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Meralco seeks ERC provisional approval of P21-B capex program

MANILA Electric Co. (Meralco) is asking provisional approval from the Energy Regulatory Commission (ERC) for its P21-billion capital expenditure program for 2019, the biggest component of which is the spending for the expansion of its advanced metering infrastructure.
In its application, the country’s largest power distribution utility enumerated more a hundred capital spending projects with the metering system accounting for P2.38 billion, followed by P1.78 billion for its distribution transformers.
The third-biggest expenditure item for next year is P1.31 billion for overhead conductors and devices, and nearly P1.1 billion for poles, towers and fixtures. The rest of the items are valued less than a P1 billion each.
The ERC has set the hearing for Meralco’s capex application on Sept. 25, finding it sufficient in substance along with the payment of the required fees.
“Pending hearing, it is likewise prayed that a provisional authority be immediately issued authorizing [applicant Meralco) to implement its RY [regulatory year] 2019 [capital expenditure program],” the listed company said.
ERC regulates the power distribution utility within a so-called “reset period” consisting of four regulatory years. The company’s regulatory year begins on July 1 and ends on June 30 of the following year. Its fourth reset period began on July 1, 2015 and ends on June 30, 2019.
In May, Betty C. Siy-Yap, Meralco senior vice-president and chief finance officer, said that for the fourth regulatory period the company had not been able to obtain a “rate-setting” from the regulator.
For the years 2015 to 2019, Ms. Siy-Yap said the corresponding capex applied for by Meralco was at P17.7 billion, P15.4 billion, P18.8 billion and P21 billion, for a total of P72.9 billion. She said the last one was applied by the company only in April this year.
Meralco’s capex for the coming years follows the steady growth of its customer base at a compounded annual growth rate of 4.2% from 2013 to 2017. The company ended last year with a customer count of 6.327 million, up 4.8% from 6.038 million in 2016.
Peak demand within Meralco’s franchise area hit 6,973 megawatts (MW) in June 2017, up 3.3% from the previous year’s peak. Growth from 2013 to 2017 had been a compounded annual rate of 4.1%.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Victor V. Saulon

8990 Holdings triples net income in Q2

MASS HOUSING developer 8990 Holdings, Inc. tripled its net income in the second quarter of 2018, lifted by the higher number of residential units it sold for the period.
In a statement issued Wednesday, the listed property developer said net income accelerated to P1.38 billion, versus the P469.20 million it delivered in the same period a year ago. Revenues more than doubled to P3.5 billion, against the P1.45 billion it posted in the first half of 2017.
“Historically, across the real estate sector, the second quarter is usually a slow period but we have seen that this is not the case for 8990 as we continue to bring something that goes beyond just mere affordability. More importantly, we deliver value for money homes to hard working Filipinos,” 8990 Holdings President and Chief Executive Officer Willibaldo J. Uy said in a statement.
This pushed 8990 Holdings’ net income for the first half to P2.39 billion, almost double the P1.22 billion it generated in the same period a year ago. The company’s revenues likewise soared 98% to P6 billion.
The company’s mass housing segment accounted for 59% of total revenues, while medium-rise and high-rise buildings contributed the balance of 41%.
Projects in the National Capital Region contributed 32% of its revenues, followed by those in Iloilo and Bacolod that generated 19% of the total revenues.
8990 Holdings also worked on managing costs for the first semester, letting it bring down operating expenses by 2.3% to P723.56 million. This pushed margins to 39.8%, slightly above its 38% target for 2018.
“This makes me even more confident that we will hit our P11.5 billion revenue goal by the end of the year,” Mr. Uy said.
The company has recently launched the P35-billion Ortigas Extension project, which is expected to drive growth for the second half of the year. The 22-building condominium complex is 8990 Holdings’ largest project to date, offering a total of 18,993 units across mid-rise buildings with 13 to 15 floors each.
The Ortigas Extension project is similar to its Urban Deca Homes Manila development in Tondo, housing 13 mid-rise buildings with a total of 13,212 condominium units for the affordable market.
8990 Holdings’ land bank is currently at 532 hectares, which the company said is enough for the next eight to 10 years. Once developed, the total land bank is expected to generate P156 billion in sales.
Shares in 8990 Holdings went up by 0.39% or three centavos to close at P7.80 each at the Philippine Stock Exchange on Wednesday. — Arra B. Francia

