universal robina corporation

qwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjkl

Salesmanship

Final Examination

10/31/2012

Jinky Jane Hally

Table of Contents

Title Page

Maslow's hierarchy of needs………………………………………….1Hezberg’s Motivation-Hygiene Theory…………………………….2Universal Robina Corporation………………………………………...9

History of the company…………………………………………….10Executive personnel…………………………………………………13Personnel and labor relations……………………………………17Plants and branches…………………………………………………19Organization……………………………………………………………31Distribution methods………………………………………………..33Research and Investigations……………………………………..35Competitive information……………………………………………37

1. Discuss and differentiate the two theories of motivation,

Maslow’s Hierarchy Theory and Hezberg’s Theory.

2

Maslow's Hierarchy of Needs

Maslow's hierarchy of needs is often portrayed in the shape of a

pyramid, with the largest and most fundamental levels of needs at the

bottom, and the need for self-actualization at the top. While the

pyramid has become the de facto way to represent the hierarchy,

Maslow himself never used a pyramid to describe these levels in any of

his writings on the subject.

The most fundamental and basic four layers of the pyramid contain

what Maslow called "deficiency needs" or "d-needs": esteem,

friendship and love, security, and physical needs. With the exception of

the most fundamental (physiological) needs, if these "deficiency

3

needs" are not met, the body gives no physical indication but the

individual feels anxious and tense. Maslow's theory suggests that the

most basic level of needs must be met before the individual will

strongly desire (or focus motivation upon) the secondary or higher

level needs.

The human mind and brain are complex and have parallel processes

running at the same time, so many different motivations from different

levels of Maslow's pyramid usually occur at the same time. Maslow was

clear about speaking of these levels and their satisfaction in terms

such as "relative" and "general" and "primarily", and says that the

human organism is "dominated" by a certain need, rather than saying

that the individual is "only" focused on a certain need at any given

time. So Maslow acknowledges that many different levels of motivation

are likely to be going on in a human all at once. His focus in discussing

the hierarchy was to identify the basic types of motivations, and the

order that they generally progress as lower needs are reasonably well

met.

Hezberg’s Motivation-Hygiene Theory

The Two-factor theory (also known as Herzberg's motivation-

hygiene theory and Dual-Factor Theory) states that there are

certain factors in the workplace that cause job satisfaction, while a

separate set of factors cause dissatisfaction. Frederick Herzberg, a

4

psychologist, who theorized that job satisfaction and job dissatisfaction

act independently of each other, developed it..

Two-factor theory fundamentals: Attitudes and their connection with

industrial mental health are related to Maslow's theory of motivation.

His findings have had a considerable theoretical, as well as a practical,

influence on attitudes toward administration. According to Herzberg,

individuals are not content with the satisfaction of lower-order needs at

work, for example, those associated with minimum salary levels or safe

and pleasant working conditions. Rather, individuals look for the

gratification of higher-level psychological needs having to do with

achievement, recognition, responsibility, advancement, and the nature

of the work itself. So far, this appears to parallel Maslow's theory of a

need hierarchy. However, Herzberg added a new dimension to this

theory by proposing a two-factor model of motivation, based on the

notion that the presence of one set of job characteristics or incentives

lead to worker satisfaction at work, while another and separate set of

job characteristics lead to dissatisfaction at work. Thus, satisfaction

and dissatisfaction are not on a continuum with one increasing as the

other diminishes, but are independent phenomena. This theory

suggests that to improve job attitudes and productivity, administrators

must recognize and attend to both sets of characteristics and not

assume that an increase in satisfaction leads to decrease in

unpleasurable dissatisfaction.

The two-factor, or motivation-hygiene theory, developed from data

collected by Herzberg from interviews with a large number of

engineers and accountants in the Pittsburgh area. From analyzing

these interviews, he found that job characteristics related to what an

individual does — that is, to the nature of the work he performs —

apparently have the capacity to gratify such needs as achievement,

5

competency, status, personal worth, and self-realization, thus making

him happy and satisfied. However, the absence of such gratifying job

characteristics does not appear to lead to unhappiness and

dissatisfaction. Instead, dissatisfaction results from unfavorable

assessments of such job-related factors as company policies,

supervision, technical problems, salary, interpersonal relations on the

job, and working conditions. Thus, if management wishes to increase

satisfaction on the job, it should be concerned with the nature of the

work itself — the opportunities it presents for gaining status, assuming

responsibility, and for achieving self-realization. If, on the other hand,

management wishes to reduce dissatisfaction, then it must focus on

the job environment — policies, procedures, supervision, and working

conditions. If management is equally concerned with (as is usually the

case), then managers must give attention to both sets of job factors.

