Creating jobs through pedicart venture

MANILA, Philippines - Despite its dominance in the supermarket sector, Gardenia Bakeries Philippines Inc. added a new market for its products through the pedicart outlets, a three-wheeled bike that has a cart capable of carrying 50 loaves to be sold in Metro Manila villages and communities just like the ice cream companies had done.

“Actually this is our CSR (corporate social responsibility) program so we can provide jobs to the unemployed and under-employed at the least possible cost to them,” explained Gardenia general manager Simplicio Umali Jr.

The company will launch 200 pedicarts initially (but this will be 1,000 by end 2010), each costing the company P20,000 to P25,000 (including the sound system with two sets of jingles that will be played throughout the ride) and these carts will be lent out to would-be entrepreneurs who just need to post a P5,000- bond plus the revolving fund for the 50 loaves of P2,500 which will be replenished each day. By selling 50 loaves the vendor will earn P378 a day.

Initially, the loaves to be stocked in the pedicarts are the products that the company thinks are bestsellers. “But if the vendor finds that his/her market requires another type of bread then he/she will recommend to us and we will make the appropriate changes,” Constancia said.

Umali admitted that Gardenia is not initiating anything new. “This is a tried and tested model used by the ice cream companies and which we discovered people have grown used to each day. They don’t have to buy small pieces of ice cream cones from the stores anymore as they just wait for the bikes with the particular jingles of the ice cream companies.”

Constancia explained that interested vendors can just submit or call (8898890) about their intention to join and identify which communities they will cater. “We can help them locate our territorial franchisee in their area where we will drop the breads each day. If none, then we will deliver right at their locations,” he added.

The carts can operate in crowded areas like churches, plazas, markets, villages or even in locations where events (including political campaigns) are being held. During lean days, the carts can go around villages or schools.

Gardenia now holds 65 percent of the supermarket sales for bread (estimated at P5 billion a year). Last year, with the global economic crisis, the industry had a flat growth but Gardenia continued to grow by two to four percent. This year, the company expects to grow by about 35 percent owing to the improved economic conditions here and abroad, the political spending and fairly better prices of ingredients, Umali said.

It also plans to sell to panaderias or small bakeries the frozen dough which can be baked right at their ovens everyday so the bakery owners can focus on high-yield breads (those they sell for P1 a piece that people have grown used to and for which they earn more), Umali said.