BSP set to hike 2023 inflation forecast

February 16, 2023 | 12:34 am

eggs — Eggs are sold in a public market in this undated file photo. — PHILIPPINE STAR/WALTER BOLLOZOS

THE BANGKO SENTRAL ng Pilipinas (BSP) will likely raise its average inflation forecast for this year after the faster-than-expected headline print in January.

During a Senate hearing on Wednesday, BSP Deputy Governor Francisco G. Dakila, Jr. said that the Monetary Board “will take the January inflation into account” as they hold a policy meeting today (Feb. 16).

“The January inflation was higher than what we had projected. The BSP’s projection for January was only up to 8.3%, but inflation rose to 8.7%, so it was above our projected range,” Mr. Dakila said in mixed English and Filipino.

Asked if the 4.5% inflation forecast for 2023 will be increased, Mr. Dakila said: “Most likely.”

Headline inflation quickened to 8.7% in January from the 8.1% in December, marking the highest in 14 years or since the 9.1% in November 2008.

It was above the BSP’s forecast range of 7.5-8.3% and marked the 10^thconsecutive month inflation was above the central bank’s 2-4% target.

The BSP is widely expected to hike borrowing costs today. In a BusinessWorld poll conducted last week, nine analysts said they expect a 50-basis-point (bp) rate increase, while eight analysts anticipate a 25-bp increase.

“By next year, our projection is that inflation would be within target because our sources of inflation are driven by supply, but we still see some spillovers to the demand (side),” Mr. Dakila added.

At the last Monetary Board meeting in December 2022, the BSP said it expects inflation to ease to 2.8% in 2024.

The BSP raised interest rates by 350 bps since May 2022, bringing the overnight repurchase rate to a 14-year high of 5.5% last year.

The central bank is also ready to adjust policy stance as necessary “to keep further second-round effects at bay and prevent inflation expectations from becoming disanchored,” BSP Governor Felipe M. Medalla said earlier.

THREAT TO RECOVERY
Meanwhile, the government should manage inflation before it threatens economic recovery, Philippine Chamber of Commerce and Industry (PCCI) President George T. Barcelon said.

“We cannot allow the 8.7% inflation rate to increase any further, with the help of the combination of monetary tools and addressing supply problems, especially agricultural products,” he said during a BusinessWorld Insights webinar on Wednesday.

“If unattended, this will really be a big threat to our country’s economic recovery. Not to mention that it would worsen the plight of the poor sector of our country,” he added.

In January, inflation for the bottom 30% income households quickened to 9.7%, from the 9.4% print in December and 4% last year.

The Philippine economy this year faces heightened risks from elevated inflation, tighter policy, a looming global recession and geopolitical uncertainties. Economic managers are targeting 6-7% gross domestic product (GDP) growth this year, slower than the 7.6% GDP expansion in 2022.

Mr. Barcelon also said the government should continue to ramp up infrastructure projects under its “Build, Better, More” program.

The government should also become aggressive in attracting more foreign investments following the passage of key reform measures such as the amendments to the Foreign Investment Act, Retail Trade Liberalization Act, and Public Service Act.

“What needs to be highlighted is that the centerpiece of our country’s economic program really depends on the well-being of the micro, small, and medium enterprises (MSMEs),” Mr. Barcelon said.

MSMEs account for 99% of businesses in the country.

Jose Antonio S. Vilar, Sage Solutions Philippines, Inc. chief marketing office, urged the government to address high power costs in the country.

“One of the biggest problems here is power. It is costly compared to other parts of the world. There is a huge shortfall, which hopefully, the government, the Senate and the House could come up with laws that will be easier for companies set up power plants, allowing healthy competition,” he said. — Keisha B. Ta-asan and Revin Mikhael D. Ochave

Gov’t raises P283.7B from retail T-bonds

February 16, 2023 | 12:32 am

THE GOVERNMENT raised P283.711 billion from its offering of five-and-a-half-year retail Treasury bonds (RTBs) that ended two days earlier than initially scheduled after exceeding the Bureau of the Treasury’s target.

“The total volume was P283.711 billion… thanks to the overwhelming support. (We) exceeded the target,” National Treasurer Rosalia V. de Leon told reporters via Viber on Wednesday.

