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Ayala logistics firm, FLOW set to build data centers

AYALALAND Logistics Holdings Corp. (ALLHC) and FLOW Digital Infrastructure have agreed to a joint venture that aims to develop and operate carrier-neutral data centers in the country.

“We see long-term strategic value in expanding ALLHC’s product offering and capabilities to meet the rapidly expanding needs of the digital economy,” ALLHC Chief Operating Officer Patrick C. Avila said in a disclosure on Wednesday.

“We view this joint venture as a cornerstone of ALLHC’s growth and we believe this partnership with FLOW will provide the distinct advantage for ALLHC to become the data center provider of choice of global hyperscalers and enterprises in the Philippines,” he added.

ALLHC said the expansion is a step forward to its goal of adding complementary new economy segments to its portfolio.

It added that it “is the latest step in FLOW’s ongoing Asia-Pacific expansion as a platform providing customized solutions to meet the region’s growing demand for digital infrastructure.”

“We are very pleased to be partnered with ALLHC to deliver best-in-class solutions to meet the Philippines’ growing demand for high quality, carrier-neutral data center services,” FLOW Chief Executive Officer Amandine Wang said.

“The Philippines is at a tipping point to embrace the growth of the digital economy where digital infrastructure plays a critical role as the foundation of the information and communications technology industry,” Ms. Wang said.

The agreement allocates the first data center facility in a hyperscale campus designed to provide a total information technology capacity of 36 megawatts (MW), which can expand through a modular deployment.

“The initial roll-out of 6 MW is targeted to be ready-for-service by end of 2024,” ALLHC said.

FLOW operates in the key physical assets of the digital infrastructure ecosystem, including cloud, hyperscale, enterprise data centers, and network and fiber assets across the Asia-Pacific region.

Meanwhile, ALLHC is a subsidiary of Ayala Land, Inc. that engages in leasing industrial parks, warehouses, cold storage facilities, and commercial spaces.

On the stock market on Thursday, ALLHC shares added five centavos or 1.56% to P3.25 apiece. — Justine Irish D. Tabile

Converge proposes shared underground pipes to reduce costs

CONVERGE ICT Solutions, Inc. said installing underground pipes for telecommunication cables will translate to lower capital costs for internet service providers.

This will “make sure telecommunications infrastructure is already installed whenever new road infrastructure is built,” Converge said in an e-mailed statement on Tuesday.

To attain this goal, “multi-stakeholder coordination among government, information and communications technology players, and utility companies” is necessary, the company added.

The Department of Public Works and Highways (DPWH) is undertaking an underground cable system project in the National Capital Region.

The project involves relocating the overhead utility lines on major roads below ground. This will cover Epifanio de los Santos Avenue, Radial Road 10, and Circumferential Road 5.

According to Converge Chief Operations Officer Jesus C. Romero, the “joint use” mechanism allows the government to install underground pipes for telecommunication cables wherever there is public works construction.

“This can be done in expressways linking parts of the metro together. Submarine cables are expensive. We could do with a lot more diversity and connectivity. This joint use of infrastructure will go a long way,” he said.

“As an internet service provider, we’re willing to pay for our share [of the cost],” he added.

He said the shared use of underground pipes “will translate to lower capital costs” for Converge and “will widen access to the broadband infrastructure, especially to rural communities.”

“In pursuing this policy, cooperation among the national government agencies such as the DPWH, local government units, and private sector operators is critical as the digital infrastructure deployment has to be aligned with public works plans,” Converge also said.

Utility service providers have said they are willing to shift to an underground cable system if the government provides subsidies and if given adequate planning of the infrastructure. — Arjay L. Balinbin

SMC’s Eagle Cement acquisition seen to cut costs

BW FILE PHOTO

SHARES in Eagle Cement Corp. are seen to rise with the planned acquisition of the cement maker by San Miguel Corp. (SMC), which in turn could see its input costs decline after the deal, analysts said on Wednesday.

“The tender offer could possibly prompt Eagle’s stock price to surge during the offer period, and is likely to plunge once it has ended,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Separately, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the acquisition is important for SMC to reduce costs in its projects.

“Cement business is an important component to [SMC’s] various infrastructure projects, both ongoing and upcoming. This would help reduce input costs, especially for large infrastructure projects,” he said in a Viber message.

