Leading the way to innovation and change

I recently got the chance to have an inspiring conversation with my good friend, Alfredo Yao. He may not be well known to many Filipinos, but he is the founding chairman who pioneered the phenomenally successful Zest-O Corporation, a leading food and beverage Filipino company popular for consumer goods such as Zesto juice fruit drinks, One Iced Tea, Beam toothpaste and Quickchow Noodles, among many others. He is highly regarded in the Filipino-Chinese community, having served as special envoy for Chinese Tourism Cooperation under the former president Gloria Macapagal Arroyo’s term, and an active member in various affiliations including the Philippine Chamber of Commerce and Industry where he is vice president.

An entrepreneur par excellence, Alfredo Yao has carved a name in Philippine business through his trailblazing endeavors in various fields such as printing, packaging, food and beverage manufacturing, real estate development and banking. He holds the chairmanship of various other companies including Semexo Marketing Inc, Philippine Business Bank, Asia Wide Refreshments Corporation and AMY Holdings Inc, to name a few. Concurrently, he is the president of Solmac Marketing, Inc, and SMI Development Corporation and acts as director for Export & Industry Bank. His most notable awards include the Ernst & Young 2005 Master Entrepreneur of the Year Award, the Most Admired Asian Enterprise Award for Innovation Category given by the Singapore Business Federation, and most recently, one of the recipients of the 7th Annual Tourism Awards given by the Tourism Committee of Rotary Club Manila.

Driven by innovation brought by the changing times, Alfredo saw the huge potential and the opportunity for growth in the tourism sector. Hence, his ambitious venture into the airline industry through Zest Air, Asia’s most refreshing airline. He speaks openly about his rise to the top, his vision for his growing empire, and his plans in helping in the advancement of the tourism industry.

Every successful entrepreneur has a story. How did you start out in business?

My father died when I was very young and my widowed mother, the late Soledad Macam, gave us the inspiration and courage to persevere and overcome personal and financial obstacles. I started out in the packaging business by producing wrappers for candy manufacturers. Luckily, the success of this small enterprise opened doors for me to look into other aspects of commerce. One thing lead to another and I was able to grow the business to what it is today.

Zest-O Corporation has successfully grown to become a leading food and beverage Filipino company. What are the essential keys to its success?

As I have always said, hardwork, perseverance and foresight, plus having the right people working with me to develop and sustain the business are key elements to my success.

You have gone a long way in your career. What do you consider your greatest achievements so far?

I would consider my greatest achievements to be the continuing success of my various business ventures. The challenges I faced on some of these investments in the beginning sometimes seemed insurmountable. But with hard work and perseverance, I was fortunate enough to make them all profitable. To be able also to provide employment for all my people from the different companies and to help develop their talents are also sources of pride. These achievements actually serve as a beacon for me to accomplish more goals and do better with every endeavor that I undertake.

As an astute businessman, what made you decide to do the gigantic leap from the food and beverage industry to the field of aviation?

More and more people are realizing and enjoying the convenience of air travel. Flying, like in developed countries, has become an integral part of people’s daily lives and continues to be so. Gone were the days when air travel was considered a luxury. The predominance and growth of low cost carriers in the last decade have given everyone the chance to fly with affordable fares. Aside from the business opportunities that come with a robust industry passenger growth, there is a need to further develop Philippine tourism. Tourism brings jobs and opportunities to our country which is rich in natural resources and beauty. These economic and social opportunities in turn, will improve Filipino lives.

I understand Zest Air is an acquisition from an old airline company. What changes and improvements did Zest Air undergo in terms of service and management practices?

We discarded all the old planes from the old airline and acquired a series of brand new Airbuses and Modern Ark 60s to revitalize and improve the fleet plan. It is part of our vision and mission to satisfy our customers through product and service innovations. It is our desire to provide a satisfying experience for each and every one of our passengers and gradually obtain their loyalty to our brand. In terms of management practice, we introduced best practices to change the status quo and improve organizational functioning. 