The theory was based around interviews with 203 American

accountants and engineers in Pittsburgh, chosen because of their

professions' growing importance in the business world. The subjects

were asked to relate times when they felt exceptionally good or bad

about their present job or any previous job, and to provide reasons,

and a description of the sequence of events giving rise to that positive

or negative feeling.

Here is the description of this interview analysis:

Briefly, we asked our respondents to describe periods in

their lives when they were exceedingly happy and unhappy

with their jobs. Each respondent gave as many "sequences

of events" as he could that met certain criteria—including a

marked change in feeling, a beginning and an end, and

contained some substantive description other than feelings

and interpretations…

6

The proposed hypothesis appears verified. The factors on

the right that led to satisfaction (achievement, intrinsic

interest in the work, responsibility, and advancement) are

mostly unipolar; that is, they contribute very little to job

dissatisfaction. Conversely, the dissatisfiers (company

policy and administrative practices, supervision,

interpersonal relationships, working conditions, and salary)

contribute very little to job satisfaction.

Two-factor theory distinguishes between:

Motivators (e.g. challenging work, recognition, responsibility)

that give positive satisfaction, arising from intrinsic conditions of

the job itself, such as recognition, achievement, or personal

growth, and

Hygiene factors (e.g. status, job security, salary, fringe

benefits, work conditions) that do not give positive satisfaction,

though dissatisfaction results from their absence. These are

extrinsic to the work itself, and include aspects such as company

policies, supervisory practices, or wages/salary.

Essentially, hygiene factors are needed to ensure an employee is not

dissatisfied. Motivation factors are needed to motivate an employee to

higher performance. Herzberg also further classified our actions and

how and why we do them, for example, if you perform a work related

action because you have to then that is classed as movement, but if

you perform a work related action because you want to then that is

classed as motivation.

Unlike Maslow, who offered little data to support his ideas, Herzberg

and others have presented considerable empirical evidence to confirm

the motivation-hygiene theory, although their work has been criticized

on methodological grounds.

7

2. As a salesman, it is important to know the specific

information or should have knowledge about the company.

Before your exposure to direct selling, you were required by

your manager to present in the committee the specific

information of such company you are connected with.

a. History of the company

b. Executive personnel

c. Personnel and labor relations

d. Plants and branches

e. Organization

f. Distribution methods

8

g. Research and Investigations

h. Competitive information

9

A. History of the company

Universal Robina Corporation (URC) traces its beginnings all the way

back to 1954. John Gokongwei was doing very well then as a

trader/importer. He had learned the trade when his father died before

the war, and had worked hard through the war and postwar years to

prosper. However, while he thrived, he took a long hard look at his

company, and correctly predicted that trading would remain a low-

margin business.

On the other hand, a successful manufacturer controlling its own

production and distribution would command more profitable margins.

Mr. John decided to construct a corn milling plant to produce glucose

and cornstarch, Universal Corn Products (UCP), the first linchpin of

the company that would become the URC we know today.

10

For a time, business was good. However, Mr. John was still looking

ahead, working with an eye towards the future. While the business was

doing very well, it was producing essentially a commodity, which a

customer could easily access elsewhere. To stay ahead in the game,

Mr. John had to diversify by producing and marketing his own branded

consumer foods, similar to the multinational companies in the country

like Nestle and Procter & Gamble. In a sense, he wanted to put up the

first ‘local’ MNC, borne out of their best practices.

Thus, in 1961, Consolidated Food Corporation was born. Their first

‘home run’ product was Blend 45, the first locally manufactured coffee

blend, dubbed as the “Pinoy coffee”. This became the largest-selling

coffee brand in the market, even beating market leaders Café Puro and

Nescafe.

After coffee came chocolates. Nips, a panned chocolate were a staple

of Filipino childhood.

In 1963, Robina Farms started operations, beginning with poultry

products. This was also the beginning of the vertical integration of the

Gokongwei businesses, as the farms would be able to purchase feeds

from UCP in the future. Later that decade, Robichem Laboratories

would be put up, to cater to the veterinary needs of the farms

businesses. Robina Farms expanded as it entered the hogs business in

the latter part of the 70s.

