Engkanto: the beer brand taking on the world

Welcome to Engkanto, the Filipino beer brand taking on the world

By Cody Profaca

Drinks Trade (Australia)

Dec. 20, 2024

Since launching in 2017, Philippine beer brand Engkanto Brewery has been making waves globally, shining a spotlight on Filipino craftsmanship in the world of beer. This includes major accolades at both the World Beer Awards and the Australian International Beer Awards.

In May this year, Engkanto Brewery expanded beyond Asia for the first time, entering into the Australian market in partnership with importer 7000 Islands Drinks. One month later, it also entered into the US market.

According to Ricard Basora, Engkanto’s Managing Director, the recent accolades and global recognition has positioned Engkanto up for continued growth.

“Who would’ve thought that a small craft brewery in the Philippines can reach the highest level in brewing the World’s Best Beer, right?” he said.

“The team’s putting in amazing work while sticking to our roots: quality first. We’ve been winning awards for consecutive years, but we’re not stopping in making the best beers possible.”

Michael ‘MJ’ Jordan, Engkanto’s Brewmaster, added: “I'm super stoked and proud of this accomplishment. The fact we're using honey sourced from Baguio is so cool as it really lets the world know that we have top-class ingredients along with a talented team in our brewery.”

Included in the current Australian portfolio are three beers - Purple Ube Lager, Mano Nation Hazy IPA, and High Five Honey Ale - all of which are made from 100% natural raw materials sourced locally whenever possible.

The first of the range champions the ube purple yam, considered to be one of the most sought-after items in the Filipino cuisine.

The second release showcases the local carabao mangoes sourced from various fruit growing regions such as the island of Guimaras, the first Geographic Indication established in The Philippines.

The third release makes use of the raw honey sourced from apiaries in Baguio City known for tis subtle floral sweetness.

All three releases received bronze medals at this year’s Australian International Beer Awards, the largest annual beer competition in the world; while Engkanto High Five Honey Ale also clinched the title of World’s Best Beer in the Flavoured Honey and Maple Syrup category at the prestigious World Beer Awards in London. This solidifies Engkanto’s place as the most awarded craft beer brand from the Philippines.

Founder Ian Paradies says “Engkanto boldly presents a unique beer experience for beer drinkers.

“Our beers offer a unique experience with flavours rooted in Filipino heritage… with flavours from homegrown ingredients such as honey, mango, and ube,” he continued.

“We are excited to tell you that we are working on more native ingredients.”

The unique flavour profiles also make Engkanto well suited for food pairings. According to Siegrid Bacani, Founder of 7000 Islands Drinks, "it's a must: [This is] craft beer that is meant for pairing, which is what we are about at 7000 Islands."

Siegfrid Bacani recommends that the Honey Ale be paired with Filipino Lechon (Asian crispy skin roast pig), or a European-style pork hock; the Ube Lager with Filipino Kare-kare, a rich Malaysian Peanut Satay, or flavourful Indian Curries; and the Mango IPA with dishes such as fruit salads, ceviche, shrimp tacos, gorgonzola cheese, and buko pie.

When asked about its performance in its first seven months in Australia, Bacani says Engkanto's strong growth could be attributed to its uniqueness and pricepoint.

“Engkanto Brewery craft beers represent a premium imported beer option that is truly different on a retailer’s shelf and a venue’s menu,” he said.

This includes its positioning at “a price point that sits nicely between Japanese and Belgian beers,” as well as its strong poisitioning from a flavour trend perspective.

“As the Masterchef food trend spills over into beverages, Engkanto is bang on with a wide range of beer styles,” continued Bacani.

“Lager, Pilsner, Ale and Hazy IPA brewed with Ube, a distinctly Filipino staple that is the flavour trend of the year, and Guimaras Mangoes, which is the first region within the Philippines to receive an official geographical indication.”

As Filipino ingredients like ube and Guimaras mangoes take centre stage in the craft beer world, Engkanto Brewery promises more innovative brews in the future, carrying the spirit of the Philippines across borders.

