Our condolences

This column has never been politicized, nor will it ever be, so I refrain from commenting on any issue that has been tainted, one way or another, by politics. It is strictly a business and leisure affair that I hope to maintain with my readers. Allow me, though, to just send our condolences to the bereaved family of the late General Angelo Tomas Reyes who perished by his own hand in the most unfortunate of circumstances. Although I do not personally know him, I would at times see the General in restaurants, dining unobtrusively though in high spirits with his family, while I was with mine. And he would always nod his head in recognition, always with a pleasant smile like one to an acquaintance, while I nodded in response to the kind gesture, appreciative of the gracious acknowledgement. It never went beyond that, and though we never really exchanged pleasantries, I will remember the Officer and the gentleman in him. I cannot let this tragic week pass without extending our family’s condolences to the gentleman’s family.

To his wife, children and grandchildren, we sincerely hope that your burden will ease soon and that only the happy memories of a loving husband, father and grandfather will linger with you.

A proudly Filipino enterprise

B&L (Business & Leisure TV show) had a chat with Splash Corporation’s chief financial officer and head of investor relations, Ms. Vicci Tomas regarding their capital expenditure program for 2011. I’m sure you’ve read about it in the news, but the phenomenal growth of Splash has amazed me no end, and to think that it all started in a backyard twenty five years ago with the collaborative efforts of the husband and wife team of the Hortalezas, both medical doctors.

Last year, the company registered a 15 percent growth, and their net income was four times that of 2009. This year, they are targeting 20 percent, and by all indications, they will get there.

They have allotted P426 million for capex, and Splash says they have the ready cash to support the program, so they do not need to borrow to finance their expansion for 2011. Splash is in the top 10 corporations that are in the personal care business, landing on 4th or 5th place, and preceded only by multinational companies. And this company is proudly Filipino.

This year, they intend to grow the participation of Splash in the direct selling business in the Philippines which is a P20 billion business. Last year, they registered a net income of P3 billion, and they hope to hit the P10 billion revenue mark in five years’ time. Now that they have boldly gone global with their recognizable brands (to Africa, Malaysia and Vietnam where they have set up satellite offices), they may do just that.

Back to basics for food

Climate change is really alarming, especially in how it has disrupted food production across the globe, resulting in spiraling prices. Floods in Australia during the summer months, a severe winter in Canada that frosted food crops, wiping out entire harvests, droughts in Russia and other parts of Eastern Europe. In Australia for instance, their normal output of 24 million metric tons of wheat has dwindled down to a mere 10 million, and Russia has decreed to stop wheat exportation, so wheat is now more precious than ever. Only the United States has a good production of wheat, but expect high prices for this staple to persist in 2011. The next harvest of wheat for the year will be in October yet, for the wheat planted in July, which is summer for most of these wheat-growing countries.

Our Philippine Association of Flour Millers (PAFMIL) says they have no choice but to import wheat, no matter how exorbitant the price would be. How would they bake bread without it? They are also urging the government to look into staples other than rice, as the global supply of this is also widely threatened. They suggest that we go back to basics like corn grits, cassava and camote which can be incorporated into rice as a viable extender. Root crops grow rather abundantly in many places here, even untended in the mountains, and maybe our food technologists can come up with more palatable applications for those who do not care for them in their basic state.

Back to basics. Why not indeed?

Speaking of the PAFMIL, their Exec. Director, Ric Pinca says that they just reported another incident of wheat smuggling to the BOC or Bureau of Customs. The importer reportedly declared their shipment at P240/metric ton, when it was purchased at P400/MT. The government loses at least P200 million in smuggling.

Still on the flour millers, their baking school which they conduct free of charge to benefit marginalized women and out-of-school youths is already ongoing. They go around the country teaching the science of baking to small bakeries to enhance their profitability.

Expansive Internet shopping now in the country

eBay Philippines has gotten off the ground, slowly and tentatively, but it’s getting there. The world’s largest e-commerce community, with 24.5 million users across the globe with sales of $2.6 trillion in 2010, has really invaded the country, and now some 300 towns across the Philippines have gotten into it. From their own survey, Metro Manila without a doubt tops the list, followed by Cebu, Davao, Cabanatuan and Baguio for the top 5 users in the country. Cabanatuan at fourth place was indeed a surprise.

Still on their Philippine survey, did you know that a piece of women’s clothing is sold at eBay every 3 minutes; a health or beauty product every three min. as well; a toy every four min.; a piece of jewelry every six min; a collectible every eight min; a mobile handset every 10 min; a book or magazine every 14; a PC or computer accessory every 15 min; and a camera or its accessory every 15 minutes?

Their Buyer Protection Program protects both sellers and buyers up to P11,200.

Did you know that the most expensive item sold on eBay is a private jet for US$4.9 million?

Now that they have successfully launched in the Philippines, they are looking to launch in India by January of next year.

Mabuhay!!! Be proud to be a Filipino.

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