Both analysts said estimates placed the value of the acquisition at around P97.4 billion.

On Wednesday, SMC said that a special board meeting on Oct. 4 authorized the acquisition of 88.5% of Eagle Cement, which manufactures and distributes cement.

Both companies are chaired by Ramon S. Ang, who is also among the selling shareholders in Eagle Cement for P22.02 per share.

Eagle Cement separately said that its controlling stockholder, Ang-led Far East Holdings, Inc., was in discussions with SMC.

SMC said that the acquisition will trigger notification with and clearance from the Philippine Competition Commission (PCC) due to the value involved.

“[It has to be raised to the PCC] due to the large amount of transaction value involved as thresholds have been reduced recently, after being raised during the pandemic,” Mr. Ricafort said.

Last month, the PCC provisionally placed thresholds for mandatory mergers and acquisitions notification at P6.1 billion for the size of a transacting party, and P2.5 billion for the size of the transaction.

As defined by the PCC, size of party is the aggregate value of assets in the country of the ultimate parent entity of one of the parties to a transaction, while size of transaction is the value of assets of the acquired entity and the entities it controls.

“The conglomerate’s P97-billion acquisition for Eagle Cement is part of the business amalgamation of business tycoon [Mr.] Ang,” Mr. Limlingan said.

SMC and Eagle Cement both said that they would make additional disclosures in due time about the acquisition.

On the stock market on Thursday, SMC shares added P2.35 or 2.43% to P99 apiece, while Eagle Cement shares climbed by P3.16 or 20.52% to P18.56 each. — Justine Irish D. Tabile

Tax court partially grants Philex Mining’s refund claim

CTA.JUDICIARY.GOV.PH

THE Court of Tax Appeals (CTA) has granted a P9.6-million refund to Philex Mining Corp. that was part of its original refund claim worth P68.9 million representing its excess value-added tax (VAT) traced to zero-rated sales for 2017.

In a 28-page ruling dated Sept. 29 and made public on Sept. 30, the CTA full court said that of its original claim, the firm could only substantiate P9.6 million through documentary evidence.

“In fine, petitioner (Philex) has sufficiently proven its entitlement to the refund or issuance of a tax credit certificate in the amount of P9.6 million valid VAT attributable to valid zero-rated sales of P56.4 million less the P46.72 already refunded,” according to the ruling penned by Associate Justice Erlinda P. Uy.

Contrary to Philex’s original claim, the CTA noted that the mining company’s zero-rated sales could only amount to P56.42 million.

Under the country’s revenue code, zero-rated sales are transactions made by VAT-registered taxpayers that do not result in any output tax.

The court noted that taxpayers are only required to present VAT invoices to support a refund claim for VAT-registered entities.

“A VAT invoice is required only for domestic purchase of goods and properties, while an import entry or other equivalent document showing actual payment of VAT on the imported goods is required for importation of goods,” it said, citing the Bureau of Internal Revenue’s rules.

On Jan. 31, 2019, the commissioner of internal revenue (CIR) ruled that only P46.72 million of Philex’s original claim would be refunded due to a lack of documentary requirements.

A month after, Philex appealed the case to the CTA, seeking a refund worth 21.5 million after its claim was reduced. The tax court denied the petition due to lack of merit.

“It is clear that Sections 110 and 113 of the National Internal Revenue Code of 1997, as amended, are applicable only to VAT-registered persons and not to foreign sellers who are not subject to Philippine tax laws and are not VAT-registered,” said the tribunal.

These provisions within the country’s revenue code require taxpayers to present VAT invoices to prove creditable input tax subject to a refund. — John Victor D. Ordoñez

Aboitiz unit, EdgeConnex to develop data center platform 

ABOITIZ InfraCapital, Inc. (AIC) has partnered with EdgeConneX to address the rising data usage by developing a data center platform in the country.

AIC, the infrastructure arm of the Aboitiz group, said in a press release on Wednesday that it plans to develop the data center in the National Capital Region. It also targets developing a secondary “hyperscale” campus in the so-called greater Manila area.

It described EdgeConnex as a global provider of full-range sustainable data center solutions.

“Businesses are increasingly turning to cloud service providers — or ‘hyperscalers’ — for cost efficiency, flexibility, and scalability; and thus, the need for data centers has never been more demanding,” Sabin M. Aboitiz, president and chief executive officer of Aboitiz Equity Ventures, Inc. (AEV), said.