1966 saw the establishment of Universal Robina Corporation, which

pioneered the salty snacks industry through Chiz Curls, Chippy, and

Potato Chips, under the “Jack ‘n Jill” brand. Other snack products

would follow over the years, as the company successfully introduced

market leaders like Pretzels, Piattos, and Maxx.

11

The coming decades saw more acquisitions and expansion. In the early

1970s, the family entered the commodities business through the

formation of Continental Milling Corporation, for flour milling and

production. The late 1980s brought the acquisition of three sugar mills

and refineries, under URC Sugar. These two businesses provided

stable cash flows, and allowed for further vertical integration in the

supply chain, to help URC weather any volatility in the cyclical

commodities markets. In line with this strategy, the late 1990s saw the

entry of URC into the plastics business, through URC Packaging.

While the businesses became more diversified, the companies were

slowly integrated in order to streamline and minimize costs. In 2005,

the present structure of the group was completed. All the different

companies are now organized under the Universal Robina Corporation

umbrella, divided into 3 focused groups:

the Branded Consumer Food Group, comprised of BCFG Domestic

(including packaging) and International

the Agro-Industrial group, comprised of Universal Corn Products,

Robina Farms, and Robichem

and the Commodities group, with the Sugar and Flour divisions

12

B. Executive Personnel

Key Executives - Universal Robina Corp (URC)Name Title Age

James L. Go Chairman, Chief Executive Officer, Member of Audit Committee, Member of Nomination Committee, Member of Executive Committee and Member of Remuneration & Compensation Committee

72

Lance Y. Gokongwei

President, Chief Operating Officer, Director, Member of Audit Committee, Member of Nomination Committee, Member of Executive Committee and Member of Remuneration & Compensation Committee

45

13

http://investing.businessweek.com/research/stocks/people/person.asp?personId=8362475&capId=878735&previousCapId=880078&previousTitle=UNIVERSAL%20ROBINA%20CORP



Name Title Age

John L. Gokongwei Jr.

Founder, Chairman Emeritus, Member of Audit Committee, Member of Nomination Committee, Member of Executive Committee and Member of Remuneration & Compensation Committee

85

Geraldo N. Florencio

First Vice President and Controller 59

Cornelio S. Mapa Jr.

Executive Vice President 45

Board Members

Insiders At Universal Robina Corp (URC)Name (Connections)

Title Age

James Go Chairman, Chief Executive Officer, Member of Audit Committee, Member of Nomination Committee, Member of Executive Committee and Member of Remuneration & Compensation Committee

72

Lance Gokongwei


45

14

http://investing.businessweek.com/research/stocks/people/person.asp?personId=8362475&symbol=URC:PM









Name (Connections)

Title Age

John Gokongwei Jr.


85

Patrick Go Vice President, General Manager of URC Packaging Division & CFC Flexible Packaging Division and Director

41

Audit Committee* - Universal Robina Corp (URC)Name (Connections)

TitleKey Developments

James Go Chairman, Chief Executive Officer, Member of Audit Committee, Member of Nomination Committee, Member of Executive Committee and Member of Remuneration & Compensation Committee

15





Name (Connections)

TitleKey Developments

Lance Gokongwei


John Gokongwei Jr.


Wilfrido Sanchez

Independent Director, Chairman of Audit Committee and Member of Nomination Committee

Johnson Go Jr. Director, Member of Audit Committee, Member of Nomination Committee, Member of Executive Committee and Member of Remuneration & Compensation Committee

Pascual Guerzon

Independent Director, Member of Audit Committee and Member of Remuneration & Compensation Committee

Compensation Committee* - Universal Robina Corp (URC)Name (Connections)

Board Relationships

Title

James Go 54 Relationships

Chairman, Chief Executive Officer, Member of Audit Committee, Member of

16

http://investing.businessweek.com/research/stocks/people/relationship.asp?personId=11615114&capId=878735&previousCapId=880078&previousTitle=UNIVERSAL%20ROBINA%20CORP












Name (Connections)

Board Relationships

Title

Nomination Committee, Member of Executive Committee and Member of Remuneration & Compensation Committee

Johnson Go Jr. 29 Relationships

Director, Member of Audit Committee, Member of Nomination Committee, Member of Executive Committee and Member of Remuneration & Compensation Committee

John Gokongwei Jr.