Feast like a viking

RAMBLING THROUGH the lyrics of traditional drinking songs while sharing a huge plate of kräfta (crayfish) and downing a glass of beer is a unique experience to celebrate the end of the summer season (in the case of the Philippines, the dry season).
A crayfish is a small freshwater lobster that breathe through feather-like gills and are known to have blue blood like other crustaceans. It may be blue, white, but is commonly red. Swedish crayfish are dark and turn bright red when boiled.
Eating crayfish began in 16th century Sweden when King Erik XIV would farm the crustacean in the moat of Kalmar Castle. Crayfish gained popularity in the 19th century and eventually dining on crayfish became a tradition among the Nordic countries. Today it is enjoyed in summer garden parties.
While it is no longer summer in the Philippines, the Crayfish Party 2018, a project of NordCham Philippines, in partnership with Sofitel Philippine Plaza, will be held for the 6th year in a row on Sept. 8 at Sofitel’s Harbor Garden Tent.
“Today, crayfish is something [we] only eat in the month of August. It is a dish that is typically served at the end of summer. It’s a bit of a celebration of the end of the warm period as it transitions to the winter time,” NordCham Philippines Bo Lundqvist said at the launch party at Sofitel on Aug. 1.
“The crayfish itself is prepared with spices and herbs. It is served cold. [It’s] salty. It’s served with a variety of spirits and we also eat it with Nordic food,” Mr. Lundqvist said.
The crayfish is consumed by first twisting the head to separate it from the tail. The juice is sucked from the head. To get at the tender meat, the tail’s shell is peeled in the same manner as peeling a shrimp.
The celebration at Sofitel will include Nordic dishes such as salmon gravadlax, smoked tuna with capers, Swedish meatballs with lingon jam, Janssons Temptation (a traditional Swedish casserole made of potatoes, onions, pickled sprats, bread crumbs, and cream), and toscakaka cake, and a variety of alcoholic beverages. Sing-alongs, games, and prizes are also in store.
The event’s proceeds will be donated to the Chosen Children Village (CCV), a foundation in Cavite that provides a home and care facilities for physically and mentally challenged children.
Tickets to the crayfish feast cost P3,900 each or P35,000 for a group of 10. For event tickets, visit crayfishparty.ph. For more information, call Georges Pattinson at 0977-099-8952 or e-mail georges.pattinson@nordcham.com.ph. — Michelle Anne P. Soliman

Alliance Select earnings soar in second quarter

THE attributable profit of Alliance Select Foods International, Inc. soared by 466% in the second quarter of 2018, as the company implemented various sourcing strategies that allowed it to maintain the prices of its tuna and salmon products.
In a regulatory filing, the homegrown international seafood company reported that net income attributable to equity holders of the parent reached $1 million in the April to June period, higher than the $177,945 it posted in the same period a year ago. This came on the back of a 34% increase in net sales to $23.9 million.
For the January to June period, Alliance Select’s attributable profit jumped by 720% to $2.2 million, versus the $268,240 seen in the same period last year. Net sales also firmed up 37% to $47.5 million.
The listed tuna manufacturer attributed the positive performance to “the implementation of several sourcing strategies and improved relationships with stakeholders, allowing the company to offer more value to its customers at sustained prices.”
Alliance Select noted the tuna business alone generated a 58% net revenue increase during the first half.
“Our tuna and salmon segments continue to display its potential in increasing sales and profit, and we plan on taking it to next level through continued innovation of both our products and processes,” Alliance Select President and Chief Executive Officer Raymond K.H. See was quoted as saying in a statement.
Alliance Select launched a new line of tuna products last July, catering to the local market that seeks quality products at an affordable price. The company also announced that it will be upgrading its facilities earlier this year.
“At present, we are already working on upgrading our plant technology and equipment across all our business sectors to strengthen company operations,” Mr. See said.
Incorporated in 2003, Alliance Select distributes its products to foreign markets such as Europe, the United States, Japan, and the Middle East. It has subsidiaries based in the US, Thailand, Indonesia, and New Zealand that handles salmon and seafood processing, canned fish processing, and fishing.
Shares in Alliance Select shed 4.76% or five centavos to close at P1 apiece at the Philippine Stock Exchange on Wednesday. — Arra B. Francia

