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BSP tightens anew to temper inflation

By Melissa Luz T. Lopez
Senior Reporter
THE Bangko Sentral ng Pilipinas (BSP) raised rates yesterday after a similar move in May in a bid to arrest future inflation and keep local yields competitive.
The Monetary Board raised policy settings by another 25 basis points (bp) during their fourth review for the year. Rates now stand at 4% for the overnight lending rate, 3.5% for the overnight reverse repurchase rate, and 3% for the overnight deposit rate.
“In deciding to raise the BSP’s policy interest rate anew, the Monetary Board noted that inflation expectations remained elevated for 2018 and that the risk of possible second-round effects from ongoing price pressures argued for follow-through monetary policy action,” BSP Governor Nestor A. Espenilla, Jr. said during Wednesday’s briefing.
The BSP also tightened rates by 25bp during the May 10 meeting. Back then, policy makers saw adjusting benchmark yields “will help arrest” possible second-round effects of tax reform, as it would temper inflation expectations.
Now, policy makers see inflation rising further due to “future wage and price outcomes.”
“The BSP is prepared to take further policy action as needed to achieve its price and financial stability objectives,” Mr. Espenilla added.
Prices of widely used goods rose by 4.6% in May, the fastest climb seen in at least five years. This brought the year-to-date inflation tally to 4.1%, higher than the central bank’s 2-4% target.
Four of 10 economists polled by BusinessWorld last week said the BSP will likely raise rates further to catch up with above-target inflation and rising global yields as well as to lend some strength to the peso, which has been depreciating versus the dollar.
Mr. Espenilla noted that they are observing “more volatility” in the exchange rate — which ended yesterday at P53.48 per dollar — which warrants attention as this “potentially adds” to inflation dynamics.
The BSP’s decision also came a week after another 25-bp increase in rates in the United States, with Federal Reserve chair Jerome H. Powell hinting at more rate hikes in the coming months as the US economy performs “very well.”
Meanwhile, a further reduction in bank reserves was not discussed during Wednesday’s meeting, Mr. Espenilla said.
SLOWER INFLATION
The central bank expects slower inflation momentum over the next few months.
BSP Deputy Governor Diwa C. Guinigundo said they now expect inflation to average 4.5% this year, lower than the previous 4.6% forecast but still above the government’s 2-4% target for the year. By 2019, price increases are seen as averaging 3.3% from 3.4% previously.
Inflation is also seen to rise further within June to August owing to higher oil prices, coupled with higher minimum wages as well another P2.50 increase in excise taxes per pack of cigarettes, Mr. Guinigundo added.
Meanwhile, economic activity is seen to remain robust for the remaining quarters, sustaining the momentum from the 6.8% during the first quarter.
“We’re still looking out whether inflationary trends will further broaden and whether there will be second-round effects. That remains to be seen,” Mr. Espenilla added. “Right now, the action taken in our view is sufficient for the information we see at this point in time.”
“It’s still a very complex environment and there are uncertainties. What the BSP is signalling to the market is that first and foremost, we really put a lot of focus on hitting our inflation target. This year seems like it is no longer possible but definitely, we’d like to hit the target next year.”
Ruben Carlo O. Asuncion, chief economist at UnionBank of the Philippines, initially expected that the BSP will stay on hold but noted that markets have been “so volatile” so far.
“Thus, with so much uncertainty ahead, I am expecting more moves to stabilization with the BSP’s move to hike once more. I am expecting more hikes at this point,” Mr. Asuncion said when sought for comment.
“It is clear that their role is to help stabilize an unstable market to eventually guard economic growth.”
Analysts at Capital Economics, however, said the BSP’s latest hike may be the last for now. “The main reason why we suspect the central bank will not rush to hike rates again is that inflation is close to peaking.”
The central bank last introduced back-to-back rate hikes in July and September 2014, at a time when inflation was breaching its 3-5% target.