42 Relationships


Lance Gokongwei

46 Relationships


Pascual Guerzon

9 Relationships Independent Director, Member of Audit Committee and Member of Remuneration & Compensation Committee

C. Personnel and Labor Relations

Out of the total employees, 2,026 are managerial and administrative

staff. As at the same date, approximately 13,000 contractual and

17















agency employees are engaged in the Company’s businesses.

The Company does not anticipate any substantial increase in the

number of its employees in fiscal

2012.

For most of the companies and operating divisions, collective

bargaining agreements between the relevant representatives of the

employees’ union and the subsidiary or divisions are in effect. The

collective bargaining agreements generally cover a five-year term with

a right to renegotiate the economic provisions of the agreement after

three years, and contain provisions for annual salary increases, health

and insurance benefits, and closed-shop arrangements. The collective

bargaining agreements are with 22 different unions. For fiscal 2011, 6

collective bargaining agreements were signed and concluded with the

labor unions which are as follows: Meat and Canning Division Monthly

Independent Union (MCD-MIU), Meat and Canning Division New

Employees and Workers United Labor Organization (MCD-NEW-ULO),

and Universal Corn Products Technical and Office Staff

Employees Association-Association of Genuine Labor Organizations

(UCP-TOSEA-AGLO), Kilusan Sa Pakikibaka sa Universal Robina Corp.

(KSP-URC), Cebu Industrial Management Corporation Employees Union-

Worker’s Solidarity Network (CIMCEU-WSN) and Terai Workers Union -

Organized Labor Association in Line Industries and Agriculture (TWU-

OLALIA).

The Company believes that good labor relations generally exist

throughout the Company’s subsidiaries and operating divisions.

The Company has established non-contributory retirement plan

covering all of the regular employees of URC. The plan provides

retirement, separation, disability and death benefits to its members.

18

The Company, however, reserves the right to change the rate and

amounts of its contribution at anytime on account of business

necessity or adverse economic conditions. The funds of the plan are

administered and managed by the trustees. Retirement cost charged

to operations, including amortization of past service cost, amounted to

P94 million, =63 million and P103 million in fiscals 2011, 2010 and

2009 respectively.

D. Plants and Branches

Universal Robina Corp. - Offices/Branches

Universal Robina Corp.Address: SilanganCanlubang Industrial Park, , Calamba City, Laguna, Philippines Telephone No: (6349) 549-0012/7418/7453/2195

19

Universal Robina Corp.Address: , , El Salvador, Misamis Oriental, Philippines Telephone No: (6388) 755-296

Universal Robina Corp.Address: 43F Robinsons Equitable Tower, ADB Ave. Cor. Poveda Rd, Pasig City, Metro Manila, Philippines Telephone No: (632) 633-7631 Fax No: (632) 6354135

Universal Robina Corp.Address: , 16 Santiago St., Pasig City, Metro Manila, Philippines Telephone No: (632) 671-8195 Fax No: (632) 671-3986

Universal Robina Corp.Address: 2F Brittania Bldg., 110 E. Rodriguez Jr. Ave., Pasig City, Metro Manila, Philippines Telephone No: (632) 671-2935 loc. 169, 671 8958 Fax No: (632) 671-8953

Universal Robina Corp.Address: , , San Fernando City, Pampanga, Philippines

Universal Robina Corp.Address: , ML Quezon Ave., Antipolo City, Rizal, Telephone No: (632) 639-1040

Universal Robina Corp.Address: , National Rd., Batangas City, Batangas, Telephone No: (6343) 300-7297 to 99, 520-6170

20

Universal Robina Corp.Address: , National Highway, Calamba City, Laguna, Telephone No: (6349) 834-2830

URC Packaging Division

URC Packaging Division produces and sells a wide range of Bi-axially

Oriented Polypropylene (BOPP) films, primarily used for packaging of

various consumer products.

The BOPP plant, located in Simlong, Batangas, is equipped with

Bruckner technology and has a rated capacity of 33,000 metric tons

per annum.

This business unit holds the distinction of being the only Integrated

Management System ISO certified BOPP plant in the country today with

its Quality ISO 9001:2000 and Environmental ISO 14001:2004

Standards.

Commodity Foods Group

URC’s Commodity Foods Group is engaged in flour and sugar milling

and distribution, and sells its products to commercial and institutional

accounts.

URC Flour Division

21

URC Flour produces and sells Hard and Soft Wheat Flour to both

commercial and institutional accounts. The division also supplies the

local and export flour requirements of the URC Branded Consumer

Food Group and URC International respectively. Other product offerings

are flour-milling by-products such as wheat germ, bran and pollard.

