Bravo Bottlers Philippines, Inc.

In-Tray

Participant Booklet

2

Bravo Bottlers Philippines, Inc.

Instructions for the completion of this exercise In this simulation, you are one of the 6-member Strategic Turnaround Team (see Org Chart). Individually, you have to examine the available documentation and list down your proposed action plan for presentation to the Asia Division Director of BBPI. There is no other information available other than that provided. Use what you have and your knowledge of business strategy to determine what needs to be done. If data is insufficient or missing, you will need to make your own assumptions, but you must clearly indicate what the assumptions are and why you are making them. You will have up to two hours to read and digest the information, and to prepare your action plan before your meeting with the Strategic Turnaround Team. For the purposes of this exercise, the date today is:

APRIL 2014

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Your Brief The CEO of Bravo International, will be visiting the Region in two month’s time. The Philippines, being its most recent and largest beverage acquisition outside of Latin America, will be the first stopover. As part of the forthcoming trip, the Asia Division Director of Bravo Bottler’s Philippines, Juan Miguel Cortes has called for a meeting, the first of a series, to begin preparation for this very important business trip. Each team member was asked to prepare a presentation on key issues, objectives & strategies, and a status on pending projects, the best of which may be included in the 5-year strategic plan which is due in August. It was also stressed that this was an opportune time to showcase the progress the Philippines has made since the acquisition, including key business opportunities that will take the company closer to realizing its Vision to be the Bottlers of choice in the Asia Pacific region.

You begin to anticipate that the Strategic Turnaround Team will be called to develop the presentation. This cross functional team was created with a charter in 2005, amid a groundswell for more natural based ingredients in food and beverages, and a government mandate to eradicate malnutrition among schoolchildren thru the Department of Education. Since then, the team has been meeting regularly to discuss plans and strategies for special projects, like this one. As you have imagined, Jess Marquez, the Director for Marketing and Project Team Head requested you to prepare for the meeting and develop the presentation for Juan Miguel Cortes, which will happen exactly in a week’s time.

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Background Information The turn of the decade has brought on its heels an economic boom in the Philippines. In the last year, 2013, robust private consumption and investment drove GDP growth of 7.2%, well above the 4.7% average recorded from 2008 to 2012. The country's consumer spending was fuelled by two major groups, the Overseas Filipino Workers, (OFWs) which totalled $23 billion (2011) and the Business Process Outsourcing (BPO) which had projected earnings of US$11 billion. Strong growth is expected to continue with a forecasted GDP growth for 2014 at 6.4% and at 6.7% for 2015. From the production side, expansion was driven by services, manufacturing, and construction. Employment Rate is at 93.0% in April 2014 with Inflation forecasted to pick in the balance of the year.1

The Philippines' population is growing by around 2 percent annually, reaching nearly 100 million. Filipinos are known to eat up to five times daily, including snacks in between. Around 35 percent of the population is under 15 years old – a clear opportunity as this age segment is most attracted to packaging and sweetened food and beverages. Further, with the increased number of dual income households, there is a corresponding increase in demand for easy to prepare and packaged food products. It is also a known consumer habit that large numbers of young Filipino workers in the business process outsourcing are big regulars of western-style fast food, packaged convenience food and alcoholic beverages.2

Food & Beverage Retail Market

Based on the available syndicated market data of 2011, Supermarkets and hypermarkets, dominated the distribution of the US$9.1 billion packaged food market, followed by other grocery retailers and small grocery retailers. Grocery retail sales totalled US$32 billion in 2010, 67 per cent of the market dominated by other grocery retailers. Sari-sari stores, small independent stores, remained the largest grocery channel in terms of total sales. Spending on grocery products rose among middle and high income consumers in urban locations and while grocery retail sales grew by 24 percent during the period 2005-2010, hypermarket experienced the most rapid growth, 33 percent in 2010. Modern convenience stores are on the rise led by 7-11, Mini-Stop, Shell Select and Caltex Star Mart and they sell more quality imported products than the local equivalents. Independent foodservice outlets took up close to 80 percent of the foodservice market in 2010, with sales totalling US$ 8.2 billion. Jollibee Foods Corp has the largest market share followed by McDonald's Corp. 3

