Apex Mining earns P1 billion on higher gold, silver revenues

November 16, 2023 | 12:12 am

APEX Mining Co., Inc. reported an attributable net income of P1.03 billion in the third quarter, 14.8% higher than the P898 million in the same period last year, amid higher gold and silver revenues.

In a regulatory filing, the company said that its top line rose by 10.9% to P3.04 billion from P2.74 billion the previous year.

It said the higher average realized gold price of $1,913 per ounce during the year and favorable Philippine peso to US dollar exchange rate added to further lift revenues.

Gold and silver revenues amounted to P2.92 billion and P116.71 million, respectively. Total volumes reached 26,856 ounces for gold and 89,648 ounces for silver.

The company’s Maco mine site in Davao de Oro has a total gold production of 24,665 ounces, 4% higher than the prior year.

Total tons milled from the site rose by 4% for the three-month period to 218,879 tons, while daily mill throughput was 2,478 tons.

For the nine months ending September, the company’s attributable net income fell by 6.1% to P2.31 billion from P2.46 billion last year.

Apex Mining’s top line increased to P8.73 billion, up 16.2% from P7.51 billion in the same period in 2022 on the back of higher gold revenues at P8.38 billion. The company’s silver revenues amounted to P345.5 million.

The company said that as of Sept. 30, the combined operations of its Maco mine and Sangilo mine in Benguet operated by its subsidiary Itogon-Suyoc Resources, Inc. milled a total of 701,713 tons for a 3% rise from the previous year.

It added that the consolidated gold ounces sold by the two operations reached 77,652 ounces, or 6% higher than the 73,219 ounces in 2022.

From January to September, the Sangilo mine milled 104,270 tons of ore, 15% higher than the previous year. It had a gold recovery rate of 86%.

Meanwhile, the company said that based on its Mine Reserves and Resource Certifications from 2021, its mining operation in Maco has enough reserves and resources to continue its targeted daily production rate of 3,000 tons until 2032.

Apex Mining shares rose by 3.15% or eight centavos to close at P2.62 apiece on Wednesday. — Adrian H. Halili

Villar’s AllHome posts 21% income decline

November 16, 2023 | 12:11 am

VILLAR-LED AllHome Corp. logged a 21% decline in its net profit for the third quarter on the back of lower sales.

In a regulatory filing on Wednesday, AllHome said its net profit from July to September dropped to P139.55 million from P176.48 million last year.

The company’s third-quarter sales fell 3.5% to P2.74 billion versus the P2.84 billion posted in 2022.

In contrast, AllHome said its net income for January to September rose 46% to P582 million from P399 million a year ago.

The higher net income comes despite the company’s nine-month sales falling 3.6% to P8.78 billion from P9.11 billion last year due to lower demand.

“This was brought about by the weakened demand in the hard categories as customers deferred their purchases for home construction and finishing owing to rising inflation, while soft categories remained steady,” AllHome said.

AllHome Chairman Manuel B. Villar, Jr. said the company is expecting a strong performance in the fourth quarter and a positive outlook for next year.

“We are heading into [the] last quarter of 2023 — historically strong for AllHome — and beyond that, a positive 2024 outlook,” Mr. Villar said. “We are confident in the performance of our soft categories, as this shows that new homeowners are now entering into the furnishing stage, and we see this further picking up to close out 2023.”

“This uptick in AllHome’s soft categories also coincides with a holiday season where travel and movement restrictions from the pandemic are gone, and overseas Filipino workers will be coming home to their families, which only bodes well for AllHome,” he added.

Meanwhile, AllHome President and Chief Executive Officer Benjamarie Therese N. Serrano said the company is pleased with its business results as of September.

“We set out to implement initiatives towards optimization of our operations across the board: store revenue potential, energy and manpower initiatives — even warehousing. We are glad to see all of these bear fruit,” Ms. Serrano said.

“While we saw some slowing in our hard category performance, we also see a unique opportunity to wrestle market share from our competitors. In addition to our hard categories, the AllHome value proposition of one-stop full-line home center allows us to present to an attractive alternative to in terms of unique offerings and convenience to our customers,” she added.

On Wednesday, shares of AllHome at the local bourse fell eight centavos or 5.71% to P1.32 apiece. — Revin Mikhael D. Ochave

Business units lift FDC’s profit

November 16, 2023 | 12:10 am

GOTIANUN-LED conglomerate Filinvest Development Corp. (FDC) posted a 28% improvement in its net income in the third quarter as its business segments posted higher revenues.