Recreating heroes’ favorite dishes for a special menu


By Nickky F. P. de Guzman, Reporter
WHO WANTS to try Dr. Jose Rizal’s “most favorite” dish, bistek? Or perhaps, taste Melchora Aquino’s tinolang manok na tagalog?
From the same hands that prepared Pope Francis’ meals when he visited the country in 2015, and those for the heads of states and delegates’ food at the ASEAN Summit in Manila in 2017, chef Jessie Sincioco introduces some of the Philippines’ heroes’ favorite dishes at Manila Hotel’s Cafe Ilang-Ilang’s “kaBAYANIhan” menu.
In celebration of National Heroes’ Day on Aug. 27, Ms. Sincioco is tasked to prepare the heroes’ favorite food, and some more, which will be showcased in a special menu consisting of one salad, two soups, five main dishes, and three desserts. The dishes will be available for lunch and dinner on Aug. 20 to Sept. 2.
“I had to research how they were served, but I found limited materials about it so I ended up doing it with my own style,” said Ms. Sincioco during a tasting preview on Aug. 9.
Ms. Sincioco said that according to her research, bistek tagalog — a dish of flattened sirloin cooked in vinegar, soy sauce, and onions — was Rizal’s “most favorite” food. He would eat it while he was writing his novels Noli Me Tangere and El Filibusterismo. Ms. Sincioco used soft and succulent Angus beef slices, cooked medium rare, and served with caramelized onion, homemade achara (papaya pickle relish), and garlic rice.
Also on the menu is Melchora Aquino’s tinolang manok na tagalog — a soup made with chicken slices, green papaya, and chili leaves in a ginger flavored broth. The heroine’s original recipe included the use of dried chicken blood, blocks of which, called “betamax,” are today sold as street food. The restaurant’s management opted not to use betamax in the soup. The original recipe also used native chicken, but Ms. Sincioco said since its meat is tough she opted to use free-range chicken instead, which she boiled to perfection, making it juicy and tender. Melchora Aquino, or Tandang Sora, used to serve tinolang manok na tagalog to wounded soldiers during the Philippine Revolution.
Also on the menu — but not served during the media tasting — is Gregoria del Pilar’s sapin-sapin, a multi-colored and layered treat made of glutinous rice and coconut. The Bulacan-born heroine used to sell kakanin — Philippine snacks usually made with glutinous rice and coconut — which her mother made.
For the menu’s salad there is Ms. Sincioco’s alugbati (Malabar spinach) salad in bagoong (fermented fish paste) vinaigrette with salted egg and crispy dulong (silverfish).
“It’s not any of our hero’s favorite dish but I included it in the menu to [make a] hero [of] our alugbati, our own spinach,” she said.
In 2017, during the 31st ASEAN Summit in the Philippines, she used alugbati in her menu when she served ensaladang ubod at alugbati (salad of heart of palm and Malabar spinach) with tamarind vinaigrette dressing for the gala dinner.
Ms. Sincioco also served budin, a Filipino pudding, at the ASEAN gala dinner, which is a leche flan with toasted cake sponge and macapuno (coconut sport) strips. Ms. Sincioco is including budin in Café Ilang Ilang’s heroes’ menu, which is served with a rose made of mango on top.
Also on the menu are Gabriela Silang’s pinakbet (mixed vegetables steamed in fish or shrimp sauce) with bagnet (deep fried crispy pork belly); Andres Bonifacio’s litsong manok sa saha (chicken barbecued while wrapped in the outer layer of a banana stalk), and Marcella Agoncillo’s pork adobo sa dilaw (pork stewed in vinegar and turmeric) with homemade achara.
Ms. Sincioco has become one of the go-to chefs in the country when it comes to recreating historical dishes or serving VIPs. She owns three restaurants in the metro, which are Chef Jessie Rockwell Club, Chef Jessie Top of the City, and Chef Jessie Grill at The Grove.

