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FEU board clears investment in Pampanga school

LISTED educational institution Far Eastern University (FEU) said its board of trustees had cleared a shareholders’ agreement with MGHI Holdings, Inc. to invest in a school in Pampanga. 

In a regulatory filing on Wednesday, the university said the agreement should stipulate that MGHI and FEU would each invest up to P300 million in Higher Academia, Inc. (HAI) for a total equity investment amount of P600 million.

In turn, HAI would acquire the assets of Colegio de Sebastian-Pampanga, Inc., which is a secondary and tertiary school located in San Fernando, Pampanga. 

MGHI Holdings is a member of the United Laboratories, Inc. group, more commonly known as Unilab, which is engaged in the production of healthcare products and medicines.

Meanwhile, FEU said the shareholders’ agreement is also envisioned to contain share transfer restrictions, management, and governance provisions, and termination, dissolution, buy-out mechanisms upon the occurrence of “certain trigger events.” 

FEU disclosed that no agreement has been signed yet, and would make the necessary disclosures if there are any updates.

“No definitive agreement has been signed pending finalization of the documentation, discussions, and the conduct of due diligence. We will make the necessary disclosures regarding the project as soon as further information becomes available,” FEU said. 

FEU managed to narrow its attributable net loss in the first quarter ending August to P73.09 million from the P93.99-million loss a year ago.

The company’s revenues jumped 35% to P568.64 million from P421.95 million.

On Wednesday, shares of FEU at the local bourse fell P19 or 3.23% to P570 apiece. — Revin Mikhael D. Ochave

DHL sees potential in Philippine market

DPDHL.COM

PENANG, MALAYSIA — DHL Supply Chain is seeing opportunities in the Philippine market where the retail sector is starting to gain momentum, its top official said.

“I think the Philippines for us, as a market, brings many opportunities,” Andries Retief, DHL Supply Chain Chief Executive Officer for Southeast Asia, said in a media interview in Penang, Malaysia, on Tuesday. “I think the [country] as a market holds potential for the future.”

Mr. Retief cited as an example the Philippine retail market, which he said is now “starting to get some momentum.”

“If you look at the Philippines and look at the different prominent sectors, then you will look at things like obviously, the retail and consumer sector.”

“The semiconductor technology sector — that is also our expertise as DHL,” he said, adding that “semiconductors and retail [are] very well established over many markets, specifically in the Philippines.”

“Those are probably the two main areas,” he said.

Apart from retail and technology, Mr. Retief said that DHL Supply Chain is also keeping an eye on opportunities in other industries.

“There are other industries in the Philippines that we keep looking at: automotive, energy and mining, and so forth,” he added.

In the Philippines, DHL Supply Chain has about 280,000 square meters (sq.m.) of warehouse space, 20 facilities, and 30 customers to date.

Mr. Retief said that the firm expects to see more customers. “We continue to add more customers, that number we believe will grow. If you invest in the space and the people and the technology, then those customers will be there. And there is a need, we can tell from the market in the Philippines and Indonesia.”

DHL Supply Chain earlier announced it is investing €80 million in the Philippines over the next five years, which would include the development of two new facilities.

This includes the Sta. Rosa Logistics Hub, a 50,000 sq.m. built-to-suit warehousing storage.

The investment is also expected to create 1,000 jobs by 2024, mainly related to warehousing and transportation.

Depending on demand, Mr. Retief also sees the possibility of expanding its built-to-suit warehouses in the country.

“It depends on which customers or which sectors we see fit for those buildings specifically. When we [chose] the built-to-suit in Sta. Rosa, it’s because we have a clear idea of which sectors or which parts of the market we want to target to include there, and we can ‘built-to-suit’ those. That’s likely to be the case for the future, but there might be some exceptions,” Mr. Retief said.

“I think what’s maybe more important than if it’s built-to-suit is to say, is it built in a way that supports our focus on carbon neutrality? These are carbon-neutral buildings and the size of those investments in the Philippines is quite large,” he added.