Hyperscale data centers are business-critical facilities designed to support robust, scalable applications of cloud service providers, AIC said.

“This is complemented by AIC’s local expertise, assets, and infrastructure portfolio, including its 1,400 hectares of prime industrial real estate and its affiliate AboitizPower’s diversified renewable energy capacity, which the company aims to triple by 2030,” it said.

AIC President and Chief Executive Officer Cosette V. Canilao said the partnership would boost the country’s infrastructure ecosystem and serve the local market demand.

“The Philippines is an underserved market, and is witnessing high data demand growth relative to Southeast Asia. The market size, favorable demographics, and proliferation of subsea cables make the Philippines an ideal destination for data center investments,” Ms. Canilao said.

In 2021, AIC entered the digital infrastructure sector through a joint venture with Unity Digital Infrastructure, Inc.

On Wednesday, shares in AEV closed 1.97% higher to finish at P56.90 apiece. — Ashley Erika O. Jose

Jereme Leung celebrates the harvest

COCONUT Superior Soup under Pastry Crust

Fresh ingredients, even herbs from the Conrad’s garden, made it into a special lunch

THE THEME of celebrity chef Jereme Leung’s return to the Philippines was a majestic harvest, a reason to celebrate amidst the difficulties of the past two years. Mr. Leung’s China Blue at Conrad Manila harvested more than herbs during his visit. Last month, Mr. Leung’s restaurant won the ninth spot in Tripadvisor’s list of Top 10 Fine Dining Restaurants in Asia.

“We are extremely proud as a team. We are mostly grateful for having a very good team here,” he said in an interview with BusinessWorld. (https://www.bworldonline.com/arts-and-leisure/2022/09/29/477214/the-conrads-china-blue-by-jereme-leung-makes-it-to-tripadvisors-top-asian-fine-dining-restaurants-list/).

Mr. Leung had been presented with the Five Star Diamond Award by the American Academy of Hospitality Science in 2000 and 2008.

His celebratory menu with six courses called “Majestic Harvest,” unfortunately, was only available until Sept. 29. However, he guesses that some of the dishes will make it to the restaurant’s main menu.

The meal opened with a combination platter of dim sum, including Marinated King Oyster with Chinese garlic vinegar sauce, Deep-fried Egg White Pillow Spring Roll with sea urchin black garlic, and Pan-fried Shao Hsing Yellow Wine Chicken Pancake with Black Caviar. The King Oyster mushroom and the Yellow Wine Chicken Pancake were rustically luxurious (but then, as in the chicken’s case, that tends to happen when dishes are sprinkled with black caviar).

Next came a crowd favorite, a Coconut Superior Soup Stock with a pork and shrimp dumpling and dried scallops, all baked under a pastry crust. According to Mr. Leung, the soup was double-boiled for two to three hours. “Just use your spoon and dig right through,” he said.

The main courses came in three parts: a Wok-fried Lobster with Mongolian Cream Pepper Sauce and Rice Pops, a Pan-Fried Beef Tenderloin with Crispy Preserved Radish, and Braised White Misua with a Sea Clam Onion-Ginger Sauce with Shrimp Roe. Of these, he was particularly proud of the misua (noodles). The shrimp roe was sun-fried, then powdered, then sprinkled all over the plate. “These are shrimps before they were shrimps,” he said. They contained all the potentiality of shrimp flavor in miniature, imbuing the flavor all throughout the dish. What could have been middling noodles was made extraordinary with the amplified flavor of shrimps. The pan-fried beef tenderloin was another joy, as the radish — with the texture of leather — became surprisingly juicy as it yielded to a closing mouth.

Dessert was a pan-fried Mango Coconut Matcha pancake paired with Peanut Satay Ice Cream. This was a genuine surprise as the ice cream seemed like a simple nut-flavored sweet, but revealed notes of deep spices with every bite. This just might make the cut for the new menu, according to Mr. Leung.

“We came out with this menu based on that thought,” he said about majestic harvests. “We put this menu together with the thought of introducing ingredients that are less commonly used.” One recalls the lemon basil sprinkled on top of the lobster, which had been harvested from the herb gardens of the Conrad Manila. “It would be a waste if we do not utilize the herb garden upstairs,” he said. “We’ve been nipping on it every day.”