“Personally, I can’t wait to get these Engkanto beers into our hospitality partner venues in 2025,” said Bacani.

Ricard Basora added: “For now, I just want to congratulate the Engkanto Team and share with the whole world that Filipino beers can be as good, if not better, than anything else.”

Since the successful launch of Engkanto, 7000 Islands Drinks has also added Destileria Barako and Bandoeng’22 to its growing portfolio, with the latter acquisition taking place earlier this month.

Explaining 7000 Islands, Bacani said: “I've always wanted to share with the world the flavours of my upbringing and what you'd find in our household food pantry; and [I’ve always] found aspects of our cuisine interesting, like how we balance the tastes of spicy, sour and umami in our food, and how this expresses differently when paired with beverages.”

Big Brands Are Getting More Asian Endorsers In Southeast Asia

Asian Endorsers Are Now More Sought-After Than Western Celebs

Rachelle Tonelada
Cosmopolitan Philippines
10 October 2024

Fair skin, blue eyes, and blonde hair—these were once the dominant standards of beauty in the Philippines. And it left those with morena skin, brown eyes, and dark hair feeling sidelined, despite these being the natural traits of many Filipinos. We can't deny it—people continue to buy into Western standards of beauty. It's promoted everywhere, from social media to billboards and magazines. But guess what? It seems like we're in a progressive era where beauty is no longer something the West gets to define for us. Instead, it's becoming something we're learning to embrace and redefine ourselves.

ICYMI, a recent report by Canvas8 titled "How are Southeast Asian shoppers changing luxury?" revealed a significant shift in the beauty landscape of Southeast Asia, including the Philippines. Brands are now featuring individuals with Asian features, replacing the once-dominant Western celebrities. This shift reflects a growing appreciation for local beauty standards and a move toward more authentic representation in the region.

Why Brands Are Getting More Asian Endorsers In Southeast Asia

"For the past two decades, the Asian economy has been continuously growing. The Asian luxury consumer has become a powerhouse (in) purchase and spending," says Jose Legaspi, former marketing professor at De La Salle University and a contributor of the Canva8 report. "Top luxury brands are now focusing their marketing efforts to sign up Asian endorsers that represent their current biggest market," Jose added.

The faces of renowned Western luxury brands such as Lancome, Gucci, Dior, and Valentino now include Filipino stars like Kathryn Bernardo, Anne Curtis, and Heart Evangelista. This growing trend is no coincidence, as Southeast Asia has become a booming market for beauty and luxury products, with the rise of UHNWI (ultra-high net worth individuals with net worth of at least $30 million or around P1.7 billion).

The SEA luxury market is projected to generate $16.01 billion in 2024, up nearly $2 billion from the $14.38 billion earned in 2022. This growth is driven by a rising wealthy population, with Singapore, Malaysia, and Indonesia leading as the fastest-expanding UHNWI markets.

Notably, Asia's UHNWI demographic has an average age of 62.6 years, making it the youngest globally. Southeast Asia is also becoming a top destination for HNWI's from other countries, attracted by the region's lower cost of living and opportunities to maximize their wealth.

The Power of Asian Endorsers

To thrive in SEA's market, brands must grasp the consumer behaviors shaping the region. Younger shoppers are increasingly influenced by pop culture, with a substantial portion of their purchasing decisions swayed by celebrity endorsements. Asian stars, in particular, play a pivotal role in driving this trend, as their impact resonates profoundly with these youthful and aspirational consumers.

More than 82% of SEA shoppers have made purchases based on celebrity or influencer recommendations. K-pop enthusiasts are known to spend between $300 and $2,200 on merchandise, albums, and concert tickets. The report cited an example which is the BTS x McDonald's collaboration, which caused several branches in Indonesia to temporarily shut down due to overwhelming demand.

In the Philippines, brands like Bench and Penshoppe compete to secure endorsements from top Korean celebrities, offering fan meetings and exclusive merchandise to enhance fan engagement. Local celebrities are also gaining traction in endorsements like BINI, securing top brands like Jollibee and Shopee.