DHL Supply Chain may also consider developing more bonded warehouses in the Philippines.

“[It’s] a service we continue to focus on offering to our customers. We will increase those as the demand is there,” he added.

Meanwhile, Mr. Retief also said that automation in the Philippines is not as far-fetched as expected.

“There is a perception, and I think that’s the wrong perception, that says because you’re in the Philippines or Indonesia, you can’t drive automation, you can’t drive digitalization. I don’t think that’s true,” he said.

“If you are committed to a market for the long term, which at DHL Supply Chain we clearly are, then digitalization and automation is non-negotiable. The key to making sure you get that right is saying where are the non-value-adding activities? Every market, every operation has activities that are not adding as much value as others,” he added.

DHL Supply Chain’s €80-million investment in the Philippines is part of its €350 million commitment in Southeast Asia. Malaysia will receive the biggest share with €131 million, followed by Singapore (€104 million) and Indonesia (€35 million). — Luisa Maria Jacinta C. Jocson

New jobs and offshoring seen to help boost IT-BPM job generation

THE PHILIPPINE information technology and business process outsourcing (IT-BPO) industry is set to achieve its job generation target due to new jobs created from new skills and growing demand for offshoring, an official of Concentrix + Webhelp said.

Amit Jagga, senior vice-president and country leader for the Philippines of IT-BPO company Concentrix, said that the good part is that the industry has already been able to achieve its target for 2022 as stated in the industry roadmap of IT & Business Process Association of the Philippines (IBPAP).

“The industry moved in line with the target. It continues to create a lot of jobs and we have been the number one sector for the Philippine economy for the last number of years and we foresee that in the future as well,” Mr. Jagga said in a livestreamed press conference in Cebu on Tuesday.

“This industry will continue to be number one in terms of employment generated and contribution to the gross domestic product in the Philippine economy,” he added.

The Information Technology and Business Process Management (IT-BPM) Industry Roadmap 2028 released by IBPAP sets targets for staffing levels and revenue growth.

Under the roadmap, the IBPAP hopes to create 2.5 million jobs by the end of 2028.

“The number of new skills that are coming into the Philippines, like generative artificial intelligence, is generating new jobs for the Philippines as we are getting more and more projects in that area,” Mr. Jagga said.

He added that due to the global macroeconomic environment, especially in North America and Europe, there is a renewed focus on offshoring.

“Philippines is one of the popular hubs across the world from an offshoring arbitrant’s perspective so that is also helping the Philippines,” he said.

“So overall… I think we are on track to get to the number projected by the IBPAP,” he added.

On Tuesday, the company launched its ninth site in Cebu located within the Cebu Exchange Tower. The site houses over 4,500 employees, making it its largest staffed site in the Philippines.

“We consolidated two sites into this building… so we left those two buildings, moved the accounts there into this building and added a thousand more people here. But we are retaining all the other locations, so overall it’s a total of nine sites and 13,000 headcount [in Cebu],” said Dagny Estacio, senior director of client success at Concentrix.

To date, the company has 52 sites in 20 cities across the Philippines supporting over 100,000-strong employees.

Just last month, Concentrix completed its integration with Webhelp, which Mr. Jagga said is a large company in Europe and Latin America.

“Both these companies have come together to make one of the largest customer service operations in the world,” he said.

“At a certain time, we would come up with a new name, it could be Concentrix, it could be Webhelp or completely new,” he added. — Justine Irish D. Tabile

A taste of Macau’s Michelin-starred restaurants

Chilled Alaskan King Crab in aged yellow wine with caviar

Macau is expanding its attraction beyond casinos

CITY OF DREAMS Manila gave guests a taste of what a three-Michelin star (the highest honor bestowed by the Michelin Guide) dinner feels like during the Glow Your Way to Macau tourism campaign launch on Oct. 10.

