Young capitalists aim to help promote Phl’s cacao industry

CEBU, Philippines - In support to the promotion of local Filipino products, a group of student-entrepreneurs find manufacturing and selling tablea confections as a budding business venture for start-ups.

As part of their business practicum course requirement, students taking up Bachelor of Science in Entrepreneurship and Double Major in Marketing and Entrepreneurship at the University of San Carlos decided to put up a business that aims to serve the best cacao products to the Cebu market at affordable rates.

The brains behind the “House of Cacao” are Mark Ynclino as president, Dianne Burgos as financial manager, James Carpo Yu for finance, Vic Cyril Chiong as operations manager, Katrina Jo Chua for operations, Guada Mae Labunog as marketing manager, Denver Jade Castrodes for the marketing department and Angel Diano as human resource manager.

In an interview with The FREEMAN, Ynclino cited that the start-up company intends to maintain the identity of cacao as the main ingredient of its innovated products that will suit the taste of Filipinos.

Their primary goal is to help the cacao industry in the Philippines and eventually create more jobs and encourage cacao suppliers to produce more in the long run.

Ynclino said that the group actually found the business successful since they were able to establish regular customers from the time they started last November 2012 and eventually realized that there really is a potential for cacao products.

About 50 to 60 percent of its total market share is accounted by its regular customers.

“At first, we began supplying online and then people started buying and now, they wanted more,” he added.

Evident to such was the 7th Entrepreneurs' Fair that was held last December 12 to 16 at Parkmall Cebu when the group produced just enough but were surprised when about 15 to 20 boxes were already sold out within 45 to 50 minutes.

The House of Cacao sold around 100 boxes and earned P33,000 during the five-day fair.

Its product line includes the Choco tablea moist sold at P55 for one piece and P210 for a box of 4, French macaroons sold at P55 for a box of 3 and P475 for a box of 30 and Cheese cake priced at P60 per piece.

Ynclino noted that the Choco tablea moist is considered to be the bestseller since the group sells 500 pieces of such product every week.

It is then followed by French macaroons of which 100 units are sold weekly while about 50 pieces of Cheese cake are sold every week.

With an initial investment of P280,000, the group invested on a production area at Escario, a stall inside their school campus, baking equipment and refrigerator.

The group maintains a monthly supply of 3 kilos of cacao beans for its production process that happens two to three times a week.

Its marketing strategies include social media advertisements particularly through Instagram and Facebook.

Ynclino shared that as business major students, they learned to run a profitable venture by increasing revenues while limiting expenses to maximize the profit for the stakeholders.

“Our plan is to save more with a low cost expense but gain more profit. We even do the dirty work so that we are able to save,” he said.

The House of Cacao was one of the two new enterprises that were awarded with financial grants from the Industrial Guarantee and Loan Fund - Student Assistance Grant for Entrepreneurship of the National Economic Development Authority and Development Bank of the Philippines.

To contribute to the initial capital of starting the business, they were given P150,000 to help fund half of their total project cost but the group actually declined such offer to have their own sense of independence but thanked the agencies for the opportunity. 

Amid the tough competition with well-established industry players, Ynclino said that the group take it as a challenge to push through with the enterprise even if they are new in the business arena.

Since their stall is located inside the university where there is a limited spending capacity for its prospective buyers, the group is hopeful to put up a mall shop by June to widen its reach to its target market. 

They also plan to hire one or two additional employees by the next semester to increase their business operations. 

The environment-friendly business aims to improve efficiency in the organization through constant training and seminars.

The group also supports energy conservation and environmental protection, thus discouraging plastic use as packaging of products and promote efficient energy utilization.

They further believed that the baking industry is a progressive segment in the food and beverage sector given the love of Filipinos for desserts and sweets.

Ynclino then revealed that the entire group aims to continue the business even after graduation this October, branch out for expansion and market the House of Cacao as a Cebu brand in the near future.

“Every member of the cooperation will meet the dream of making it in the food industry in Cebu. We want everyone to experience the taste of dark in its sweetest sense,” he concluded.  (FREEMAN)