For Gen Z, luxury spending is often a form of self-expression and loyalty to their idols. Whether it’s Thai actors, Korean K-pop stars, or local SEA celebrities, these endorsements heavily influence purchasing decisions. Aside from that, consumers expect deeper cultural relevance with the brand.

First Southeast Asian Disney Store opens in Manila

First Disney Store in Southeast Asia opens in the Philippines

Fe Almazan
GMA Lifestyle
October 2, 2024

The sole Disney Store in the region opens in Pasay City.

The first Disney Store in the Philippines and the only one in the Southeast Asia region so far has officially opened its doors in Pasay City.

Located at Level 1 of the North Main Mall of SM Mall of Asia, the Disney Store houses different products from beloved movies and shows of Disney, Pixar, Marvel, and Star Wars.

“In bringing Disney Store to one of the largest shopping malls in the Philippines, we aspire for it to become a welcoming retail destination where guests look forward to creating memories with their loved ones," International Toy World Inc. president, Rose Marie Dylim, was quoted as saying.

Disney fans will surely find solace in the Manila store as it showcases authentic toys, plushies, apparel, costumes, homeware, and other collectibles. There are also select products from Disney Parks.

At the same time, the store also features photo spots and sculptures of fan-favorite characters like the Disney Princesses, Frozen's Queen Elsa, Winnie the Pooh, Spider-Man, Darth Vader, and Mickey Mouse and Friends.

“We look forward to bringing the magic of Disney closer to home for guests of all ages, and creating happiness for them every day,” said Disney Consumer Products Asia-Pacific vice president for retail, Sara Grewal.

The Philippines Data Center Industry’s Meteoric Rise

From Paradise to Powerhouse: The Philippines Data Center Industry’s Meteoric Rise

Hazel Moises
W.Media
01 July 2024

The Philippine archipelago, once synonymous with idyllic beaches and coral reefs, is carving a new identity in the digital age. The country’s strategic location in Southeast Asia also makes it an ideal hub for regional data centers. With robust fiber optic connectivity and a network of submarine cables, the country is well-equipped to serve the data demands of the entire region.

The nation’s data center industry is experiencing an unprecedented boom, transforming it into a potential powerhouse for Southeast Asia’s digital infrastructure. This rapid ascent is fueled by a confluence of factors, a testament to the Philippines’ strategic positioning and its commitment to digital advancement.

The Philippines data center market is on a trajectory for explosive growth. Industry analysts at Mordor Intelligence predict a staggering market size of 954.22 MW by 2029, reflecting a robust Compound Annual Growth Rate (CAGR) of 13.93%. This surge is fueled by several key factors.

Firstly, the cloud revolution is seeing businesses migrate towards cloud-based solutions, demanding secure and reliable data storage facilities. This shift towards cloud computing necessitates a robust data center infrastructure to handle the growing need for data storage and processing. Secondly, the Philippine government actively fosters a favorable business environment for IT infrastructure development. Competitive business conditions with tax incentives and streamlined regulations create an attractive space for data center operators to invest and establish a presence.

In addition, the Philippines boasts a young and tech-savvy population driving a surge in digital adoption across various sectors. This creates a strong domestic market for data center services, further propelling the industry’s growth.

With this growing demand, the Philippines’ Department of Information and Communications Technology (DICT) is looking forward to a substantial increase in data center capacity in the country. DICT is anticipating a significant fivefold surge in data center capacity within the country, projecting it to reach around 300 megawatts (MW) by the year 2025.

Building on a Strong Foundation: Government Initiatives

The Philippine President Ferdinand Marcos Jr. supports the development of data center in the country. He noted that the projects would enable the Philippines to catch up with other countries in terms of digitalization. “This is important for us. We’re left behind when it comes to digitalization. That’s why the push for data centers, fiber optics and satellite is one of our priorities,” he said.