Experts complete first phase of mining review

By Elijah Joseph C. Tubayan
Reporter
THE RESULTS of a technical review of the 26 mining sites ordered closed or suspended by the Department of Environment and Natural Resources (DENR) are set to be presented to the inter-agency Mining Industry Coordinating Council (MICC) today.
Finance Undersecretary Bayani H. Agabin said in a mobile phone message yesterday the technical review team will discuss its findings with the MICC, after completing the first phase of the review which involved visits to mine sites, impact areas and host communities.
The review conducted by independent mining experts began in March — a little over a year since then-Environment Secretary Regina Paz L. Lopez ordered the closure of 26 mines over environmental violations.
Mines and Geosciences Bureau (MGB) Director Wilfredo G. Moncano meanwhile said in a phone interview: “We expect that the findings will show that some mining companies who fail and some that have passed their parameters.”
The first phase of the technical review addresses the legal, technical and environmental concerns on mining operations. The second phase, which covers the social and economic aspects of the mining operations, is expected to take another three months.
“From this meeting, the MICC will decide what to do with these findings,” Mr. Moncano said, but added President Rodrigo R. Duterte will make the final decision on the MICC recommendation.
To recall, the MICC in October 2017 recommended the lifting of the Department of Environment and Natural Resources (DENR) order banning open-pit mining — but the President has yet to act upon it.
“Upon learning whatever will be the findings, and what will be the penalties, mining companies still have the right to appeal,” Mr. Moncano said.
The review teams visited iron, gold, copper, chromite and nickel mines in the Cordillera Administrative Region, Cagayan Valley, Mindoro, Marinduque, Romblon, Palawan, Central Luzon, Eastern Visayas and the Caraga region.
Chamber of Mines of the Philippines Executive Director Ronaldo S. Recidoro said earlier that he welcomed the independent review initiative, as it will give its mining operations a “fair assessment.”
The MICC, which was created in 2012, is tasked to ensure full enforcement of environmental standards, review the performance of existing mining operations, ensure that mining sites operate inside designated areas, establish mineral reservations, and dispose of mine wastes.
Finance Secretary Carlos G. Dominguez III, who co-chairs the MICC with Environment Secretary Roy A. Cimatu, had previously said he wants the rest of the country’s mines be subjected to an independent audit.

Asia business sentiment slips from 7-year high

KUALA LUMPUR — Business confidence among Asian companies slipped for the first time in three quarters, on mounting worries that US President Donald Trump’s protectionist policies would trigger tit-for-tat reprisals and undermine the global trading system.
The Thomson Reuters/INSEAD Asian Business Sentiment Index, representing a six-month outlook from 61 firms, fell to 74 in the second quarter from a seven-year high of 79 in the prior three months. The survey was conducted over June 1-15.
While a reading above 50 indicates a positive outlook, this is the first time the number has dropped since September 2017.
The risks to growth are increasingly real now, said Antonio Fatas, a Singapore-based economics professor at global business school INSEAD. “Trade war is not a risk but a reality,” he said.
“US tariffs are going up against China but also against some of its traditional allies, such as Canada and the European Union. They are all about to retaliate and today we do not see an easy way out,” Mr. Fatas said.
Mr. Trump has riled key allies with his protectionist policies, including the imposition of steel and aluminum tariffs on the European Union, Canada and Mexico. On Monday, he threatened to hit China with new tariffs on $200 billion in goods.
“Companies can try to go around tariffs by moving production to other countries, this is costly and inefficient. It is a short-term solution but not optimal,” Mr. Fatas said.
However, Malaysia-based RHB Banking Group’s chief economist, Arup Raha, noted that some Asian economies, with strong external balance sheets, are relatively resilient to global turmoil.
“Besides, global growth, especially in the US and China, is still good. Also, wage growth in Asia is signalling domestic strength,” Mr. Raha added.
China’s GDP has expanded at a steady 6.8% for three straight quarters, though there are concerns overly rapid credit growth and trade frictions could pose risks for the world’s second-largest economy.
By industry, retail and leisure was the most bullish, while construction and engineering as well as autos were the weakest. Most sectors expressed concern about trade tensions and higher interest rates, the survey showed.
Respondents to the survey include Oil Search, Hero MotorCorp., Mahindra & Mahindra, Suzuki Motor, Asahi Group, SoftBank Group, Metropolitan Bank & Trust, SM Investments, Ayala Corp., Delta Electronics, and Intouch Holdings. — Reuters