The listed firm said in a regulatory filing on Wednesday that its July-to-September profit attributable to equity holders of the parent company climbed to P1.99 billion from P1.55 billion in the same period last year.

FDC’s total revenues and other income in the third quarter rose 22% to P22.08 billion from P18.08 billion a year ago.

For the nine months through September, FDC’s attributable net income rose 57% to P5.9 billion from P3.8 billion a year ago.

The company’s total revenues and other income rose 26% to P64.6 billion compared with P51.1 billion last year.

“The increases reflected mainly the continued recovery of the businesses over prior periods which were adversely affected by the COVID-19 pandemic,” FDC said.

“The level of total revenues and other income of the conglomerate in the first nine months of 2023 already surpassed the amount generated before the pandemic of P63 billion in the first nine months of 2019,” it added.

FDC’s East West Banking Corp. posted a 33% increase in revenues led by higher interest income and the build-up of high-yielding fixed-income securities. As a result, the bank’s net income rose 59% to P4.7 billion.

Real estate saw a 22% increase in net income as overall revenues rose 15% carried by the growth of residential and mall revenues. The residential segment was boosted by the improvement in housing and medium-rise condo projects while mall leasing saw growth due to higher shopper traffic and the normalization of rental rates.

The net income of FDC’s power segment rose 1% as revenues increased 19% led by higher electricity prices.

FDC’s hospitality segment posted a 53% increase in revenues on the back of higher occupancy rates and average room rates for hotel properties with the continued recovery of travel and tourism.

“We are pleased to report the strong performance of our portfolio with an impressive broad-based growth in revenues and profit across all our business segments in banking, real estate, hotels, power, and sugar despite the challenges of high interest and inflation rates,” FDC President and Chief Executive Officer Chiqui A. Huang said.

“With enhanced business strategies and execution, and a resilient organization, we look forward to sustaining, if not accelerating, our growth in 2024 and the years ahead,” she added.

FDC’s subsidiaries include Filinvest Land, Inc., EastWest, and FDC Utilities, Inc. — Revin Mikhael D. Ochave

Max’s Group’s net income down on higher expenses

November 16, 2023 | 12:09 am

LISTED restaurant operator Max’s Group, Inc. posted a 53% drop in its attributable net income in the third quarter amid increased expenses.

In a regulatory filing on Wednesday, the company said its attributable net income fell to P68.35 million compared with P145.74 million last year due to higher expenses.

The company’s third-quarter revenues improved 4.3% to P2.91 billion from P2.79 billion last year.

Meanwhile, Max’s Group logged a 26% decline in its nine-month attributable net income to P313.72 million from P426.41 million led by increases in food and packaging costs, cost of labor, rent, and store-related expenses “that were instrumental in reinforcing the customer dining experience.”

The company said its revenues rose 13% to P8.8 billion while systemwide sales improved 10% to P13.8 billion.

“The solid performance is owed to the group’s dedication to provide great food and great service to its growing base of customers. Max’s Restaurant and Pancake House are on track in rebounding from a challenging past three years as they capitalize on the growing market appetite for eating out,” it said.

“Meanwhile, Yellow Cab Pizza Co. and Krispy Kreme continue to be the group’s stalwarts in the off-premise channels, while [Max’s Group] international arm sustains its growing contribution with strong operations in the group’s operations in the rest of Asia, North America, and the Middle East,” it added.

Max’s Group President and Chief Executive Officer Robert F. Trota said that the company is confident that its brands will remain relevant in “today’s consumer.”

“Our reinvigorated efforts to provide customers with fresh experiences through product and retail innovations make us optimistic as the dine-in segment in particular gets a boost with the expected higher consumer spending in anticipation of the holiday season, the declining unemployment rate, and the overall trajectory of household consumption expenditure,” Mr. Trota said.

“These results underscore our steady growth rate notwithstanding the effects of challenging market conditions, and our teams are ready to channel this momentum into the Christmas season, priming us for a strong finish to cap the year,” he added.

As of the third quarter, Max’s Group store network covers 14 territories, with 591 Philippine branches and 66 stores across North America, the Middle East, and Asia.

Its shares at the local bourse fell six centavos or 1.55% to P3.80 apiece. — Revin Mikhael D. Ochave

PSE income improves nearly 20%

November 16, 2023 | 12:07 am

LOCAL stock market operator The Philippine Stock Exchange, Inc. (PSE) logged an increase of nearly 20% in its nine-month net income amid higher investment income.

