Gardenia Bakeries projects 20% sales rise in 2013

Gardenia Bakeries Philippines Inc. is projecting a sales growth of 20 percent in 2013 on the back of expected continuous strong consumer demand for its products. In a phone interview, Gardenia Bakeries president and general manager Simplicio Umali Jr. said that the projection comes from an expected 10-percent rise in demand for existing products combined with the sales of new products that are still under development but will be launched next year. Despite a generally positive outlook next year, Umali said the company's exansion plans are still on due to logistical issues. "We are carefully planning it," he said. "We are also tying up with shipping companies to ensure the flow of our distribution, particularly in Visayas and Mindanao. The cost of shipping, particularly in RORO [roll-on, roll-off ships] is expensive. It's difficult to ship out of Cebu," Umali added. Gardenia's Lapu-Lapu City-based manufacturing plant, which started operations in January 2011, has been serving parts of Visayas and Mindanao, while Luzon is served by its plant in Laguna. Umali said sales in Luzon for 90 percent of Gardenia's total sales because of a well-developed consumer base. "But we expect demand from Visayas and Mindanao to increase to 15 percent next year," he said. — BM, GMA News