Cebu Pacific wants bigger slice of Australian market as it launches direct flight to Melbourne

By Zsarlene B. Chua, Reporter
CEBU PACIFIC on Tuesday launched direct flights from Manila to Melbourne, four years after the budget carrier introduced its Sydney route.
“Today, we became the only low cost carrier to operate regular flights between Manila and Melbourne, our second destination in Australia,” Candice Iyog, Cebu Pacific VP for marketing and distribution, during the inaugural ceremony held in Ninoy Aquino International Airport (NAIA) Terminal 3 on Aug. 14.
The Manila to Melbourne route flies thrice weekly from NAIA Terminal 3.
“This will enable more Australian travelers — from adventure-seekers to leisure tourists to families on holiday — to discover the paradise that is the Philippines. Many of us know that the beaches, the biodiversity and the natural attractions in the Philippines can rival those of Phuket, Pattaya, Bali or Koh Samui,” said Ms. Iyog during her remarks.
This is Cebu Pacific’s second Australian route after it first launched Sydney flights in 2014.
“Sydney is doing well. We’re actually flying the most number of passengers between Philippines and Sydney route,” Ms. Iyog said of the five times weekly route.
The Australian Bureau Infrastructure, Transport, Regional Development and Cities (BITRE), reported in April 2018 that Cebu Pacific is currently the market leader in Manila to Sydney non-stop passenger traffic in 2017 with 40% share against Philippine Airlines and Qantas which has 34% share each.
“If you look at our loads today and looking forward compared to how Sydney started, Melbourne is starting stronger than how Sydney started four years ago,” Ms. Iyog told reporters, noting the load factor of its inaugural flight to Melbourne stood at 88%.
“There’s also a lot of interest from Australians to come to the Philippines because we offer what Australians love: beaches, really cheap beer and a great outdoor experience. Manila is also a good jump off point to other destinations in Asia,” she added.
Amanda Gorely, Australian Ambassador to the Philippines told reporters there is “demand for other parts of Australia to have direct flights from the Philippines,” citing Adelaide, Perth and Darwin.
“We had officials from Darwin here earlier in the year looking at a possibility of having a direct flight,” Ms. Gorely said.

TDF yields rise to all-time highs

peso bills
YIELDS on the central bank’s term deposits climbed on Wednesday. — PHILSTAR/KRIS JOHN ROSALES

By Melissa Luz T. Lopez, Senior Reporter
YIELDS on term deposits soared to all-time highs this week as banks scrambled to park their idle funds under the Bangko Sentral ng Pilipinas (BSP), taking advantage of higher accepted margins following a strong rate hike last week.
Demand for the short-term papers reached P147.79 billion yesterday, up from the P110.185 billion fetched a week ago to log well beyond the P100 billion on the auction block. The marked recovery in bids came after the central bank raised policy rates by 50 basis points (bp) during their Thursday meeting.
All three tenors under the term deposit facility (TDF) stood oversubscribed, marking a strong rebound for the two-week and one-month tenors which received tepid demand during last week’s auction which was the eve of the BSP’s rate-setting meeting.
The Monetary Board made its strongest tightening move in a decade last week amid signs that inflation could remain elevated until 2019. Key rates — the spread banks can ask for during TDF auctions — now range from 3.5-4.5%,
As a result, yields sought by banks climbed by more than 30 bps across three instruments.
Banks wanted to place P50.537 billion under a seven-day term, down from the P65.44 billion bids received the previous week but still well above the P40 billion placed on the auction block. Despite the overwhelming demand, lenders asked for an average of 4.1759% in returns, coming from a spread of 3.7-4.258% and nearly 40 bps above the 3.7797% fetched the previous week.
Tenders for the 14-day deposits nearly doubled to P62.531 billion this week, surpassing the P40 billion which the central bank wanted to sell. This also recovered from the pale P33.285 billion demand posted during the Aug. 8 offering.
Rates fetched averaged 4.2449% as banks sought for margins from a wide range of 3.525-4.36%. This also climbed by 32 bps from the 3.9234% posted the previous week.
Lenders also placed bigger bets on the 28-day tenor, with bids reaching P34.722 billion against a P20-billion offer. This also improved from the P11.46 billion placements made by banks a week ago. In turn, yields rose to 4.2844%, also 32 bps higher than the 3.962% fetched previously.
The TDF is currently the central bank’s main tool to capture excess money supply in the financial system. The BSP hosts the weekly auctions of short-term papers to bring market and interbank rates within its desired spread.

