Universal Robina to boost beverage unit

By RUBY ANNE M. RUBIO, BusinessWorld Reporter Universal Robina Corp. (URC), one of the largest food companies in the Philippines, will continue to expand its market share aggressively in the local and Vietnamese beverage market by introducing innovative products and widening its beverage distribution network. In a talk with reporters, URC President and chief operating officer Lance Y. Gokongwei said the listed company will launch energy drinks and additional tea-based beverages this summer. It has completed the construction of a beverage production line in Vietnam. "We will be a growth driver in the large and growing ready-to-drink beverage industry. We will introduce new products: Bull fighter, an energy drink; a fitness drink called Rush and Teazz, which is a carbonated green tea which comes in four flavors: cola, raspberry, lemon lime and cola light. Definitely, the beverage division is the fastest growing part of URC," he added. URC has recently been successful in establishing a market presence in the Philippines beverage market after the successful introduction of tea-based beverages sold under the C2 Cool & Clean brand in 2004. Mr. Gokongwei said URC launched C2, a non-carbonated, tea-based beverage packaged in polyethylene bottles, in Vietnam this month. "The early signs seem positive. We are quite confident about the prospects of the product... We believe our main growth driver is the largest growing non-carbonated beverage industry. The phenomenal sales compel us to focus our efforts on expanding the category and defending our first mover advantage," he added. Early this year, URC raised P4.8 billion from the primary proceeds of its primary and secondary offer of up to 634.78 million common shares to partially finance its capital expenditure budgeted at P5.6 billion. The P3.4 billion will be used for the continued expansion of its branded consumer food operations primarily in a multi-product beverage line in PET bottles in the Philippines and Vietnam as well as additional snack lines in international markets of China and ASEAN (Association of Southeast Asian Nations) countries, particularly in Vietnam. Some P1.7 billion has been earmarked for the expansion of the raw milling capacity and a new refinery in Southern Negros Development Corp. (Sonedco), the additional manufacturing, machinery and equipment; and P317.1 million for additional manufacturing, machinery and equipment for URC’s agro-industrial division. Sonedco provides sugarcane milling services and trades raw sugar and molasses.