“We try to bring different elements into the food without making it too fusion. We still want the tastebuds to [sense] provincial Chinese.” — Joseph L. Garcia

Okada Manila to end 2022 ‘on a positive note’

OKADA MANILA is projecting a strong finish in 2022 on the back of increased visitor count, according to the management that recently regained control of the integrated casino-resort complex.

Byron Yip, Tiger Resort Leisure and Entertainment, Inc. (TRLEI) president, said during a media briefing in Parañaque City on Wednesday that Okada Manila recorded higher foot traffic in the nine months to September.

TRLEI is the firm that operates Okada Manila and is a unit of Tiger Resort Asia Ltd. (TRAL).

“Compared to the same time last year, there’s then been over 300% improvement (in foot traffic), and now we happen to have an average of over 300,000 visitors on a monthly basis,” Mr. Yip said.

“We at Okada Manila are seeing green shoots of recovery from when the pandemic struck the Philippines in 2020. Through the collaboration of our employees and leaders, Okada Manila was able to record more than two-folds growth in our monthly foot traffic,” he added.

Further, Mr. Yip said that more brands and retailers are set to open in Okada Manila.

“Our retail selection has also increased. We have 14 new brands joining us this year and 16 incoming brands, in addition to the already 29 brands that are here. We can expect more stores and restaurants to open soon,” Mr. Yip said.

Mr. Yip added that Okada Manila is banking on the return of more sectors to boost the casino-resort’s performance in the remaining months of 2022.

“With the revitalization of the travel, hospitality, gaming, and entertainment sectors we are optimistic that we will continue to ride on a growth momentum and end 2022 on a positive note,” Mr. Yip said.

“It is our goal to be the premier integrated resort not just in the Philippines, but in Asia. We’re looking forward to working with all our stakeholders towards a stronger end-of-year as we welcome 2023,” he added.

In a separate interview, TRLEI Chief Financial Officer Hans Van Der Sande said that Okada Manila is also banking on the holiday season to boost the resort’s occupancy rate.

“November, December, and January are always the best months. As you get towards the real Christmas period, people start taking longer vacations,” he said. “Absent of a new COVID-19 variant, I think this will be a great year.”

Meanwhile, Mr. Der Sande said that the planned merger between UE Resorts International, Inc. and US special purpose acquisition firm 26 Capital Acquisition Corp. has been extended by a year. The deadline of the merger was supposed to be Sept. 30, making Okada Manila public. TRAL, which controls Okada Manila, is a unit of UE Resorts.

“We agreed to a year-long extension to give time to update all information. The process is very complex and takes a long time,” Mr. Der Sande said. — Revin Mikhael D. Ochave

Barcelona’s Paradiso tops Best Bar in the World list

PHOTO FROM WORLDS50BESTBARS.COM

FOR the first time in the history of the World’s 50 Best Bars list by William Reed Business Media, two things happened in the Spanish city of Barcelona last week. One, since the list’s inception in 2009, the awarding ceremony was held in Barcelona, the first city to hold it outside London; and, two, for the first time, a bar from Barcelona holds the top spot for the Best Bar in the World for 2022.

Paradiso, founded seven years ago, won the award during a ceremony streamed live online last Tuesday (Wednesday morning in the Philippines). The bar made its first appearance on the list in 2017 as a bar that was One To Watch.

“We thought it was high time to move outside of London, and get this show on the road,” said The World’s 50 Best Bars Director of Content, Mark Sansom. “We couldn’t think of a better city to explore. It is truly one of the world’s cosmopolitan cocktail capitals.”

“The list is compiled by votes from The World’s 50 Best Bars Academy, which comprises 650 drinks experts,” according to the World’s 50 Best Bars website.

When Paradiso was announced as the World’s No. 1 bar, Mr. Sansom said, “This is a truly momentous moment, as for the first time, the bar goes to outside of New York or London, breaking the deadlock. Making history! Creating a new legend!”

“Known for your creativity, as well as your sustainability, you’re without doubt one of the hardest-working bar teams in the business. You could not deserve this moment more. Enjoy it,” he said.

The bar is located beyond a refrigerator door in a pastrami shop, according to the World’s 50 Best website.