The dinner was prepared by chefs Otto Wong (who heads Pearl Dragon, with one Michelin star) and Kelvin Au Yeung (of Jade Dragon, with three Michelin stars), with Christophe Duvernois lending a hand for dessert. The Pearl Dragon and the Jade Dragon are located at Studio City Macau and City of Dreams Macau, sister properties of City of Dreams Manila, both under the Melco Resorts & Entertainment Limited parent.

The dinner opened with Chilled Alaskan King Crab Aged in Yellow Wine, with caviar. The sweetish and delicate crab was given an accent by the luxurious caviar — washed down with champagne, of course. The next dish was a Deep-fried Scallop with Fresh Sichuan Pepper Sauce. This was strongly fragrant, with a scent of both fire and fresh grass. The scallop, encased in breading, flaked apart delicately. The sauce and the scallop together had a strange, satisfying combination, each bite strangely feeling and tasting like a full meal, so dense it was with flavor.

The Roasted French Cod with Aged Mandarin Peel and Black Beans sounds at first glance like a reinterpretation of a classic fish and black beans dish. Transformed into a glaze, the black bean was a mere suggestion and a flashback and aftertaste after swallowing. While chewing, the focus is on the firm and delicate fish, with a soft skin waiting to be punctured by a fork. This was paired with a 2011 Chateau de Beaucastel Chateauneuf du Pape; to the fish, it lent interest and piquancy.

A slow-cooked Green Lip Abalone and Wagyu Beef Cheek with Truffle came next. The abalone had a rubbery-chewy texture, covered in sauce but still strangely clean, reminding one of chewing on a very firm boiled egg white. The beef, with a hint of nuts in its taste, paired well with a Chateau Siran Margaux from 2018, for it grounded the wine and gave its tannic, musky complexities some direction.

The savory portion of the dinner ended quite peacefully with a Hot and Sour Soup with red prawn, chicken, and rice; with a powerful broth tasting of shrimp and the sea.

Dessert was a final showcase with a tree made entirely out of chocolate (which one could nibble on like it was a cutting from Willy Wonka’s factory), followed up by a delicate creme brulée flavored with almonds and topped with an almond tuile.

Stripping down the dinner to its essentials, what we had could have been any meal in a high-end Chinese restaurant. Served with panache however, we begin to see the reason why Chinese food is popular around the world (not counting the Chinese diaspora, which incidentally made Cantonese cuisine the most popular in the world, thanks to large numbers of migrants from Guangdong province).

Calvin Soh, Vice-President of Culinary for Melco, discussed how they treated what were traditional dishes to make them worthy enough to earn multiple Michelin stars.

There are the ingredients. The aged orange peel (not a very ubiquitous ingredient, but a luxury) used in the fish, for example, can be aged for up to decades. “It could be as expensive as gold,” Mr. Soh pointed out.

“It’s about the freshness, the right season of the ingredient, and prepared in a correct way, prepared carefully and created with perfection. Food can be simple dishes that we serve every day, but we maintain the highest standard,” he said. — Joseph L. Garcia

Century Properties board approves P5-B preferred shares offering 

LISTED property developer Century Properties Group, Inc. said its board had approved the issuance of preferred shares that could generate up to P5 billion.  

In a regulatory filing on Wednesday, the board approved the offering of up to 50 million of the company’s Series B preferred shares, which would be for sale or subscription via a follow-on public offering at an offer price of P100 per share.

The shares, which have a par value of 53 centavos, will come from the existing unissued authorized capital stock of the company. The offering was approved during a special board meeting.

The board of Century Properties also approved the move to apply for the registration of the offer shares with the Securities and Exchange Commission and the listing of the offering with the Philippine Stock Exchange, subject to their approval.

Century Properties has business interests in the development, marketing, and sale of mid- and high-rise condominiums and single-detached homes, leasing of retail and office space, and property management.

In the first half, Century Properties logged a 15.5% increase in its attributable net income to P324.26 million compared with P280.63 million a year ago. The company’s revenues climbed 19.9% to P5.31 billion.