“We capped at P250 billion but given strong demand we accepted more. It is a decision to reduce volume compared to last year.”

Of the total amount, the government raised P31.671 billion from the bond exchange offer program.

Under the bond exchange offer, holders of fixed-rate Treasury notes maturing in 2023 can swap their holdings for the new RTBs.

The RTBs were launched on Feb. 7 and raised an initial P162.180 billion from the rate-setting auction. The offer period was initially scheduled to end on Feb. 17.

The five-and-a-half-year RTBs fetched a coupon rate of 6.125%, 37.5 basis points (bps) higher than the 5.75% set for the previous RTB offering in August last year.

A trader said in a Viber message that the amount raised by the government was below the market’s estimate of P300 billion, likely due to the 14-year high inflation print in January.

“It is way below the past RTB issuance and probably because of the higher CPI data which in turn is leading markets to call a 50-basis-point (bp) hike from the Monetary Board,” a trader said.

“If that is the case, the policy rate is going to be 6% versus the 6.125% coupon of the RTB. So investors may have decided to wait for better levels,” the trader added.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the demand for RTBs may have been reduced by the $3-billion global bond issuance in January 2023, and the government’s plan to offer US dollar or euro retail bond offers later this year.

“The expected narrower budget deficit for 2023 compared to 2022 could have also led to the lower amount of government borrowings though the latest RTB issuance… The lower RTB amount raised could also signal the further diversification of the National Government’s borrowing mix to include other options such as global bonds, official development assistance, other government securities,” Mr. Ricafort said.

Headline inflation rose to a 14-year high 8.7% in January, faster than the 8.1% print in December.

The RTBs target small investors who want low-risk, higher-yielding savings instruments backed by the National Government.

Settlement for the RTBs is on Feb. 22. The RTBs’ maturity date is on Aug. 22, 2028. — Aaron Michael C. Sy

Marcos OK’s adoption of hybrid rice

February 16, 2023 | 12:31 am

rice farmer — A farmer removes rice grain from its stem at a farm in Baggao, Cagayan province, Nov. 20, 2020. — PHILIPPINE STAR/MICHAEL VARCAS

PRESIDENT Ferdinand R. Marcos, Jr. has approved the adoption of hybrid rice to increase rice production in the country, according to Malacañang.

He made the decision after a meeting with top executives of SL Agritech Corp., which the Presidential Communications Office (PCO) said had proposed to use hybrid rice seeds in 1.9 million hectares of land that are currently planted with certified seeds.

“President Marcos said he will implement a program to promote the shift by providing subsidies and facilitating loan financing to farmers,” the PCO said in a statement.

The company, which was represented by its Chairman and Chief Executive Officer Henry Lim Bon Liong during the meeting, is engaged in the development, production, and distribution of hybrid rice seeds and “premium quality rice,” the Palace said.

During the meeting, Mr. Lim Bon Liong said hybrid technology will give farmers better income and help the country achieve rice sufficiency.

Hybrid farmers have harvested around 7 to 15 metric tons (MT) per hectare as compared with the average 3.6 MT per hectare for inbred seeds, according to the Palace.

Citing a joint study by the Department of Agriculture (DA) and local government units (LGUs), the Palace said hybrid seeds have given 41% better yield than inbred conventional seeds.

“From January to November 2022, the National Rice Program served 1.06 million rice farmers and 3,528 farmer cooperatives through the provision of hybrid and inbred or certified seeds, production-related and post-harvest machinery, small-scale irrigation, as well as extension and training activities,” it said.

The Philippine government has been pushing for the hybrid rice system to increase the productivity of farmers for the short term and achieve rice self-sufficiency for the long term.

Climate change and the high costs of farm inputs including seeds affect the Philippines’ ability to produce enough rice for its people.

The Philippines hybrid rice seed market could generate a compound annual growth of 5.2% from 2023 to 2027, according to a report by Mordor Intelligence, Inc.

The PCO said Mr. Marcos has also vowed to “apply the best practices being done by Central Luzon farmers to other areas in the country.”