“The PSE realized a net income after tax of P575.65 million, 19.9% higher from P480.07 million in the same period last year, on account of higher investment income,” PSE said in a regulatory filing on Wednesday.

It said investment income rose 210.7% to P128.76 million while its operating income dropped 19.8% to P545.38 million.

PSE’s operating revenues dropped 8.7% to P1.1 billion, of which 39.8% came from listing-related activities, and 30.7% from trading-related activities.

Other revenues such as certifications and product training contributed 12.7%, while market data and technology made up 11.5% and 5.3%, respectively.

Listing revenues fell 19.2% to P438.47 million from P542.73 million led by the 29.4% drop in initial listing fees as there were only three initial public offerings (IPOs) as of end-September.

For its nine-month performance, the PSE said P91.88 billion in capital was raised. Of the total, 58.4% came from follow-on offerings, 21.9% from private placement, 15% from stock rights offerings, and 4.7% from IPO.

Trading-related revenues during the nine-month period fell 8.8% to P338.25 million from P370.91 million as total value turnover fell 8.8% to P1.21 trillion as of end-September.

“Retail investors comprised 19.03% of total market transactions, lower compared to the 20.89% recorded in 2022. Meanwhile, percentage of foreign trading was steady at about 43% of total value of trades,” PSE said.

Market data revenues fell 16.1% to P126.49 million from P150.75 million last year while revenues from technology platform subscriptions rose 105.2% to P57.81 million.

“The increase in subscription revenue was on account of the implemented fee adjustments for the use of PSE’s front-end system,” the market operator said.

PSE shares at the local bourse closed unchanged at P170 apiece on Wednesday. — Revin Mikhael D. Ochave

PAL expands flight, signs codeshare deal with Singapore Airlines

November 16, 2023 | 12:06 am

FLAG CARRIER Philippine Airlines (PAL) has expanded its codeshare partnership with Singapore Airlines (SIA), increasing flight options between their respective countries and adding more international destinations.

“The partnership is the product of a strengthened relationship with our fellow ASEAN mainline carrier, Singapore Airlines, and an enduring commitment to expanding our presence in Singapore,” Stanley K. Ng, president and chief operating officer of PAL, said in a media release.

The codeshare agreement, PAL said, will start by the fourth quarter of this year after regulatory approvals.

SIA will also codeshare PAL’s flights from Manila to 27 destinations in the Philippines, PAL said, adding that it will codeshare six flights of SIA in Copenhagen, Frankfurt, Milan, Paris, Rome, and Zurich.

“This agreement enables Philippine Airlines and Singapore Airlines to work more closely together, and find ways to offer our customers enhanced travel connections between Singapore and the Philippines,” said Goh Choon Phong, chief executive officer of SIA.

This collaboration between the two airlines will also support the growing demand for travel both in the Philippines and Singapore, he said.

PAL said the European codeshare sectors will be launched across its sales channels, as well as SIA’s in the coming weeks.

It added that the codeshare services to Copenhagen and Milan are the first air link to Denmark’s capital and Italy’s commercial hub. — Ashley Erika O. Jose

PT&T secures nod on capital hike

November 16, 2023 | 12:05 am

PHILIPPINE Telegraph and Telephone Corp. (PT&T) has secured the approval of the Securities and Exchange Commission (SEC) to increase its authorized capital stock.

In a media release on Wednesday, the listed telecommunications company said its enhanced capital stock consists of 1.5-billion common shares priced at P1 each and 230 million preferred shares at P10 apiece.

Its capital structure will increase to P12.6 billion from P3.8 billion, PT&T said.

“It’s not merely about the increase in figures; it’s about expanding our horizons. We are ready to lead the charge into a new era of telco and technology,” Miguel Marco A. Bitanga, chief operating officer and treasurer of PT&T, said in a statement.

The company said its capital stock increase will also include 6.75-billion Series A serial redeemable preferred shares; 1.8-billion Series B serial redeemable preferred shares, and 250-million Series C serial redeemable preferred shares, at P1 each.

It added that the increase in its authorized capital stock will strengthen its financial capacity as it is looking at “strategic expansion” and other corporate activities.

“Our revamped corporate structure sets the stage for a new era of innovation, growth, and financial stability. These changes are expected to empower us to continue delivering exceptional services while facilitating fundraising endeavors, ensuring that PT&T remains at the forefront of the ever-evolving connectivity and IT landscape,” said James G. Velasquez, president and chief executive officer. — Ashley Erika O. Jose

After a pandemic-induced hiatus, the Grand Wine Experience returns

November 16, 2023 | 12:05 am

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HALTED by the pandemic, the Grand Wine Experience is coming back with a bang after three years.