On Wednesday, shares of Century Properties at the local bourse closed unchanged at 32 centavos apiece. — Revin Mikhael D. Ochave

Going beyond casinos

MACAU is trying to develop new ways to bring tourists to the city, by diversifying its base from gaming and casinos.

“The focus is to do non-gaming (activities). We feel that going forward, we don’t want to be just relying on one part of the tourism mix,” said Maria Helena de Senna Fernandes, Director of the Macao Government Tourism Office, said during a press conference. New contracts between the government and the gaming operators means that “They’re investing a lot in new non-gaming facilities, as well as events.”

Industries the city will be focusing on include health and wellness, technology, wealth and finance, and MICE (Meetings, Incentives, Conferences & Exhibitions).

Compared to other countries, Macau opened up rather late after the COVID-19 pandemic cooled down. The city and Special Administrative Region only fully opened their doors in January this year, said Ms. De Senna Fernandes. They saw an uptick of tourist arrivals since June of this year, with 120,000 foreign visitors (from outside Mainland China and Hong Kong) visiting every month.

“We’re aiming at probably 25 million (tourists) by the end of this year,” she said, noting that in 2019, before the world shut down because of the COVID-19 pandemic, their tallies numbered to more than 29 million tourists. “The good news is that people are staying longer. The profile of visitors is younger, and the other thing is that they’re spending more.”

Meanwhile, City of Dreams Manila’s parent, Melco Resorts & Entertainment Limited, announced the opening of a sales office in its Manila property. According to Kevin Benning, Senior Vice-President and Property General Manager of Studio City in Macau, this was to facilitate easier booking for MICE-related business, as well as to allow Filipino visitors to plan trips across Macau. “This opens up a whole new segment,” he said. “We’ll be able to coordinate all of that for you, from any of our Melco-based properties.” — Joseph L. Garcia

Ayala unit, Germany’s Bosch to open more PHL service centers

ACMOTORS.COM.PH

AYALA Corp.’s automotive unit AC Motors has tied up with the local unit of German engineering firm Bosch in a partnership deal that targets the opening of 60 service facilities in the next five years.

“Our immediate plan will be to open up 20 service facilities within the first 12 months. We are looking at at least 60 service facilities in the next five years,” Antonio A. Zara III, president of AC Motors, said at the signing ceremony on Wednesday.

“We are proud to embark on the journey alongside our strong partner the Ayala Group, to reshape the car service scene today in the Philippines by incorporating integrated vehicle technologies and expanding our global network of independent workshops,” said Marcio Coelho, vice-president of Bosch Automotive Aftermarket ASEAN.

Currently, 12,000 Bosch Car Service centers are spread across 150 countries, with 12 of them in the Philippines,  Mr. Coelho said.

“In the last quarter of 2023, our immediate priority is the conversion of the 12 existing outlets into the new standards that we have,” Mr. Zara said.

Bosch Car Service is said to offer one-stop-shop services as it covers mechanical repairs to intricate electronics, engine systems, safety features, comfort upgrades, transmission expertise, and a host of other services and diagnostics.

“Accessibility to these services is paramount, especially in the Philippines, where the pace of transportation infrastructure and demands result from the rapid growth of the country’s economy,” said Paulo Duarte, managing director of Bosch Philippines.

AC Motors President Jaime Alfonso Zobel de Ayala said: “We are very encouraged with the growth that we are seeing in the market right now. There is tremendous growth in the new segment and new technologies that we are seeing.”

“I think right now, we are looking to develop an ecosystem that services the customers of today and tomorrow and the partnership with Bosch represents exactly that right now,” he said.