What is your vision for Zest Air?

My vision for Zest Air is to become the most refreshing airline of choice, providing world-class service to our customers whom we see as the essence of our operations. Zest Air will reflect our support and unwavering commitment to satisfy our customers and make a difference through industry innovativeness and professionalism, paving the way for social development and as a vessel of Corporate Social Responsibility (CSR).

Marketed as Asia’s most refreshing airline, how do you classify Zest Air when it comes to its offerings? Do you intend it to become a budget-friendly airline?

Zest Air provides very affordable prices that are within reach of Filipinos. Despite stiff competition, we are doing pretty well. We do not intend to fight head on with our competitors but instead to differentiate ourselves from them. We have recently introduced new products such as the Voyager Pass, a booklet with 11 one-way flight coupons sold for travel to any Zest Air destination The Voyager Pass makes it very easy and convenient for a passenger to travel by writing his or her own ticket. All they have to do is just call our reservations hotline. We also have the popular Voyager Card, a privilege card that provides card members discounts, freebies and other perks by mere presentation of the privilege card to member establishments. These two distinct products enhance the customer experience and help us fortify our branding efforts.  

At present, how many aircrafts and destinations do Zest Air offers to its passengers?

We currently have 5 Airbus 320s, 1 Airbus 319 and 4 Modern Ark 60s in our fleet. With the recent addition of Cagayan De Oro, Zamboanga and General Santos, Zest Air now flies to a total of 23 domestic destinations. It flies five times daily to Cebu, and thrice daily to Davao and twice daily to Bacolod, Iloilo, Tacloban, Tagbilaran and Puerto Princesa. It also has regular flights from Manila to Kalibo, Legazpi, Busuanga, Calbayog, Catarman, Kalibo, Masbate, Marinduque, San Fernando, La Union, San Jose, Occidental Mindoro. International flights take passengers to Incheon and Pusan in South Korea and to Shanghai, China.

What are your upcoming plans for Zest Air? Any plans on adding routes to the airline’s current international destinations, and acquiring new aircrafts?

We have just acquired our new airbus this week and still waiting for another one before the year ends. Aside from this, we are planning on getting 2 B777s for our long haul flights to the Middle East. This year, Zest Air is also set to inaugurate two new flights: the Beijing to Kalibo route starting in October and the Cebu to Shanghai route starting July 2. Internationally, we are looking into Singapore, Thailand, Malaysia, Japan.

You are known to be one of those business leaders who integrate their personal social responsibility to corporate social responsibility (csr). How do you live this advocacy?

As my way of thanking and giving back to various individuals who have helped me along this road to success, I decided to pay it forward by giving assistance and help to those in need. Aside from creating scholarship foundations for deserving young people who want to make a difference through education, I’ve extended my unwavering support to social and civic institutions such as Mother Earth, Maraming Bayani (Many Heroes) Foundation, Gawad Kalinga (Gift of Care), Operations Smile, among many others.

To foster sustainable living among marginalized sectors, my company turns over used doy Zesto packs to Gawad Kalinga, enabling the organization to provide employment to the depressed communities by having them use these waste materials in the manufacture of attractive bags which are to be sold in the public. Zest Air also sells this merchandise in their ticketing offices and as part of their in-flight merchandise selection. Proceeds from the sales of these goods go to Maraming Bayani Foundation, which also distributes these products.

By the way, I would like to congratulate you for being one of the recipients of the 7^th Annual Tourism Awards recently given by the Tourism Committee of Rotary Club Manila. As I understand, these awards are given only to those who have greatly contributed to the advancement of the tourism industry. What can you promise us Filipinos?

I am very grateful and humbled to receive this prestigious award. It gives me a great sense of accomplishment because I know I am doing my part in contributing to the growth and development of tourism in this country. My continuing commitment to Philippine tourism is anchored with the hope of improving our national economy and consequently, the lives of our fellow countrymen.