There was a press preview earlier this week at Rustan’s Makati by the Philippine Wine Merchants and Ralph’s Wine and Spirits, but the store would not have been able to fit all the brands that will be showcased on Friday, Nov. 17, at the Marriott Grand Ballroom. According to the president of both wine companies, Ralph Joseph (of the Joseph wine distributing family), there will be over 1,000 wine, spirits, beer, and saké (Mr. Joseph’s latest obsession) brands at the event.

This Friday’s Grand Wine Experience is the 20^th for Philippine Wine Merchants, and is also a celebration of their 48th year in business. This year’s theme is “Bud Break,” which captures the essence of renewal and optimism. According to a release, “bud break is the first stage of the grapevine’s annual cycle, when the dormant buds burst into life and produce new shoots. It is a critical time for the vineyard, as it determines the potential yield and quality of the grapes.” Mr. Joseph relates this to the three-year pause they had to take, noting the auspiciousness of the dates had they been allowed to carry on in 2020. The 20^th anniversary was to have been marked on Nov. 20, 2020. “Sayang (what a waste). 20/2020.”

“We would have done it last year, but for us, we’re better prepared for a bigger one,” he said on holding the event this year, despite pandemic-related restrictions loosening up last year.

Mr. Joseph made an observation on the maturity of the Philippine wine market in their 48^th year in operation. “Before, people only drank brands. Now, everybody’s open to anything.”

Which leads us to his latest obsession, saké (Japanese rice wine), itself with many appellations and varieties. They had just opened a saké bar at BGC’s Mitsukoshi Mall last year, and, according to him, over 40 saké brands will make an appearance at the Grand Wine Experience. “I think saké’s growing fast,” he said.

On another note, he told reporters that his preferred hangover cure — sure to come in handy after Friday’s festivities: “The next day, you have to drink again.”

The 20^th Grand Wine Experience will take place on Nov. 17 at the Grand Ballroom of the Manila Marriott Hotel at Newport World Resorts in Pasay City. The doors will open at 5 p.m. and the event will last until midnight. Tickets are available at https://grandwineexperience.com/grandwine for P8,500. The ticket price includes unlimited tastings, an all-you-can-eat buffet, entrance to talks, and a raffle entry. — Joseph L. Garcia

BSP proposes framework for merchant payment acceptance

November 16, 2023 | 12:04 am

THE CENTRAL BANK is looking to establish a regulatory framework for merchant payment acceptance activities for financial institutions looking to provide these services, a draft circular showed.

The proposed framework posted on the Bangko Sentral ng Pilipinas’ (BSP) website will create new sections in the Manual of Regulations for Payment Systems (MORPS) once finalized.

Stakeholders are given until Dec. 15 to give their feedback on the proposed circular.

The framework will cover BSP-supervised financial institutions (BSFIs) and nonfinancial institutions that conduct merchant payment acceptance activities in the Philippines.

Merchant payment acceptance activities are services that allow retailers to accept various payment instruments by collecting and processing the related transaction information.

Allowing merchants to accept different forms of payments from their customers will facilitate the smooth flow of funds in the economy and improve the adoption of digital payments, the central bank said.

“For digital payments to thrive, minimum standards and good practices to safeguard the funds received from customers of merchants and to protect the rights and interests of end-users (i.e., merchants, customers) that deals with entities that facilitate merchant payment acceptance must be established,” the BSP said.

The proposed framework will ensure that financial institutions will adopt appropriate governance structures and proper measures to manage risks to their business model, it said.

These risks include risks to settlement, operations, data protection, information technology (IT) and cybersecurity, anti-money laundering and countering terrorist and proliferation financing (AML/CTPF) and end-user protection.

The central bank also proposed a capital requirement for merchant acquirers or entities that directly or indirectly enable businesses to accept different payment instruments. These firms maintain relationships with payment schemes and card networks and settles funds accepted on behalf of retailers in accordance with a written agreement.

Under the draft rules, minimum capital for a large-scale merchant acquirer is at P20 million, while small-scale merchant acquirers should have a minimum capital of P5 million.

“As necessary, separate guidelines shall be issued to cover capital requirements for payment facilitators, payment gateways, and other entities conducting merchant payment acceptance activities, which may consider additional criteria other than aggregated inflow and outflow of transactions, such as number of merchants serviced,” the BSP said.