Under the partnership, AC Motors will be the master franchisor of Bosch Car Service in the Philippines, giving the Ayala company the ability to serve owners of internal combustion engine vehicles. — Justine Irish D. Tabile

New look, same taste

WHILE Carmen’s Best ice cream is expanding thanks to its corporate ties to the MVP group — through its partnership with Metro Pacific Agro Ventures (MPAV), under Metro Pacific Investments Corp. (MPIC) — it still keeps a taste of the wholesome family goodness we’ve come to know.

Carmen’s Best was established in 2009 by Paco Magsaysay (a descendant of former president Ramon Magsaysay, and the son of former senator Ramon Magsaysay, Jr.). Last year, the conglomerate acquired a 51% stake in Carmen’s Best, while Mr. Magsaysay and his family retained 49%. The Carmen’s Best group consists of Carmen’s Best Dairy Products, Inc., Carmen’s Best International Dairy Co., Inc., Real Fresh Dairy Farms, Inc., and The Laguna Creamery, Inc.

Earlier this week, the brand launched two commercials — one on how the ice cream is made with fresh ingredients, another featuring a child and her ill grandmother — three holiday flavors, and new packaging, in an event at BGC.

The holiday flavors are Eggnog (with a cinnamon base), S’mores (with a marshmallow base and graham crackers), and Mint Chocolate.

The new packaging is quite different from the simple graphic blue and white original, which was consistent throughout the line, with just the flavor’s name distinguishing between the pints. Now each flavor will be represented by graphics of the ingredients it’s made with, with a color palate of white and gold. All these will be centered around a single drop of milk. “At the heart of it is that milk drop, which represents what makes it unique,” MPAV Chief Commercial Officer Toby Gatchalian said in an interview.

During the event, it was also announced that the brand will be opening a second store in SM Mall of Asia (its first being in Rockwell).

OF COWS AND KALE
MPAV Chief Executive Officer Jovy Hernandez told BusinessWorld that they will be building the country’s largest dairy facility, also in Laguna, where Carmen’s Best’s plant is located. The facility will house at least 1,000 cows, 600 of which will be milk-producing. As of the moment, Mr. Hernandez said that they have 100 cows. “Kapag naging 600 iyan, can you imagine? It’s six times the production.”

When they acquired Carmen’s Best last year, it was because they saw gaps in the dairy industry. “We discovered that only 1% of milk production in the Philippines was local,” he said. They promise to keep the quality though: “When we invested, we said we need to be able to keep what has been developed, which we think is best. The no-shortcut policy is still there,” he said, talking about the use of 100% fresh milk in Carmen’s Best products.

They’re moving into other pastures as well: last year they announced a new greenhouse project, with 3.5 hectares in Bulacan, said Mr. Hernandez. This aims to produce green, leafy vegetables like kale and spinach, with harvest time set every 27 days for the whole year round. “This is like a food factory for us. The promise is for us, that once at full capacity, we’ll be producing 1,600 metric tons of vegetables annually.”

He pointed out that before the pandemic, MPIC was all about infrastructure, with holdings in hospitals, tollways, energy, water, and telecommunications. “During the pandemic, when there were a lot of challenges in the distribution of food, we said agri is one fantastic pillar of any economy. Why aren’t we doing anything in the agriculture side?”

“There has to be a more conscious effort from the group — from the private sector in general — [that we] should be looking at the agricultural sector for food sustainability,” he said.

MPIC is one of three key Philippine units of First Pacific, 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. — Joseph L. Garcia

Globe blocks nearly 3 billion spam, scam messages 

Globe Telecom, Inc. has blocked almost 3 billion spam and scam messages to date, the telecommunications company said.

“In line with this proactive step, we reaffirm our commitment to reducing scams and fraudulent activities, ensuring that every message sent and received is one of trust,” Anton Bonifacio, chief information security officer at Globe, said in a statement on Wednesday.

As of September, Globe blocked a combined 2.59 billion spam and scam messages and deactivated about 4,733 SIMs. It also blacklisted 150,287 SMS linked to fraudulent activities.

The company has so far invested $20 million to upgrade its spam and scam detection and blocking mechanisms.