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Beverage Market Highlights The Filipino soft drinks market consists of retail sale of bottled water, carbonates, concentrates, functional drinks, juices, RTD tea and coffee, and other soft drinks. It posted total revenues of $2.8bn in 2012, representing a compound annual growth rate (CAGR) of 2.6% between 2008 and 2012. Market consumption volumes increased with a CAGR of 4.7% between 2008 and 2012, to reach a total of 5.2 billion liters in 2012. The performance of the market is forecast to decelerate, with an anticipated CAGR of 2.5% for the five-year period 2012 - 2017, which is expected to drive the market to a value of $3.1bn by the end of 2017.4 With a better economic backdrop and upbeat consumer confidence, soft drinks’ total value sales accelerated in 2013. Major categories like carbonates, juice, and RTD tea reported improvements in volume sales. Local consumers continued to purchase soft drinks as beverages to drink during snack times and meal times. According to latest research findings: 5 • The sales of carbonates in the Philippines continued to grow in 2013, with total

volume expanding by 4% and total value sales improving by 4%. • Sales of bottled water in the Philippines continued to grow, supported by the

increasing number of water-refilling stations that offered both bulk- and small-pack products. In 2013, it was estimated that total volume sales would inch up by 4% while total value sales reached Ps66.4 billion. The increasing household income among urban areas is instrumental in stimulating demand while the availability of affordable bottled water responded to this. Clean water is becoming a priority among Philippine households.

• In terms of total volume, the concentrates category continued to contract as more and more Philippine consumers shifted to smaller packs, called litro packs, from bigger-sized family packs. A litro pack contains 25-35 grams of powder concentrate, which can make a litre of juice or tea. Retailed at Ps8 to Ps10, these products are affordable and appeal to middle- and lower-income consumers. Because of this shift to litro packs, total volume sales of concentrates declined by 2% in 2013. (Liquid & Powdered Concentrates)

• Hot drinks volume sales improved by 7% in 2013 driven by the better economic performance of the country, which translated to more robust consumer demand. Hot drinks consumption is frequent, as manufacturers try to keep up with the faster paced lifestyles of consumers by offering convenient products. Interest in healthier alternatives in hot drinks also boosted demand in fortified products, green tea and fruit/herbal tea.

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• Though less popular than coffee, the local tea market continued to grow, buoyed by an increase in interest in the health benefits that these products bring. Over the review period, Filipino consumers are increasingly going “natural”, or resorting to natural medication instead of relying on synthetic medicine. Research has proven the efficacy of plants and herbs in the treatment of diseases, which has cemented Filipino trust in products made from natural plant ingredients.

• Buoyed by the increasing popularity of smaller-sized packaging, in 2013 the local RTD tea category recovered from the sluggish growth reported during the previous year. The category’s total volume ballooned by 13% while total value sales jumped by 16%. This expansion is backed by the popularity of leading brand C2 Solo, which has made RTD tea more affordable to Philippine consumers. Priced at Ps10 per 230ml, C2 Solo is a hit among middle-income consumers who prefer healthier beverages.

• After reporting a total volume drop of 2% in the previous year, juice recovered to be among the most vibrant soft drinks categories in 2013. Total juice volume ballooned by 8% supported by the products’ popularity among schoolchildren and the increasing health-consciousness in the country. Manufacturers continue to cash in on the local perception that juice is healthier than other popular soft drinks products like carbonates.

It should be noted that, in 2013, the Department of Education renewed its resolve to crack down on schools that continue to sell soft drinks and “junk food.” The DepEd first issued the order in 2005, but its implementing guidelines were released in 2007. DepEd Order No. 8 Series of 2007, Sec. 4.5, states that "the sale of carbonated drinks, sugar-based synthetic or artificially flavored juices, junk foods and any food product that may be detrimental to a child's health and that do not bear the Sangkap Pinoy seal and/or did not pass BFAD approval is prohibited." Whether this made a dent in soft drinks sale was not evident in the (CAGR) of 2.6% between 2008 and 2012, and remains to be seen as a driving factor in the forecasted deceleration of CAGR of 2.5% for the five-year period 2012 – 2017.

