Cavite Brands
Transcription
Cavite Brands
Cavite Brands By Encarnacion Narciso-Raralio, President and Chairperson, Imus Institute, Imus, Cavite APEC One Village One Brand Seminar organizers the Korean Intellectual Property Office Asia-Pacific Economic Cooperation, Seoul, Korea, 23-25 June 2010. SCOPE • Province of Cavite • Two most promising enterprises – Don Roberto’s mango and coffee wine – Amadeo Coop - ground coffee blends • National context – wine industry – coffee industry • Branding strategies – national product – local products • Limitations – Effects on the enterprise – Effects on economic development Background • To promote one-town one product program – Philippine Department of Trade and Industry – Province of Cavite – Imus Institute (II, private educational institution) • To develop a product/business development center for the Cavite selected products, • To develop a product/business for Imus, Cavite – Puto lansong – Business service center for the many micro-, small and medium enterprises that are struggling to survive and expand. – Enterprises from the local public market to foreign markets South China Sea Manila Bay Metro Manila, Batangas. Laguna 1. Cavite Province • • • Land Area 28,755 hectares Population: 1,150,103 (1990) 2,063,161 (2000) – 2,987,891 (2008) Population Increase: – 6.47 percent from 1990 to 1995 – 5.45 percent from 1995 to 2000, Doubling rate: 13 years. • Population density – 2,094 persons/km2/ 10.16 persons per hectare. Reference: 2000 Census, National Statistics Office 1. Cavite Province • Products: • • • • • – Cavite predominantly an agriculture province – Major crops included rice, corn, vegetables, fruits, rootcrops, coffee, coconut and sugarcane. – Offshore and coastal fishing grounds. • Fishing - major source of livelihood in the coastal towns. Number of households: 617,843 households. Labor force :1,131,215, Employed: 954,745. Employment rate: 84.40% Literacy rate is 96.52% . Industrial Base • • • • 45 Industrial Estates, 805 Industrial Establishments 242 operating cooperatives, 12,128 enterprises – – – – 12,027 - micro enterprises, 51 small, 31 medium and 19 large enterprises • Most notable is Intel Definitions • SME – total assets valued between Pesos 1 to 40 M ($20,000-800,000) – Employment: 10 and 199 employees. • Micro-enterprises – – $2,000-$20,000 in total assets – 1-9 employees; • Small-enterprises – $20,000-$200,000 in total assets – 10-99 employees • Medium-enterprises – $200,000-$800,000 in total assets – 100-199 employees. – (from Small-scale business enterprises in the Philippines: survey and empirical analysis.in International Journal of Entrepreneurship, 01-JAN-07, Online from http://goliath.ecnext.com/coms2/gi_0198-459285/Small-scale-business-enterprises-in.html) Philippine copyright law • Intellectual Property Code of the Philippines, – Republic Act No. 8293. – Based on United States copyright law and the principles of the Berne Convention for the Protection of Literary and Artistic Works. – Protect • patents, • trademarks, • and other forms of intellectual property. – Administration • Intellectual Property Office (IPO) – Intellectual Property Code of the Philippines • IPO and the Copyright Division of the National Library of the Philippines – copyrights Copyright Materials, Trademarks • A: Literature (books, pamphlets, etc.) • B: Periodicals (newspapers, tabloids, magazines, etc.) • C: Public speeches and other public speaking works (speeches, lectures, sermons, etc.) • D: Letters • E: Television or movie scripts, choreography, and entertainment in shows • F: Musical works (lyrics, songs, song arrangements, etc.) • G: Art products (drawings, paintings. sculptures, etc.) • H: Ornamental designs and other forms of applied art (not necessarily industrial designs) Copyright Materials, Trademarks • • • • • • • • • I: Geographical, topographical, architectural, and scientific works (maps, charts, plans, etc.) J: Scientific and technical drawings K: Photographs and cinematographic works made in a process similar to photography L: Audio-visual works and cinematographic works made in a process similar to making audio-visual works M: Pictures used in advertising (includes logos) N: Computer programs O: Other works not covered in classes A-N of a literary, scholarly, scientific, or artistic nature P: Sound recordings Q: Broadcasts Patents do not have a category. Branding Superbrands, an international branding; in the Philippines since 1996 Obrang Kabite: provincial branding Philippine Chamber of Commerce and Industry-Cavite. Cavite: place branding by the province of Cavite Bonus: supermarket-brands of the SM; 3 SMs in the province, 1000 products National Brands • Super brand: – Novellino Wines – Bel Mondo Italia Corp. (BMIC) - 2005 • brand strength, • market leadership • consistent performance – Mocha Blends – 2006 • operate 35 outlets all over the Philippines. • uses Arabica varieties both of local and international origins. • 5 signature blends custom-fitted to the Filipino taste: Kape Marharlika, Espresso, Morning Roast, Tagaytay Highlands, and Colombian Decaf. OBRANG KABITE Philippine Chamber of Commerce-Cavite 21 SMEs penetrating the global market. – Processed sea foods, including, tahong chips and smoked fish, – arengga vinegar, – fruits and vegetables, – processed coffee and cacao – novelty items, including bags and wallets, bamboo products. OBRANG KABITE Philippine Chamber of Commerce-Cavite From 21 to 4: Don Roberto's Mango Wine Amira's buko tarts Cecilleville's Beauty Products and Duck Stew. Gender 3 owned by women entrepreneurs. Duck stew company closed shop. Cavite Brands Cavite Provincial Livelihood and Development Office • Café Amadeo • Kapeng Bailen, • Muscovado De Magallanes, • Tablea de Alfonso, Cocoa Delfa's Food Products (includes chocolate, peanut butter, coco jam, instant ginger drink, yellow giner, 5 in 1 herbal tea, pastillas candy, coffee alamid, ube jam and pineapple jam), Cavite Brands Cavite Provincial Livelihood and Development Office • Kawayang Maragondon (furnitures and novelty items) by the Maragondon Rural Workers' Association, • Sweet Style Beadwork, • EAB Arts and Handicrafts, Cavite Brands • • Cavite Provincial Livelihood and Development Office JVN Veggie Chips (which includes bittermelon, yellow ginger, onion-garlic, tahong chips), Ocean Fresh (Tahong Chips, malungga, ampalaya, kalabasa, onion, carrot, ginger, saluyot, alamang, yellow ginger, lagundi and banaba chips), • Pat & Kat Pork Chicharon, • Talleres de Nazaret, squid rings and crispy tahong. • Amira’s Buko Tarts Cavite Brands Cavite Provincial Livelihood and Development Office • • • • Achara de Bailen, pickled vegetables Arengga Pure Vinegar Dona Juana's Food Products (pickled papaya, lechon liver sauce, chili sauces Farm Treasures (pickled and diced green mangoes, Philippine mangoes, pickled radish, dried ripe mangoes, diced pineapple), Coffee Industry • Production and export of coffee was once a major industry in the Philippines, – 200 years ago – 4th largest coffee producing nation. – NOW: RP produces only .012% of the world's coffee supply. – 22 provinces – Batangas, Bukidnon, Benguet, Cavite, Kalinga, Apayao, Davao, and Cagayan – Cavite- the top producer of coffee, 8,000 hectares of coffee plantations (from 1007 record of 13,000 hectares • from Philippine Coffee Board, “Coffee's Rich History”, http://www.coffeeboard.com.ph/philcoff ee.htm) Coffee Industry • Produces 4 varieties Arabica, Liberica (Barako), Excelsa and Robusta. • 70,000 coffee farmer families • Consumption is 65,000 metric tons annually, • Production is 30,000 metric tons, 739,000 bags (estimate) • Import valued at P3 billion (2008) • Exports 4,999 bags (weight?) – green beans, – roasted ground coffee, and – soluble or instant coffee. Coffee Industry 85% of local market for instant- Nestle Philippines Inc., remaining 15% is shared by - Commonwealth Foods (Café Puro), - General Milling Company (Kaffee de Oro), - Universal Robina Corporation (Great Taste) . •(Laarni C. Anenias, “The Philippine Coffee Industry: a Profile in Archives” (2001) (from Bureau of Agricultural Research (BAR) Research and Development Digest, from http://www.bar.gov.ph/bardigest/2001/juls ep01_thephilcof.asp.) Coffee Industry • Domestic consumption will grow by 2.25% per year – following population growth • Proliferation of coffee specialty shops, catering to a wider and younger clientele. – More of the arabica variety, mostly grown in Benguet Province. • • • • • • • Established in 2001 in coffee shops in a relaxed semi-fine dining environment. 