The telecommunications company said it has started to filter all person-to-person SMS with clickable links within its network as a move to reduce scams and fraud.

Globe’s statement follows the directive of the National Telecommunications Commission (NTC) mandating all telecommunication companies to block text messages with clickable links.

In September, the NTC issued an amendment to a memorandum directing all telcos to block and deactivate text messages with clickable domains, URLs, and QR codes amid issues of malware, cyberattacks and scams.

“As text scams continue unabated, Globe reiterates its dedication to collaborating with government bodies, especially the NTC, in the relentless campaign against fraud and other forms of cybercrime,” Globe said. — Ashley Erika O. Jose

English sparkling wine gets extra fizz from sustainability

ALEXANDER NAGLESTAD-UNSPLASH

BOXLEY, England — For hundreds of years Britons have celebrated by drinking French Champagne. But with vineyards now dotted across hills in southern England and sustainability concerns growing, local fizz is emerging as the drink of choice.

Britain is still the world’s second-biggest importer of Champagne, a favorite tipple of Winston Churchill, who said: “In victory I deserve it, in defeat, I need it.”

But in recent decades temperatures warmed by climate change have provided better growing conditions for grapes in England. Quality has improved, and English wine is no longer mocked by continental neighbors who once joked it tasted of rain.

At the same time, rising concern about carbon emissions is leading many British consumers and corporations to opt for local produce over imports where they can.

These trends are creating huge momentum: viticulture is now Britain’s fastest-growing agricultural sector, and the UK is planting vines more quickly than most of the world’s biggest wine producing countries.

Britain is forecast to produce 22 million bottles of wine a year by 2030, a sharp rise from about 12 million bottles last year, according to industry body WineGB.

“There’s so much demand for English wine we just cannot keep up,” said Chapel Down’s operations director and head winemaker Josh Donaghay-Spire, as he oversaw workers hand-harvesting dense bunches of Chardonnay grapes at Boxley on the rolling Kent Downs.

Two thousand years after the Romans first brought vines to Britain, English winemakers are going after Champagne’s market, stressing the geological similarities of southern England’s chalky slopes to those of its French home region.

Not wanting to miss out, Taittinger and Pommery, two of France’s best-known Champagne houses, have bought land and planted vines in England, while the world’s biggest sparkling wine company, Henkell Freixenet, acquired an English wine estate, Bolney, in 2022.

At last year’s Decanter World Wine Awards, the UK won its highest ever number of medals. Winemakers say it’s that, plus the “buy local” movement which sees produce from closer to home as more environmentally and socially responsible, which is driving sales.

“Local is better when the quality is good,” said Geneva Guerin, 45, a documentary film maker who was sampling Coates & Seely Brut Reserve at an event in central London. The fizz is grown in Hampshire, less than 70 miles away.

There are now more than 900 vineyards in England. Hectarage has quadrupled since 2000, replacing crops, orchards, and pastures.

“Because we’re a young industry, we’re able to put that (sustainability) at the heart of our design,” Ned Awty, the chief executive of WineGB, said.

The group is working on a project that will give a clear picture of the carbon footprint of a bottle of English wine but in the meantime, Mr. Awty said, lower transport emissions compared to imported wine are proving enough to win over consumers.

NET ZERO
As events organizers contemplate net zero targets, serving English wine is one way of creating an “obvious statement” about sustainability, said Hamish Anderson, chief executive of Tate Enterprises, which runs the Tate art galleries’ events and restaurants business.

“Clients are asking us more and more about sustainability. English sparkling and still wine feeds into that narrative,” he said.

English producers now account for about 60% of sparkling wine served at events held at the Tate, with the rest Champagne, and Mr. Anderson expects it to head to 70%.

In the UK market for sparkling wine, English fizz accounts for 3% of volumes compared to Champagne’s 12%. The former is growing, up 22% in 2021-2022, while Champagne fell 1%, according to data from IWSR Drinks Market Analysis.