Key Players6

Bravo Bottlers Philippines, Inc. Of the three (3) major players, Bravo Bottlers Philippines, Inc. is the largest with 75% of the beverage market. In 2013, it was incorporated when Bravo International acquired it from the Bravo Cola Company. At yearend, it reported a revenue of US$2.15bn and a volume turnover of 530 million cases (24 pcs of 8 oz bottles/case). Its Vision is “To be the best bottler in the world, recognized for its operating excellence and the quality of its people.”

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Globe Food & Beverage Corporation Globe Food & Beverage Corporation in the Philippines, will be celebrating its 66th year in 2014. It is an independently-listed company and is co-managed by an Asian-based lead shareholder with the US based Globe Cola Company. It captures 17% share of the Beverage market with well-known brands in the sparkling beverages and stills segments. It has established manufacturing facilities across the country, serving at least 500,000 outlets. Its vision is to “Be the premier Food & Beverage Company in the Philippines.” Asian zest refreshments company In 2002, a group of credentialed businessmen pooled in their talent and resources to put up the Asian Zest Refreshments Company. Virtually the rookie in the beverage business, it’s banner brand, Viva Cola has captured leadership in the sparkling beverage segment in GMA, which in terms of area contribution is 35% of total country and in per capita consumption is 40% of this segment. Total Company, it now has 8% of the beverage market. It is the competitor to be watched considering that it still has a headroom for expansion with a market penetration 65% as of end 2013. Its Vision is “To be the lowest cost producer of ready-to-drink, non-alcoholic beverages and to be able to market products with the best quality and value.”

Sources:

1National Statistics Office; ADB. 2014. Asian Development Outlook 2014. Manila. 2-3Source: https://www.nzte.govt.nz/en/export/market-research/food-and-beverage/food-and-beverage-market-in-the-philippines/ 4 http://www.marketresearch.com/MarketLine-v3883/Soft-Drinks-Philippines-7823925/ 5 http://www.just-drinks.com/market-research/hot-drinks-in-the philippines_id208241.aspx 6http://www.femsa.com/en/business/coca_cola_femsa/philippines.htm; https://www.pepsiphilippines.com/company.php; http://www.arc.com.ph/aboutus.html

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Bravo Bottlers Philippines, Inc. In 1927, San Rafael Brewery Inc. (SRBI) became the first international bottler of Bravo Cola Company. In 1981, San Rafael divested its soft drink businesses to a new company named Bravo Cola Philippines, Inc. (BCPI). The company was established as a joint-venture between San Rafael Brewery Inc. (70%) and the Bravo Cola Company (30%).

In 1997, BCPI was merged into the New Zealand based Bravo Cola Limited (BCL). In effect, San Rafael exchanged its 70% interest in a Philippine-only operation (BCPI) for a 25% stake in BCL, which had operations in 17 countries--both in the Asia-Pacific region and in Eastern Europe. Shortly after, BCL divested its Eastern European operations into a U.K.-based firm called Bravo Cola Beverages and eventually San Rafael sold its stake in the new U.K. entity in mid-1998.

In July 2001, San Rafael, together with Bravo Cola Company reacquired BCPI with the Filipino conglomerate taking over a 65% stake leaving 35% with BCC. In 2007, BCC bought SRBI’s 65% shareholding in BCPI and subsidiaries for $590 million.

In January 2013, BCC announced that it had signed an agreement to sell its 51% stake in BCPI to Bravo International, a Mexican based company and the world’s second largest bottler of Bravo Cola. The agreement included the option for Bravo International to acquire the remaining 49% of BCPI within a period of 6 years.

Today Bravo Bottlers Philippines, Inc. is a premier manufacturing company of beverages in the Sparkling Beverages (80%), Stills (11%), and Powders (9%) segments of the market and serves 770,000 customers nationwide.

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Your Task: Examine the attached written briefs and internal memos from the different Departments. Prepare for a meeting with your cross-functional counterparts to develop the presentation requested by your Project Team Head in preparation for the meeting called by Juan Miguel Cortes. It should include the following:

1. The main issues and challenges that need to be addressed by the Strategic Turnaround Team

2. At least, top 5 priorities on how to address these issues, 3. Top 3 business development opportunities that you are confident should be part of

the Company’s 5-year strategic plan and identify one (1) firm project that the team can work on

You have two hours to prepare for the meeting.