Under the framework, merchant acquirers and payment facilitators should complete funds settlement to both physical and e-commerce merchants after two days at the maximum.

“In the event that the period to transfer the collected funds is more than the agreed maximum number of days as stated above, a merchant acquirer or payment facilitator shall undertake risk-mitigating measures to ensure that liquid assets are insulated from risks,” the BSP said.

Entities that provide merchant payment acceptance services will also adopt a pricing mechanism that is reasonable, transparent, market-based and proportional to the costs of the services offered, it said.

In applying for license to conduct merchant payment acceptance activities, entities may need to secure an approval from the BSP. If an institution is granted a license, it is expected to comply with the operational standards and requirements in the MORPS.

“For an entity that intends to handle merchant onboarding and merchant payment processing, including transfer of funds to transaction accounts of merchants, it shall secure a Merchant Acquisition License with the appropriate department of the BSP,” it said.

“Covered BSFIs that provide merchant payment acceptance services as part of their normal or allowed business operations do not require a separate license from the Bangko Sentral,” the BSP said.

Financial institutions will also be expected to comply with AML/CTPF requirements as merchant acquirers and payment facilitators will be considered as covered persons under the Anti-Money Laundering Act.

“They shall maintain a proportionate system of verifying the true identity of their merchants and, in case of corporate clients, require a system of verifying their legal existence and organizational structure, as well as the authority and identification of all persons purporting to act on their behalf,” the central bank said.

Entities that offer merchant payment acceptance services should also design and implement IT risk management commensurate with their size, nature and types of products and services.

“There shall be a robust and effective information technology and fraud risk management framework and processes, including corresponding governance structures, and controls, to ensure financial stability, operational resilience, and consumer protection,” the BSP said. — Keisha B. Ta-asan

Now partners with German satellite firm

November 16, 2023 | 12:04 am

NOW Corp. has partnered with a German-based satellite communications company to provide a next-generation connectivity network in the country, the listed telecommunications company said on Wednesday.

In a regulatory filing, Now Corp. said it had signed a memorandum of understanding with Rivada Space Networks to tap its low-latency point-to-point connectivity network of 600 low Earth orbit or LEO satellites.

This seamless connectivity, as the company describes, will accelerate connectivity network performance while also improving security.

Headquartered in Germany, Rivada will provide Now Corp. with digital solutions for high-quality voice, video, and data solutions to enterprises to ensure secure infrastructure.

“As we aim to link and to secure critical infrastructures in the Philippines, we aim to provide the most reliable and secure connectivity to our intended market,” Henry Andrews B. Abes, president and chief executive officer of Now Corp., said in a statement.

Rivada’s low-latency connectivity network is an advanced inter-satellite laser link, harnessing onboard processing to provide routing and switching capabilities which in turn can provide wireless free-space optical communication, the company said.

At the local bourse on Wednesday, shares in the company closed six centavos or 4.76% higher at P1.32 each. — Ashley Erika O. Jose

Canon Philippines banks on business imaging solutions for firm’s growth

November 16, 2023 | 12:04 am

CANON Marketing (Philippines), Inc. (CMPI) aims to be a P5.5-billion solutions selling firm by 2026, with the expansion of its automated business imaging offerings expected to help it reach this goal, officials said.

The company is banking on business-to-business sales as it seeks to become the third-largest market player in the country, Kenichiro Kitamura, office imaging products director at CMPI, told BusinessWorld in an interview.

Canon’s business slowed significantly during the coronavirus pandemic due to its reliance on hardware products for revenue, Mr. Kitamura said.

“We cannot just focus on the printing. We have to do something different,” he said.

As more firms opted for work-from-home arrangements, Canon saw that every print product must have a digital solution, said Anuj Aggarwal, CMPI president and chief executive officer.

“When we say work-from-home, everything has to be digitized,” he said. “The traditional organizations that were believing in paper are also going for digitization.”

Each Canon business imaging product has built-in automation and fine-tuning to improve ease of doing business, alongside custom configurations and dedicated technical service engineers to assist and manage clients, the company said.

Canon’s imageRUNNER multi-function devices allow users to streamline and personalize print jobs with restrictions and authentications in place for preventive security, it said in a press release.

For large-format printing in small workspaces, its imagePROGRAF TC series lets users continuously print technical drawings, create own designs from templates, and auto-switch between papers, it added.

Meanwhile, the imagePRESS V900 series offers high-speed printing in a compact body with automated pre-run adjustment features.