The Philippine government is also actively fostering a data center boom through a supportive regulatory environment. This drive is fueled by a desire to propel economic growth through several avenues: job creation, increased investment flows, and a robust digital transformation agenda. Initiatives like the National Broadband Program and the Digital Philippines campaign are directly aimed at improving the country’s digital infrastructure and nurturing the IT industry, including the data center market.

In 2022, the amendments to the Foreign Investments Act played a pivotal role in making the Philippines a more welcoming environment for both individuals and businesses in the digital sphere. These amendments, coupled with streamlined bureaucratic processes, significantly enhance the Philippines’ attractiveness to foreign investors, positioning it to capture a greater share of foreign direct investments. With this influx of resources and capital, businesses will have a greater capacity to implement advanced cloud technologies into their operations and services.

Data centers are a critical pillar supporting the government’s vision of a thriving digital economy, and various initiatives are actively propelling their growth. These policies are strategically designed to drive stronger economic expansion in the Philippines.

Local Titans and Global Players

The data center landscape in the Philippines is a thriving ecosystem brimming with established local players and international giants working in tandem. Leading the way are domestic companies like ePLDT, DITO Telecommunity, and Converge ICT Solutions. These homegrown providers possess a deep understanding of the Philippine market’s nuances. This local knowledge allows them to tailor data center solutions that perfectly cater to the specific needs of Filipino businesses, from expansive data storage requirements to ensuring robust cybersecurity measures.

International giants like ST Telemedia Global Data Centres are also recognizing the vast potential of the Philippines market. They are actively investing in building state-of-the-art data centers, bringing with them cutting-edge technologies and global best practices. This influx of international expertise creates a dynamic environment where local players can learn and adapt, fostering a spirit of innovation. The blend of local know-how and global experience fuels a competitive environment that benefits everyone.

Looking ahead, these companies are poised for further expansion. ePLDT, DITO Telecommunity, and Converge ICT Solutions are continuously investing in infrastructure development to extend their reach and cater to the growing demand for data center services across the archipelago. Meanwhile, international players are expected to establish more facilities, capitalizing on the Philippines’ strategic location and business-friendly environment.

Powering the Digital Archipelago: Sustainability at the Core

The Philippines data center industry isn’t just focused on rapid expansion, it’s prioritizing sustainability. Blessed with abundant renewable energy resources like geothermal and solar power, data center operators are increasingly incorporating these clean energy sources into their operations. This not only reduces the industry’s carbon footprint but also aligns with global sustainability goals and positions the Philippines as an environmentally conscious data center hub.

One recent example of that is the construction of the country’s first and largest hyperscale data center at the Narra Technology Park. This $2.7-billion investment will see a 300-megawatt (MW) data center built on a 47-hectare site in New Clark City (NCC), Tarlac. Notably, the data center will be powered by 100% clean renewable energy within the first five years of operation.

The Philippines data center industry is poised for a bright future. With the government’s unwavering support and industry commitment to innovation and sustainability, the Philippines is well on its way to becoming a cornerstone of the region’s digital infrastructure. This industry boom will not only power the archipelago’s digital transformation but also create significant economic opportunities and attracting investments. The Philippines is emerging as a major player in the global data center market. This rapid growth in the data center sector positions the Philippines as a key driver of digital transformation in Southeast Asia, fostering a more connected and technologically advanced region.

Luxury hotel in Cebu is 100% Filipino

This luxury hotel in Cebu is 100% Filipino

By Angelo Garcia
GMA Lifestyle
June 23, 2024

Filipinos are known to be hospitable and friendly people that is why tourists love visiting the Philippines. But when it comes to a luxury hospitality brand, there is no homegrown brand that comes to mind.

A new local hotel brand aims to change this and envisions itself to be the Philippines' premier hospitality company like Raffles Hotels & Resorts of Singapore and the Dusit brand of Thailand.

Its name is Fili Hotel, a name derived from the word “Filipino”.

“We call ourselves Fili hotel coming from the word 'Filipino' because we want to imbibe the Filipino culture and values, from the time you check in, the dining experience, and the stay experience,” explained Cristina Ong-Cruz, cluster director of marketing and sales of Fili Hotel, during a special media familiarization tour.