“In the past, themes have encompassed magic and space, and this year the inspiration is the Evolution of Humankind. Of the 15 new cocktails, try Fleming, inspired by the discovery of penicillin, which explores fermentation with a mushroom spore rim. But for more aesthetic drama, the hot tot is On Fire, a sharing milk punch cocktail, with bourbon, oloroso sherry, tahini, sweet potato and smoked milk. Served in a clear, round dish, with garnishes created in the Paradiso lab to represent humankind’s ancestors sitting around a fire, the cocktail uses a laser to create a flame which smokes the Jerez wine. Drinks don’t look or taste like this anywhere but at Paradiso,” the website said.

For his part, Paradiso’s creative-in-chief and co-owner Giacomo Giannotti said, “I don’t know where to start. I start to say thank you, first of all, to my family.” He then thanked his team, and dedicated his award to his wife and co-owner, Margarita Sader. The team cheered and jumped on stage. During an interview streamed on Instagram after the event, Mr. Giannotti said, “I still don’t believe it.”

“Passion! That’s what got us here,” said Mr. Giannotti in an interview posted on the website. “We are so proud. It’s the best recognition we could ever have — for us, for our team and for our clients.”

Ms. Sader, during the Instagram interview, looked at her husband and said, “I’m so proud. I’m so proud.” — JLG


The World’s 50 Best Bars for 2022 are as follows:

1. Paradiso, Barcelona
2. Tayēr + Elementary, London
3. Sips, Barcelona
4. Licorería Limantour, Mexico City
5. Little Red Door, Paris
6. Double Chicken Please, New York
7. Two Schmucks, Barcelona
8. Connaught Bar, London
9. Katana Kitten, New York
10. Alquímico, Cartagena
11. Handshake Speakeasy, Mexico City
12. Jigger & Pony, Singapore
13. Hanky Panky, Mexico City
14. BKK Social Club, Bangkok
15. Salmon Guru, Madrid
16. Drink Kong, Rome
17. Coa, Hong Kong
18. Florería Atlántico, Buenos Aires
19. The Clumsies, Athens
20. Baba au Rum, Athens
21. Café La Trova, Miami
22. Attaboy, New York
23. Satan’s Whiskers, London
24. Tropic City, Bangkok
25. Kumiko, Chicago
26. Sidecar, New Delhi
27. Tres Monos, Buenos Aires
28. Argo, Hong Kong
29. Maybe Sammy, Sydney
30. Swift, London
31. Line, Athens
32. Baltra Bar, Mexico City
33. Manhattan, Singapore
34. Overstory, New York
35. 1930, Milan
36. Dante, New York
37. A Bar with Shapes for a Name, London
38. Zuma, Dubai
39. Locale Firenze, Florence
40. Red Frog, Lisbon
41. Cantina OK!, Sydney
42. CoChinChina, Buenos Aires
43. Himkok, Oslo
44. Carnaval, Lima
45. Galaxy Bar, Dubai
46. L’Antiquario, Naples
47. Employees Only, New York
48. Bar Benfiddich, Tokyo
49. Lucy’s Flower Shop, Stockholm
50. Bulgari Bar, Dubai

PAL flights from Cebu eyed for reopening of Baguio Airport

PHILIPPINE STAR/ MICHAEL VARCAS

THE Civil Aviation Authority of the Philippines (CAAP) on Wednesday said the Baguio (Loakan) Airport may resume commercial operations by the end of the year.

“For CAAP, we will reopen the airport for fixed-wing aircraft operations by the end of October 2022,” Acting Deputy Director General for Administration Danjun G. Lucas told BusinessWorld in a phone message.

CAAP and the Baguio City government are targeting to resume the airport’s commercial operations by the “end of the year,” the agency said in an e-mailed statement.

Mr. Lucas said CAAP has an initial budget of P50 million for the rehabilitation of the airport’s passenger terminal building.

According to the agency, the rehabilitation will also include the improvement of the airport’s instrument landing system and runway extension by 100 meters.

“The rehabilitation will start soonest. We are inspecting the airport now with PAL (Philippine Airlines),” Mr. Lucas added.

CAAP said its officials had a meeting with officials of the Baguio City government, along with the city tourism office, and PAL for the reopening of the Baguio airport.

They hope to launch flights to Baguio from Mactan, Cebu, and vice versa.

“PAL commercial flights would depend on their operational considerations,” Mr. Lucas said.