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Your Task as a Group:

1. Discuss the main issues and challenges that need to be addressed by the Strategic Turnaround Team

2. Agree on the top 5 priorities on how to address these issues, including the top 3 business development opportunities that you are confident should be part of the Company’s 5-year strategic plan

3. Prepare a Market Gannt chart for one (1) firm project that the team can work on You have one hour to discuss and prepare the market gannt chart.

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To : Jess Marquez Date: 7 April 2014 From : Juan Miguel Cortes cc : M. Ruiz/J. Salazar Subject: Q1 Market Performance of Sparkling Beverages Sales has been flat vs. Q1 2013 and the recent share audit posted a loss of 5%, the biggest we’ve had in the last 3 years to Viva Cola which we all know is out to grab business from us with its low-price strategy. This was evidently on account of GMA and Luzon which had the biggest drops. Losing our leadership post in GMA, which is 35% of our business in this category is unacceptable. Please include in your presentation next week, updates on the following business initiatives:

1) Low-priced product development work that will directly compete with Viva Cola;

2) Rollback of prices to immediately mitigate the lost shares and margin recovery programs to cushion the rollback.

Regards,

Bravo Bottlers Philippines, Inc. 20th Flr World Trade Tower 1 , Mckinley Hill, Taguig

INTERNAL MEMO

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To : Mikey Dy Date: 22 March 2014 From : Ross Molina cc : J. Salazar/A. Vallecer/J. Marquez Subject: Delivery Penalties in Key Accounts My attention has been called by our Supermarket Manager over the escalating delivery penalties in two of his major accounts, SM & Robinson’s which require a minimum of 95% case fill and line fill rates. These penalties, Ph 5,000.00 for every sku that fails to meet these service level agreements (SLAs), has resulted in short collections and undue administrative aggravations to say the least. If this were not enough, I was tipped by my KAM for Jollibee that the VP Sales was visibly irked when they met over the news of non-deliveries of our concentrates over the last 2 weeks. He had massive runouts in his outlets because of our poor fill rates. He has threatened to open the doors to competition should this continue for another month, especially now that summer is here.

INTERNAL MEMO

Bravo Bottlers Philippines, Inc. 20th Flr World Trade Tower 1 , Mckinley Hill, Taguig

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To : Mikey Dy Date: 22 Feb 2014 From : Ching Hilario cc: F. Aguas/J. Marquez/STT/C. Lao Subject: Out of Stock Situation on Syrup I have just been informed by our Cola Syrup supplier that they will still be unable to supply the quantities we require over the next three (3) months due to the shortage of glycerin from China. We are now on our second month of hand to mouth existence because of the boom in mainland consumption. As you know, Glycerine is added to the cola flavour emulsions as an emulsifier and has properties that could alter the flavor. Hence QE&P has said that should we decide to source elsewhere, the sourced ingredient will have to undergo some rigid product/flavor testing before we put it to market. For now, the only alternate suppliers we have is ex-US and ex-LatAm. But because of tariff rates and shipping costs, there is a premium of 30% over the Chinese supply. Regards, Ching

INTERNAL MEMO

Bravo Bottlers Philippines, Inc. 20th Flr World Trade Tower 1 , Mckinley Hill, Taguig

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To : Sam Diaz Date: 1 April 2014 From : Jess Marquez Subject: Marketing Execution and Others Given the recent resignations in your team, there is now an even greater concern on how we will deliver our committed projects over this next quarter. An added aggravation of course is that forecast accuracy has dropped 15% because of our out of stock situation in sparkling beverages. Please work closely with HR in how to expedite hiring and be more forward looking in boost our talent bench.

Further, without adding more fuel to the fire, you will have to shadow the new Channel Manager in ensuring that all marketing programs are executed excellently. I am aware that this is an added responsibility given that you are two-men short in the product portfolio team, but with the CEO of Bravo International visiting, we cannot present anything short of exceptional—including the product forecasts!