The company also manufactures and sells spaghetti and macaroni

products under the brand name EL REAL and toll manufactures for

other food companies.

URC Flour has a total flour milling capacity of 1,550 metric tons per

day.

URC Sugar Division

URC Sugar operates 4 sugar mills and 3 refineries in Luzon and

Visayas, and is among the largest sugar millers/refiners in the country.

URSUMCO (Negros Oriental), SONEDCO (Negros Occidental), and

CARSUMCO (Cagayan Valley) provide sugar cane milling and refining

services, trades raw sugar and sells refined sugar and molasses. PASSI

(Iloilo) provides sugar cane milling services and trades raw sugar and

molasses.

URC Sugar has a total sugar milling capacity of approximately 29,000

tons of cane per day. It also has a sugar refining capacity of

approximately 32,000 50-kg bags of sugar per day.

Commodity Foods Group

URC’s Commodity Foods Group is engaged in flour and sugar milling

and distribution, and sells its products to commercial and institutional

accounts.

22

URC Flour Division

URC Flour produces and sells Hard and Soft Wheat Flour to both

commercial and institutional accounts. The division also supplies the

local and export flour requirements of the URC Branded Consumer

Food Group and URC International respectively. Other product offerings

are flour-milling by-products such as wheat germ, bran and pollard.

The company also manufactures and sells spaghetti and macaroni

products under the brand name EL REAL and toll manufactures for

other food companies.

URC Flour has a total flour milling capacity of 1,550 metric tons per

day.

URC Sugar Division

URC Sugar operates 4 sugar mills and 3 refineries in Luzon and

Visayas, and is among the largest sugar millers/refiners in the country.

URSUMCO (Negros Oriental), SONEDCO (Negros Occidental), and

CARSUMCO (Cagayan Valley) provide sugar cane milling and refining

services, trades raw sugar and sells refined sugar and molasses. PASSI

(Iloilo) provides sugar cane milling services and trades raw sugar and

molasses.

URC Sugar has a total sugar milling capacity of approximately 29,000

tons of cane per day. It also has a sugar refining capacity of

approximately 32,000 50-kg bags of sugar per day.

Universal Corn Products

23

Universal Corn Products (UCP) is one of the leaders in the Philippine

animal feed industry with combined milling capacities of 1,200MT per

day from its plants in Manila and Cebu.

Its line of nutritionally balanced and cost effective hogs, poultry, fish

and game fowl feeds, marketed under the brand name Robina

Starfeeds, is formulated by a top-caliber nutrition team and have

gained wide acceptance among animal raisers in the country. They

come in pellet, crumbled and mash form.

UCP likewise, produces and sells liquid glucose and quality soya

products, which are used in the production of confectionery products

and animal feeds, respectively.

Robichem

Robichem manufactures, distributes and sells a wide range of high-

quality and well-known animal health products such as vaccines, water

solubles, injectables, feeds supplements and disinfectants, which are

both marketed commercially and used by Robina Farms because of its

proven effectiveness and cost-efficiency.

Robichem is the exclusive distributor of multinational companies

namely, Janssen Animal Health and Malaysian Vaccines

Pharmaceuticals.

Robina Farms-Hogs

Robina Farms (RF) Hogs breeds and sells prime finisher hogs, piglets

and breeder stocks such as its own Grandeur Boar and Grand Dame

gilt.

RF- hog production facilities, located in Rizal, Novaliches, Bulacan and

Batangas maintain 15,500 sows at any given time; and are reputed to

be one of the most modern swine facilities in the country.

24

Robina Farms-Poultry

RF also produces superior day-old broiler and layer chicks from the

world-class breeds such as Hubbard, Shaver and Hyline.

RF poultry production facilities are located in Cebu, Rizal and Bulacan,

with a total farm capacity of 500,000 breeders.

RF is a formidable player in both the Layer and Broiler industries; and

is the number one day-old chick supplier in the country.

Branded Consumer Foods Group - International

Looking ahead to “a world without borders,” URC has expanded

steadily outside the country. At present, URC maintains manufacturing

facilities in China, Thailand, Malaysia, Vietnam and Indonesia and has a

strong foothold in the countries it presently operates in. URC products,

under the “Jack ’n Jill” megabrand, are widely available in most trade

channels in Thailand, Malaysia, Singapore, Indonesia, Vietnam, China,

and Hong Kong.