It said state-run banks Landbank of the Philippines and Development Bank of the Philippines have granted P3.37 billion in zero-interest and non-collateral loans to 10,643 rice farmers and 197 borrower organizations and cooperatives under the Rice Competitiveness Enhancement Fund Program. — Kyle Aristophere T. Atienza

Approved foreign investments climb 26% in 2022

February 16, 2023 | 12:30 am

PHL Flag — Philippine flags are displayed along the streets, June 3, 2022. — PHILIPPINE STAR/EDD GUMBAN

APPROVED foreign investment pledges rose by 25.6% last year, driven by robust performance in the fourth quarter, preliminary data from the Philippine Statistics Authority (PSA) showed on Wednesday.

Total approved foreign investments stood at P241.89 billion last year, higher than the P192.55 billion in 2021 and more than double the P112.12 billion recorded in 2020.

Foreign investments jumped BY 30.1% year on year to P173.61 billion in the October-to-December period. This pace was slower than the 265.8% seen in the final three months of 2021 but a turnaround from the 22.4% decline in the third quarter last year.

Last quarter’s foreign investment haul was the largest amount in 13 straight quarters or since the P182.44 billion registered in the third quarter of 2019.

Singapore was the top source of approved foreign investment pledges last year with P130.63 billion, 62.9% more than 2021. Investment commitments from Singapore accounted for 54% of the total.

The statistics agency compiles the investment pledges from the government’s seven investment promotion agencies — the Authority of the Freeport Area of Bataan (AFAB), Board of Investments (BoI), BoI-Bangsamoro Autonomous Region in Muslim Mindanao (BoI-BARMM), Clark Development Corp. (CDC), Cagayan Economic Zone Authority (CEZA), Philippine Economic Zone Authority (PEZA) and Subic Bay Metropolitan Authority (SBMA).

The PSA does not entirely equate to the actual foreign direct investments tracked by the Bangko Sentral ng Pilipinas for balance of payments purposes.

The BoI contributed the biggest bulk of the foreign investment pledges with P138.18 billion, or 57.1% of last year’s total. However, this was 9% less than the P151.80 billion haul in 2021.

PEZA came in second with P64.51 billion, accounting for 26.7% of the total, followed by SBMA with P37.06 billion, CDC with P1.67 billion, BoI-BARMM with P321.7 million, and AFAB with P150 million.

In the fourth quarter, the information and communication industry received approved foreign investment pledges worth P114.29 billion, accounting for 65.8% of the total. This was followed by real estate activities at P35.57 billion and manufacturing with P19.30 billion worth of pledges.

A total of P32.66 billion (or around 19%) of the investment commitments will go to projects in the Ilocos Region in the final three months of last year. This was followed by Cavite-Laguna-Batangas-Rizal-Quezon Region (Calabarzon)(and Central Luzon with P30.71 billion and P5.70 billion, respectively.

Meanwhile, investment pledges from Filipino nationals grew annually by 10.7% to P304.55 billion in the fourth quarter. It accounted for 63.7% of the combined pledges worth P478.16 billion, which was also up by 17%.

If these projects take shape, foreign and local investments pledged during the fourth quarter are expected to generate 23,364 jobs across industries. This was 19.2% more than the projected jobs a year ago. — Ana Olivia A. Tirona

New Clark City to test Japanese transport system

February 16, 2023 | 12:08 am

THE Bases Conversion and Development Authority (BCDA) and Japan-based New Energy and Industrial Technology Development Corp. (NEDO) will implement a three-year demonstration project on smart mobility solutions in New Clark City and surrounding areas.

In a statement on Wednesday, the BCDA said a memorandum of understanding was signed between BCDA President Aileen R. Zosa and NEDO Executive Director Shuji Yumitori on Feb. 10 during the five-day official visit of President Ferdinand R. Marcos, Jr. to Japan.

NEDO is a government organization under the Japan Ministry of Trade and Industry that promotes technological development.

Under the demonstration project, a new public transportation system and last-mile service dubbed Primary Rapid Transit (PRT) will run via a cloud-based fleet management system called Smart Mobility Operation Cloud (SMOC).

“The demonstration project will be executed by a group nominated by NEDO, led by Zenmov, Inc., a Japan-based information technology (IT) solutions provider specializing in the transportation sector, to measure and verify the effectiveness of a transport service system that operates via a cloud-based technology platform,” the BCDA said.

