Cebu bakery industry is far from saturated

CEBU, Philippines - Despite the entry of well-known international and national bakeshop chains in Cebu, a homegrown baker that operates two bakeshop brands, Kate’s and Baker Bob, said business continues to thrive, owing to Cebuano market’s distinct taste in quality and affordability.

In an interview, Katherine Ko Cheng, owner of the Baker Bob and Kate’s Bakery Products Inc., said that Cebu market for bakery products is still profitable, provided that quality and constant improvement of products is implemented.

Kate’s Bakery store is located in two Rustan’s Supermarkets in Cebu—in Ayala Center mall and in Banawa, while Baker Bob Bakery is located in highly trafficked areas in the city, such as Talisay, Fuente Osmeña, Consolacion and Mactan Island (Mactan Export Zone).

According to Cheng, the bakery industry in Cebu is flourishing, although there are number of national and international brands entering the market.

In fact, she said the company is looking at opening the two brands for franchise packages, even though at present she is still perfecting the operational system in preparation for the expansion.

Growing out of a home-based operation in 2002, Cebu Baker Bob and Kate’s Bakery Products Inc. have grown to become well-known bakery brands in Cebu.

According to Cheng, critical to the company’s operation is the commitment to provide what the customer wants.

The company adopts a two-pronged product approach to differentiate the market and better serve its needs.

The Baker Bob brand carries products that are all-time favorites, satisfying the Cebuano during breakfast, dinner and snack time or merienda.

The Kate’s brand, on the other hand, is targeted to high quality and healthy products for the more discerning palates.

“The customer is central to our strategy.  Not only do we aim to provide the best quality products, we also serve our clients in stores with the ambiance that matches our company’s dedication to quality, service, cleanliness and value for money.  For example, our modern interiors in all our outlets are to express our dedication to cleanliness and quality,” she said. 

Cheng attributed their brands’ success, despite the stiffer competition, to their strong belief in providing fresh, quality baked products at a reasonable price.

“We will continue to develop our products and processes to serve our customers better. We seek to establish institutions and branches that will be profitable and beneficial not only to us but also to our business partners," Cheng said.

She said Baker Bob and Kate’s will strive to become a strong household brand trusted for its commitment to quality and freshness.  “We strive to make our products present at the breakfast table and merienda of each Cebuano family.”

"A 480-square meter commissary supports our current operation.  Our commissary is located at North Road, Tabok, Mandaue City.  It is committed to providing standard quality products and achieving optimum production efficiency."

Cheng has also created a research and redevelopment (R&D) facility in her company, to constantly provide the market with new products, including artisan bread collection, health-friendly bakery products, as well as  all-time favorites like “sapin-sapin”, among others.

Kate’s own mixture of homemade peanut butter has also gained popularity in both local and foreign customers, she said.

Cheng, who took up several studies on Baking Science in Europe and Thailand, believes that the bakery industry in Cebu is still offering opportunities for growth. The players however, will fight in the quality and affordability that will gain hold in the Cebuanos’ and the tourists' taste bds.

Since it started, the company has posted an average growth of 10 percent per year, an indication that bakery business in Cebu is still lucrative, she said.

Aside from Kate and Baker Bob brands, the company is also managing the Café Volere, a coffee shop located inside the Rustan’s Supermarket in Ayala Center shopping mall. /JMD (FREEMAN)