The most established international operations of URC are in Thailand,

Indonesia and Malaysia. Leading market share positions are attained in

these countries in several niche product categories.

“ACES,” a brand bought by URC from Acesfood Network Pte Ltd in

2005, continues to be a leader in the instant cereal beverage and

oatmeal markets in China. The purchase of the brand is a strategic

move for URC as it allows improved distribution in key geographic

markets and provides a strong, well-regarded brand that will be a

platform for future growth in China.

In April 2006, URC started manufacturing and selling C2 Green Tea in

Vietnam, making URC Vietnam the first subsidiary outside the

Philippines to manufacture and market C2. C2 is now one of the two

25

market leaders in Vietnam and manufacturing is being expanded to

meet strong market demands. In August 2007, URC Vietnam started

manufacturing biscuits in order to strengthen its foothold in the fast

growing snackfoods market in Vietnam.

Thailand

URC Thailand, URC International’s largest subsidiary, is a major

snackfoods player in that country, manufacturing Snacks, Biscuits,

Wafers, Candies, and Chocolates under the following brands:

Snacks: Roller Coaster, Fun Bite

Biscuits: Cream-O, Fun-O, Magic, Dewberry

Wafers: Tivoli, Lausanne

Candies: X.O., Dynamite, Lush, X-cite,

Chocolates: Nips, Wiggles

Malaysia and Singapore

In Malaysia, URC produces Snacks, Wafers, and Chocolates. These

products are also carried by URC’s sales office in Singapore.

Snacks: Potato Chips, Roller Coaster, Jigs, Fun Bite

Biscuits: Cream-O, Magic, Dewberry

Wafers: Cloud 9

Candies: Dynamite, Cloud 9 Candies

Chocolates: Nips, Cloud 9, Chooey Choco

Indonesia

26

URC has factories in the most populous country in Southeast Asia,

manufacturing Snacks, Candies, and Chocolates under the following

brands:

Snacks: Roller Coaster, Piattos, Sea Crunch, Peppitas, Guritoz, Chippy

Wafers: Cloud 9 Wafrets

Candies: Dynamite, Alus, Lush

Chocolates: Chooey Choco, Cloud 9

China and Hong Kong

URC has factories in China that cater to both China and HK markets.

These products are marketed under the following brands:

Snacks: Roller Coaster, Potato Chips, Beef Crunchies, Spuds

Candies: X.O., Dynamite

Beverages (China only): ACES Instant Cereal, ACES Oates, ACES

Coffee, ACES Health drink, ACES Soya

Chocolates (HK only): Nips, Cloud 9

Biscuits (HK only): Cream-O, Magic, Dewberry

Vietnam

URC Vietnam, which started operations in 2004, is the newest addition

to URC International. Vietnam manufactures Biscuits, Snacks and

Candies, and is the very first URC subsidiary outside the Philippines to

manufacture and successfully market C2 Green Tea.

Snacks: Fun Bite, Potato Chips

Biscuits: Cream-O, Magic

27

Candies: Dynamite, Lush, Xcite

Beverages: C2

Branded Consumer Foods Group - Domestic

Universal Robina Corporation (URC) is the leading branded

convenience food and beverage company in the Philippines. Touted as

the country’s first “Philippine multinational” as it has the widest

geographical footprint among local food manufacturers, URC has

blazed the trail for the branded foods industry. The company has

shaped the competitive landscape of local consumer brands through

its innovative products, wide distribution, and high-impact marketing.

URC is best known for manufacturing and distributing high-performing

products such as Chippy, Nova and other snack foods under the Jack ‘n

Jill mega brand, Nissin and Payless instant noodles, as well as Hunt’s

tomato-based products.

URC is also a trendsetter in the beverage industry with its coffee and

ready-to-drink products. It grew the local non-carbonated beverage

market with the successful launch and continuing promotion of C2 Cool

& Clean Green Tea. Building on the global trend towards health and

wellness, C2 spearheaded the expansion of a new and high-growth

segment in the Philippine beverage industry: the green tea segment.

URC built on that success with forays into other areas of the non-

carbonated beverage market, such as juices, energy drinks, and ready-

to-drink coffee, among others.