“The demonstration project will come at no cost for the Philippine government, with NEDO and Zenmov committing to finance the project,” it added.

SMOC, Zenmov’s fleet management system, maximizes operational availability while keeping the number of vehicles at a minimum by managing a lean dispatching system based on travel demand data.

“This will be complemented by more energy-efficient, low-carbon, and innovative vehicles such as electric vehicles, and electric bikes, as well as smart poles and drones for real-time data collection and dissemination, to complete the system. All of these project components are covered by the demonstration project initiated by NEDO,” the BCDA said.

Meanwhile, Ms. Zosa said the project seeks to improve the transportation services and connectivity in New Clark City and surrounding areas.

“In keeping with our goal for the New Clark City to become a green, sustainable and inclusive city, we have partnered with Japan’s NEDO and Zenmov to help BCDA in developing advanced and innovative solutions to improve transportation services and connectivity in this region. We can definitely learn a lot from this sharing of technologies and expertise that our Japanese partners have relating to the advancement of their transportation sector,” Ms. Zosa said.

“BCDA can also develop solutions to better optimize energy use, minimize pollution and lower carbon footprint, and manage congestion and other traffic-related issues,” she added. — Revin Mikhael D. Ochave

As inflation rises, bread makers adjust

February 16, 2023 | 12:08 am

1 of 2

THERE is only so much that can be done to mitigate the effect of inflation on bread, said Royce Gerik Chua, Vice-President of Eng Bee Tin and President of the Filipino-Chinese Bakery Association, Inc. (FCBAI). Basically they are limited to shrinking a product or raising prices, but even the latter is problematic.

Mr. Chua spoke to BusinessWorld at the sidelines of a press conference announcing the FCBAI’s holding its first live Bakery Fair since the pandemic started, on March 2 to 4 at the World Trade Center.

The fair is held every two years for reasons of practicality. Mr. Chua told BusinessWorld during the Quezon City press conference on Monday that, “‘Pag every year, hindi naman ganoon kabilis iyong updates ng technology. Wala rin kaming isho-showcase (If we hold it every year, the updates to the technology aren’t that fast. We’ll have nothing to showcase).”

The fair will have 137 exhibitors by his count, covering 10,000 sqm. of the World Trade Center in Pasay City. There, visitors will find bread (of course), ingredients, machines, and free seminars. Some of these seminars are about uses for raisins, sugar-free baked goods, and pastry trends. One can access all these for an entrance fee of P100, and one can pre-register at bakeryfair.ph.

Some FCBAI members include large companies behind the brands Gardenia, Sari Monde, Monde Nissin, Uncle George, Liberty Foodmart, Bakers’ Fair, Goldilocks, and French Baker.

DEALING WITH INFLATION
The FCBAI Bakery Fair comes at a time when businesses are still recovering from the COVID-19 pandemic, as well as a new problem of global inflation.

The association was able to help businesses during the pandemic by holding seminars and updates with business instructors and gurus — it also held an online fair in place of the usually physical Bakery Fair. “We still had to give valuable information on how you can make your company survive during the pandemic,” said Mr. Chua.

Inflation, though, is another story.

Inflation quickened to 8.7% in January from the 8.1% in December, “marking the highest in 14 years or since the 9.1% in November 2008,” noted a story on BusinessWorld (https://www.bworldonline.com/top-stories/2023/02/15/504872/inflation-may-remain-high-until-q3/). The same story reports that ANZ Research forecasts a peak in headline inflation in February or March.

On his end, Mr. Chua says that the general prices of products used in baking have increased by 20%, with eggs and sugar increasing by 100%.

They don’t have much power when it comes to mitigating inflation, he said, this despite their members providing a staple food: bread. “Sa inflation, medyo wala naman kaming magagawa eh (On inflation, there’s nothing much we can do). Everything has been going up. All the prices of our ingredients.”

The baking businesses among their members are adjusting to inflation in different ways, Mr. Chua told BusinessWorld. “Different from company to company. Iyong iba, nagliliit ng products; iyong iba, nagtataas ng presyo (Some shrink their products; others increase their prices),” he said.