INTERNAL MEMO

Bravo Bottlers Philippines, Inc. 20th Flr World Trade Tower 1 , Mckinley Hill, Taguig

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To : Manteam Date: 1 April 2014 From : Ana Valdez Cc : Juan Miguel Cortes Subject: Resignations in Key Posts Confidentially, it has come to my attention that Sam Diaz is being headhunted by a multinational fast moving consumer goods company for an expat post in HongKong. While exploratory talks are still in its initial stages, the question I have for the Manteam is whether this poaching of our senior executives is still part of the wave of resignations and whether we have all fully anticipated the backlash of the changes in BCPI ownership. It has been a year since the acquisition, but the stirrings of a demotivated workforce is still pervasive especially in the commercial team. While we have programs in place to arrest any further attrition, our latest employee turnover rate of 24% tells me that the bleeding in our ranks has not stopped. It appears that our organization continues to be the poaching ground even for industries outside our own. May we put this matter up in the agenda next week, after all the department heads and their direct reports have made their presentations to Juan Miguel.

INTERNAL MEMO

Bravo Bottlers Philippines, Inc. 20th Flr World Trade Tower 1 , Mckinley Hill, Taguig

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Manufacturing: The primary ingredients of xxxx Cola syrup include either high fructose corn syrup or sucrose derived from can sugar, caramel color, caffeine, phosphoric acid, coca extract, lime extract, vanilla, and glycerin. High fructose corn syrup or sucrose are overwhelmingly the major added ingredients: one 600 ml bottle (≈20.29 U.S. fl. Oz.) of xxxx Cola contains the approximate equivalent of 15 teaspoons of sugar. However, contrary to what is implied by the "cola" name, xxxx Cola syrup does not contain any kola nut extract. Since no kola extracts are present in the recipe, the primary taste of Coca-Cola comes from vanilla and cinnamon with trace amounts of orange, lime, and lemon, and spices such as nutmeg. This secret syrup is what Bottlers combine with carbonated water to create its line of cola soft drinks. Carbonated water is water into which carbon dioxide gas under pressure has been dissolved. This process, known as carbonation, is a process that causes the water to become effervescent. Source: http://en.wikipedia.org/wiki/xxxxxx-Cola_formula

Bravo Bottlers Philippines, Inc. 20th Flr World Trade Tower 1 , Mckinley Hill, Taguig

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SHARE PER SEGMENT

Bravo Bottlers Philippines, Inc. 20th Flr World Trade Tower 1 , Mckinley Hill, Taguig

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SHARE PER CATEGORY

UNISALE WHOLESALER (AUTHORIZED DEALER) PRICE LIST (updated: March 30, 2014) WHOLESALE PRICE:

BRAVO-COLA PRODUCT LISTS and PRICE B-Cola Litro - Php 236.00/case B-Cola 12 oz. - Php 239.00/case B-Cola 8 oz. - Php 173.00/case Sparkle RB Mega - Php 156.00/case Sparkle RB 8 oz. - Php 110.00/case GLOBE F&B PRODUCT LISTS and PRICE Globe Litro - Php 202.00/case Uno 7 oz. - Php 98.00/case Globe 8 oz. - Php 118.00/case Pep Energy (yellow/red) - Php 195.00/case ASIAN ZEST REFRESHMENTS COMPANY Viva Cola Litro 800ml. - Php 135.00/case

Bravo Bottlers Philippines, Inc. 20th Flr World Trade Tower 1 , Mckinley Hill, Taguig

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Viva Cola/Lime/Orange 8 oz. - Php 92.00/case Club Energy Drink - Php 198.00/case WHOLESALE PRICE DEPOSIT: BRAVO-COLA PRODUCT LISTS and PRICE B-Cola Litro - Php 124.00/case B-Cola 12 oz. - Php 90.00/case B-Cola 8 oz. - Php 90.00/case Sparkle RB Mega - Php 100.00/case Sparkle RB 8 oz. - Php 90.00/case

Economy-at-a-Glance

Indicator Latest Previou

s

Year

Ago

Gross National

Income

7.6%

(1Q

2014)

7.8

(4Q

2013)

7.3

(1Q

2013)

Gross Domestic

Product

5.7

(1Q

2014)

6.5

(4Q

2013)

7.7

(1Q

2013)

Exports US$4.5

4

billion

(April

2014)

US$5.2

billion

(March

2014)

US$4.51

billion

(April

2013)

Imports US$5.4

billion

(March

2014)

US$4.72

billion

(Feb

2014)

