Universal Robina investing P1B in soy milk factory

Universal Robina Corp. (URC) is investing around P1 billion to build a manufacturing facility for soy milk brand Vitasoy and take advantage of the growing demand for healthier products.

“We have a new factory [for] Vitasoy, it’s being constructed in Pampanga,” URC chairman Lance Gokongwei told reporters on the sidelines of the company’s annual stockholders’ meeting in Quezon City on Wednesday.

Gokongwei said the facility is expected to be operational by 2019.

In February last year, URC forged a joint venture deal with Hong Kong-based Vitasoy International Holdings Ltd. on selling plant-based beverage products in the Philippines.

The agreement with the Vitasoy group involved the establishment of a production plant in the country. Currently, the soy milk drinks are mainly imported from Hong Kong.

“This is in line with the strategy to meet rising demands for healthier products,” Gokongwei said.

In the first quarter of 2018, URC saw its net income decline by 12 percent to P3 billion from P3.4 billion a year earlier, partly due to lower margins amid rising inflation and a weakening peso.

Gokongwei noted that the Vitasoy and water brands are not affected by the levy imposed on sweetened beverages.

The recently-enacted Tax Reform for Acceleration and Inclusion law mandates a P6 per liter tax on beverages using caloric and non-caloric sweeteners and P12 per liter on beverages using high-fructose corn syrup.

Previously, no health measure tax was imposed on sweetened beverages.

“We plan to bring the business back on track by growing topline at high single-digit,” Gokongwei said.

“I think we expect growth in terms of sales in the second half and towards the coming years,” he said.

Among the company’s main growth drivers are the snack business, noodles, and ready-to-drink products, as well as its operations in Australia and New Zealand. —VDS, GMA News