“I can only speak on behalf of my company, Eng Bee Tin. We would not compromise our quality. Instead of shrinking our portions, or reducing our ingredients, or using inferior ingredients, we would rather just add to our price a little bit,” he said in a mix of English and Filipino. “Kilala kami for quality and innovation. Tapos papangit iyong quality? Pangit naman (We’re known for quality and innovation. And then our product won’t be as nice? That’s not nice).”
“Hindi naman kami puwedeng magtaas ng ganoon eh (we can’t raise our prices like that),” he said, referring to keeping up with inflation. To provide a fix, they have been studying and introducing new techniques and recipes that use, for example, less eggs or less butter. “Mapapababa niyan iyong presyo (that can bring down costs) while keeping the quality.”

The Bakery Fair 2023 will be held on March 2, 3, and 4, at the World Trade Center. Visit the websites, bakeryfair.ph, fcbai.com.ph, or e-mail info@fcbai.com.ph for more information. — JL Garcia

PAL reopens direct flights to Beijing, Shanghai starting this month

February 16, 2023 | 12:07 am

PAL-airlines — PHILIPPINE STAR/ MICHAEL VARCAS

FLAG carrier Philippine Airlines (PAL) announced on Wednesday that it will be reopening direct flights to two more cities in mainland China, the second-largest source of tourists for the Philippines.

“We are forging ahead with the restoration of PAL’s Greater China flight network, an investment that will strengthen our connections to the economic hubs in the mainland and help boost bilateral relations between the Filipino and Chinese people,” PAL President and Chief Operating Officer Stanley K. Ng said in a press release.

“We hope that our relaunch of flights to Beijing and Shanghai will help fuel a rebound in tourist and business travel. Our goal is to once again operate the largest network of flights on multiple routes between mainland China and the Philippines,” he added.

Starting Feb. 14, the flagship airline will be reopening its direct flights to Shanghai, while it will be relaunching its Beijing route a week after or on Feb. 21.

PAL’s Manila-Shanghai-Manila service will initially have three flights a week and will increase to daily by March 26, while the Manila-Beijing-Manila service will initially have two flights per week that will increase to four times a week beginning March 26.

The airline said that mainland China was one of the country’s top sources of tourists before the pandemic with 1.74 million residents visiting the Philippines.

With the additional flights to Shanghai and Beijing, the carrier will now fly to four mainland China destinations together with Xiamen and Guangzhou (Canton).

The company said that it is also looking to resume flights to Quanzhou (Jinjiang) and Macau by March this year.

It is targeting to open two flights to Jinjiang on March 19, 22 and 24, which will increase to daily starting March 26, while it will restore its twice weekly flights to Macau beginning March 26.

Meanwhile, PAL is also increasing the frequencies of its existing routes to Xiamen and Guangzhou.

The airline will be increasing its flights to Xiamen to twice a week starting Feb. 14 and to thrice a week starting Feb. 25, while flights to Guangzhou will increase to twice weekly on Feb. 16 and to daily by March 26.

“PAL is working closely with Chinese and Philippine health and aviation authorities to ensure the highest level of health safety protections for travelers,” the airline said.

Before the pandemic, the flagship carrier served the mainland Chinese cities of Shanghai, Beijing, Guangzhou, Quanzhou and Xiamen for a total of 34 weekly flights. — Justine Irish D. Tabile

The Changing of the St.-Emilion Guards?

February 16, 2023 | 12:07 am

UNLIKE the 1855 Medoc Bordeaux Classification, the St.-Emilion Grand Cru Classé Classifications, which started in 1955, and are updated every 10 years or so, has had its share of multiple dramas, including the tumultuous 2006 classification. The most recent 2022 version saw the bolting of the two original Premier Grand Cru Classé A Chateaux: Chateau Cheval Blanc and Chateau Ausone is July 2021. And in early 2022, a third Grand Cru Classé A, Chateau Angeles, which was the center of the controversy because of its ascension to the Premier Grand Cru Classé A from Classé B in the last 2012 St.-Emilion classification, also withdrew from the classification system.

When the latest St.-Emilion Classification was released last September, Chateau Figeac, one of my favorites of all time, and probably overdue, got the sole promotion — moving up from Premier Grand Classé B to its pinnacle rank of Classé A.