PAL Spokesperson Cielo C. Villaluna said the airline “will make official announcements in due course.”

The Baguio airport has been closed to commercial flights for more than a decade.

Meanwhile, budget carrier Cebu Pacific announced separately on Wednesday additional flights to Bali, Bangkok, Dubai, Fukuoka, Hanoi, Ho Chi Minh, Hong Kong, Jakarta, Kuala Lumpur, Singapore, and Taipei starting this month.

The airline will also resume its direct Davao-Singapore flight on Oct. 30, which will be followed by the resumption of its flights to Kota Kinabalu on Oct. 31.

“We hope to reopen more flights as we anticipate other countries to ease restrictions soon,” Cebu Pacific Chief Commercial Officer Xander Lao said in an e-mailed statement. — Arjay L. Balinbin

Xiaomi launches flagship 12T Series phones

WWW.MI.COM

XIAOMI on Tuesday launched globally its latest flagship 12T Series smartphones, which feature its new imaging system.

The consumer electronic company said in a statement that both the Xiaomi 12T Pro and 12T come with pro-grade cameras for an “exceptional smartphone photography experience.”

The Xiaomi 12T Pro features a triple rear camera setup with a pro-grade 200-megapixel (MP) main imaging system and the company’s own AI algorithms for improved clarity, better night photography and quick focusing.

“These, together with a variety of other optimizations, allow the capturing of fine details even in low-light conditions, or when shooting fast-moving subjects without losing focus,” Xiaomi said.

The phone’s main camera also has an in-sensor 2x zoom and a large 1/1.22” sensor size for portraits.

The other lenses are an 8MP ultra-wide camera and a 2MP macro lens.

“With Xiaomi ProCut and Ultra burst, Xiaomi 12T Pro helps you intelligently crop and create professional-looking content. To unlock movie-making creativity, Xiaomi 12T Pro supports 8K video in full resolution,” the company said.

The phone also has a 20MP front camera and stereo speakers tuned by Harman Kardon.

The Xiaomi 12T Pro is powered by the Snapdragon 8+ Gen 1 processor and has a heat dissipation system for greater power efficiency. It has a 6.67-inch AMOLED display and is available in several storage and memory options.

Meanwhile, the Xiaomi 12T also comes with a triple lens rear setup: a 108MP pro-grade primary camera, 8MP ultra-wide camera, and 2MP macro camera. The company said these cameras have strong low-light capability.

It has a 20MP selfie camera and a 6.67-inch AMOLED display and comes with 8GB RAM and storage options of 128GB and 256 GB. The phone is powered by a MediaTek Dimensity 8100-Ultra chipset.

Both Xiaomi 12T Series have a 5,000 mAh battery and support fast charging.

“Additionally, with Xiaomi AdaptiveCharge, the devices learn users’ day-to-day charging routines to optimize long-term battery health. Supported by Xiaomi’s long-lasting battery and super charging, users can confidently go anywhere, do anything, and never miss a moment,” the company said.

Both phones come in three colors: Black, Silver, and Blue. Pricing and availability of in the Philippines will be announced soon, Xiaomi said. — BVR

Good coffee, bad coffee: The curious tastes of cultural omnivores

ALFRED KENNEALLY-UNSPLASH

SOME people who love classical music also dance to Celine Dion. Others are craft beer aficionados who also enjoy a cold bottle of mass market beer at the beach. Some love independent movies while indulging in the guilty pleasure of blockbuster franchises and “trashy” reality TV.

Social scientists call these people “cultural omnivores.” Research has shown that these omnivores are economically and culturally privileged people who can enjoy both “highbrow” and “lowbrow” cultural products simultaneously.

As consumer researchers, we’ve looked into the phenomenon of cultural omnivores. We’ve studied coffee consumption in France for seven years. That’s helped us understand how people develop their omnivorous tastes.

France has a well-established coffee culture. Paris’ first cafés opened in the 17th century. Today, cafés are sociable places that welcome people from various social classes. When customers ask for a coffee (usually the cheapest drink on the menu), the waiters bring them a bitter espresso that many would call bad. But despite the coffee’s quality, cafés still remain important cultural institutions.