Bottles of both tend to cost upwards of £20 — more than double the price of Italian Prosecco, the market leader.

English fizz currently accounts for 25% of sales for events run by Searcys, a British events and restaurants company, up from almost nothing five years ago, and its head of Champagne Martin Dibben forecasts it will be 50% in the next five years.

“The sustainability is the thing that tempts them,” he said.

Chapel Down, England’s biggest wine producer, posted a 21% rise in sales in the first six months of 2023, and is aiming to double 2021 revenues by 2026. To raise brand awareness, it sponsors cricket and horseracing events, and is opening up a second winery for visitors.

“People come, they can see the vines, see the soil, taste the wines, make that connection, and that’s really powerful,” said Donaghay-Spire. — Reuters

Appealing flavors

E-LIQUIDS UK-UNSPLASH

If the government is serious about particularly curbing teenage smoking and vaping — or the use of electronic cigarettes or electronic nicotine delivery systems (ENDS) — then it should start regulating the efforts of cigarette and vape producers to introduce more flavors and make their products more appealing to the younger market.

It is bad enough that a recent observational study by the Institute for Global Tobacco Control (IGTC) found “that tobacco and nicotine product sale and advertising persist within proximity of schools in the Philippines, despite regulations prohibiting sales, displays, advertisements, and promotions of tobacco products within 100 meters.”

But another study by IGTC published recently also found that countries like the Philippines and Vietnam also lacked laws to regulate the use of different “flavors” in the production and sale of cigarettes and other tobacco products. Of course, the concern is that the use of flavors, perhaps to make nicotine delivery more palatable, is also making tobacco products more youth-friendly.

“Tobacco product flavors can increase product appeal, adolescent initiation and experimentation, and difficulty quitting. Flavored tobacco products are not restricted in Vietnam or the Philippines despite the high smoking prevalence among those 15 years of age and older (24% and 23%, respectively). There are no published reports to our knowledge on the levels of flavor chemicals in the cigarettes sold in these two countries,” noted a journal article published in Nicotine and Tobacco Research.

The article was written by scientific experts from IGTC, which was formed in 1998 as part of the Department of Health, Behavior and Society at the Johns Hopkins Bloomberg School of Public Health in Baltimore, Maryland. IGTC is a partner in the Bloomberg Initiative to Reduce Tobacco Use and a Collaborating Center of the World Health Organization. Its mission is to prevent death and disease from tobacco products by generating evidence to support tobacco interventions.

In December 2022 to January 2023, IGTC monitored the local sale and marketing of cigarettes, e-cigarettes, and heated tobacco products (HTP) at over 6,000 retailers within 200 meters of 353 schools in nine cities and regions. And, it found that “2,070 cigarette, 43 e-cigarette, and 33 HTP retail locations were observed within 100 meters of the majority of schools,” in violation of Philippine law.

In a newer study published in Nicotine and Tobacco Research in August, IGTC experts also noted that “a range of flavored cigarette products are being offered by tobacco companies in Vietnam and the Philippines, presumably to maximize cigarette sales. Regulation of flavor chemicals should [thus] be considered in these two countries.”

They added that “Article 9 of the WHO Framework Convention on Tobacco Control (FCTC), ratified by both Vietnam and the Philippines, states that ‘there is no justification for permitting the use of ingredients, such as flavoring agents, which help make tobacco products attractive’… Analyses found that cigarettes purchased in Vietnam and the Philippines contained menthol and other flavor chemicals. Tobacco companies are offering multiple flavor chemical profiles and nominally nonflavored versions in these countries.”

At this point, the Philippines already finds it difficult to strictly and effectively enforce regulations on advertising, promotion, and sale of cigarettes and tobacco and vaping products. And while it can work to further limit youth access to tobacco products and alternatives, this effort should include regulation on the introduction of flavors. The IGTC study noted that tobacco products sold in the Philippines had three main flavor groupings: menthol, nonflavored, and menthol plus other flavor chemicals (OFCs).