Thus, with the withdrawal of the three erstwhile Classé A, Chateau Figeac joined the lone Chateau left from the 2012 Classé A club, Chateau Pavie.

Like most Bordeaux lovers, I feel that some luster from this classification may have been reduced with the departure in particular of one of the most revered Bordeaux wines of all time, Chateau Cheval-Blanc.

The classification, like its effect on the Medoc wines (Classification of 1855) and, to a certain degree, Pessac-Leognan wines (Classification of 1953), may have serious commercial implications.

CONFUSING ST.-EMILION GRAND CRU LABELS
As we have learned with French wines, Grand Cru means “great growth” and these two words on a wine label is a very powerful tool. It commands not only respect, quality, and prestige but also a higher price and better chance of commercial success.

Being in this business, I have learned to accept on the most part how credible and reliable the Grand Cru classification systems are when it comes to wines made by chateaux from Medoc, Pessac-Leognan (Graves), and even the whites of Sauternes-Barsac — all from Bordeaux.

Unfortunately, when it refers to the St.-Emilion classification the term Grand Cru is highly porous and confusing. First, the words “Grand Cru” can be seen on almost every St.-Emilion wine bottle — from the good, to the ordinary, to the inferior quality ones.

Second, Grand Cru in St.-Emilion is different from Grand Cru Classé, Premier Grand Cru Classé A, and Premier Grand Cru Classé B.

And finally, and probably a positive though highly politicized thing, the St.-Emilion classification changes every 10 years or so.

The Premier Grand Cru Classé A is the highest in the ranking, followed by Premier Grand Cru Classé B, and then the Grand Cru Classé. In the latest 2022 classification, there are two Premier Grand Cru Classés A (Pavie and Figeac), 12 Premier Grand Cru Classés B, and 71 Grand Cru Classés. Note that “Grand Cru” in St.-Emilion labels, without the word “Classé” attached is relatively an easy regulation to pass. And because of this, many of these none-“classé” Grand Cru taste ordinary and are devoid of character.

Other French wine regions like Burgundy and Champagne use the Grand Cru term more to classify top performing historical vineyards, so its significance still matters in the label.

WHAT HAPPENS NOW
Losing the original 1955 Premier Grand Cru Classés A Chateau Cheval Blanc and Chateau Ausone is indeed a big blow to the credibility of the classification.

Chateau Ausone, for one, is a tiny producer and its wine prices have exceeded those of Chateau Cheval Blanc.

From what was announced to the trade by both chateaux — (I paraphrase) they both felt that the St.- Emilion classification used to be focused on blind tasting results, wine longevity, terroir and history, but now a significant portion — like 35% — is based on marketing, which broadly encompasses international reputation, promotional activities, wine tourism, and distribution — all which have nothing to do with quality.

In the last En Primeur (wine futures) in April 2022, despite the announcements of these two chateaux’ withdrawal from the classification, their wine prices were not at all affected. Perhaps it may take time, but it is hard to see a time when Chateau Cheval Blanc prices will go down given that St.-Emilion chateaux produce far less wines than their Medoc counterparts.

While Chateau Pavie had probably the highest jump in prices since its 2012 ascension to Classé A from B, the same is the trend now in the case of Chateau Figeac, even months leading to the 2022 classification release. I remember still being able to afford Figeac in a Bordeaux wine shop when I last visited in 2019. I am sure even the price of the second label, the Petit Figeac, will also skyrocket with this new Classé A promotion.

Right now, it seems that it’s too early to tell how the classification will change the chateaux that are involved. But on the lower spectrum, the Grand Cru Classé level, more than a handful of new ones were added. Here are the names of some of new ones celebrating their promotion: Chateau Tour Saint Christophe, Chateau Rol Valentin, Chateau La Confession, and Clos Badon-Thunevin.

Chateau Corbin Michotte, which was removed from the St.-Emilion Gran Cru Classé in 2012, has gotten back onto the list.

Let us see how these new Grand Cru Classé wines fare in the market at presumably higher prices in the coming years. Every time a classification affects the business or the financial future of a chateau, there will always be dissension — it is never a perfect system.