Canon’s range of document readers and scanners also support precise paper feeding and fast conversion with content detection, it added. Its CR-N500 remote camera system supports a 1” sensor, 4K video resolution, and four-axis correction mechanism for video production and broadcasting.

Canon’s information management software serves as an archiving and communication ecosystem for organizations digitalizing their manual processes, the company added. — Miguel Hanz L. Antivola

Is Philippines ready for alcohol-free wine?

November 16, 2023 | 12:04 am

WINE is described as the fermented juice of grapes, with the operative word being “fermented.” Simply put, when grape juice does not go through the chemical process known as fermentation, it is simply juice.

Right now, there is a pseudo-trend going on for alcohol-free wine or non-alcoholic wine, and several wineries from top wine producing countries are already joining this band wagon. Could this be something the Philippine wine market is going to embrace moving forward?

A MORE ELABORATE PROCESS THAN REGULAR WINE
To be an alcohol-free wine, the product needs to be a wine first. This means that alcohol-free wine starts as a wine going through the traditional fermentation process before it is “re-engineered” to become alcohol-free. This is a huge challenge as alcohol is one reason why wine has inherent characteristics and texture.

There are a few methods to make this happen and it always starts with a finished wine to be “de-alcoholized” from its usual 13-14% to 0.5% or less, which, despite the presence of minimal alcohol can already be labeled as “non-alcohol” wine. The three known methods, all of which are complicated, are:

1. Vacuum Distillation — this uses heat to remove alcohol in wine in a vacuum chamber, boiling the wine to let the ethanol evaporate while keeping the wine flavors intact.

2. Spinning Cone Columns — the same concept as Vacuum Distillation but involving a few more stages of repeated low-temperature evaporation and condensation using inverted cones and centrifugal forces. Components of the wine are therefore broken apart and then put back together without the alcohol and keeping as much of the flavors of the wine as possible.

3. Reverse Osmosis — this is a high-tech molecular filtration process that allows wine to pass through with its inherent nuances, but not the alcohol in the wine.

WHY ALCOHOLIC-FREE WINE?
Health, safety, and inclusivity are the normal answers to why this product makes some sense.

As a wine lover, I can argue that wine is slightly healthier than other alcoholic beverages like beers or spirits, but the alcohol in wine has equal safety concerns as other alcoholic beverages, especially when one gets inebriated.

Taking the alcohol away from wine may be taking one reason away from not drinking, but to hardcore wine lovers like me, I like wine not for its alcohol content per se but more for its characteristics, flavors, and even compatibility with food. If indeed the flavor and nuances of the wines can be retained in alcohol-free wines, then I would not mind buying them, even if, because of the laborious process of removing alcohol, the wine will be more expensive than the regular wines.

Inclusivity in this case also means that people who, for a variety of reasons, cannot drink wine — for example Muslims and people of other religion that prohibit drinking alcohol — can now at the very least drink and taste wine. Pregnant women, designated drivers, and even heavy-equipment operators are also among the beneficiaries of this type of wine.

The big question may be on the taste of these alcohol-free wines, and whether they are like regular wines that can still pair with food and offer gastronomic sensations.

By the way, these alcohol-free wines are still not appropriate for those below 18, so read on.

WINE CATEGORY CONFUSION
“Alcohol-free” is really a misnomer. Alcohol-free wine is actually not zero alcohol — it has a minimal alcohol content at just 0.5% ABV (alcohol by volume) or below, therefore it is still not suitable for minors. This is similar to those non-alcoholic beers available in the market that also contain token alcohol. In Europe, where this trend might have started, the UK and Germany require wines with labels that say “alcohol-free” and “non-alcohol wine” to contain no more than 0.5% ABV. Anything above 0.5% ABV but below 9% is just simply low-alcohol wine.

I have yet to taste or experience these alcohol-free wines, so the jury is still out on this category. But, as some of my industry friends would blatantly say on this subject, “wine with no alcohol is like sex without orgasm.” That is a bit harsh, but we will see as I am sure these alcohol-free wines should be coming over sooner rather than later, and then we can all try them out and decide for ourselves if these wines will be here to stay or not.

Sherwin A. Lao is the first Filipino wine writer to be a member of both the Bordeaux-based Federation Internationale des Journalists et Ecrivains du Vin et des Spiritueux (FIJEV) and the UK-based Circle of Wine Writers (CWW). For comments, inquiries, wine event coverage, wine consultancy and other wine related concerns, e-mail the author at wineprotege@gmail.com, or check his wine training website https://thewinetrainingcamp.wordpress.com/services.