US$5.0

billion

(March

2013)

Headline

Inflation Rate

4.1

(April

2014)

3.9

(Mar

2014)

2.6

(April

2013)

20

Core Inflation

Rate

2.9

(April

2014)

3.9

(Mar

2014)

3.1

(April

2013)

Underemployme

nt Rate

18.2%

(April

2014)

19.5%

(Jan

2014)

19.2%

(April

2013)

Unemployment

Rate

7.0%

(April

2014)

7.5%

(Jan

2014)

7.6%

(Jan

2013) Source: http://www.neda.gov.ph/ The Philippine Development Plan 2011-2016 Midterm Update

Not ban, only regulation, on soft drinks and junk food in PHL schools (partial clip) By MARC JAYSON CAYABYAB, GMA NewsAugust 27, 2013 1:40pm

During recess, the children at a private school in San Carlos City, Pangasinan run to the canteen to gulp down soft drinks and munch the contents of packaged tsitsirya (junk food).

Their favorite drink-to-go is Pepsi Blue; a Grade 3 student there remarked it was tastier than the usual black soda.

As private school students continue to get a sugar rush with soft drinks and junk food, those from public schools are fed with boiled bananas and kamotes, as in the case of a public school in Binangonan, Rizal.

Students are also sold with Zesto and Yakult to gulp down their healthy food items, supposedly to maintain the good health of their students.

And as far as teacher Elma Hizon is concerned, the sale of soft drinks and junk foods is banned, following a supposed order from the Department of Education (DepEd).

"Utos na sa taas talaga na hindi pwede (ang soft drinks at junk food)," she said. "Ang mga bata, kapag sinabing wala, hindi na rin sila magrereklamo."

"Mabuti na 'yung walang junkfood sa canteen," the canteen teacher in Rizal added.

Not explicitly banned

According to a 2008 survey conducted by the Food and Nutrition Research Institute under the Department of Science and Technology, soft drinks are the third top beverage choice for children aged 6 to 12 years old, with 15 percent of those surveyed drinking soda.

Junk foods seem to the 12th preferred food choice for kids, according to the survey, with

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17.5 percent of those surveyed munching on the junk.

Obesity among children is also on the rise, supposedly on the consumption of junk food and soft drinks, according to the same institute—in 2011, at least 8 in 100 (or 7.5%) of school children 6-10 years old, and around 4 in 100 (or 4.3 percent) of preschoolers 0-5 years old are overweight.

Despite the shocking trend, it turns out there was no ban on soft drinks and junk foods to begin with, since these food items—despite their lack of nutritious content—are not explicitly banned by government, according to the DepEd's health director.

The DepEd Order No. 8 Series of 2007 states that "the sale of carbonated drinks, sugar-based synthetic or artificially flavored juices, junk foods and any food product that may be detrimental to a child's health... is prohibited."

But with the caveat—except for food that have the Sangkap Pinoy brand and the approval of the Food and Drugs Administration (FDA), according to the order.

Apparently, soft drinks and junk food are not banned by the FDA, since these supposedly have no chemical content that are potentially detrimental to children, according to DepEd's Health and Nutrition Center director Ella Napunguluit.

"We did not mention ban or sanctions sa memorandum," she said in a phone interview with GMA News Online.

"Hindi naman siya parang may gamit na kemikal na nakakasama sa katawan... Although ang soft drinks and junk food ay sinasabing masama sa katawan, we can't absolutely ban. We only recommend regulation," she added. . .

Massive food inspections

The DepEd first issued the order in 2005, but its implementing guidelines were released in 2007.

The education department then began a massive inspection of school canteens in 2011 after an incident of food poisoning in Tuguegarao City that killed two students after they ate rice noodles served in the canteen there.

Since then, the inspection has included checking the food items sold at canteens.

Despite the clarification, some DepEd officials still believe a ban is still in place. . . .

'Hindi seryoso' Despite the confidence-building measures, the education department has dismayed one public school teachers' group—France Castro, a trustee of the Philippine Public School Teachers Association, claimed the DepEd is not strict in implementing the order.

"Hindi seryoso ang DepEd sa pag-iimplement ng order," said. "Kahit may order from DepEd, minsan mas malaki ang hila ng pagnenegosyo sa paaralan," she added.