For us here in Asia, there is no way we can rely on “hit and miss” wine purchases as there are thousands upon thousands of wine labels to choose from, so the classification from government agencies like the ones in Bordeaux offer very good guides. But, as they say, at the end of the day, it is still our hard-earned money that pays for the wine we buy and consume.

My advice is to read a lot and learn about these Bordeaux wines, especially those wines that are in the pricey level. Or, if you have access to these Grand Cru wines through drinking experiences with friends or rich uncles, always remember the brands you like, because this might be the style of wine you love. Drinking familiar Grand Cru brands that are reliable vintage after vintage is better than taking a chance on unproven chateaux.

Whether Chateau Pavie and Chateau Figeac take over from Chateau Cheval Blanc and Chateau Ausone remains to be seen. And in the case of Chateau Figeac, the newly crowned Classé A St.-Emilion treasure, I may sadly have to look for a substitute wine as the price just went above my pay grade. Curse these classifications!

The author is the first Filipino wine writer member of both 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/.

Manila Water sets aside P833M for service expansion in Rizal

February 16, 2023 | 12:06 am

MANILA Water Co., Inc. is set to spend P833 million this year for service expansion in Rizal province that will include 23 mainline extension projects, the water concessionaire said on Wednesday.

In a statement, the listed company said 11 mainline extension projects will be done in several municipalities in the province, namely: five in Baras, four in Rodriguez, and two in Binangonan.

The water service provider for Metro Manila’s east zone said once the projects are completed, “it would bring an improved water quality and increase water pressure to about 45,205 families in Rizal.”

This year, 10 mainline extension projects are set to be completed in Antipolo City.

“Individualization projects will also be done in Town and Country Executive Village in Antipolo and Aurora Subdivision in Angono,” the company said.

Manila Water has set a P181 billion for capital investments for the period of 2023 to 2027 for its water and wastewater projects.

The company said about P2 billion will be allocated for its service expansion program, which includes service expansion for the underserved and unserved areas in its service area, specifically the province of Rizal.

Last year, Manila Water said that it had installed a total of 33,070 new domestic water service connections, bringing its total water connections to nearly 1.10 million as of end-2022.

On Wednesday, shares in the company rose 3.02% or 60 centavos to close at P19.30 apiece. — Ashley Erika O. Jose

Croatian restaurant offers one pot menu cooked by robotic chef

February 16, 2023 | 12:06 am

ZAGREB — Craving gnocchi with lamb, black risotto or zucchini pasta? You can order any of them at a Croatian restaurant where a robotic chef is able to rustle up about 70 different one pot meals.

Its owners say they believe the Bots&Pots Sci-Food bistro in Zagreb is the world’s only restaurant where ready-to-eat meals in a pot are made by robotic cookers with no human involvement other than loading the devices with fresh ingredients.

The devices add oil and seasoning according to digital recipes made by a human chef.

In other similar restaurants, robots stir and fry chips and hamburgers, make pizzas or serve and deliver meals, but “there is no robot which makes a one pot meal from fresh food,” according to restaurant co-owner Hrvoje Bujas.

It took seven years for Mr. Bujas’ partners to turn an idea into reality and open the restaurant last year, after investing over 1 million euros ($1.07 million).

“It was indeed a challenge to make a ready-to-eat meal from fresh food in the shortest period of time as possible and as tasty as it can be,” Mr. Bujas told Reuters in the high-tech bistro.

Customers seem to agree.

“The food is top quality,” said Lovro Petar Andrisek, 18, who came to Bots&Pots as a treat for his birthday. “My plate is totally clean,” he laughed.

The robotic chef called GammaChef is “taught” digitally how to cook a meal by the restaurant’s head chef, then remembers it and repeats it endlessly.

Five robot cookers can each produce four meals in 15 minutes or nearly 100 meals in an hour, Mr. Bujas said, adding that one would cost 10,000 euros if it was for sale.

“We’re considering expanding our business model via franchise,” Mr. Bujas said, explaining that the robot speeds up the cooking process and saves money at a time of staff shortages.