2002: 4 outlets Set up a roasting facility in 2003 2003, Recognized as Most Outstanding Coffee Shop and Gourmet Coffee Shop by Consumer Choice Awards 2004 Partnered with Northern Highland, 2004. commercial operation of its roasting facility and a more modern commissary. • • • • 2005: 35 more outlets were set up 2006: superbrand. 2007, opened Mocha Blends Indonesia. 2008: launched its new menu: “Mocha Blends... Great Coffee, Great Food!” 2010: 38 outlets nationwide. • Product: espresso-based coffee, Kape Maharlika; Black Cafe Italiano • (from http://www.mochabelends.com/ourcoffeebeans.html; http://www.bizster.com.ph/memprofile.php?id=999.) Café Amadeo • • • Municipality of Amadeo is the biggest among nine (9) coffee growing municipalities of Cavite Overall coffee performance – Area planted, – Production – Number of coffee farmers 2001 - highest production – 4,560 metric tons – 4,226 farmers – 3,800 hectares Café Amadeo •2002. declared as the Coffee Capital Town of the Philippines during the first “Pahimis Coffee Festival” graced by President, members of the cabinet and Congress and other dignitaries • 2003 and 2004 Coffee Festivals tourism calendar of events / itinerary from “Café Amadeo Development Cooperative – A Success Story” from http://cafeamadeo.tripod.c om/.) Café Amadeo • 2002. Formation of the Café Amadeo Development Cooperative for coffee beans trading and ground coffee processing. – 24 active farmers – 15 of whom are big farmers/millers, – pooled capital - P124,201.24 (US$2,700) – P 80, 000 sales per month of brewed coffee to the provincial government. (US$1,700) • 2009. 64 active farmers (of total municipality – 4,560) – Pooled capital- P4.2 million (US$ 91,300) – P2.9 Million gross sales (US$ 63,000) – Actively participated in various local fairs/expositions. – markets • Nestle Philippines, • Universal Robina Corp., • Figaro coffee shops • 5 market outlets, three (3) in Cavite, one (1) in Parañaque City and lately in San Fernando, Pampanga. • Hotels, restaurants, coffee shops, gasoline stations, souvenir shops, establishments that serve coffee. Café Amadeo • Products and Pricing (depending on packaging) – – – – – – “Cavite Pure” (US$ 8.90 to US$ 9.46/ kg) excelsa variety; “Pure Arabica”, “Pure Robusta”, (US$ 5.33 to US$5.87/kg) Pure Liberica” two blends: (US$ 6.31 to US$ 6.85/kg) • “pahimis” blend (combining the four varieties of robusta, arabica , excelsa and liberica, • premium blend for the US market, combining robusta, arabica and excelsa. Café Amadeo Café Amadeo • Packaging: jute bag, paper box, foil and ordinary clear plastic bags, from 225 g, 454 g. to 1 kilogram. • Cafe Amadeo, USA, an individual enterprise, RA Enterprises, owned and managed by Ms. Olive Arias also of Amadeo, has recently penetrated the US Market with its beans and ground coffee. • Café Amadeo – a franchising coffee outlets (see also, Cafe Amadeo USA in http://cafeamadeousa.i.ph/photo/calliope.php?g2view=core.) Philippine Wine Industry • Philippines amongst the top 3 highest consumers of gin, rum and brandy all over the world. Brands like Ginebra Gin from the San Miguel Group, Tanduay Rum from the Lucio Tan-owned Tanduay Distillers and Emperador Brandy from Consolidated Distillers • Despite its 90 million population size, wine consumption in the Philippines does not even number among the top 100 countries. • Per capita wine consumption (7.3m.) below a tablespoon – Luxembourg, world’s highest wine per capita consumption of over 61 liters. • • References: from Sherwin Lao, a wine consultant, in “Analyzing the Philippine wine industry” http://www.manilastandardtoday.com/insideLifestyle.htmf=2009/december/15/lifestyle1.isx&d=/20 09/december/15), • The Philippine Wine Industry blogs.inquirer.net by 2007-10-31 10:58:40 and from China Wines Information Website, http://www.wines-info.com/Newshtml/200710/1892007103110584082.html) Philippine Wine Industry • Annual sales turnover: – around P1.5 billion (US$333 million) 2008. • 100 % of grape wines imported from – – – – • over 70 registered wine importers, 300 different brands, 5,000 different wines 17 different wine producing countries. Trend: increasing – between 2000-2005, average annual rate of 13.4 percent – From 2005, increasing by 6% • Leading companies in 2005 – Brumms Quality Wines, Inc. – E. & J. Gallo Winery – Robert Mondavi in third place. Philippine Wine Industry • Wine production confined