Castro, who is now the secretary general of the militant Alliance of Concerned Teachers, even observed that the supposed ban is most lax at secondary schools, having toured many schools in 2009 when she was a member of a Quezon City division's taskforce on health and sanitation.

"Hindi talaga total ang pagsunod sa guidance," she added.

This was somehow confirmed by Umali, who said their order seems to be less strict in 12,000 private schools nationwide as these have relatively greater jurisdiction on their food items, Umali said. . . .

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"Kung tutuusin, pwede namang (itigil ang pagbenta ng sofdrinks)," she said. "Pero kasi ang mga bata, lumalabas sila para bumili ng softdrinks. Baka masagasaan."

Instead of a total ban, the FDA spokesperson suggested an education drive to teach students the ill benefits of junk food and soft drinks.

"Siguro turulan na lang ang mga bata kung ano ang dapat kainin," Cirunay said.

For now, DepEd's Napunguluit said their "regulation" should work to teach the children proper diet.

"What I'd like for children is to empower them to make the right choice. Hindi naman pwedeng parang Hitler na walang choices," the health director said. — VC, GMA News

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(Sections 1.5 – 3.6 ommitted for its non-relevance to the case)

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1

Bravo Management Team & Group Direct Reports

Juan Miguel Cortes

Asia Division Director

Jaime Salazar Supply Chain

Director

Manuel Ruiz Finance Director

Ana Valdez HR & Corp Affairs

Director

Felipe Aguas Commercial Process

Manager

Jess Marquez Marketing Director

Nicole San Luis Strategy Development

Director

Mari Eugenio Financial Planning &

Analysis Manager

Louie Garcia Distribution Process

Manager

Ross Molina National Key Accounts

Manager

Sam Diaz Product Portfolio &

Promotions Manager

Enrique Manalo HR Admin &

Development Mgr

Anton Vallecer Commercial & Key Accounts Director

Mikey Dy Logistics Operations &

Materials Manager

Peter Ong Quality, Environment,

Process Manager

Layla Uy Public Affairs Manager

Alex Labra Business Development

Manager

Bobby de Jesus Information Technology

Manager

Cynthia Lao Quality, Environment,

Process Manager

2

Strategic Turnaround Team

Juan Miguel Cortes Project Charter Champion

Mikey Dy Logistics Operations & Materials Manager

Louie Garcia Distribution Process

Manager

Ross Molina National Key Accounts

Manager

Mari Eugenio Financial Planning &

Analysis Manager

Alex Labra Business Development

Manager

Jess Marquez Marketing Director & Project Team Head

Sam Diaz Product Portfolio &

Promotions Manager

PROFIT AND LOSS FOR CURRENT FINANCIAL YEAR (Pesos 000,000)

Forex Php 42.45 = US$

Product Category 2013 % To Net Sales

Net Sales Gross Profit

Advtg & Operating Expense NPBT Gross

Profit Advtg & Operating

Expense NPBT Promo Promo

1. Sparkling Beverages 73,960

55,470

11,094 11,094 33,282 75.0% 15.0% 15.0% 45.0%

2. Stills 10,170

6,610 814 1,017 4,780 65.0% 8.0% 10.0% 47.0%

3. Powders 8,321

4,160

416 582 3,162 50.0% 5.0% 7.0% 38.0%

Total 92,450

66,240

12,324 12,693 41,223 71.7% 13.3% 13.7% 44.6%

10,328,944

330,825

(311,701)

19,125

(Pesos 000,000)

Forex Php 43.95 = US$

Product Category 2014B % To Net Sales

Net Sales Gross Profit

Advtg & Operating Expense NPBT Gross

Profit Advtg & Operating

Expense NPBT Promo Promo

1. Sparkling Beverages 75,809

53,066

9,097 10,613 33,356 70.0% 12.0% 14.0% 44.0%

2. Stills 10,576

6,557 846 1,163 4,548 62.0% 8.0% 11.0% 43.0%

3. Powders 8,529

4,264

426 597 3,241 50.0% 5.0% 7.0% 38.0%

Total 94,914

63,888

10,370 12,374 41,145 67.3% 10.9% 13.0% 43.3%

7,897,895

265,991

(238,489)

27,502