ALI unit expands Davao luxury residential project

By Arra B. Francia, Reporter
AYALA LAND Premier (ALP) is launching the second tower of its luxury residential project in Davao City within the year, after seeing strong demand for the first tower where it generated P2.6 billion in sales.
The luxury unit of Ayala Land, Inc. (ALI) said on Wednesday it has sold out the first tower of The Residences at Azuela Cove during its launch last May 12. The 21-storey seaside tower offers 70 three-bedroom units spanning 181 to 196 square meters (sq.m.), priced at around P36.7 million each.
It also has two penthouse units with four bedrooms each. The 377-sq.m. penthouse unit is priced at P80.8 million each. This indicates a selling price of P194,000 per square meter, making it the most expensive residential property in Davao City.
The company said Davao-based individuals purchased around 70% of the units, while 15% came from Manila residents that had businesses or families in Davao. The remaining 15% came from buyers abroad and neighboring provinces.
“Given the good response for the North Tower, we’re gearing up for the launch of the second tower. And we expect to launch the second tower in the next few months, so very soon,” ALP Head of Sales Paolo O. Viray said in a press briefing on Wednesday.
Mr. Viray said the company will be raising prices of units by 8-10% for the second tower, which could deliver around P3 billion in sales from 77 units.
ALP will be adding garden units at the ground floor of the second tower, instead of the amenity area that will cover the first tower’s ground level.
Mr. Viray said both towers will be completed by 2023, with turnover to residents expected by the end of that year.
Amenities include a residents’ lounge, fitness center, social hall, a 25-meter lap pool, kiddie pool, and play area.
The Residences sits on a one-hectare property within Azuela Cove, ALI’s P20-billion mixed-use estate in Davao City through a 60-40 joint venture partnership with the Alcantara Group of Companies. The project is the first residential development to rise within the 25-hectare property in Lanang, Davao.
Alcantara Group Executive Vice-President Anton M. Hechanova said this is the first high-rise development under their portfolio. Asked if they plan on pursuing more similar projects, the executive said they are still studying its prospects.
“Possible, the Alcantara group we have a lot here in Mindanao. We’re nurturing the area. Our power business alone has thousands of hectares. There are untapped areas in the power location that we might get into. At the moment we’re studying those options,” Mr. Hechanova said during the briefing.
ALI’s development of Azuela Cove started in 2017, and will continue for the next seven to 12 years.
Operational areas inside Azuela Cove include The Shops — a retail strip featuring various restaurants, a 2,000-sq.m. event tent operated by Enderun Colleges which can accommodate up to 1,500 people, and a standard-sized soccer field, basketball court, and volleyball court. The sports facilities are managed by SPARCorp., a company that includes members of the Davao sports and business communities.
Azuela Cove will also house the first St. Luke’s Medical Center outside of Metro Manila. The medical facility will have 250 beds and will be operational by 2022.

SEC approves NLEX fund-raising

NLEX Corp. has secured clearance from the Securities and Exchange Commission (SEC) for its shelf registration of up to P25 billion in fixed rate bonds.
The SEC in an e-mail to reporters said it has approved NLEX’s registration statement for fixed rate bonds to be issued in several tranches within three years.
For the first tranche, NLEX looks to raise up to P4 billion with an oversubscription option of up to P2 billion from the issuance of seven-year Series A due 2025 and 10-year Series B bonds due 2028.
The Series A bonds are set to have a coupon rate of 6.46-6.76% annually, while the Series B bonds are at 6.7393-7.7023 per annum.
The company engaged BDO Capital & Investment Corp. as the issue manager, bookrunner, and joint lead underwriter. First Metro Investment Corp. will also act as joint lead underwriter.
NLEX targets to conduct the fund-raising on June 27, after which the bonds will be listed and traded at the Philippine Dealing & Exchange Corp.
Around P4.15 billion of the proceeds of the offer — should they fully exercise the oversubscription option — will be used to finance NLEX’s R-10 Section Project. The 2.6-kilometer toll road, which will extend the C-3 Road exit ramp to R-10 Road near the Port Area in Manila, will cost around P6.6 billion.
NLEX said it expected to start construction on the project within the second quarter of this year, with scheduled completion six months after that.
The company will use internally generated funds and external financing for the remaining balance of the construction costs for R-10, which it noted could be from following tranches in the shelf registration.
About P1.775 billion from the offer will be used for the company’s capital expenditures this year. Of this, P300 million will be used to fast-track the procurement of the contractor as well as preparations for the construction of its Connector Road project, an 8-kilometer elevated four-lane expressway linking the North Luzon Expressway (NLEx) and the South Luzon Expressway.
Another P300 million will be for the second phase of NLEx lane widening, while P250 million will be for the annual pavement resurfacing of 50.3 lane-kilometers in NLEx and 17.4 lane-kilometers in Subic Clark Tarlac Expressway.
The rest will be for the company’s other projects in various stages of construction.
NLEX Corp. is one of the tollways units of listed infrastructure conglomerate Metro Pacific Investments Corp. (MPIC). MPIC is one of three key Philippine units of Hong-Kong based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Arra B. Francia