to niche producers – wine from domestic crops, such as mango wine and rice wine. • No significant wine producers in the country with at least 10% market shares. • Philippine wines are considered as novelties. Philippine Wine Industry • Markets. – women and young urban professionals • Target – 12-15 percent of the 90M population, – Upper and middle income classes from Metro Manila, and the other key provincial cities like Cebu and Davao, and tourist area like Boracay. Philippine Wine Industry • Product Mix • Higher valued wines - slow but steadier shift from 2001 to 2008 • Still wine - 97 percent of the wine market. • The disparity in excise tax (RA 9334, 2005) makes it prohibitive for consumers to buy sparkling wine as compared to still wine. Philippine Wine Industry • RA 9334 – P146.60/liter on sparkling wine, classified as luxury good if with net retail price of P500/bottle and below, – P436.80/liter on sparkling wine with NRP above P500/bottle— – P17.37/liter on still wine – 7% on imported wines; 3% on grapes concentrates • Before RA 9334, – 5% on imported wines – 50% tariff for wines • Net duty for locally-produced wine is higher than imported wine which total tariff is only 7 percent. Philippine Wine Industry • Still wine, – Red: over 87 percent – White: 12 percent – Rose/pink: less than 1 percent • Popularity of red wine is due to many factors, foremost of which is the belief in red wine’s healthier and “good for the heart” qualities and sweeter Philippine Wine Industry • Market share 2008. (from the National Statistics Office) • American (Californian) wines – – over 38 $ share in volume – 41.6 % share in dollar value. • Australia, – 15.4 % in volume – over 21-% share in dollar value. • Spain – – over 11 % in volume – 7.14 % share in dollar value – Declining growth Philippine Wine Industry • Market share 2008. (from the National Statistics Office) • Chile, – 8.3-% share in volume – 5.5-% share in dollar value – 100% increase (2003-2008) • France – 5.7-% share in volume – 8 % in dollar value – Increased 50% in 2008. • Argentina – 54% increase (2007-2008) Novellino Wines. “Igniting new passions in wine” • Novellino is diminutive for Novello, a little town in the Piedmont region of Italy, home of Novellino's winemakers. • The name also describes the innovative nature (novel) of the wine a well as its Italian character. • Novellino is a licensee of a U.S. company. It is the first of its kind and the only one in Southeast Asia. • From Interview of Mr. Quimbo, owner, by Bernie CahilesMagkilat, in “Novellino Wines”, Manila Bulletin, Thursday, April 23, 2009, from http://aralingpinoy.blogspot.com/2009/04/filipinoentrepreneur.html) Novellino Wines. “Igniting new passions in wine” • To suit the Filipinos' taste preference, Bel Mondo Italia Corp. (BMIC) specialized in red wines, sweeter than the dry wines – Filipinos are not traditional wine drinkers, not accustomed to the bitter taste of dry wines. – Imported wines are fermented from 12 percent to a high of 14 percent alcohol content; – Novellino ferment only between 4.5 percent to 9.5 percent alcohol content The sweet bubbly character of its wines is a reflection of the festive colorful mood of Asian gatherings and festivities and gives it the ‘user-friendly’ taste profile that Asians enjoy in every occasion. Wine is a lifestyle product to most Filipinos not a staple Novellino Wines. “Igniting new passions in wine” To suit the Filipinos' taste preference, Novellino wines are best served chilled, ideal for tropical climate. Its naturally sweet taste and light texture is enhanced when the wine is chilled before serving. • Novellino wines are made from pure and natural 100% vitis vinifera grapes – Grape concentrate is sourced from Italy. – Wine bottle imported from Italy Novellino Wines. “Igniting new passions in wine” • • • • • • • 11 varieties from 4 in 1999. 