As noted by Lauren Czaplicki, a scientist at IGTC and co-author of the study, “Flavored tobacco products are a culprit in extending the tobacco epidemic, making cigarettes appealing to consumers — including young people… By banning and removing flavored tobacco products from the market, countries can successfully counter the tobacco industry’s sugar-coated, predatory marketing tactics.”

The IGTC study found that many cigarette brands sold in Vietnam and the Philippines contained menthol and OFCs. And this is concerning since “menthol makes cigarettes more palatable and can suppress respiratory symptoms; the tobacco industry intentionally manipulates the level of menthol in cigarettes brand variants to appeal to different consumers; and, individuals who regularly smoke menthol may prefer variants with higher menthol levels. Furthermore, those who smoke menthol have a lower likelihood of quitting despite making more quit attempts.”

Chemical analysis by experts from IGTC also showed the “presence of OFCs in brand variants purchased in both countries, either alone or, more commonly, in combination with menthol. Oftentimes, OFCs and menthol were found in flavor capsules or flavor threads… Flavor capsules and threads are being used to appeal to new consumers.”

“Evidence indicates that flavor chemicals, including fruit flavors, menthol and clove, and flavor capsule cigarettes, are appealing to young people. Filipino young adults even liken flavor capsule cigarettes to candy. The present study indicates that flavor chemicals and flavor delivery technology are readily available for sale in Vietnam and the Philippines, suggesting a comprehensive flavored tobacco ban that includes all flavors present in any component part of a cigarette or tobacco product is required in both countries,” IGTC added.

If not a ban, at least some regulation of flavors should be considered, as the Philippines is falling behind its goal of a 30% reduction in smoking by 2025. IGTC said, adding that “a comprehensive flavor ban that includes all flavors present in all cigarette components, including flavor capsules and threads, is one pathway to reduce cigarette sales and promote smoking cessation in these two countries and the Western Pacific region.”

At this point, the Philippine effort to curb youth smoking is far from comprehensive, despite the increase in excise taxes on cigarettes and tobacco products in recent years. The recent IGTC study talks only about the use of flavors in cigarettes. It will be interesting to wait for a similar study on the use of flavors by vaping products and nicotine delivery systems.

 

Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippine Press Council

matort@yahoo.com

ICTSI unit starts building Indonesia terminal

A UNIT of International Container Terminal Services, Inc. (ICTSI) has started the construction of a multipurpose terminal in East Java, Indonesia, the listed port operator said on Wednesday.

“We are very excited with this new terminal development as it will provide a new and more accessible gateway for our hinterland customers in Lamongan, Tuban and up to central Java,” Patrick Chan, chief executive officer of East Java Multipurpose Terminal (EJMT), said in a media release.

The ICTSI unit broke ground last week for the terminal’s development, which is scheduled to be operational by September next year.

“Catering to an already thriving industry with this new investment, EJMT is well-positioned to support the growing economy of East Java and Indonesia,” Mr. Chan said.

The terminal will include a 300-meter quay line, breakwater, super-heavy lift breakbulk deck, and dredging of the navigational channel to -13.5 meters,” ICTSI said.

It said the construction will be supported by two mobile harbor cranes and cargo handling equipment.

EJMT is an international gateway in Lamongan Regency of East Java province, ICTSI said, adding that the multipurpose terminal facility will be located in the 80-hectare Lamongan Shorebase complex, which caters to the specialized offshore oil and gas industry.

“The development of EJMT will provide domestic and international access to our existing and new customers, who will also benefit from the reduced overall supply chain costs,” David Lim, CEO of PT Eastern Logistics, the operator of Lamongan Shorebase.

EJMT is ICTSI’s joint venture with Indonesian oil and gas company East Log Holdings.

At the local bourse on Wednesday, shares in ICTSI fell by 80 centavos or 0.37% to end at P214.20 apiece. — Ashley Erika O. Jose

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