IRC gets original proponent status for Makati mass transport system

IRC Properties, Inc. secured original proponent status from the Makati government for its proposed $3.7-billion intra-city rail transport system.
In a disclosure to the stock exchange on Wednesday, IRC said Makati City has accepted its proposal for a joint venture that seeks to establish and operate the Makati Mass Transport System, an 11-kilometer subway with eight to 10 stations.
The IRC-led consortium, which includes international partners, namely Greenland Holdings Group, Jiangsu Provincial Construction Group Co. Ltd., Holdings Ltd., and China Harbour Engineering Company Ltd., looks to construct the project at no cost to the government.
“IRC’s proposal is aligned with the national government’s aggressive infrastructure program as well as Makati’s goal to be a digital city. Not only will it move people quicker, it will allow people to be more productive and spend more time with their families. The project will also create thousands of jobs and reduce the carbon footprint due to lesser cars on the streets,” IRC Chief Operating Officer and Executive Vice-President Georgina A. Monsod said in a statement.
The project will also be interconnected with the Metro Rail Transit-Line 3, the proposed Metro Manila Mega Subway, and Pasig River Ferry.
IRC’s consortium partners are firms that have experience in the construction of railway systems. It described Greenland as a publicly listed real estate firm at the Shanghai Stock Exchange, which has recently acquired the subway and rail transport systems in Jiangsu province.
Greenland owns and operates the Nanjing subway line 5 in China alongside Jiangsu Provincial Construction Group. The project also followed the public private partnership model.
Kwan On Holdings is engaged in construction and maintenance works on civil engineering contracts, while Shanghai MinTu’s core business is in infrastructure, mass transportation, and financial services.
China Harbour Engineering Company meanwhile is a contractor of the Hong Kong mass transit railway, and constructed a portion of the Malaysia rail system that included subways.
IRC’s Makati project will have to undergo a Swiss Challenge where other groups are allowed to submit their own proposals. IRC has the right to match the best offer by a group since it is the original proponent.
IRC, which appointed Antonio L. Tiu as president and CEO in May, recently applied to increase its authorized capital stock to P10.5 billion from P1.5 billion in order to fund future projects.
The company’s attributable profit grew almost five times to P25.4 million in the first quarter of 2018, following a 47% increase in revenues to P75.2 million.
Shares in IRC surged 20.35% or 23 centavos to close at P1.36 each at the stock exchange on Wednesday, bucking the downward trajectory of the main index. — Arra B. Francia

Drinking the Pope’s wine


POPE FRANCIS is a popular Pope, and while he answers ostensibly to God, he is like a normal celebrity: he has pictures taken with other famous people, people pay attention to what he wears, and he has to deal with some of the intricacies that other celebrities face. When he visited the Philippines in January of 2015, crowds swelled to the thousands to greet him. Like most celebrities too, what wine he consumes is of some interest, and on June 12, guests at Chef Jessie’s in Rockwell were treated to glasses of the very same wine that Pope Francis drank during his visit.
Chef Jessie Sincioco, president and CEO of the Chef Jessie restaurants, recalls what she served Pope Francis. She presented the papal nuncio — who recommended her to the Pope — with a menu composed of Filipino dishes. The papal nuncio politely declined this menu, saying that they must not risk giving the Pope anything unfamiliar, lest they upset his stomach. Ms. Sincioco then composed another menu with Italian and Argentine favorites, which the papal nuncio approved.
According to Ms. Sincioco, the Pope’s favorite dish was a roast beef, and he wanted it “alive,” meaning very rare and bleeding. “Someone up there must really love me,” said Ms. Sincioco, reminiscing that she had slow-cooked a slab of beef for eight hours, and having a middle piece that was rare, as per the pope’s request, was a sheer stroke of luck.
This slice of roast beef, resurrected at the July 12 dinner as a Filet Mignon with a morel sauce, was paired with Menhir Salento’s Primitivo Quota 29, which had a scent of coffee and roses, and had a powerful flavor that was almost savory. Not quite the Pope’s wine — we’ll get to that.
The Pope favored a Negroamaro N.0 IGP from Menhir Salento, and this was paired with a fillet of sea bass in a tomato soup. The Pope likes his wine strong, this one has an opening note of wood and tobacco in the wine’s scent, and a strong tannic note in its taste. The pairing was risky, as it could have killed the delicate flavor of the sea bass, but instead, they temper each other in a teetering balancing act, for it cuts through the acidity of the tomato sauce, while the tomato sauce makes the wine more gentle. Brava.
Most of the dinner, prepared by chef Musaro Rocco Roberto (a chef brought in by the wine company from one of its restaurants) and Ms. Sincioco, was centered on this balancing act. A fragrant and light Fiano Pass-O Bio IGP Puglia from the brand was used, for example, to give liveliness and joy to a simple dish of tubettini, beans, and cheese, while a piquant Negroamaro Rosato Novementi (a bit like a rosé), was used to complement a squid.
Adriano Stefanutti, the wine’s importer and distributor for the Philippines through his company iPhor Trading Inc., said that the grapes are indigenous to the Puglia region, and even possess a quality where if they were attempted to be grown anywhere else, they would die — giving the wines an almost sentimental quality. In describing the people of Puglia, he says, “They have a temper, [but] they have an open character.”
“This is the character of the wine as well: very strong, but at the same time, there is a sweetness to it.” — Joseph L. Garcia