“One such restaurant with five robots can be run by a single person,” he said. “Our final goal is to create a ‘no waiter, no chef, no cash’ space where you order, get and pay for food without human contact.” — Reuters

Meralco starts construction of Kawit substation

February 16, 2023 | 12:05 am

MANILA Electric Co. (Meralco) has started the construction of a new substation in Kawit, Cavite to support the growing power demand in the area, the company said on Wednesday.

“This Meralco Island Cove Substation will be an integral part of the Meralco Distribution System in Cavite, supporting not just Island Cove’s power requirements, but also that of the communities around Kawit and Bacoor, Cavite,” Ferdinand O. Geluz, Meralco’s first vice-president and chief commercial officer for customer retail services, said in a media release.

The new substation is set to be completed by April 2024. It will house three transformer banks with a combined capacity of 249 megavolt amperes (MVA) of power, with each capable of delivering about 83 MVA.

Meralco said it had signed an agreement with First Orient International Ventures Corp. for the construction of a gas-insulated switchgear (GIS) substation on a 2,377-square-meter land bank in Island Cove.

The power distributor said the Kawit substation will help meet the power demand of Island Cove once it is fully operational. The facility will also provide voltage regulation in the area and the needed operational switching flexibility, including the new load application and loaded circuits of existing Meralco substations.

“We continue to encourage companies to closely work with Meralco for their energy requirements to ensure not just the timely energization of facilities, but also the right infrastructure that can efficiently and sufficiently support their operations and the growing need of their neighbor communities,” Meralco Senior Vice-President and Head of Networks Ronnie L. Aperocho.

Earlier this month, Meralco announced that it had commissioned a 115-kiloVolt switching station at the Light Industrial Science Park 2 in Calamba City, Laguna. The project is expected to improve the system reliability and power quality in the area.

The La Mesa switching station will accommodate the increasing power demand of about 13.5 megawatts (MW) this year and 20 MW by 2027.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose

Office cake culture lives on in Britain despite health warning

February 16, 2023 | 12:05 am

BRITISH advertising strategist and baking enthusiast Katie Mulligan brings cake to the office to share with colleagues, in London, Britain, Feb. 7. — REUTERS/MAJA SMIEJKOWSKA

LONDON — When Katie Mulligan baked a beetroot cake for her colleagues at a London advertising agency, she was focused on getting the recipe right rather than whether it was acceptable to bring treats into the office.

But office cake culture has recently been challenged by the head of Britain’s food regulator, Susan Jebb, who grabbed headlines last month by comparing it to passive smoking.

“I just don’t think there’s a real equivalence there,” Ms. Mulligan, 30, said at her north London home. “With cakes, it’s up to you whether you eat it.”

With a passion to bake and cook, Ms. Mulligan says her cakes help colleagues beat the afternoon slump — and beetroot is a relatively healthy option.

Ms. Jebb, however, believes cakes in the office are an example of a society that is promoting unhealthy food choices.

“If nobody brought in cakes into the office, I would not eat cakes in the day,” Ms. Jebb told The Times newspaper.

“But because people do bring cakes in, I eat them. Now, OK, I have made a choice, but people were making a choice to go into a smoky pub.”

Ms. Jebb, who was not speaking on behalf of the Food Standards Agency, made the comment days after parliament published a report that said 25.9% of adults in England were obese and a further 37.9% were overweight, citing a 2021 survey.

The United States ranked highest in the world for obesity levels with 43%, the report added citing OECD Health Statistics, while Britain as a whole, not just England, was at 28%.

The trend in the UK is “only going to get worse,” said Katharine Jenner, director of Obesity Health Alliance, a coalition of over 40 organizations that tackle obesity by influencing government policy.

Obesity is costing Britain’s National Health Service and the wider society something like £60 billion ($72.63 billion) a year, she said.

The country needs to change its broader food culture and soon.

“I reckon we’re about in the (19)60s’ equivalent of sugar and diet-related ill health compared to smoking. So we’ve got a long way to go,” she said.

At Ms. Mulligan’s office, enjoying the beetroot cake and its edible flower garnishes, while striking up conversations, provides a welcome break for her colleagues and lightens up office life.

“It helps build friendships. It creates a really lovely atmosphere,” said advertising strategist Bish Morgan, 26.

“As long as people are sensible and strike the right balance then yeah, I still think it’s a lovely thing to do in the office.” — Reuters