The 5-star hotel is under Robinsons Hotels and Resorts of Robinsons Land Corporation. It recently opened its first property in Cebu City, at the NUSTAR Resort and Casino complex, an integrated resort that has luxury hotels, a high-end mall, several premium restaurants, and a casino.

“I think one of the unique selling points of the property is we are fully Filipino owned. It's the first Filipino luxury hotel brand,” Cristina said.

Filipino hospitality

NUSTAR is situated on the Cebu South Road Properties fronting the Cebu Strait with views of Cebu City, Mactan Island, and the new Cebu-Cordova Bridge.

The lobby of the hotel is modern with Filipino touches like the solihiya wall dividers, which separate the check-in counters from the whole lobby. The geometric marble slabs flooring add an interesting pattern to the space. The counters are also made of marble in white and gray.

Just across the check-in counters is the Fili Lobby Lounge, a space that features furniture by Vito Selma and artworks by Jef Albea and Fidel Sarmiento.

What makes this hotel truly five-star is the 379 spacious rooms. From its deluxe rooms to the suites, the hotel is very generous with space. The deluxe seaview king room, for instance, is a one bedroom space with a living room, a dining area, a bedroom, a powder room, and a bathroom with a bathtub.

According to the hotel, the size of this type of room ranges from 41 to 47 square meters, which is very spacious in hotel room standards.

The room is modern and has that luxe feel and it features neutral colors with splashes of yellow and teal. The room also features Filipino paintings and banig-like wall panels. The bathroom is mostly white marble and features a white freestanding bathtub.

Aside from the deluxe rooms, the hotel also has the premier, suite, and villas. The suites can be rented for no less than six figures a night. The suite has a bedroom, a very spacious living and dining area, an office, a powder room, a kitchen, a walk-in closet, just to name a few.

For the amenities, the hotel has the Hagod Spa, a gym, the Fili Cafe, which is considered as the most extensive buffet restaurant in Cebu City.

“Fili Hotel stands as the first authentic Filipino five-star hotel in the country, offering guests the opportunity to immerse themselves in the luxury and warmth of Filipino hospitality,” says Alan Teo, CEO of NUSTAR Resort and Casino.

Food, casino, cruise

As mentioned above, Fili Cafe is the hotel's all-day dining restaurant. Many guests have considered its breakfast spread as one of the best in Cebu. It has a Filipino section that serves freshly cooked favorites like turon, kamote fries, and various kakanin. Of course, there's Pinoy breakfast staples like tocino, longganisa, dangit, just to name a few. There's also freshly made sikwate or Filipino hot chocolate.

The restaurant also has a Korean chef and there are quite a few Korean dishes from kimchi jjigae (kimchi stew) to gyeran mari (rolled omelette). The kimchi in particular is a must try. There are also Chinese dishes like dimsum and Western favorites like waffles, bacon, and sausages.

There's a cheese and fruit section that also has a variety of cheeses, yogurt, cereal, and in-season fruits.

Aside from Fili Cafe and Fili Lobby Lounge there are a lot of food choices to choose from located within the integrated resort. There's the world-famous Mott 32 from Hong Kong, the only branch here in the Philippines. This high end restaurant is widely regarded for serving “the best Peking Duck in Hong Kong” and it also serves various premium dishes like the barbecue Iberico pork with yellow mountain honey, lobster mapo tofu, black truffle siu mai, and crab meat fried rice with flying fish roe.

The casino is one of the many areas in the complex where guests can explore and even play and test their luck. The premium mall is where guests can splurge, shopping at luxury shops like Louis Vuitton, Dior, Loewe, Off-White, Burberry, Diagold, Tory Burch, Univers, among others.

The hotel also offers the Crucero sunset cruise which sails along the Mactan Channel and passes under the Cebu-Cordova Link Expressway (CCLEX). It offers cocktails and a relaxing cruise with views of Cebu City and Mactan Island.