IBM’s debating AI battles it out with human champion, wins

ARTIFICIAL intelligence (AI) has proven itself adept at some of humanity’s favorite games, from chess to the much more complex board game Go. Now, a machine developed by IBM is challenging humans to debates about the future of medicine and the value of physical education.
International Business Machines Corp.’s (IBM) Project Debater faced off in public for the first time Monday, taking on a crack two-person team of humans, which included the 2016 Israeli national debate champion. The robot held its own during two short debates, and at moments, showed more than a little flair. It even convinced people in the audience to change their minds.
“There is a lot at stake today,” the machine said as its opener in a debate where it took the position that society should increase use of telemedicine. “Especially for me.” Later, the robot lamented that it couldn’t say the situation made its blood boil because “I have no blood.”
Jokes aside, a machine that probes and questions human arguments has clear real-world applications. Lawyers could ask it to search thousands of court cases to pull out the most viable arguments, CEOs could put their theses to the test as a way to shore up a presentation to the board about company strategy, and teachers could employ it en masse to help their students develop critical thinking skills without having to have one-on-one sessions.
“It’s clear that something like that is relevant to anything that has to do with decision making,” said Ranit Aharonov, manager of the debating technologies team at IBM in Haifa, Israel.
IBM has a history of using publicity stunts to cast an aura around its technology. The bot debater demonstrated in San Francisco isn’t being deployed commercially yet, and IBM’s record on bringing artificial intelligence to the real world is mixed. In 2011, the company entered its Watson AI technology in the quiz show Jeopardy. The machine won, but IBM still doesn’t disclose exactly how much revenue Watson generates.
Project Debater works by cobbling together multiple algorithms and AI techniques, detailed in academic papers put out by IBM Research over the last several years. Once the computer is told the topic, it scans a database of millions of news and academic articles, using an algorithm to decide which snippets of text are relevant and “argumentative.” Another algorithm cuts repetitions. During the debate, a voice recognition system listens to the machine’s opponent, adding another layer where things could go wrong if the robot mishears. Project Debater can make an effort at any argumentative topic, whether it’s been trained on it or not, researchers said.
During the debate at IBM’s offices in San Francisco, the robot spoke clearly, used correct grammar, generated relevant points and responded to arguments its human opponent made. After laying out its position on telemedicine, the robot changed the minds of nine audience members who had previously not agreed with the notion that society should increase telemedicine’s use.
In that debate and an earlier one on whether the government should support space exploration, the audience of mostly journalists and analysts said the robot scored better than the human debaters on enriching their knowledge. But the human debaters scored better on delivery, perhaps because the robot sounded, well, robotic.
The silly self-referential comments such as “I have no blood,” were intentional and desirable, said Aharonov. “We thought about what kind of persona we should have,” she said. “We’re trying to show this is a computer.” Recently, Google drew criticism for letting a personal-assistant robot pass itself off as human during a phone call.
The IBM project started in 2012, when the robot lacked the urbanity it showed off Monday. In one early debate on physical education, it kept bringing up sex education, researchers said. Another time, it detoured into the topic of procreation and mentioned that as a robot, it couldn’t have its own children — during a debate about pornography.
“Sometimes, it is making a joke at not the right moment,” said Noam Slonim, a senior researcher on the project. — Bloomberg

TDF demand thins amid lingering uncertainties

By Melissa Luz T. Lopez, Senior Reporter
DEMAND for term deposits grew even weaker yesterday, with banks crowding the week-long tenor as they take a wait-and-see stance on developments in financial markets.
Bids for the term deposit facility (TDF) reached P100.634 billion on Wednesday, just matching the P100 billion offered by the Bangko Sentral ng Pilipinas (BSP) and slipping further from the P113.158-billion tenders a week ago.
Players rebalanced their positions to bet big on the week-long term deposits, leaving the two-week and one-month instruments undersubscribed for the second straight week.
The seven-day tenor attracted offers worth P64.409 billion, picking up from last week’s P58.282 billion to again surpass the P40 billion which the central bank wanted to sell.
As a result, the average yield sought by banks inched lower to 3.6927% from the 3.6979% fetched the previous week. This came as bidders asked for returns from a narrow 3.6-3.7% range.
Appetite for the 14-day deposits also thinned, as tenders amounted to just P28.016 billion against a P40-billion offering. This also slipped from the P39.095 billion bids received a week ago. The tepid demand pushed the average yield to 3.7342% from 3.7222% previously.
Demand for the 28-day term also remained slumped as the BSP only shored up P8.209 billion, barely half the P15.781 billion received a week ago and well below the P20-billion offering. In turn, yields sought by players rose to average 3.7326% from 3.7264% the prior week.
The TDF is the central bank’s main instrument in capturing excess cash in the financial system. The BSP actively adjusts auction amounts each week in order to bring market and interbank rates within its desired spread, which currently ranges from 2.75-3.75% since May 10.
BSP officials have said that banks are avoiding long lock-in periods at a time of uncertainties in the domestic and global financial markets. In particular, BSP Deputy Governor Diwa C. Guinigundo has said that they have seen stronger preference on overnight facilities rather than lock down their cash for several days or weeks under the central bank.
Yesterday’s auction comes ahead of the BSP’s rate-setting meeting, and follows a fresh rate hike from the United States Federal Reserve last week.
Next week, the central bank’s TDF offer will remain steady at P100 billion — P40 billion apiece in the seven-day and 14-day term and P20 billion worth of the 28-day deposits.

