made by VMC, which it said lacked transparency.
Sources who are familiar with the matter said the issue has dragged on for so long that it has been “exhausting” for both parties. Some suggested that an intermediary may be able to patch things up between VMC and Vicmico, although we wonder who would be the best person to do this.
Ultimately, we hope a compromise is reached that would lead to a better business relationship between planters and millers, given the long history of sugar plantations in the country.
—Karl R. Ocampo
No fan of BTS
When PLDT’s Smart Communications sealed a coveted contract to tap South Korean sensation BTS as brand endorser, millions of Filipino fans were thrilled at the prospect of getting closer to their idols.
Probinsyano Ako party list representative Ronnie Ong was apparently not among them.
Last week, a displeased Ong castigated Smart over its “misplaced preference” for foreign celebrities like Hollywood star Chris Evans and BTS, adding local companies should choose Filipinos first.
Besides the extreme late timing of Ong’s reaction, which was carried by several media outlets, Biz Buzz learned his recent tirade might have been the one that was misplaced.
Joyce Ramirez of PublicityAsia, the company behind these high-profile celebrity deals, told us that contrary to the lawmaker’s claims, PLDT and Smart had the highest number of Filipino endorsers versus other domestic brands.
These include the who’s who of showbiz such as Anne Curtis, Maine Mendoza, Luis Manzano, Sarah Geronimo, Matteo Guidicelli, Sue Ramirez and Toni Gonzaga.
There is also the popular music group Ben&Ben and even athletes Hidilyn Diaz, the country’s first Olympic gold medalist, and Kai Sotto, dubbed by sports fans as the future of Philippine basketball.
Ramirez said it was also not true that BTS was paid $10 million and that Smart had enlisted Hollywood celebrities Charlize Theron and Gwyneth Paltrow as brand endorsers.
It is true, however, that PLDT tapped the A-list stars as guest speakers for its Philippine Digital Convention events over the past two years. But there was no endorsement contract with the celebrities, Ramirez said.
In fact, she said it was Smart consumer wireless business head Jane Basas who personally instructed her to export Filipino talents overseas and “bring them to worldly prominence.”
At the very least, PLDT and Smart’s roster of talents showed the group’s willingness to elevate their marketing to the international arena.
Other Filipino companies have done the same such as Globe Telecom with South Korea’s Blackpink, and clothing brand Bench, which has tapped numerous foreign celebrities through the years.
It is perfectly acceptable for Ong to look out for the best interests of local talents. It would be much better if the lawmaker did some basic fact checking before calling out a private company for its marketing strategy.