38 Philippine companies in ‘Southeast Asia 500’

38 Philippine Companies Make It to Fortune's Southeast Asia 500

Story by Micah Avry Guiao

Spot.ph

18 June 2024

Fortune has unveiled its inaugural Southeast Asia 500 list—with 38 Filipino companies making the cut. San Miguel leads the pack by claiming a spot in the Top 10, landing ninth overall.

Prominent conglomerates and holding companies include SM Investments, JG Summit Holdings, Aboitiz Equity Ventures, Ayala, GT Capital Holdings, Alliance Global Group, Lopez Holdings, Filinvest Development, LT Group, and DMCI Holdings. These firms cover a broad range, from real estate to power and manufacturing.

The banking and financial services sector is also well-represented with BDO Unibank, Metropolitan Bank & Trust, BPI, UnionBank, Rizal Commercial Banking, China Banking, and Security Bank.

Each circle on the map points to the location of a company headquarters, while circle's size represents company revenue. PHOTO BY Screenshot from Fortune

San Miguel joins a diverse set of companies at the highest rungs. While the top one, Singapore's Trafigura is a commodities trader, the next two—Thailand’s PTT and Indonesia’s Pertamina—are both from the energy sector. Other industries include agriculture, retail, and manufacturing. Singapore stands out with five companies in the top 10 and a total of 84 overall.

"The Fortune Southeast Asia 500 reflects a dynamic and fast-changing region—one whose core economies are growing notably faster than those of Europe or the U.S. This is partly due to Southeast Asia taking on far greater significance in the global economy, not least because a host of Global 500 multinationals have shifted more of their supply chains to Southeast Asian nations," Clay Chandler, Executive Editor for Asia at Fortune, said in a press release.

He also pointed out that five companies on the Southeast Asia 500 were large enough to have made the 2023 edition of the Fortune Global 500.

Philippine companies in Fortune’s Southeast Asia 500 list

Here are the 38 Philippine companies included in Fortune's Southeast Asia 500, along with their corresponding spots on the list:

1. San Miguel - 9th place
2. SM Investments - 27th place
3. Manila Electric - 34th place
4. JG Summit Holdings - 55th place
5. BDO Unibank - 57th place
6. Aboitiz Equity Ventures - 59th place
7. Ayala - 70th place
8. GT Capital Holdings - 74th place
9. Jollibee Foods - 86th place
10. Cosco Capital - 95th place
11. PLDT - 97th place
12. Alliance Global Group - 100th place
13. Robinsons Retail Holdings - 105th place
14. Metropolitan Bank & Trust - 108th place
15. Globe Telecom - 111st place
16. BPI - 112nd place
17. PAL Holdings - 113rd place
18. Lopez Holdings - 122nd place
19. ICTSI - 145th place
20. DMCI Holdings - 159th place
21. LT Group - 169th place
22. UnionBank - 186th place
23. Filinvest Development - 189th place
24. Rizal Commercial Banking - 201st place
25. Monde Nissin - 205th place 
26. China Banking - 206th place
27. Century Pacific Food - 238th place
28. Basic Energy - 244th place
29. Security Bank - 267th place
30. Synergy Grid & Development - 286th place
31. Bloomberry Resorts - 307th place
32. Metro Retail Stores Group - 363rd place
33. Converge ICT - 389th place
34. Wilcon Depot - 398th place
35. D&L Industries - 404th place
36. Manila Water - 435th place
37. SSI Group - 473th place 
38. Digiplus Interactive - 482nd place

Celebrating Filipino Designs

The Filipino Design Studio: Proudly made in the Philippines

Manila Times
07 May 2024

RETURNING at Mega Fashion Hall this May 2 to 9, SM Megamall's Kultura Filipino Design Studio: Made in the Philippines edition is back and bigger than ever.

The event is a welcoming, community-based space that fosters connections between like-minded brands, dedicated to celebrating Filipino culture. The biggest Filipino Design Studio to date, the event is bringing together over 70 guest brands, house labels and social enterprises. With a focus on all things Pinoy from Barong Tagalog and modern Filipiniana to resort wear pearls and accessories and tropical home decor and wellness essentials, explore new, up-and-coming brands alongside familiar favorites.