Del Monte Philippines books P2.6-B profit

DEL MONTE Philippines, Inc. (DMPI)’s net income was flat for its fiscal year ending April 2018, due to higher interest expenses amid a single-digit growth in sales.
In a statement issued Wednesday, the local unit of listed canned fruit manufacturer Del Monte Pacific Ltd. said it booked a net income of P2.6 billion, lower by P0.1 billion from the year before.
This came amid a 3.4% increase in sales to P27.6 billion for the year, two-thirds of which came from the Philippine market.
The latest annual performance indicates a compounded annual growth rate (CAGR) for the company’s sales of 7.9% from 2015, where it delivered P22 billion. For net income, CAGR stood at 31% since 2015’s net income of P1.1 billion.
“The company achieved this through improvement in gross profit from higher sales volume, margin increase from the Philippine market, higher mix of fresh pineapple sales under S&W, aided by the weak peso versus the US dollar, revaluation of biological assets, improving operational efficiency and cost management,” DMPI said.
Sales from the Philippine market alone grew 6.7% to P16.9 billion. The company attributed the increase to strong demand for food services, the sales of which accelerated by 15% to P3 billion.
“(The increase rode on) the rapid expansion of quick service restaurants and convenience stores as well as the company’s growth of its juice dispensers, meal partnerships, and customized products,” DMPI said.
Within the year, the company launched the Del Monte 100% Pineapple Juice in Tetra Pak, which is now its fastest growing segment. It also introduced the Del Monte Juice & Chews in bottles, and Del Monte Fit ‘n Right Active.
The growth from Philippine sales outpaced the 1.9% drop in export sales to P10.6 billion, due to an excess in supply in Thailand and Indonesia. Its exports included the S&W brand and private label. The company has been changing its sales mix, shifting to the growing branded business.
“The Company expanded its sales under S&W fresh and processed pineapple at a compounded annual growth rate of 28% to P3.7 billion in Asia and Middle East markets, while it reduced its private label and commodity business during this period,” DMPI said.
DMPI expects to see higher earnings for the fiscal year ending April 2019, banking on the growth of the local market. For the export market, the company aims to improve its performance with higher fresh pineapple sales under S&W, alongside increased export margins from pricing and more efficient operations.
The company earlier this month postponed its planned initial public offering of up to P17.55 billion, citing volatility in the market which may affect investor sentiment for the stock. The proposed issuance has already been approved by the Securities and Exchange Commission and the Philippine Stock Exchange. — Arra B. Francia