Sacre bleu! Blue wine makes a splash in southern France

SETE, FRANCE — A glass of blue, sir? It is a question that may dismay purist wine makers in France, where wine is a way of life rather than simply a drink, but in the southern town of Sete consumers cannot get enough.
In the Mediterranean resort’s restaurants and beach bars, holidaymakers and local residents have drunk their way through the first 2,000-bottle consignment of the turquoise-colored chardonnay.
Now Rene Le Bail, the entrepreneur marketing the Spanish-made wine, has put in an order for up to 35,000 more bottles.
“It reminds me of something, I’m not sure which fruit but it makes me think of, I don’t know, maybe sweets from my childhood,” said a diner who identified himself as Frederic.
“I love the color, it’s perfect for the summer. It brings happiness, joy, I really like it,” said Nora, a tourist from Singapore while drinking in a beachfront restaurant.
The wine is filtered through a pulp of red grape skins which contain a natural pigment, anthocyanin, and gives the wine its electric blue color.
Le Bail turned to a vineyard in Spain’s southern Almeria region to find a blue wine that he says boasts aromas of cherry, raspberry and passion fruit.
It is not the first blue wine to come out of Spain. In 2016, Spanish startup Gik developed a wine with a deep sapphire hue. But because of its “vin bleu” label, it ran afoul of strict French labeling rules and suffered a short shelf-life in stores.
The entrepreneur has sidestepped the regulations with some clever naming, labeling the €12 bottles: “Vindigo.”
“I think the bottles we’ve ordered will go in two months. Everybody wants it,” Le Bail told Reuters.
Le Bail says he has been inundated with orders from across France, Belgium and Germany on the wine’s Facebook page and says demand for the wine stretches as far as Russia, the Caribbean, and China.
“We’ve said no to all the big supermarkets. We want in France to sell the wine through small-scale wine merchants and grocers,” he said.
In a country where rosé wine was for decades seen as a poor cousin to red and white before becoming fashionable in recent years, not everyone shares Le Bail’s conviction that blue wine is here to last.
“It’s a bit heavy in its aromas,” said Philippe Delran, a bespectacled wine merchant in Sete who raised his eyebrows in thinly concealed displeasure on judging the wine’s bouquet. “It needs more work.” — Reuters

LBC acquires courier unit in Malaysia

By Denise A. Valdez
LBC Express Holdings, Inc. continues to consolidate its international affiliates, as it announced on Wednesday the acquisition of 92.5% of shares in Malaysia-based LBC Mabuhay.
In a disclosure to the stock exchange, the listed company said it bought 924,998 shares in LBC Mabuhay from Jamal Limited. LBC paid $461,782 for majority stake in the courier services company.
“The acquisition is expected to benefit the Company by contributing to the global revenue stream of the Company,” it said.
LBC earlier this year said it will consolidate its international affiliates, particularly those in United Kingdom, Italy, Spain, Germany, and Hong Kong, under the company.
In June, LBC acquired four remittance and cargo companies, which offer LBC services in Australia and Singapore. In March, LBC bought a 30% stake in Orient Freight International, Inc. for P218.88 million.
Meanwhile, LBC said its net income attributable to shareholders of the parent company nearly tripled to P619.314 million during the second quarter, from P212.25 million a year ago.
The service business generated P3.033 billion in revenues for the quarter ending June 30, up 24% “mostly from the growth in both retail and corporate logistics sales by 21% and 40%, respectively.”
LBC’s logistics business recorded a 22% rise in revenues to P2.673 billion, driven by a 33% growth in the volume it handled for the period.
“The increase in volume of services was mainly attributable to the horizontal growth of the Company, evidenced by the net addition of 60 branches in the Philippines. In addition, the branches in Middle East introduced their local courier services which gained a positive customer response and contributed to the increase in sales,” LBC said in a regulatory filing.
The growth in operating expenses was limited to 2.14% at P530 million, subdued by lower royalty and professional fees. But primary drivers of the increase were the 12% rise in salaries and wages and a P20-million additional spending for taxes and licenses.
LBC saw its six-month attributable net income rise 134.63% to P1.128 billion on the back of an 18% growth in gross profit, a 4% cut on operating expenses, a P439-million gain on derivative and an increase in foreign exchange gain.
Last month, the company said it plans to open 100 stores every year until 2020, having launched around 45 to 46 stores already during the January to June period.