As the brand continues to highlight products with a purpose, it has selected numerous brands, based on their commitment to environmentally friendly practices and support for local artisan communities. Social enterprise Hibla PH offers a range of apparel made from authentic Philippine textiles while also hosting workshops, focused on activities such as upcycling accessories and bracelet weaving.

Another example is Ruyág Native Products Manufacturing, which employs Bicolano artisans, who handcraft bags using natural materials to leave a lesser carbon footprint. Home decor and furniture brand Likha+Mundo scouts small, mom-and-pop craft businesses from around the nation, giving them a larger platform to share their creations.

This season's lineup is also set to feature handmade jewelry by Virtucio Fashion Designs and Mjorian, Filipiniana-inspired pieces by Raquel's Piña Cloth Products, C&C lifestyle and Handwoven Beauty; and home essentials by Woven, Dwellbeing and WIX Cozy Homes.

Other guest brands include Adela Puls, Amber & Anne, And Again Clothing, Binibini Marikit, Brave Story, D' Bayong Art Gallery, Ethnique, Idyllic Summers, Hibla Philippines, Lily Jewelry, Macopa, Masabel Iloco, Mjorian, Virtucio Fashion Designs and Ziya Style.

Meanwhile, house brands that the public can support include A-M and Ayesha Gemstones, Agsam Fashion Fern, Anmari & Co., Asnie, Asron, Aurea Pearl, Auro Chocolate, Barong Filipino, Barong Lumban, Berches Barong, Berches Filipiniana, Boho Manila, among many others.

Take a look at the full lineup. Discover and delight in local artistry at Kultura's Filipino Design Studio at SM Megamall from May 2 to 9.

Growing PH snack market in Asia Pacific

‘PHL snack food market will continue to grow’

BusinessMirror
April 29, 2024

The Philippines’s snack food market will outpace its peers in Asia Pacific, according to a Global Agricultural Information Network (Gain) report.

The Gain report said the local snack food market will experience “robust growth” at a compound annual growth rate of 8 percent through 2028, double the growth rate of the Asia Pacific region. 

“The Philippine snack food market, including both local and imported products, reached an estimated retail value of $2.6 billion in 2023,” the report read.

“Savory snacks dominated the market accounting for 70 percent of total sales and outselling sweet snacks.”

Among individual products, the Gain report noted that potato chips were the most widely consumed, followed by savory biscuits, nuts and seeds, filled biscuits, and puffed snacks. Collectively, these five product categories captured 75 percent of the entire snack market.

It added that established local companies hold an estimated 85 percent share, dominating the Philippine snack food market. Key players include Leslie, Monde Nissin, Republic Biscuit, and Universal Robina. 

As for imports, the Philippines purchased $380 million worth of snack foods from other countries in 2023. Baked snacks constituted the largest share (70 percent), followed by dried fruit, nuts, and seeds (15 percent), potato chips (12 percent), and popcorn (3 percent). 

“Despite regional competitors benefiting from zero-tariff trade agreements, more than 20 percent of these imports originated from the United States.”

Of the products imported by the Philippines last year, backed snacks topped the list at $265 million. Baked snacks include crackers and biscuits, cookies, and wafers. 

While the US was the fourth-largest supplier of the Philippines, the Gain report noted that 80 percent of baked snacks came from regional sources like Japan and South Korea, which benefit from zero-tariff trade agreements. 

Dried fruits, nuts, and seeds imports for use as snack foods totaled $57 million, with the US holding the top supplier position and capturing a 45-percent market share.

“Despite facing stiff competition from regional players, the United States dominated certain product categories like raisins and organic offerings (almonds, cranberries, dates, pumpkin seeds).”

The Gain report also said the Philippines saw its potato chip imports surge 42 percent year-on-year to nearly $40 million. Fueled by strong consumer demand, the import value growth was accompanied by a 30-percent increase in import volume.

The US dominated the imported potato chip market, capturing a commanding 65 percent share. 