Over the last decade, many speciality coffee shops have opened in France. Unlike the traditional cafés, these coffee shops use higher quality coffee beans, roasted by artisans and brewed by trained baristas. The coffee comes in numerous variations and complex notes. It is often also twice as expensive as coffee from traditional cafés.

French consumers who were once satisfied with the taste of café coffee first found speciality coffee unfamiliar. But once they gave it a chance, they understood why it tasted better. Still, surprisingly, they continued to go to traditional cafés. To understand why, we first need to look at the “market work” of baristas and the efforts they make to attract consumers to a new market.

Speciality coffee professionals establish specific criteria about what good coffee is and how to make it. These include the balance of flavors, aromatic complexity, precision and skill of creating of a cup of coffee. They also include service interactions like the friendliness of the barista and their ability to give clear information about the beans to customers. These features of speciality coffee are reinforced by organizations like the Speciality Coffee Association and events like barista championships.

Secondly, speciality coffee shops create opportunities to attract customers into their establishment and make them come back. To do this, they play on their curiosity. They might design their space in a unique way or regularly change the coffee beans on offer.

Thirdly, speciality coffee shops educate consumers about the formal qualities of coffee and encourage them to see coffee as more than just a caffeine fix or an opportunity to socialize. To achieve this goal, baristas might present the geographical origin of each coffee, describe its main flavors and explain the difference between brewing methods.

Little by little, consumers come to appreciate coffee like they would a good wine or work of art. They detect the flavors, observe the technical skills of the barista and listen to the information about the origins of beans.

You’d expect that after all this marketing, those who frequent speciality coffee shops would turn their noses up at the coffee sold at traditional cafés. Interestingly, they do not. Cultural omnivores know that “lowbrow” coffee may not be prepared as well or taste as good. However, the taste is not the primary draw for consumers.

For them, the traditional café is still a space to enjoy the culture that surrounds it. A space to get a shot of energy and spend time with friends, colleagues and family. Although omnivores can have a lot of enthusiasm for “highbrow” coffee, they keep appreciating the energizing and socializing experience of “lowbrow” coffee.

Of course, that duality goes beyond coffee. Think about cinema, for example. Omnivores might watch independent films and appreciate their originality and complexity. But they also watch action-filled blockbusters as a way to clear their head after a long day at work.

When it comes to wine, they might drink an expensive wine for its body and structure. But they might also drink a cheap rosé in summer. They might even add an ice cube to it, despite protest from a sommelier.

Omnivores appreciate highbrow activities as aesthetic forms and lowbrow activities as a way to have fun, socialize, and to relax. Switching between different modes of appreciation allows them to form more democratic relationships with different cultural forms and maintain social connections with different social classes.

 

Anissa Pomiès is an Assistant Professor of Marketing at EM Lyon. Zeynep Arsel is Concordia University Chair in Consumption, Markets, and Society, Concordia University. Arsel receives funding from Concordia University and the Social Sciences and Humanities Research Council of Canada.

PAVI Green-PMFTC solar project seen completed next year

PAVI Green Renewable Energy, Inc. said on Wednesday that it signed an agreement with PMFTC, Inc. to install a 7-megawatt-peak (MWp) solar rooftop power system in a plant in Tanauan City, Batangas.

PAVI Green said that the solar project is expected to be completed in October next year, and is projected to reduce carbon emissions by 9,811.2 tons of carbon dioxide, which the company said is equivalent to offsetting carbon by planting 304,147 to 451,315 trees or 1,001,527 gallons of gasoline consumption.

The renewable energy company said that the project will meet the requirement of a 100-hectare manufacturing plant.

The project is part of PMFTC’s sustainability effort under its Zero Carbon Technology (ZCT) program.

The program aims to explore the use of alternative technological solutions including solar photovoltaics to reach carbon neutrality in its operations by 2025.

“We are confident that through our partnership we will be able to reach our carbon neutrality goals by 2025,” Nicolas Souvlakis, PMFTC manufacturing director, said in a media release.

Earlier this year, the Department of Energy awarded a 40.4-megawatt (MW) solar power plant project to PAVI Green. Upon the project’s implementation, it is expected to energize around 15,000 households.

The company is also working on the development of a 20-MW solar project in Bataan that is expected to be completed this year, a 26-MW scalable to 75-MW project in Camarines Norte, and a 50-MW scalable to 75-MW project in Naga City. — Ashley Erika O. Jose