Snack foods

Beverage

Grocery

Others

Snackfoods

28

With a long heritage that began in the 1960s, URC’s snack foods

brands are well-loved by generations of Filipinos. Many have grown up

with the comforting crunch of “Chippy” and “Chiz Curls”, and today’s

young adults have fond memories of eating along to the well-loved

“Nips” jingle of days passed. From heritage brands such as these, to

newer products such as Magic, Nova, and Dewberry, URC has

developed the largest and most diverse portfolio of snackfood products

in the Philippines to fill everyone’s snacking needs. And now, the

products you grew up with and continue to snack on are all under the

“Jack ‘n Jill” megabrand, a name synonymous with consistent quality,

great value, and fun.

Savory Snacks

URC is the market leader in savory snacks, and has welcomed Granny

Goose snacks into its fold.

Corn Chips: Chippy, Mr. Chips, Taquitos, Tostillas

Natural Potato:Potato Chips, V-Cut

Fabricated Potato: Piattos, Roller Coaster

Extruded / Pelletized: Chiz Curls

Multi-Grain: Nova

Mixed Snacks: Pic-A

Granny Goose: Tortillos, Kornets

Biscuits

URC is one of the leading biscuit producers in the country.

Cookies: Presto, Cream-O, Dewberry

Crackers: Magic Flakes, Magic Creams, Magic Flavors

29

Wafers: Hello! Coated, Hello! Pipers, Hello! Glazed, Wafrets Sticks

Pretzels: Choco Pretzels, Knots

Cakes

URC is an innovative player in the cakes category.

Quake Bars

Quake Overload

Candies

URC is the market leader in candies.

Hard Boiled: Maxx, Dynamite

Deposited: X.O.

Gummies / Jellies: Jojo Gummies

Lollipops: Star Pops

Marshmallows: Wiggles

Soft: Lush

Chocolates

URC is the market leader in chocolates.

Enrobed: Cloud 9, Big Bang, Chooey, Monster Munch

Panned: Nips

30

E.Organization

31

Universal Robina Corporation has three main business lines:

The Branded Consumer Foods Group is the largest business and

the key driver of growth and profitability. It is composed of the

Philippine, international and packaging businesses. In the

Philippine BCFG, our main divisions are Snack Foods, Beverages,

Grocery (which include the joint ventures Nissin-URC and Hunts

URC), Exports, and Packaging. Our international investments are

in Thailand, Indonesia, Malaysia/Singapore, China/HK, and

Vietnam.

The Agro-Industrial Group is composed of hog and poultry farms,

branded feeds, and animal health products.

The Commodity Foods Group has both flour and sugar.

The latter two groups provide URC with consistent cashflows and, in

the case of commodities, consistent supply of raw materials for the

Branded Consumer Foods Group.

32

F. Distribution methods

The Company has developed an effective nationwide distribution chain

and sales network that it believes provide its competitive advantage.

The Company sells its branded food products primarily to

supermarkets, as well as directly to top wholesalers, large convenience

stores, large scale trading companies and regional distributors, which

in turn sell its products to other small retailers and down line markets.

The Company’s branded consumer food products are distributed to

approximately

150,000 outlets in the Philippines and sold through its direct sales

force and regional distributors.

URC intends to enlarge its distribution network coverage in the

Philippines by increasing the number

33

of retail outlets that its sales force and distributors directly service.

The Company generally sells the branded consumer food products

from salesmen to wholesalers or supermarkets, and regional

distributors to small retail outlets. 15 to 30 day credit terms are

extended to wholesalers, supermarkets and regional distributors.

The Company believes that its emphasis on marketing, product

innovation and quality, and strong brand equity has played a key role

in its success in achieving leading market shares in the different

categories where it competes. In particular, URC launched “Jack ‘n Jill”

as a master umbrella brand in order to enhance customer recognition

of its products. URC devotes significant expenditures to support

advertising and branding to differentiate its products and further

expand market share both in the Philippines and in its overseas

markets, including funding for advertising campaigns such as

television commercials and radio and print advertisements, as well as

promotions for new product launches by spending on average 5% of its

branded consumer food division’s net sales this year.

34

G. Research and Investigations

The Company develops new products and variants of existing product

lines, researches new processes and tests new equipment on a regular

basis in order to maintain and improve the quality of the Company’s

food products. In Philippine operations alone, about P28 million was

spent for research= and development activities for fiscal 2011 and

approximately P40 million and P42 million for fiscals 2010 and 2009,

respectively.

The Company has research and development staff for its branded

consumer foods and packaging divisions of approximately 83 people

located in its research and development facility in Metro Manila.