“This success can be largely attributed to the established reputation of American brands like Frito-Lay and Pringles. PRC/Hong Kong/Taiwan (20 percent) and Malaysia (10 percent) follow, driven by Frito-Lay and Pringles, respectively.”

Retailers attribute the strong consumer preference for US-made Frito-Lay and Pringles potato chips to perceived differences in taste and texture, despite the price advantage offered by regional alternatives due to lower shipping costs and zero tariffs, according to the report.

The report also noted that upper and upper-middle income classes are the primary consumers of imported snack foods. Accustomed to consuming three regular meals daily, these consumers also engage in two to three snacking episodes.

“Consequently, they seek diverse snack options. While seeking value for money, they exhibit a willingness to pay a premium for high-quality products and demonstrate openness to exploring novel flavors and experiences.”

The Gain report was prepared by the Foreign Agricultural Service of the US Department of Agriculture in Manila.

Most Valuable Brands in the Philippines in 2024

From BDO to Puregold: These Are the Most Valuable Brands in the Philippines in 2024

Story by Currie Cator 
Esquire Philippines
27 April 2024

What exactly is brand value? Essentially, it's the monetary worth of your brand if you were to ever sell it, or allow any other business to use your name, logo, or identity. It defines the extent to which investors would pay you just to earn that right.

Ultimately, brand value starts with consumers, as London-based global brand valuation consultancy firm Brand Finance defines it. You could develop and grow your value, depending on how you address the needs and preferences of your customers with your services, technologies, and innovations, as well as your ability to adapt to fast-changing market trends.

In the Philippines, the brand deemed to be the most valuable is BDO Unibank, according to Brand Finance’s 2024 report. The Sy family-led bank toppled major telecommunications company PLDT, which held the top position for two straight years. According to the study, BDO’s value rose by 14 percent to $2.5 billion, enough to make it the country's most valuable brand.

From Brand Finance

In second place is homegrown fast-food chain Jollibee, whose brand value surged 51-percent over the past year, according to Brand Finance. Rising two spots from the previous year, the home of the beloved Chickenjoy's brand value is now worth $2.3 billion.

Meanwhile, the Ayala-led Globe Telecom kept its spot from last year and is still the third most valuable brand for the second year running, even with its brand value going down by four percent to $1.9 billion.

Rival telco PLDT, which was the previous the topnotcher, as well as the Bank of the Philippine Islands (BPI), completed the top 5 most valuable Philippine brands.

As Brand Finance revealed in its report, PLDT’s value was down by at least one-fourth or 25 percent, which is equivalent to $1.9 billion dollars. The Zobel family’s BPI, on the other hand, saw a 22 percent increase in its brand value to $1.5 billion in 2024.

A mix of banks, power distributor, oil company, and supermarket chain made up the roster of the 10 most valuable brands locally. These are: Metrobank, at sixth place, with a brand value of $1.2 billion; followed by Meralco with $0.9 billion; Petron with $0.8 billion; Puregold with $0.7 billion; and UnionBank with $0.7 billion.

This is the second year in a row that Puregold, the lone retail brand in the top 10, was included in the list of most valuable Philippine brands. In a statement, the company led by Lucio and Susan Co said  it was a "testament to the hard work and dedication of our team, as well as the untiring support of our loyal customers."

Strongest Philippine brands

Mang Inasal, which is under the Jollibee Foods Corporation, turned out to be the "strongest" among Philippine brands, based on Brand Finance’s study. It earned 86.3 out of 100 points in brand strength index (BSI). Given its vast store network in the country, it’s not much of a surprise that Mang Inasal garnered a perfect score in terms of brand familiarity. 

Following closely behind Mang Inasal are Bear Brand, Globe, BDO, and Jollibee, which round up the five strongest brands, the report said.

Unlike brand value that is heavily reliant on consumers, brand strength refers to the brand’s performance relative to its competitors. The BSI, which has a corresponding rating of up to AAA+, is used to determine how well the brands are faring in the industry, among other metrics.