Insurance industry posts premium growth in first half

THE INSURANCE INDUSTRY booked a double-digit increase in the first half as all sectors posted robust growth, the Insurance Commission (IC) said on Wednesday.
In a statement, the IC said the insurance industry’s premium income in the six months ended June grew 24.27% to P145.76 billion from the P117.29 billion posted in the same period last year.
“All sectors of the insurance industry — the life insurance sector, non-life insurance sector, and mutual benefit associations (MBA) — posted double-digit growth in terms of premium income at end-June this year,” Insurance Commissioner Dennis B. Funa was quoted as saying in the statement.
Broken down, life insurers reported P116.14 billion in premium income last semester, 27.92% higher than the P90.79 billion recorded in the same period a year ago.
Mr. Funa attributed this growth to the “remarkable” increase in the sales of variable life products that posted a 35.91% growth to P88.45 billion from P65.08 billion last year.
Meanwhile, total premiums written by non-life insurance companies rose 10.07% to P24.44 billion in the January-June period from the P22.2 billion tallied in the comparable year-ago period.
The growth, according to the IC, was brought about by a 14.87% increase in premiums from car insurance products which comprised more than half of total net premiums written.
Income generated from contributions and premiums by MBAs reached P5.18 billion in the January to June period, rising 20.61% from P4.29 billion last year. This was on the back of a 27.03% or P529.3-million increase in the net members’ contribution of two associations, Mr. Funa said.
The industry likewise paid P50.74 billion worth of benefits at end-June, an increase of 15.21% from P44.04 billion in benefits paid in the same period in 2017.
The insurance industry was valued at P1.54 trillion in asset terms as of the first semester’s end, up 3.64% from the P1.48 trillion year-on-year.
Mr. Funa said the non-life insurance sector managed to grow its assets by 15% to P223.77 billion as of end-June from last year’s P194.55 billion despite the decline in the number of non-life insurers.
“The life insurance sector’s assets hit P1.23 trillion or 80% of the total industry’s 1.54 trillion assets, representing 1.32% increase from P1.21 trillion year-on-year,” he added.
The industry’s liabilities stood at P1.22 trillion, while its net worth stood at P313.09 billion.
“While the factors that may affect the outlook for the industry in the second half of this year are largely linked to the health of the country’s economy, our outlook is very positive taking into account the all-time record year in 2017 and double-digit growth in first quarter of this year,” Mr. Funa said, adding that while insurers see a continued upward trajectory in statistics, there is more to be done to grow the sector. — Karl Angelo N. Vidal