The Company also has research and development staff in each of its

manufacturing facilities. In addition, the Company hires experts from

all over the world to assist its research and development staff. The

Company conducts extensive research and development for new

35

products, line extensions for existing products and for improved

production, quality control and packaging as well as customizing

products to meet the local needs and tastes in the international

markets. The Company’s commodity foods division also utilizes this

research and development facility to improve their production and

quality control. The Company also strives to capitalize on its existing

joint ventures to effect technology transfers.

The Company has dedicated research and development staff for its

agro-industrial business of approximately 41 persons. Its researchers

are continually exploring advancements in breeding and farming

technology. The Company regularly conducts market research and

farm-test for all of its products.

The Company also has a diagnostic laboratory that enables it to

perform its own serology tests and offers its laboratory services

directly to other commercial farms and some of its customers as a

service at a minimal cost.

36

H. Competitive information

The URC business is highly competitive and competition varies by

country and product category. The

Company believes that the principal competitive factors include price,

taste, quality, convenience, brand recognition and awareness,

advertising and marketing, availability of products and ability to get its

product widely distributed. Generally, the Company faces competition

from both local and multinational companies in all of its markets. In the

Philippines, major competitors in the market segments in which it

competes include Liwayway Manufacturing Corp., Columbia Foods

International, Republic Biscuit Corporation, Suncrest Foods Inc., Del

Monte Phil. Inc., Monde Nissin Corporation, Nestle Philippines Inc., San

Miguel Pure Foods Company Inc. and Kraft Foods Inc. Internationally,

major competitors include Procter & Gamble, Effem Foods/Mars Inc.,

Lotte Group,

Perfetti Van Melle Group, Mayora Inda PT, Calbee Group, Apollo Food,

Frito-Lay, Nestlé S.A., Cadbury Schweppes plc, Groupe Danone S.A.

37

and Kraft Foods International.

Competition in the Philippine food and beverage industry is expected

to increase in the future with increased liberalization of trade by the

Philippine government and the predicted accompanying growth in

imports due to the World Trade Organization (WTO) and ASEAN Free

Trade Area (AFTA). Under the WTO, tariff rates on food and agricultural

items are being decreased and import quotas are being eliminated

among member countries, including the Philippines. AFTA is a free

trade area formed by 10 South East Asian countries, including the

Philippines. Under the AFTA, tariffs on manufactured goods, including

processed agricultural products, are being minimized or eliminated

over a 15-year period starting from January 1, 1993, and non-tariff

barriers will be subsequently phased out.

The day-old chicks market is cyclical, very competitive and principally

domestic. The Company believes that the principal competitive factors

are chick quality, supply dependability, price and breeder performance

for broiler chicks. For layer chicks, competitive factors are egg

productivity and disease resistance. The Company’s principal

competitors are Danway Processing Corp, RFM Corp. and Math Agro for

broiler chicks and Bounty Farms, Inc., Brookdale Farms, and Heritage

Vet Corp. for layer chicks.

The live hog market is highly fragmented, competitive and principally

domestic. The Company believes that the principal competitive factors

are quality, reliability of supply, price and proximity to market. The

Company’s principal competitors are San Miguel Corp. (Monterey) and

Foremost Farms,

Inc. The main competition is from backyard raisers who supply 62-65%

38

of the total pork requirement in the country. In 2011, the hog

population decreased by 6% because of disease outbreaks and farm

closure(s) due to high cost of inputs (Feeds) and lower live weight

prices (due to lower consumer spending). It is expected that live

weight prices will relatively be higher in the 1st half of 2011 that will

encourage raisers, both backyard and commercial farms to start and

expand their operations with the anticipated improvement in

profitability.

The commercial animal feed market is highly fragmented and its

products compete primarily with domestic feed producers. As of

September 30, 2011, there were 150 registered feed mills in the

Philippines, 25% of which sell commercial feeds. URC believes the

principal competitive factors are quality, brand equity, credit term and

price. The Company’s principal competitors are B-Meg and UNAHCO

(Sarimanok & Thunderbird). A number of multinationals including

Cargil Purina Phils.

Inc, CJ and Sun Jun of Korea, and New Hope of China are also key

players in the market.

The animal health products market is highly competitive. The market is

dominated by multinationals and the Company is one of only few

Philippine companies in this market. The Company’s principal

competitors are Pfizer, Inc., UNAHCO (Univet)., and Merial Limited, a

company jointly owned by

Merk and Co., Inc. and Aventis. S.A. The principal competitive factors

are brand equity, price, product effectiveness, and credit terms.

39

universal robina corporation

Documents