8 are bottled locally: Rosso (Red) Clasico Bianco (White) Clasico, Rosso (Red) Tradizionale, Rosso (Red) Vivace Bianco (White) Vivace. • Imports dry wines Novellino Wines. “Igniting new passions in wine” • Currently perfecting technology for sweet wine • Status: final stages of approval from the USFDA to enable it to export to the Filipino market in California. Novellino Wines. “Igniting new passions in wine” • Marketing: – Sampling events, supplying 20 sampling stations in supermarkets and malls nationwide in its biggest promotion. Pricing: comparable prices to the imported wines. Novellino: P200 (US$ 4.44) Imported wines: P275 (US$6.11). Novellino Wines. “Igniting new passions in wine” AWARDS: – 2002 Year Ender Excellence Award: Top Wine Brand of the Year; – 2003 Year Ender Excellence Award: Top specialty wine of the Year; – 2003 Consumer's choice Dangal ng Pilipinas Annual Award's Most outstanding Social Wine; – Marketing award in 2004 honoring the company's adroitness in maximizing Novellino's exposure to Filipinos. Don Roberto's Wine “A blend of Western tradition and Eastern bounty” • Secret fruit wine recipe from Belgium handed down through generations to the Filipino nuns using local fruits, such as strawberries, cherries and guavas • Mangoes : because the Philippines is one of the finest mango producing country in the world • 2001. Product launching of green (dry) and yellow mango (sweet) wine Don Roberto's Wine “A blend of Western tradition and Eastern bounty” • • 2002, Invited to become an active member of the Likhang Kabitenyo Foundation, Inc., an association of inventors and creative entrepreneurs of the Province of Cavite, the Coffee Capital of the Philippines, Pahimis festival, Mr. Castaneda came up with another unique wine which is made and fermented from a special blend of the finest coffee beans of Cavite. 2000. Roberto "Oby" R. Castañeda set up Don Roberto's Winery at his residence at Toclong First, Imus, Cavite. Don Roberto's Wine “A blend of Western tradition and Eastern bounty” • Sources of fresh mangoes – Province of Zambales in Central Luzon, to Batangas, Southern Luzon, from January to June – Islands of Visayas and Mindanao for the rest of the year. • Marketing: – through distributors – Mr. Castaneda promotes his products • • • • on line, press releases guesting on TV and radio; lectures to entrepreneurs nation wide through the Department of Trade and Industry exposure. EXPORTS TO: Korea Singapore Vietnam Don Roberto's Wine “A blend of Western tradition and Eastern bounty” • Packaging: uniquely packaged in black conical bottles with attractive labels. • Pricing: The retail prices ranges from P675 (US15) to P725 (US$16) for a 750 ml. and 75 cl. bottle containing 12.5% alcohol,, Don Roberto’s Mango Wine has an exquisite, exotic smooth taste. • Product Quality • Wine production goes through a rigid analytical and quality control (from choosing raw materials, fermentation to bottling) in the production: sugar and alcohol content, shelf life, Don Roberto's Wine “A blend of Western tradition and Eastern bounty” • First Prize-Gold Award in the prestigious FINAT International Label Competition 2003 which was held in Vienna, Austria, June 4-7, 2003. • Trophy & Certificate of Merit for Packaging Excellence known as the PHILSTAR AWARD by the Packaging Institute of the Philippines, September 25, 2002 at the World Trade Center of the Philippines. Comparative Branding Strategies The national as well as the local brands for both products, coffee and wine anchor their branding strategies on product quality, from the choice of raw materials, to processing and packaging. “imported” vs. Filipino image – Novellino adopts the traditional western wine products using imported Italian grapes to the Filipino palate, – Don Roberto's wine uses the mangoes using Belgian wine making to produce a uniquely Filipino novelty wine. – Mocha Blends:mixed Filipino and Italian blends –Cafe Amadeo, Filipino pahimis blend; with the addition of the local liverica coffee to add aroma; US taste for its premium blend Comparative Branding Strategies Packaging and Pricing • Don Roberto uses a unique and attractive collector's design item, with its black conical wine bottle and • Novellino uses wine bottles imported from Italy. Even its company logo colors suggest the Italian Flag. • Cafe Amadeo has a unique packaging in the use of jute fiber sacks, a very “native” image, but it also packages its products in common plastic, brown and aluminum bags. • Don Roberto's wine is priced three times Novellino's • Café Amadeo price compares with other brewed coffee brands, (Nescafe Folger’s, Starbucks) • ALL capitalize on the origins of their products. Successes and Failures • PROBLEMS OF SMEs – From the Cavite MSME Summit (Cavite Chamber of Commerce and Industry, Provincial Government of Cavite participated over 1,100 entreprenuers, by –Streamlining business registration processes –Reducing the costs of doing business –Good housekeeping Successes and Failures • Success criteria for this study: – Market expansion • local to Metropolitan Manila • Exports – Availability of capital – Acceptability or marketability – Compliance with all the government regulations – Consistent quality Successes and Failures • 125 listing for one-town one-product program - 73 are owned /managed by women. PCCI-Cavite – Obrang Kabite – 4 from the 21 obtained quality approval - 3 women owned and managed - 1 stopped production, 2009, women owned “ Cavite Province – Cavite Brand – 18 were promoted by Cavite Province . - 7 from original list - 11 were new entries. Cavite's brand campaign won 2009 Tambuli Awards – unique place brand Successes and Failures • • • • Don Roberto's mango wine leapfrogged from a highly personalized distribution networks to exports, Novellino's which expanded through the supermarkets. Cafe Amadeo marketed its products to various outlets which served coffee. Mocha Blends, set up its own coffee shops Successes and Failures Many of the producers remain in the local market. 1. Their investible funds cannot cover the costs • • • Increased production, Packaging Licenses that will be required by institutional markets. Successes and Failures Don Roberto’s Wine Products: • 2 years to get FDA approval, • Questions raised on the nature of the raw material (“coffee not a fruit”) • Sugar content of coffee as the main ingredient of a wine product • For IP registration, the main issue was getting ahead. – – At the time of application, there were two other mango wine submissions, Distilleria Limtuaco, who made mango rum instead, and the UP College of Agriculture. IP registration not enough, the labels needed to get copyrights, which was released within three weeks, payments per color type Successes and Failures Processed Meat Product. - Appropriate packaging for the supermarket is expensive. - The cost of plastic bags and labels came to almost fifty percent of its current production cost of a 100-gm package. - To reduce this cost in relation to the total production cost, production has to be doubled - To double its production capacity, mixing and meat grinding have to be mechanized. Consistency of product size. - • Pork sausages were made of intestines Food and Drug (FDA) registration remains to be the biggest hurdle. – – The enterprise will need capital for a sanitary kitchen Disclosure of the products' ingredients, which the owner is wary about. Successes and Failures Herbal Food Supplements - Current issue of the Philippine Department of Health to translate the label: “No therapeutic claim” into the local language, which literally translates back “The product cannot heal any ailment”, - Healing qualities malunggay (Moringga oleifera), garlic and ampalaya (bittermelon), ginger - FDA took two years for the producer of malunggay teas and capsules. Successes and Failures Pottery Products- Cornerstone Ceramics IP registration is expensive and not practical The products are uniquely designed Any minor change can easily be introduced on the product and will not protect their designs Bee Products not interested in expansion Successes and Failures IMPACTS OF FDA and IP Registration • increased sales can be assured since the products can be sold in supermarkets or exported • On economic development – – – – SMEs in the Philippines make up more than 99% of all businesses in the country, SMEs provide more than two-thirds of the country's employment, SMEs responsible for almost one-third of the country's income (Philippine Department of Trade and Industry, 2003) [i] Successes and Failures Both mango and coffee processors source their products from mango and coffee farmers, not only in the province of Cavite, Mango wine raw materials come from all over the country, due to the two pronounced seasons in the island of Luzon Cafe Amadeo directly benefits its 64 members through increased income, resulting from the marketing efforts, initially assisted by the municipal and provincial governments. Conclusions • SMEs need assistance – Product improvement – Packaging – Pricing – FDA and IPR – Financing Thank you!