Business tyro in Cebu puts faith in RC Cola

MANILA, Philippines - Dealership in beverages, particularly in the area of carbonated soft drinks, is a daunting task. From creating bodegas for bottle storage to investing in vehicles and ensuring that day-to-day operations run smoothly, the soft-drink business is indeed a challenging venture.  

And it becomes more grueling with huge market competition, especially in Cebu where a certain soft-drink brand had been lording it over the others for many years now. “It’s as if the brand already grew roots here,” says Ronald Po, an entrepreneur who used to work with SGV, an auditing firm, and who now serves as president and chief executive officer of Fiesta Beverage Corporation.

Regardless of the odds, Ronald and his team still went on to put up a cola business in Cebu for the first time in 2002 then hooked up with Asiawide Refreshments Corp. (ARC), the licensed manufacturer and distributor of RC Cola in the Philippines, a few years later.

“We used to be licensed with Cosmos (which used to distribute RC Cola) until it got sold to another bottling company,” he began. “When they pre-terminated the licensing for RC Cola, that’s when we thought of getting a license for RC.”

Po got in touch with Jerry Smith, president of Royal Crown Cola in the US. While talking to him, Po realized that Smith was already very familiar with the market, so he didn’t have much difficulty convincing them to give him the dealership of RC Cola in Cebu.

In fact, it was Smith who later referred him to ARC, a business venture put up by industry veterans Antonio Panajon, Gerry Garcia, Butch Aves and Fred Yao some seven years ago. RC Cola was still just another fledgling brand then. The rest, as they say, is history.

Last October, Po, representing Fiesta Beverage Corporation, together with ARC’s Yao and Garcia as well as Francis Lamprea, managing director of RC Cola International, signed a contract naming Fiesta Beverage Corporation as the licensee and official RC Cola bottler for the whole province of Cebu. Fiesta Beverage Corporation thus joins ARC’s wide network of local bottlers throughout the country who have all put their faith in ARC, and the people behind RC Cola, a great-tasting cola drink that offers value for money.

For Po, it was nothing short of a leap of faith when he decided to put up a bottling plant in his native Cebu almost a decade ago. He saw a need and an opportunity. Though he had worked in the corporate world before, he was first and foremost an entrepreneur. And so it seemed natural that he should decide to fill a void and venture into what he saw was going to be a profitable business.

“RC Cola offers value for money, and good quality at a low price,” he says. “And since the Cebu market is very particular about price points — wants a product with great value yet is affordably priced — I knew right then and there that what they were looking for is an alternative brand, so I had to give them RC Cola,” he beams.

After signifying his intention to ARC, Po started buying the necessary equipment to put up his bottling plant. It was a major investment, but one that Po was willing to make. He believed in the product. RC Cola has a taste profile that is different from its competitors and market leaders. It appealed to a mass base that responds positively to a unique, refreshing cola drink.

“It’s a niche player,” Po observed. “Today, RC Cola has a good following in Cebu, and to be the bottler of this popular brand was simply an opportunity I could not allow to pass.”

Starting a company is not easy, especially during difficult economic times. There were many challenges. “Every day was a challenge,” Po recalls. But he measured up and in 2003, Fiesta Beverage Corporation was incorporated. Po chose Compostela, north of Cebu City, as the site for his bottling plant.

“We’ve made bottling simple,” he says. “Here, we use state-of-the-art equipment and everything is automated.” Nonetheless, there is still a need for specialized manpower. “You can’t just hire anyone,” Po remarked. “You need highly skilled technicians with many years of experience.”

In time, Po rose to the challenges posed by the demands and logistics of working with returnable glass bottles. His bottling plant started operations in 2006 and he put production facilities closer to the local market. It improved point of sale and also reduced travel time and cost, compared to when everything was bottled at a central plant first before being transported nationwide.

“It would be logistically daunting considering that the Philippines is made up of many islands,” Po says. “But I’ve made my choice in RC Cola and the people behind the brand, and I’m sticking with them. After all, RC Cola is a winning brand.”