Beyond its appearance in Sex and the City, this cupcake makes you smile


By Joseph L. Garcia, Reporter
THIS WAS supposed to be a piece telling you how Magnolia Bakery is something to line up for so you can take a photo of yourself holding the same cupcake that Carrie Bradshaw bought in Sex and The City, Season 3, Episode 5 (“No Ifs, Ands, Or Butts”). The show’s lead, played by Sarah Jessica Parker, up to now an icon of feminine fashion, ate a vanilla cupcake with a pink buttercream swirl and a small sugar daisy. This was going to join all the other pieces extolling the influence of Sex and The City on pop culture, lost in the swirl of the internet.
But in the end, the cupcake won over the HBO show.
When this writer stepped into the BGC branch of Magnolia Bakery — called M Bakery in the Philippines to avoid confusion with a much larger Magnolia — I was handed a chocolate and buttercream cupcake, and I can write words and words about how good it tasted, how one can almost picture the chocolate melting when it went into the batter, the taste of real buttercream, so rare these days — but really, all it takes to know how good something is if it gives you a smile. My smile stretched further with a taste of the blueberry jamboree, with a cream cheese topping and a dollop of fresh blueberry topping. I had a bite of the cranberry-chocolate cookie, as large as my hand, and my eyes lit up.
If you line up at M Bakery when it opens on Aug. 22, I can assure you, as a person whose palate has been beaten up by several cupcake flavors from other outlets, you will leave with a smile.
Magnolia Bakery opened in 1996, and because of its product placements on TV shows like Sex and The City and Saturday Night Live, has earned its place in pop culture, and even kicked off a cupcake craze. Its name continues to be dropped in movies such as The Devil Wears Prada, which came out in the 2006, well beyond the date of the Sex and The City episode where the cupcakes were introduced in 2000.
While the bakery was founded by Jennifer Appel and Allysa Torey, Ms. Appel broke off the partnership in 1999, and opened her own bakery. In 2006, Ms. Torey sold Magnolia Bakery to Steve Abrams, who still sits as CEO to this day. It was Mr. Abrams who kicked off the expansion plans of the bakery: Erick Larios, Director of Franchise Operations of Magnolia Bakery, counts nine locations in the US and 18 around the world, in locales as diverse as Dubai to Tokyo.
In the Philippines, the franchise is held by Phil Jacobe Ventures, Inc. Its managing partner is Stewart Lee Ong, whose other holdings include the LCG Group of Companies, which distributes cars and pharmaceutical goods. He told BusinessWorld that he’s been eating its goodies for about five years now, after first tasting the brand’s banana pudding in New York. Since then, whenever he travels to a locale that has a Magnolia Bakery in it, he makes sure to have a bite. The process of obtaining the franchise for the country took about three years, he said. In preparation for the bakery’s debut here, Mr. Larios said that Mr. Ong was trained for four weeks, the Philippine staff trained for six weeks, and the US people came to the Philippines for four to six weeks to train everyone again. The cupcake swirl, after all, takes about 40 hours for someone to learn, according to Mr. Larios. The long weeks spent in training is also accounted by the fact that everything is made in-house: no commissaries, no prepackaged mixes.
“Baking things on premise: I think that’s something that’s essential,” said Mr. Larios. “I’m so confident in saying that the majority of our competitors are not following the same best practices that we do.”
Take away the fluff, take away the product placements, take away the association with everything good that ever came from New York: is this cupcake good? Mr. Larios said, “Yes! And I’m going to tell you why it’s a ‘yes’ with an exclamation point. The placements didn’t happen because we seek them. We are that popular. We were that sought-after that we were placed.”
The world has changed since the company opened in the late 1990s. Diets came and went, and political and economic instability rocks the news every few weeks or so. But the cupcake, despite being declared dead, keeps coming back like a fairy you need to see from a story. Mr. Larios said, “I think it’s a combination of nostalgia, and we’re an indulgence. If anybody tells me they’re on a diet, the first place I send them to is not our place. When you have a cheat day, come and see us.”
“Everybody has different life events that they want to celebrate. We want to be the ones to help them celebrate that.”

Cityland to raise P1.4B via commercial papers

CITYLAND Development Corp. (CDC) looks to raise P1.4 billion through the issuance of commercial papers to finance its capital requirements.
In a disclosure to the stock exchange on Wednesday, the property developer said its board of directors has approved the filing of an application with the Securities and Exchange Commission for the issuance.
In a separate disclosure, its subsidiary City & Land Developers, Inc. said it will also be issuing P350 million worth of commercial papers. The company’s board of directors approved the filing of an application at the SEC for the offering.
Incorporated in 1978, CDC’s core business is to acquire and develop land for residential, office, commercial, institutional, and industrial uses. The company has medium to high-rise office buildings, commercial, and residential condominiums in Makati, Mandaluyong, Manila, and Pasig. This includes Pines Peak Towers, Grand Central Residences, and Makati Executive Towers, among others.
It also has residential subdivisions and farm lots located in Bulacan and Cavite.
The company’s market capitalization stood at P3.98 billion at the end of Wednesday’s trading.
Shares in CDC went down by 1.98% or two centavos to close at 99 centavos apiece at the stock exchange on Wednesday. — Arra B. Francia

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