World’s Best Restaurant? It’s Italy’s Osteria Francescana, again

OSTERIA FRANCESCANA is the best restaurant in the world, on a night that had a sense of déjà vu, especially for the Top 10.
Chef Massimo Bottura’s modern Italian restaurant in the back streets of Modena was the World’s No. 1 Restaurant in 2016; last year it was No. 2. The biggest movement in the Top 10 was a drop by last year’s No. 1 winner, Eleven Madison Park. They fell to No. 4, after a year that saw a major renovation and a much-buzzed-about pop-up in East Hampton.
The flamboyant Bottura is known for his playful approach to classic dishes. His creations include a lasagna with only the crispy bits and a deconstructed dessert called “Oops I Dropped the Lemon Tart.” Bottura is an art lover and his food is visually exciting as well as delicious. More recently, he has become known for Feed the Soul, an international non-profit organization to feed the homeless and hungry that grew out of a community kitchen in Milan.
Bottura accepted the award on stage with his American-born wife Lara Gilmore. He said that chefs and everyone in the restaurant business must realize that they have the power to change the world.
“I am going to use this spotlight to make even stronger the changes there are going to be,” said Bottura at a press conference following his win. “Feed the planet. Fight waste. Last week Henry Kissinger asked me for a selfie. It is unbelievable. We have to involve all the community of chefs… pushing the spotlight you have to make the invisible visible is extremely important.”
The results of the annual World’s 50 Best Restaurants awards were announced before an invited audience in Bilbao, Spain. Although much was made about diversity in advance of the ceremony, there was little change in the Top 10 beyond a minor reshuffling of places. Apart from Eleven Madison Park’s drop, it was a good year for North America. The United States had four more restaurants in the Top 100, up from nine last year. Mexico had two restaurants in the top 15; in 2017 the country’s highest entry was 20.
The World’s 50 Best Restaurants list is organized and compiled by William Reed Business Media. It is created from the votes of more than 1,000 restaurateurs, chefs, food writers, and gastronomes. The voters are split into 26 separate regions around the world. Each region has its own panel of 40 members. (This article’s co-author, Richard Vines, formerly chaired the UK and Ireland panel but is no longer involved.)
Winning the 50 Best is great for business. The day after El Celler de Can Roca first topped the list, in 2013, its website got 12 million visitors and the restaurant hired three extra staff just to turn down requests for tables. Noma’s Rene Redzepi said he could have filled his restaurant for almost 15 years with the booking requests the day after he first won, in 2010
The awards started in 2002 as a feature in Restaurant, a UK publication founded the previous year. It grew out of a brainstorming session in a pub to promote the magazine. The editors sent e-mails to journalists and chefs to pick their favorite places, like a music magazine compiling a best-albums list. The response was overwhelming and the annual awards were born.
Ahead of Tuesday evening’s ceremony, three awards were announced: Clare Smyth, of Core by Clare Smyth in London, won Elit Vodka Best Female Chef; Gaston Acurio of Astrid & Gaston in Lima won Diners Club Lifetime Achievement; and SingleThread, a farm restaurant in Northern California won the Miele One to Watch. The second part of the list, 51-100, was also previously announced.
WORLD’S 50 BEST RESTAURANTS
Here are the results (last year’s place in parentheses):
1. Osteria Francescana, Modena, Italy (2)
2. El Celler de Can Roca, Girona, Spain (3)
3. Mirazur, Menton, France (4)
4. Eleven Madison Park, New York (1)
5. Gaggan, Bangkok (7)
6. Central, Lima (5)
7. Maido, Lima (8)
8. Arpège, Paris (12)
9. Mugaritz, San Sebastian, Spain (9)
10. Asador Etxebarri, Axpe, Spain (6)
11. Quintonil, Mexico City (22)
12. Blue Hill at Stone Barns, Pocantico Hills, US (11)
13. Pujol, Mexico City (20)
14. Steirereck, Vienna (10)
15. White Rabbit, Moscow (23)
16. Piazza Duomo, Alba, Italy (15)
17. Den, Tokyo (45)
18. Disfrutar, Barcelona, Spain (55)
19. Geranium, Copenhagen (19)
20. Attica, Melbourne (32)
21. Alain Ducasse au Plaza Athénée, Paris (13)
22. Narisawa, Tokyo (18)
23. Le Calandre, Rubano, Italy (29)
24. Ultraviolet by Paul Pairet, Shanghai (41)
25. Cosme, New York (40)
26. Le Bernardin, New York (17)
27. Boragó, Santiago (42)
28. Odette, Singapore (86)
29. Pavillon Ledoyen, Paris (31)
30. D.O.M., São Paulo (16)
31. Arzak, San Sebastian, Spain (30)
32. Tickets, Barcelona (25)
33. The Clove Club, London (26)
34. Alinea, Chicago (21)
35. Maaemo, Oslo (79)
36. Reale, Castel di Sangro, Italy (43)
37. Restaurant Tim Raue, Berlin (48)
38. Lyle’s, London (54)
39. Astrid y Gastón, Lima (33)
40. Septime, Paris (35)
41. Nihonryori RyuGin, Tokyo (52)
42. The Ledbury, London (27)
43. Azurmendi, Larrabetzu, Spain (38)
44. Mikla, Istanbul (51)
45. Dinner by Heston Blumenthal, London (36)
46. Saison, San Francisco (37)
47. Schloss Schauenstein, Fürstenau, Switzerland (72)
48. Hiša Franko, Kobarid, Slovenia (69)
49. Nahm, Bangkok (28)
50. The Test Kitchen, Cape Town (63)
And here are the previously announced winners of places 51 to 100.
“NEW ENTRY” indicates the first time the restaurant has appeared on the list. “RE-ENTRY” indicates its reappearance in list after a year of absence (i.e. due to a closing/renovation).
51. De Librije, Zwolle, Netherlands (34)
52. L’Astrance, Paris (46)
53. Benu, San Francisco (67)
54. Sühring, Bangkok **NEW ENTRY
55. Don Julio, Buenos Aires **NEW ENTRY
56. Amber, Hong Kong (24)
57. Nerua, Bilbao, Spain (56)
58. Brae, Birregurra, Australia (44)
59. Florilège, Tokyo (99)
60. Tegui, Buenos Aires (49)
61. Burnt Ends, Singapore (53)
62. Momofuku Ko, New York (58)
63. Hof Van Cleve, Kruishoutem, Belgium (50)
64. Sud 777, Mexico City (75)
65. Frantzén, Stockholm **RE-ENTRY
66. Vendôme, Bergisch Gladbach, Germany (47)
67. Fäviken, Järpen, Sweden (57)
68. Quique Dacosta, Denia, Spain (62)
69. Chef’s Table at Brooklyn Fare, New York (82)
70. Selfie, Moscow (88)
71. Relae, Copenhagen (39)
72. Twins Garden, Moscow (92)
73. Aqua, Wolfsburg, Germany (70)
74. The Fat Duck, Bray, U.K. **RE-ENTRY
75. Belcanto, Lisbon (85)
76. Martin Berasategui, Lasarte-Oria, Spain (77)
77. Elkano, Getaria, Spain **NEW ENTRY
78. Mingles, Seoul (89)
79. A Casa do Porco, São Paulo **NEW ENTRY
80. Lung King Heen, Hong Kong (71)
81. Per Se, New York (87)
82. Hedone, London (98)
83. Estela, New York (67)
84. St. John, London (91)
85. Le Coucou, New York **NEW ENTRY
86. The French Laundry, Yountville, U.S. (68)
87. Maní, São Paulo (81)
88. Nobelhart & Schmutzig, Berlin **NEW ENTRY
89. The Jane, Antwerp, Belgium (74)
90. Indian Accent, New Delhi (78)
91. SingleThread, Healdsburg, U.S. **NEW ENTRY
92. L’Effervescence, Tokyo **NEW ENTRY
93. 8 1/2 Otto e Mezzo Bombana, Hong Kong (60)
94. Alo, Toronto **NEW ENTRY
95. Enigma, Barcelona, Spain **NEW ENTRY
96. DiverXo, Madrid **RE-ENTRY
97. Atelier, Munich **NEW ENTRY
98. 108, Copenhagen **NEW ENTRY
99. Leo, Bogotá, Colombia **NEW ENTRY
100. Lasai, Rio de Janeiro (76)
— Richard Vines and Kate Krader, Bloomberg

Microinsurers collect more premiums in Q1

Insurance
THE MICROINSURANCE industry posed higher premiums in the first quarter.

THE MICROINSURANCE industry saw increases in its total premium production and number of people covered in the first quarter, the Insurance Commission (IC) said.
Data based on reports submitted by microinsurance providers to the IC showed the industry’s total premiums collected in the January to March period rose 23.39% to P1.78 billion, up by P337 million from the P1.44 billion logged in the same period last year.
Broken down, mutual benefit associations (MBA) posted the highest premium contribution amounting to P1.05 billion last quarter, 58.76% or more than half of the entire market share.
The life sector collected P547.94 million in premiums, 30.77% of the total, while non-life insurers were able to produce P186.49 million or 10.47% of the total.
“We are pleased that the microinsurance industry continues to make its mark in the insurance industry,” Insurance Commissioner Dennis B. Funa was quoted as saying in the statement sent to reporters on Wednesday.
“The continuous rise in premium contribution and persons availing of microinsurance shows that more and more Filipinos are beginning to understand the value of insurance and becoming financially responsible.”
Meanwhile, the total number of insured lives covered by the microinsurance products also increased 28.09% year-on-year to 3.41 million from 26.6 million.
Overall, the MBA sector remains to rank first in terms of the number of persons covered by microinsurance products with 20.19 million individuals, followed by life insurers (11.12 million) and non-life insurers (2.79 million).
“We are motivated now more than ever to continue to spread awareness of microinsurance, not only within [Metro Manila] but all over the country,” Mr. Funa said.
The IC said it has ramped up awareness campaigns highlighting the importance and features of microinsurance last quarter. It conducted awareness drives in cities in Metro Manila, Rizal, and Batangas.
“[It is] in line with our mission to provide every Filipino the opportunity to avail of affordable insurance products that are suitable for their needs,” the Insurance Commissioner added. — Karl Angelo N. Vidal

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